Apax Partners has a well-defined Corporate Responsibility policy which is guided by its fundamental values (Integrity, Stewardship, Community, People and Relationships).
Since adoption of the PRI Principles, sustainability has been embedded in Apax’s investment process as a tool to help release the full potential of the businesses in which Apax funds invest. This means that issues relating to sustainability are raised at an early stage in any potential investment opportunity and are monitored throughout Apax’s ownership of the company.
The Firm coordinates its sustainability efforts through a Sustainability Committee consisting of four members from different functions within the Firm. The committee meets on a monthly basis and reviews all matters relating to Apax’s internal and external sustainability related activities; the committee ensures that implementation of sustainability matters is achieved across the investment team, the Apax portfolio and the Firm.
The rigorous RobecoSAM assessment process has recognised the efforts made by Apax Partners in driving the adoption of ESG parameters in its investment process and strategy over the years by awarding it ESG leadership status in its 2014 assessment round.
Pre-investment activity focuses on the identification of ESG risks, the company’s ability to manage ESG considerations and its performance related to ESG in the past.
Environmental, Social and Governance (ESG) due diligence for each new investment made by the funds. The due diligence is based on a detailed questionnaire which has been drawn up to cover the ESG areas which Apax believes are key to understanding the ESG profile of the company in which the funds are considering an investment.
The outcome of the ESG due diligence review is presented to and reviewed by the Apax Investment Committee prior to each new commitment and areas of risk and opportunity are highlighted by the respective investment teams. The objective is to create a high degree of awareness upfront with regards to potentially relevant ESG issues which can contribute to value creation at a very early stage of ownership of the company.
Following the successful roll out of the pre-investment ESG diligence into the Firm’s processes, portfolio company specific ESG issues are managed on a day-to-day basis by the companies themselves, using an innovative sustainability software system.
The software facilitates key KPI data collection across ESG areas for each portfolio company. Once established, the system is designed to be self-sustaining and self-governing on the part of the portfolio companies, allowing each to take full responsibility for their respective ESG policies.
Apax investment team members are involved in ESG matters when they are tabled during Board meetings for the companies for which they are responsible. In addition, Apax investment partners are required to sign an annual Statement of Representation attesting that the portfolio company complies with its local regulatory framework and there is no awareness of any sustainability issues. Apax reports to its LPs on a semi-annual basis in a detailed manner and includes a section on latest sustainability developments for each company.