The focus of the Apax sustainability effort has been on the implementation of a proprietary software solution to monitor, track and report on the environmental, social and governance performance of the Apax Partners portfolio companies.
A key feature of this programme is an annual data collection cycle designed to highlight each portfolio company’s performance in its key areas of risk and opportunity. The proprietary software facilitates and streamlines the data capture of the KPI information and additionally functions as a central repository for ESG information and its related supporting documentation across the portfolio.
Once this bespoke software is implemented, each Apax portfolio company is able to maintain, track and record its own ESG data and to additionally tailor specific KPIs, if needed. For Apax Partners, the key benefit of this project is that it affords significant visibility and relevant data capture which in turn drives improvement of the ESG footprint across the overall Apax portfolio, as well as within each individual portfolio company; critically, the Firm is able to provide this information to LPs on an ongoing basis.
A set of general key performance indicators (“KPIs”) across environmental, social and governance areas has been developed, which allows Apax to gather qualitative and quantitative data from its portfolio companies; in so doing, Apax is able to provide transparency on the portfolio’s ESG footprint to the Firm’s investor base.
An overview of the office accommodation footprint and details of any building environmental certifications in place
Current energy consumption, data availability and any energy efficiency measures, date centre PUE metrics and energy efficiency improvement
Office waste management and any recycling initiatives
Overview of current procurement/purchasing approach and processes for office equipment, IT equipment
Staff travel, video-conferencing
Overview of legal requirements/labour laws relating to staff health & safety, risk management arrangements
Discussion of any obligations relating to part-time/contract personnel, immigration controls etc.
Discussion of any existing employee engagement/incentivisation or social/community programmes
Freedom of association/workers unions
Minimum age/minimum wage restrictions
Ethical conduct/Codes of practice
Bribery/Anti-corruption: policies, training, procedures, whistle-blowing hotline etc.
Responsible marketing and sales policies and procedures, training, advertising standards etc.
Contracting policies and procedures
Business partnerships/supply chain due diligence policies
Personnel - background checks/screening processes
Internal audit functions
Capturing value and on-going monitoring
Define the risks and opportunities in each investment
Develop a strategy to help customers capture value from the sustainability attributes of their product
Monitor customer/product portfolio for reputational risk
Develop a strategy for responding to customer requests on sustainability strategy/performance
Inform the 100-day plan
Monitor management accountability within the portfolio company