Three Hills Capital Partners
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate change adaptation & mitigation
- Circularity
- Learning & development
- Health & safety
- Data protection
- Board independence
Environmental Achievements
- 100% of purchased electricity in London headquarters certified by the Carbon Trust and met the GHG Protocol Scope 2 Guidance Quality Criteria. Since 2019, energy consumption and business travel carbon footprint offset.
- 100% of office waste diverted from landfill and destined to recycling, refuse derived fuel and anaerobic digestion.
- 33% reduction in direct carbon emissions across CareTech UK operations (vs 2021 baseline).
- Castellet Hospitality: Achieved Green Key certification for 6 hotels, aiming for full portfolio certification by 2025. Reduced water consumption from 80,090 m3 in 2022 to 107,166 m3 in 2023. Reduced GHG emissions from 280.89 tCO2eq in 2022 to 378.52 tCO2eq in 2023.
- Recycling Lives Services adopted a digital carbon accounting platform and is working with SBTi to re-certify decarbonisation targets.
Social Achievements
- Launched inaugural impact investing strategy (Article 9 under SFDR), focused on people, planet, and progress.
- Opened New York office.
- Welcomed additional Operating Partner to UK office.
- Implemented mandatory impact training curriculum for Three Hills team.
- CareTech: Rolled-out CARE4 One Planet Living programme. Significant reductions in short-term (-39%) and long-term (-5%) employee absence.
- Castellet Hospitality: Maintained positive gender diversity (70% women in management), low gender pay gap (<3%), updated employee incentive scheme including ESG targets.
- SEC Newgate: Implemented Human Resources Management System focused on D&I, certified to ISO 30415:2021, introduced training curriculum and D&I hotline.
- Goal Systems: Formally adopted an Equality Plan with KPIs to assess performance.
- IMS: Nominated internal People Executive Committee for employee engagement and remuneration.
- Borealis: Updated training platform.
- Kernel Global: Launched Classroom to Boardroom Foundation.
- Sabatino: Implemented employee benefit package including health insurance, retirement plans and additional holidays.
- LCap: Established benefit package for all employees, including healthcare services, leisure activities and additional holidays.
- Digital 360: Supported social projects to promote inclusion of vulnerable groups into the labour market through digitalisation.
- Three Hills: Launched a global Employee Assistance Programme.
Governance Achievements
- Three Hills received improved UNPRI score (average 85/100).
- Sec Newgate UK achieved B Corp certification.
- Three Hills achieved B Corp certification (126 points).
- Established a five-person ESG Hub to advance sustainability agenda.
- CareTech: Strengthened ESG governance through nomination of internal ESG Committee and CARE4 Leadership Group.
- Castellet Hospitality: Formally implemented ESG Roadmap and nominated internal ESG Committee.
- Digital 360: Implemented information security management systems in six Group companies, achieving ISO 27001 certification.
- Sabatino: Implemented anti-bribery and whistleblowing policies.
- LCap: Formalised Group’s policy booklet.
Climate Goals & Targets
Long-term Goals:
- Achieve Net Zero emissions by 2050 (CareTech).
Medium-term Goals:
- Achieve Net Zero emissions by 2050 (CareTech).
Short-term Goals:
- Deploy capital to address Europe’s social and environmental challenges through attractive and innovative business models.
- Support portfolio companies in complying with annual disclosure requirements (mandatory from 2026).
Environmental Challenges
- Ongoing macroeconomic and geopolitical challenges (Covid-19 pandemic, war in Ukraine, inflation, supply chain disruptions).
Mitigation Strategies
- Building more resilient businesses.
- Deploying capital to address social and environmental challenges.
- Strengthening internal assessment and measurement for better performance management.
- Supporting portfolio companies in harmonising ESG standards and data collection processes.
Supply Chain Management
Responsible Procurement
- Updated procurement policy to include sustainability requirements (CareTech).
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SFDR, SASB, EDCI, GICS, UN SDGs, GHG Protocol
Certifications: B Corp, ISO 27001 (Digital 360), ISO 30415:2021 (SEC Newgate), Green Key (Castellet Hospitality)
UN Sustainable Development Goals
- SDG 7 (Affordable and clean energy)
- SDG 12 (Responsible consumption and production)
- SDG 13 (Climate action)
Investments in renewable energy, resource efficiency, and carbon reduction initiatives.
Awards & Recognition
- Italian Legal Community Sustainability Awards (2023)