Climate Change Data

Linzor Capital Partners

Climate Impact & Sustainability Data (2022, 2023-2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:119.1 tCO2e (2021)
Renewable Energy Share:24% (LCP III Total 2021)
Carbon Intensity:19 tCO2e/$mm Revenues (LCP III 2021)

ESG Focus Areas

  • Financial Inclusion
  • Higher Education
  • Specialized Healthcare
  • Access to Technology
  • Climate Change
  • Gender Equality

Environmental Achievements

  • 76% reduction in operational emissions relative to 2019 due to reduced business travel.
  • All LCP III portfolio companies track Scope 1, 2, and some Scope 3 emissions.
  • Low weighted average carbon intensity of the portfolio relative to MSCI benchmarks.
  • Adherence to the Net Zero Asset Managers Initiative.

Social Achievements

  • Increased percentage of women in the workforce to 43.2%.
  • Launched a new HR policy with guidelines addressing junior employees’ wellbeing.
  • First Firmwide Community Service Day in Chile and Mexico.
  • Donations to various NGOs and community initiatives.

Governance Achievements

  • Established an ESG & Impact Committee composed of Linzor professionals and external experts.
  • Integrated ESG considerations into each step of the investment process.
  • Compliance with regulations and ethical standards, including anti-corruption policies and whistleblower protection.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (aligned with Net Zero Asset Managers Initiative).
Medium-term Goals:
  • By 2030, all control private equity investments will set science-based targets within the first 12 to 18 months of ownership.
Short-term Goals:
  • Refine emission calculations and develop a detailed emission reduction and offset plan.

Environmental Challenges

  • Data collection challenges for certain ESG indicators.
  • Limited budgets for dedicated sustainability departments in portfolio companies.
  • Gender imbalance in the investment team and portfolio company board members.
  • Measuring financed emissions for Engen Capital.
Mitigation Strategies
  • Using alternative measurement methods where feasible.
  • Working groups formed by senior management and Linzor deal team members.
  • Implementing a Gender Diversity Action Plan.
  • Engen Capital working with advisors to produce estimates for financed emissions.

Supply Chain Management

Responsible Procurement
  • ESG considerations in supplier selection.
  • Electronic invoicing policy (Farmashop).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of specialized financing for green equipment (Engen Capital).

Reporting Standards

Frameworks Used: UN SDGs, SASB, GRI, TCFD, EDCI

Certifications: ISO 14001 (Farmashop)

UN Sustainable Development Goals

  • SDG 5 (Gender Equality)
  • SDG 13 (Climate Action)

Investments in companies with significant impact and purpose in areas such as financial inclusion, higher education, specialized healthcare, and access to technology.

Awards & Recognition

  • LAVCA 2021 Award for Social Responsibility (Mundo)
  • Uruguay’s National Environmental Prize (Farmashop)

Reporting Period: 2023-2024

Environmental Metrics

Total Carbon Emissions:3,701 tCO2e (63% Scope 2) / 98,101 tCO2e (with Scope 3)
Scope 1 Emissions:1,374 tCO2e
Scope 2 Emissions:2,308 tCO2e
Scope 3 Emissions:94,095 tCO2e
Renewable Energy Share:51%
Total Energy Consumption:70,140.6 KWh (2023)

ESG Focus Areas

  • Climate Change
  • Gender Equality
  • Decent Work and Economic Growth

Environmental Achievements

  • Reduced Linzor's total emissions by 137.1 tCO2e (-29.7% YoY) in 2023 compared to 2022.
  • Sies Salud installed solar panels in seven clinics, reducing energy costs by 4%.
  • Uno Salud signed an agreement with Big Sur Energy for clean energy, reducing ~280 tons of CO2e emissions.
  • S4L reduced refrigerant-related emissions by 35% in 2023.
  • UIN secured a sustainability-linked loan from Scotiabank to install photovoltaic panels.
  • Engen-TIP increased its hybrid/electric fleet from 21% in 2022 to 46% in 2023.

Social Achievements

  • Linzor's workforce is 50% women (July 31, 2024), and 30% of investment professionals are women.
  • Portfolio companies employed over 16,400 individuals in 2023, with 60% being women.
  • Portfolio companies created over 6,200 jobs since Linzor acquired ownership.
  • Sies Salud received the 2024 LAVCA Gender & Diversity Award.
  • Engen Capital achieved the Socially Responsible Company insignia from CEMEFI for the second consecutive year.

Governance Achievements

  • Appointed first ESG & Impact Coordinator in 2023.
  • Finalized Environmental and Social Management System (ESMS) in 2023.
  • Adopted Best Practice Corporate Governance guidelines in 2024.
  • Committed to the 2X Challenge.
  • Formalized a set of Corporate Governance Best Practices for Portfolio Companies in 2024.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • All LCP III portfolio companies to set science-based targets aligned with SBTi.
Short-term Goals:
  • Strengthen Diversity
  • Enhance Climate Action
  • Leverage Impact Analysis

Environmental Challenges

  • Refining carbon footprint calculations, particularly Scope 3 emissions.
  • Increasing diversity within the investment team and portfolio company leadership.
  • Conducting a thorough impact analysis of operations.
  • Supporting portfolio companies in setting decarbonization targets aligned with SBTi.
  • Ensuring accurate data collection and analysis tied to portfolio companies’ impact thesis.
  • Strengthening governance practices at Linzor and portfolio companies.
Mitigation Strategies
  • Hired ESG & Impact Coordinator.
  • Developed ESMS.
  • Adopted Best Practice Corporate Governance guidelines.
  • Committed to the 2X Challenge.
  • Ongoing education and training for portfolio company senior management and investment team.
  • Annual ESG and Impact reviews with portfolio companies.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Ethics (Engen)
  • Sustainable purchasing policy (UIN)
  • Updated Procurement Policy (Farmashop)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UN SDGs

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 17

Portfolio companies contribute to various SDGs depending on their sector and business model.

Awards & Recognition

  • 2024 LAVCA Award for Gender and Diversity (Sies Salud)
  • 2023 Best Private Markets ESG Fund in Emerging Markets
  • 2021 LAVCA Social Responsibility Award (Mundo)