Portfolio monitoring

The focus of the Apax sustainability effort has been on the implementation of a 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 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 the software is implemented, each Apax portfolio company is able to maintain, track and record its own ESG data. 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.

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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.

Environmental

Environmental

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

 

Social issues

Social issues

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

Gender/diversity/anti-discrimination

Benefits/health insurance

 

Governance issues

Governance issues

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

 

 

BMI

I Gate

New -look

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