Sustainability in our portfolio

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. For example, out of 20 companies which provided data to calculate CO2 emissions, 5 account for 75% of all reported CO2 emissions in 2013.

On a combined basis, CO2 emissions for the 2013 ESG Group have gone down by 225,000 tons eq compared to 2012. This due to the fact that the Apax Europe VII portfolio company Tnuva is no longer part of the data collection cycle given its impending sale to Bright Foods of China. The portfolio companies added to the 2013 ESG Group have a far lower resources usage profile. On a like for like basis there has been an increase of 67,000 tons eq. across a core group of 16 companies, mainly due to the fact that several portfolio companies were more comprehensive in their energy data capture in 2013 than for 2012.

The Apax Fund portfolio is focused on reducing its global environmental impact – with the majority of companies having improvement initiatives in place. 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 we clearly see it as a key differentiator and a competitive advantage.

Breakdown of CO² emissions

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Examples of environmental initiatives

 

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The ESG Group workforce stood at 168,000 full time employees at 31.12.2013. Due to the movement in the ESG Group, with new additions to the portfolio and a number of companies not contributing comparable data, it is not possible to draw a straight comparison across the ESG Group between 2012 and 2013. Like for like growth in employees stood at 3% or 4,300 FTE’s from a core group of 19 companies; 6 new companies in the portfolio brought an additional 26,000 FTE’s.

Breakdown of employees

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Gender balance

The workforce was split 55% female and 45% male at year end 2013, with 61% or 14 companies reporting to have a diversity policy in place and workers councils active at 11 companies. In 2013, 100% of Apax portfolio companies reported that they complied with local labour regulations.

Examples of social impact initiatives

Across the ESG group, a number of companies have put in place initiatives to improve their and their employees' social position by improved training programmes, performance management systems and improved career development practices.

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The Apax ESG Group contains a number of very large employers. Three companies each employ over 25,000 FTE’s and six companies combined account for over 70% of the overall ESG Group workforce with the remaining 30% of the workforce employed by 19 other portfolio companies.

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 the Apax Funds portfolio companies by their business partners and employees and also by our institutional investors.

Robust corporate governance systems are in place across the Apax ESG group. Virtually all but one company 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.

Public recognition

A number of the Apax portfolio companies have received public recognition for their activities and focus on corporate citizenship:

Psagot achieved a maximum “platinum” rating in the Israeli Ma’ala ranking. Psagot is the only private company in the insurance and finance sector in Israel to have received this rating. The score that the company was awarded in 2012 is higher than the average in the category. Ma’ala is Israel’s leading advocate for CSR and good corporate citizenship.

New Look won PETA UK’s Most Stylish Women’s Vegan Outerwear Award, which aims to showcase the best cruelty-free contributions to the fashion world. New Look also won the Global Sustainability TVE film awards 2012 in the Good Governance category for its film about the company’s work to improve conditions and wages in a factory in Bangladesh.