The Apax investment sectors are not focused on heavy industries but predominantly on services, retail, technology and digital businesses.
The Apax Fund portfolio consists of a large number of “asset light” businesses which do not have a significant environmental impact. The majority of the resource usage is reported by a small number of companies. In 2014 85% of CO2 emissions were generated by only 7 portfolio companies. And of these 2 have been sold in H1 2015 thereby reducing the CO2 footprint of the portfolio by 27%.
On a like for like basis (excluding the two recently exited portfolio companies) there has been a decrease of 31,222 tons eq. across a core group of 15 companies, mainly due to the fact that several portfolio companies were more comprehensive in their energy data capture in 2014 than 2013.
The Apax Funds’ portfolio is focused on reducing its global environmental impact – with over 84% of portfolio companies reporting in 2014 that they have energy reduction initiatives in place versus 67% in 2013.
The portfolio’s environmental stewardship initiatives will help protect the planet while improving efficiency, reducing costs and preserving their ability to do business in the future. Sustainability is not just the right thing to do, it can also boost innovation and profitable growth. This is why Apax clearly sees it as a key differentiator and a competitive advantage.
Breakdown of CO² emissions
Examples of environmental initiatives
Across the Apax Funds’ portfolio, we have a high number of initiatives in place that reduce complexity, waste and energy consumption. These initiatives range from: reducing electricity usage via replacing traditional light bulbs to led, reducing paper usage by setting default double sided printing in all of the offices and reducing water usage by investing in low flow fixtures, auto shut off faucets and other water reducing features.
At Apax we realise that good corporate governance is the foundation of effective corporate management. For us, corporate governance means the application of international and national values and principles of responsible and transparent company management and control that are geared towards sustainable added value.
We target full compliance with the laws and regulations of each country in which we operate, as well as with international standards. It is the necessary condition for our engagement with society. We are convinced that good corporate governance strengthens the trust placed in Apax Funds’ portfolio companies by their business partners and employees and also by Apax Funds institutional investors. Robust corporate governance systems are in place across the Apax ESG group. Virtually all companies have a code of conduct and/or a code of ethics which guides their business activities. All companies have anti-corruption/ anti-competition processes in place which are monitored regularly. Portfolio companies that are new to Apax Funds’ or which have historically had less focus on governance are actively encouraged to adopt appropriate codes and processes.
Improved governance and policy implementation
Each year a number of new companies which do not have an appropriate governance or risk management structure in place are added to the portfolio. The OEP and the Compliance Group work together to address specific opportunities for enhanced policy implementation or risk management in areas like anti- corruption and money laundering for these companies and also for the broader portfolio.