Climate Change Data

Permira Holdings Limited

Climate Impact & Sustainability Data (2017, 2020, 2023)

Reporting Period: 2017

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Improved energy efficiency programs resulting in cost savings (example from Dr. Martens case study)
  • Dr. Martens sourced 96 percent of its leather from LWG medal certified tanneries in 2015

Social Achievements

  • Dr. Martens covered 20,500 first-tier supplier employees under its Supplier Code of Conduct in 2016
  • 70 percent of Tier I footwear suppliers were audited in 2015-16 for Dr. Martens
  • Improved health and safety resulting in cost benefits (example)

Governance Achievements

  • Dr. Martens formed a sustainability committee reporting to the board
  • Permira uses a data management system to collect ESG indicators from portfolio companies

Climate Goals & Targets

Environmental Challenges

  • Identifying and assessing material ESG risks and opportunities in the due diligence process
  • Ensuring consistent ESG reporting across diverse portfolio companies
  • Meeting varying investor expectations regarding ESG information
Mitigation Strategies
  • Developed an ESG framework in 2010 and an ESG group
  • Engages external advisors and conducts site visits when necessary
  • Works collaboratively with management teams to identify and implement ESG initiatives
  • Uses a data management system to collect and report ESG data
  • Developed a reporting format highlighting key ESG areas and certifications

Supply Chain Management

Supplier Audits: 70 percent of Tier I footwear suppliers audited for Dr. Martens in 2015-16

Responsible Procurement
  • Supplier code of conduct
  • Long-term relationships with key suppliers
  • Use of third-party auditor (Impactt)

Climate-Related Risks & Opportunities

Opportunities
  • Energy efficiency programs

Awards & Recognition

  • BVCA Responsible Investment Award in 2012

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1,652.5 tCO2e (2020)

ESG Focus Areas

  • Climate change
  • Diversity and Inclusion
  • Cyber security

Environmental Achievements

  • Reduced GHG emissions by 67% in absolute terms (73% considering business growth) since 2018. London office refurbished to BREEAM Excellent standards.
  • Joined Initiative Climat International

Social Achievements

  • Established Permira Relief Fund supporting over 150 charities and portfolio company employees.
  • Expanded ESG portfolio KPIs to include racial diversity.
  • Increased female representation in new hires (40%) and investment professionals.
  • Launched a leadership program for Principals and Managing Directors focusing on inclusive leadership.

Governance Achievements

  • Formed a new ESG Group for Permira Credit.
  • Implemented mandatory cyber due diligence for new investments and third-party cyber security monitoring for existing portfolio companies.
  • Developed new ESG Guidelines for portfolio companies.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (implied)
Medium-term Goals:
  • Further integrate climate risks, address diversity and inclusion, and further monitor cyber security.
Short-term Goals:
  • Deepen climate, diversity and cyber security portfolio monitoring.

Environmental Challenges

  • COVID-19 pandemic impacting portfolio companies and operations.
  • Need to improve data collection and analysis on climate change and diversity across the portfolio.
  • Cyber security threats in a increasingly virtual world.
Mitigation Strategies
  • Established Permira Relief Fund.
  • Improved and scaled ESG data collection processes and dashboards.
  • Undertook a detailed climate risk assessment across portfolios.
  • Implemented external third-party cyber monitoring of the private equity portfolio and crisis management training.

Supply Chain Management

Responsible Procurement
  • Suppliers assessed for ESG approach and performance during tender and throughout the relationship. Modern slavery risk surveys conducted.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN PRI

Certifications: CarbonNeutral® (since 2018)

UN Sustainable Development Goals

  • UN SDG Goals 1, 2, 8, 10, 13

Carbon offsetting contributes to these goals.

Awards & Recognition

  • British Private Equity & Venture Capital Association (BVCA) Responsible Investment Award (2012)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:22,328 tCO2e (scope 1-3)
Scope 1 Emissions:106
Scope 2 Emissions:4
Scope 3 Emissions:22,222
Renewable Energy Share:32%
Carbon Intensity:44 tCO2e per employee (scope 1-3)

ESG Focus Areas

  • Governance of ESG
  • Climate
  • Board gender diversity

Environmental Achievements

  • 77% reduction in scope 1 & 2 GHG emissions since 2022
  • 12% increase in the number of offices sourcing renewable energy since 2022
  • 13% portfolio coverage from five eligible portfolio companies with SBTi-validated targets (19% of equity value). An additional four eligible companies formally committed to set SBTs (another 13%)
  • 73% of companies reported scope 1 and 2 GHG emissions
  • Proportion of companies measuring GHG emissions (scope 1-3) increased to 61%
  • 67% of the buyout funds’ portfolio procured or generated renewable energy (average 32% renewable energy consumption)

Social Achievements

  • Launched a DEI mission statement
  • Conducted diversity self-identification survey
  • Launched new maternity leave charter
  • Rolled out new family digital health platform
  • Hosted internship programmes for diverse talent
  • 88% of companies conduct an employee engagement survey at least bi-annually (average score 70%, average response rate 79%)
  • 57% of companies have a dedicated diversity & inclusion steering committee
  • 22% average female board representation percentage

Governance Achievements

  • Embedded our Values-based Investing Framework for Permira VIII (P8)
  • Developed Permira’s Science-Based Targets (SBTs)
  • 65% of companies have an overarching ESG / sustainability policy
  • 86% of companies reported material ESG issues to the board in the past 12 months
  • Classified PCS5 and PSO1 as Article 8 under SFDR
  • Executed 6 further ESG margin ratchets (8 total)

Climate Goals & Targets

Long-term Goals:
  • Reduce scope 1 and 2 emissions by 70% by 2030, and for 100% of eligible portfolio companies to set SBTi-validated targets by 2040
Medium-term Goals:
  • 35% of eligible portfolio companies to set SBTi-validated targets by 2027, and 100% by 2040
Short-term Goals:
  • Stewarding portfolio company value creation and focusing on our ESG-related targets, including P8 targets and SBTs
  • Improving ESG focus in ‘exit readiness’ preparations for portfolio companies

Environmental Challenges

  • Improving ESG focus in ‘exit readiness’ preparations for portfolio companies
  • Low number of companies reporting data on non-binary employees
  • Need to improve gender diversity at senior levels
  • Managing increasing cyber security risks
Mitigation Strategies
  • Developing guidance and tools to support portfolio companies on ESG priorities
  • Partnering with Paradigm to roll out use of the Blueprint tool for DEI programs
  • Establishing a CHRO network to share best practices
  • Partnering with Jupiter Intelligence for climate risk screening
  • Using real-time, external, third-party cyber monitoring

Supply Chain Management

Responsible Procurement
  • Supplier code of conduct
  • ESG criteria in preferred hotel selection

Climate-Related Risks & Opportunities

Opportunities
  • Investment opportunities across the climate transition value chain

Reporting Standards

Frameworks Used: TCFD, PRI, SBTi, EDCI

Awards & Recognition

  • BVCA Responsible Investment Award
  • BVCA Excellence in ESG award