Sustainability Screening Programme
The aim of the Apax Sustainability Screening Programme is to
systematically assess each company and quantify the value that can
be created. In each case, the entire value chain of the business is
reviewed as the deal teams look for efficiency in areas such as the
reduction of transportation, waste and pollution costs, and for the
optimal use of human resources and knowledge.
The programme consists of high level screening of the company
against the Environmental, Social and Governance ('ESG') dimensions
relevant for the specific sector in which it operates. This screen
is in addition to the pre-signing due diligence work and is applied
to all new majority owned investments regardless of whether there
has been any risk assessed within the business. The screen will
usually take place in the period between the signing and closing of
the investment. It is intended to inform the key sustainability
projects which will be incorporated into the portfolio company's
100-day plan and which will continue through the lifetime of the
investment.
It is important to note that the screen has three key
benefits;
- It allows the Apax deal teams to understand where there are
potential sources of future value within a business through an ESG
lens
- It identifies issues and risks which will need to be addressed
during the ownership period
- The screen provides the platform for on-going monitoring of the
company
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
 |
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
 |
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
|
Based on these findings, we can then define the primary risks
and opportunities for that investment and assist with defining a
strategy to capture value from sustainability attributes and to
monitor on-going progress.