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ESG is in our DNA

Private equity goes beyond providing capital. We see responsible investment as a force for good, a positivity born of making strong returns in the right way. We strive to build sustainable businesses that beat a path to economic growth, prosperity, and wellbeing, long into the future.

Businesses under our ownership achieve sustainability advances alongside profit growth and shareholder value creation. Proactive ESG management results in a positive, inclusive company culture with higher levels of employee engagement and productivity, operational paybacks, reduction in negative environmental impact, a resilient and transparent supply chain and improved customer experiences.

0
100
%

have taken steps to reduce energy use and carbon emissions

0
73
%

took steps to reduce emissions associated with business travel

0
78
%

of those with high volume purchasing have a defined ESG screen process in place

0
79
%

have below national average employee absence rates

0
3400

hours employees spent supporting local communities and charities

0
75
%

of companies have one or more women on the main board of directors

ESG leadership

We are very proud to be the leading mid-market GP for ESG excellence. We enter our second decade of advancing our responsible investment approach through embedding ESG strategies and evaluation methods within our portfolio companies and our own business. Feedback and recognition from the industry tells us we go far beyond the standard ESG requirements evidenced by the awards ourselves and portfolio companies have won.

WINNER

Responsible Investor of the Year 2020

WINNER

ESG Champion 2020

Evolving our responsible outlook

Climate change is one of the biggest threats to our planet and the global economy. We have evolved our ESG methods further to provide support to our portfolio on carbon management and climate change resilience.

We became members of the first international network of Initiative Climate International (iCI), committing to engaging with private equity backed companies globally to reduce carbon emissions intensity and secure sustainable investment performance. Read more Private Equity Action on Climate Change.

We have integrated diversity and inclusion further into our ESG framework, with particular focus on creating a better gender balance across our portfolio and within our own business. 70% of the portfolio now have female representation on the board – up from 43% in 2017 and well above the national average. We launched our first portfolio Gender Diversity forum with the aim to encourage collaboration and inspire and educate business leaders and directors on strategies and tactics to improve gender equality within business. Read more Creating a Better Gender Balance forum.

Embedding ESG excellence across our portfolio

As we enter our second decade of ESG leadership, it is this consistent track record coupled with year on year transparent portfolio reporting and collaboration with management teams that enhances our portfolio ESG performance above others.

Sustainability, wellbeing, and business ethics form part of our ongoing Board agenda. At the outset of an investment, each company undergoes an ESG baseline review. The ESG review is based around a ‘Six Pillar’ strategy aligned to key performance indicators, measured against outcomes. ESG performance is continuously reviewed

As part of our commitment to achieving ESG excellence, we have a dedicated ESG manager who closely advises each portfolio company and helps with ongoing monitoring and performance assessments. Our ESG manager is responsible for reporting to each Board on the ESG outcomes and value created which helps to inspire and motivate management and their teams.

ECG Case Study

Verdant Leisure

ESG reporting

Our annual ESG investor report is in its nineth year of publication. Year on year portfolio progress is analysed and evidenced. Actions and outcomes achieved by each company are highlighted. Results are published and evidenced through KPIs and case studies. We detail the areas of focus for the coming year to accomplish advances and highlight the ESG journey during our ownership for companies that have exited that year.

The Alchemist – ESG Transformation

At the top of our agenda is transformation in ESG management. Palatine is a perfectly placed investor to support our brands given the team’s strong ESG know-how and track record. The team contributes ideas, highlight opportunities and provide rigorous monitoring which has helped our management team and staff to achieve significant strides in ESG.

Paul Campbell – Non-Executive Director
The Alchemist and Gusto