Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched a carbon offsetting program for North American portfolio companies' FedEx small parcel shipping, offsetting 7,560 metric tons of CO2e in six months.
• Greenwich HQ received LEED Platinum® certification in 2019.
• Paris regional headquarters is LEED Gold® certified.

Social Achievements

• Became founding signatories to the CEO Action for Diversity and Inclusion in 2017.
• Expanded Women’s Initiative Committee into a global Diversity and Inclusion Committee.
• Partnered with “Great Place to Work®” to improve employee satisfaction.
• 42% of 33 investments since 2015 were in companies with diverse founders/CEOs.
• Latin America fund accepted as a Flagship Fund for the 2X Challenge.

Governance Achievements

• Adopted a formal ESG policy in 2015.
• Engaged Malk Partners as leading ESG advisor.
• Established a Global ESG Committee.
• 100% of portfolio companies underwent cybersecurity diligence since 2019.
• 75% of portfolio companies maintain a Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Cybersecurity and compliance risks in global operations
• Maintaining ethical business practices across diverse global operations.

Mitigation Strategies

• ESG due diligence reviews for all investment opportunities.
• Customized action plans with portfolio companies to address ESG concerns.
• Annual ESG questionnaires for portfolio companies.
• Partnerships with Agio and ACA Aponix for cybersecurity.
• Global compliance program with annual training and third-party audits.
• Code of Ethical Business Conduct and anonymous hotline for reporting concerns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG due diligence reviews of suppliers.
• Emphasis on ethical sourcing and sustainable practices.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of sustainable products and practices.

Reporting Standards

Frameworks Used: UN PRI, AIC guidelines, ILPA guidelines

Certifications: LEED Platinum®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity & Equal Employment Opportunity
• Product and Food Safety
• Ethics and Compliance
• Anti-Bribery & Corruption
• Environmental Management
• Climate Change
• Data Privacy and Security
• Social and Labor Conditions
• Worker Health and Safety
• Sustainable Branding
• Supply-Chain Social and Environmental Management

Environmental Achievements

• Offset over 13,000 tonnes of CO2e to support initiatives including Paradigm Cookstoves, Alleghany Urban Forestry, and Shaan Seelt Forestry.
• Greenwich, CT global headquarters received LEED Platinum certification.
• London office achieved Fitwel certification.
• New York City office expected to be LEED Gold certified by 2023.
• Launched a program to offset emissions from FedEx and UPS small parcel shipping for North American portfolio companies.

Social Achievements

• Selected female candidates for approximately 50% of all new hires.
• Appointed 17 (of 21) diverse independent Board of Directors on L Catterton boards.
• Achieved 2021 Great Place to Work© (GPTW) certification.
• Partnered with local charitable organizations.
• Launched PRISM, a board development program for diverse executive leaders.
• Partnered with Him for Her to expand L Catterton’s network of diverse executives.
• Became a founding member of Ownership Works.

Governance Achievements

• Formalized global ESG policy based on principles of the UN Principles for Responsible Investment (UN PRI) and the American Investment Council Guidelines for Responsible Investment (AIC Guidelines).
• Signed UN PRI.
• Expanded ESG Committee.
• Conducted ESG training for 100% of workforce.
• Completed ESG annual monitoring engagements for 12 portfolio companies with Malk Partners.
• Engaged Persefoni to support the Firm’s climate program.
• Joined the Data Convergence Initiative.

Climate Goals & Targets

Environmental Challenges

• Limited responses from portfolio companies to ESG surveys.
• Challenges in achieving full ESG data coverage across the global portfolio.
• Supply chain disruptions and other challenges faced by portfolio companies.

Mitigation Strategies

• Continued engagement with Malk Partners for ESG diligence and annual monitoring.
• Launched partnerships with Persefoni and Tablecloth to enhance ESG data collection and analysis.
• Developed and implemented ESG Plans for real estate projects.
• Provided support to portfolio companies in navigating ESG opportunities and challenges.

Supply Chain Management

Supplier Audits: 43% YoY increase in monitoring of supplier ESG performance in 2021.

Responsible Procurement

• ESG due diligence reviews of suppliers.
• Encouraging portfolio companies to adopt sustainable practices.

Climate-Related Risks & Opportunities

Physical Risks

• Drought (mentioned in relation to South Bay Social District project)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of sustainable products and services.

Reporting Standards

Frameworks Used: UN PRI, American Investment Council Guidelines for Responsible Investment, Greenhouse Gas Protocol, Partnership for Carbon Accounting Financials (PCAF)

Certifications: LEED Platinum (Greenwich HQ), Fitwel (London Office), LEED Gold (expected for NYC office)

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 15

Initiatives aimed at reducing resource consumption, promoting circular economy, combating climate change, and enhancing biodiversity.

Sustainable Products & Innovation

• Investments in alternative protein and plant-based food companies (NotCo, Aleph Farms, Wildtype, Planted).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Supply Chain Management
• Social and Labor Conditions

Environmental Achievements

• 20% of portfolio companies awarded environmental certifications
• 16,334 tCO2e GHG emissions offset with Bluesource
• Offsetting greenhouse gas emissions from small parcel shipping through FedEx and UPS for North American portfolio companies.
• Partnership with Citizens Bank in a pilot carbon offset program

Social Achievements

• Launched PRISM program, with 20 female executives participating in its second year; three from the first cohort secured board positions.
• Supported portfolio companies in achieving B Corp certification (4 companies)
• Continued partnership with Him for Her to expand network of diverse executives
• Became a founding member of Ownership Works

Governance Achievements

• 100% of employees completed ESG, cybersecurity, ethics and compliance, and anti-discrimination training.
• Engagement with Independence Point Advisors to advise portfolio companies on ESG strategy for IPO readiness.
• Joined the ESG Data Convergence Initiative (EDCI)

Climate Goals & Targets

Environmental Challenges

• Measuring and reducing carbon emissions across a large portfolio
• Ensuring consistent ESG practices across diverse portfolio companies and geographies
• Balancing financial returns with ESG goals

Mitigation Strategies

• Partnering with Malk Partners for ESG due diligence and monitoring
• Providing ESG training and advisory services to portfolio companies
• Developing a multi-faceted approach to climate change mitigation
• Using Persefoni to track carbon footprint

Supply Chain Management

Supplier Audits: 214 social audits conducted in 2022-2023 (AWWG)

Responsible Procurement

• Supplier Code of Conduct (AWWG)
• Ethical and Transparent Sourcing Programme (AWWG)
• Third-party audits (AWWG)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (UN PRI), B Corp

Certifications: B Corp, LEED Gold and WELL Silver (Shibuya Upper West Project)

UN Sustainable Development Goals

• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth

Crediclub's focus on financial inclusion for women

Sustainable Products & Innovation

• Kernza flapjack mix (Kodiak)
• Eco-Knit sneakers (Kokolu)

Awards & Recognition

• Private Equity Wire’s 2022 award for Best Corporate Sustainability Strategy (GANNI)