Sustainability in our portfolio

The Apax investment sectors are not focused on heavy industries but predominantly on services and technology businesses.

The Apax 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 19 companies which provided data to calculate CO2 emissions, 5 account for 74% of all reported CO2 emissions in 2012 (Epicor, Garda, New Look, iGate and Tnuva).

The Apax portfolio is focused on reducing its global environmental impacts – from the sourcing of raw materials, to the manufacture and distribution of products, to the use and disposal of products by consumers, patients, and providers. 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.

Across our 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.

Breakdown of CO² emissions

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Examples of environmental initiatives

 

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The Apax ESG group (see below) employs a large and very diverse workforce of 166,000 FTEs worldwide. The Group contains a number of very large employers, each employing over 25,000 full time employees, and a few small employers employing less than 1,000 FTEs. Across the board our portfolio companies strive to foster strong employee engagement and develop the qualifications and expertise of their employees with career development programmes and training. A growing number of employees are seeking more flexibility in how they balance work with the rest of their lives, for example, childcare responsibilities. A number of our portfolio companies are now exploring options for offering flexible work schedules, part-time work and telecommuting.

Breakdown of employees

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Gender balance

The workforce was split 54% female and 46% male at year end 2012, with 34% of companies reporting having a diversity policy in place. 14 companies reported having employee representation in place and 85% reported compliance with local labour regulations.

Examples of social impact initiatives

Across the ESG group, a number of companies 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 group of companies that provided KPI data is referred to as the Apax ESG group, consisting of: Auto Trader, Capio, Epicor, Farmafactoring, Garda, GHG, Golden Jaguar, iGate, KCI, New Look, Orange CH, Paradigm, Plantasjen, Psagot, Sisal, Sophos, Takko, Tivit, Tnuva, Trader Canada, Travelex, Unilabs.

The Apax ESG group generated approximately US$ 21 billion (€16 billion) in global revenues and US$ 4 billion (€3 billion) in EBITDA and employed 166,000 FTE by year-end 2012. It represents a cross section of the key Apax investment sectors: Consumer, Healthcare, Services, Tech & Telco.

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 our 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. Almost 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 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 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.