Climate Change Data

Exponent Private Equity LLP

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:331 tCO2e (excluding financed emissions)
Scope 1 Emissions:0.8 tCO2e
Scope 2 Emissions:18.5 tCO2e
Scope 3 Emissions:311.8 tCO2e
Renewable Energy Share:100% (Firm's electricity)

ESG Focus Areas

  • Energy & Climate
  • People
  • Governance

Environmental Achievements

  • 100% of portfolio companies completed a climate screening
  • 93% of portfolio companies measure carbon footprint
  • 50% of portfolio companies recycle waste from operations
  • 26% improvement in Scope 3 reporting from 2022 to 2023
  • Two portfolio companies committed to setting a Science Based Target
  • Exponent registered commitment to set a Near-Term emissions reduction target with the Science Based Targets institute (SBTi)

Social Achievements

  • All deals executed underwent comprehensive ESG Due Diligence
  • 5 deals rejected based on ESG considerations
  • ESG Vendor Due Diligence produced for exited deals
  • 63% of portfolio companies have a dedicated ESG specialist (only 6% had one at acquisition)
  • Annual ESG questionnaire completed by 100% of portfolio
  • 71% of portfolio companies set annual employee engagement surveys
  • £90,000+ raised for charity through the Three Peaks Challenge

Governance Achievements

  • 100% of executed deals commissioned ESG Due Diligence
  • 100% of exited deals commissioned Vendor ESG Due Diligence
  • 100% of portfolio companies have completed a cyber assessment within the first year of ownership
  • 100% of portfolio companies have a Whistle-blower policy
  • 100% of portfolio companies have an Anti-bribery & Corruption Policy
  • Improved PRI score (4 stars across all three modules)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (for Meadow)
Medium-term Goals:
  • Achieve Net Zero emissions (target year not specified)
Short-term Goals:
  • Validate Net Zero Target with SBTi in 2024
  • Conduct a Biodiversity screening
  • DE&I Committee to review family leave policies
  • Plan plastics seminar for 2024

Environmental Challenges

  • Supply chain disruptions (implied)
  • Data challenges around gathering Scope 3 data
  • Increasing reporting obligations
  • Low number of women in investment roles across the industry
Mitigation Strategies
  • Developed alternative sourcing strategies (implied)
  • Hosted a Scope 3 portfolio workshop and involvement in the iCI’s Scope 3 working group
  • Invested in a data platform (Novata) to track and analyze portfolio performance
  • Evolved recruitment approach to attract a more diverse candidate pool
  • Implemented a structured interview process
  • Hosted annual DE&I training to address unconscious bias
  • Established and appointed Operating Partners to increase gender diversity in senior team

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Changing climatic conditions
Transition Risks
  • Carbon taxation
  • Fuel cost increase
  • Policy, regulatory, market and technology changes
Opportunities
  • Development of energy-efficient products (implied)

Reporting Standards

Frameworks Used: TCFD, UN PRI, ESG Data Convergence Initiative, ILPA’s Diversity in Action Framework, Sustainable Finance Disclosure Regulation (SFDR)

UN Sustainable Development Goals

  • Climate Action
  • Gender Equality
  • Peace, Justice and Strong Institutions

Reflects the Firm’s framework and highlights sustainability topics where they believe they can have an influence.

Awards & Recognition

  • Award for Best Environmental Impact Thought Leadership for “Focusing on a nature positive future – Isio”, 2023
  • First-year recipients of Environmental Impact Award at the Limerick Chamber Regional Business Awards, 2023
  • Nominated for a Flexified Award, 2023
  • Bronze rating from Ecovadis