Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Consolidated carbon assessment (Bilan Carbone) of Eurazeo PME (for the investment management firm and 5 majority-owned companies in the portfolio), with an outcome of 59,980 tonnes of CO2 equivalent; reduced greenhouse gas emissions due to energy consumption amounted to 4,211 tonnes of CO2 eq. in 2011; 38% of total waste (5,208 tonnes) is recovered; energy consumption totalled 35,926 MWh; water consumption totalled 157,871.3 m3

Social Achievements

• Reduced employee turnover and absenteeism across portfolio companies; developed internal promotions/mobility; established diversity policies; implemented employee training programs (79% of employees participated); various social commitment projects across portfolio companies (e.g., partnerships with NGOs, community involvement)

Governance Achievements

• Implemented a new CSR reporting system in line with draft decree 225 of the French Grenelle II law; ESG criteria included in investment process; CSR Charter drafted based on 4 major focuses: structured and responsible governance, the role of human capital in strategy, reduction of the environmental impact and introduction of a socially responsible approach; first ESG assessment of each majority shareholding; first rating by extra-financial rating agency Ethifinance: 3.5 points out of 5, for an AA rating

Climate Goals & Targets

Environmental Challenges

• Challenging economic climate impacting portfolio companies; supply chain disruptions and cost increases for raw materials; uncertainty in client projects; increased competition; unfavorable exchange rates; market challenges in China (train accidents, corruption scandal)

Mitigation Strategies

• Financial restructuring to strengthen balance sheets and resources; adaptation of strategies to address economic challenges; diversification into new markets and products; focus on international expansion; development of new smaller restaurant formats (Léon de Bruxelles); increased collaboration with innovative manufacturers and suppliers; focus on high value-added services; improved internal organization and efficiency; implementation of cost-cutting measures; investment in new technologies and equipment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of suppliers based on biodiversity criteria (Léon de Bruxelles); supply chain improvements respecting local communities (Dessange International); use of PEFC and FSC certified paper and cardboard (Gault & Frémont)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, AFNOR SD 21000, ISO 26000

Certifications: ISO 14001, BS OHSAS 18001, PEFC, FSC

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bio Food Pack biodegradable baking moulds; PEFC-certified cake boxes (La Mie Câline); sulphate-free hair care products (Dessange International); second generation biodegradable probes (IMV Technologies)

Awards & Recognition

• First Prize in sustainable development awarded by Private Equity Magazine; Bio Food Pack won the 2011 Trophy for Innovation awarded by Top des Entreprises; Gault & Frémont won an award from its Community of Communes for cutting industrial waste

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Digital Transformation
• Governance
• Environmental Impact
• Social Impact

Environmental Achievements

• Avoided €7.257 million in costs through CSR programs across 5 portfolio companies (water, energy, fuel, and absenteeism reduction).

Social Achievements

• Launched My Colisée application for real-time information sharing between families and nursing homes.
• Created the Operating Partner function to strengthen operational support for portfolio companies.
• Established the Comité Avenir to involve younger employees in company modernization.
• Improved employee well-being initiatives.
• Increased percentage of women directors on boards (from 17% to 0% in 2016, aiming for 40% by 2020).

Governance Achievements

• Implemented exemplary governance bodies in all portfolio companies.
• Established an Audit Committee and a Compensation Committee.
• Aimed for 30% independent and 40% women administrators in all companies by 2020.

Climate Goals & Targets

Environmental Challenges

• Digital transformation challenges for SMEs.
• Economic decline impacting business value.
• Insufficient liquidity to finance investment opportunities.
• Market turnaround at the time of sale.
• Key employee departures.

Mitigation Strategies

• Specific training for teams on digital issues.
• Investing in resilient companies with international potential and experienced management.
• Investment strategy based on permanent reinvestment capacity.
• Identifying the right moment to monetize value.
• Continuous employee training and monitoring of investments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Eurazeo’s carbon reduction targets, set for 2025 and 2030, have been approved by the Science-Based Targets initiative (SBTi), both for the Group and for eligible portfolio companies.

Social Achievements

• Eurazeo encourages its portfolio companies to implement a Responsible Purchasing approach.
• Eurazeo strongly encourages its investee companies to have 40% of the least represented gender at Board level.

Governance Achievements

• The respect of the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights is covered Eurazeo’s Responsible Investment Policy.

Climate Goals & Targets

Environmental Challenges

• Improving data quality and completion rates for water emissions and hazardous waste indicators.
• 42% of investments in investee companies without carbon emission reduction initiatives aimed at aligning with the Paris Agreement.
• 54% of investments in investee companies without any supplier code of conduct.

Mitigation Strategies

• Eurazeo seeks to improve the data quality and completion rates of this indicator.
• Eurazeo strongly encourages its investee companies to put in place emission reduction initiatives.
• As per its O+ commitment, Eurazeo encourages its portfolio companies to implement a Responsible Purchasing approach.

Supply Chain Management

Responsible Procurement

• Responsible Purchasing approach

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, PRI, SBTi

UN Sustainable Development Goals

• UN Sustainable Development Goals (SDGs)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Inclusion
• Governance

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 10% (from 79 tCO2e to 71 tCO2e), achieving its 55% reduction target set by SBTi.
• Maintained renewable electricity sourcing above 80% target (96% in 2023).

Social Achievements

• Achieved 10% difference between men and women in the overall workforce, 44% of women on the Supervisory Board, and a Gender Diversity index of 94/100.
• 100% of Eurazeo employees benefit from health and accident insurance.
• 90% of employees across portfolio companies were covered by health insurance, and 48% benefited from a value-sharing scheme.

Governance Achievements

• Linked 15% of the annual variable compensation of its Executives to the achievement of sustainability objectives.
• Established a Corporate Social Responsibility (CSR) Committee within the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Data quality issues related to ESG reporting from portfolio companies.
• Regulatory changes related to SFDR, European Taxonomy, and CSRD.
• Ensuring ESG integration throughout the client relationship.

Mitigation Strategies

• Implemented algorithmic and human processes to verify data and improve quality.
• Close collaboration between ESG, legal, and compliance teams to ensure compliance with regulations.
• Proactive and transparent approach to fundraising, detailing ESG integration into management and investment practices.

Supply Chain Management

Responsible Procurement

• Code of Conduct for commercial relations
• Responsible Procurement charter

Climate-Related Risks & Opportunities

Physical Risks

• Exposure to natural hazards

Transition Risks

• Regulatory changes
• Market shifts
• Supply chain disruptions

Opportunities

• Investment in climate solutions
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, SFDR, European Taxonomy, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, GIIN, PCAF, SBTi

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 13
• SDG 14

Eurazeo's impact funds contribute to these SDGs through investments in companies focused on health, clean energy, sustainable cities, and climate action.

Awards & Recognition

• Marine Money Deal of the Year
• Real Deals Specialist Awards finalist
• KPMG-EIM 100 Days Awards ESG Engagement Prize
• Real Deals Future 40 ESG Innovator
• IJ Investor Award
• Real Deals Future 40: Climate Change Champion
• 2022 Sustainable Finance Transparency Label
• International General Partner of the Year (PEWIN)
• France Invest prize for gender diversity policy
• SWEN Multi-Strategy Investment award

Environmental Metrics

ESG Focus Areas

• Planetary Boundaries
• Climate Change
• Biodiversity
• Land Use Change
• Pollution
• Regenerative and Circular Economy
• Transition and Adaptation

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi