Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Mobility
• Responsible Investment
• Diversity & Inclusion
• Employee Well-being

Environmental Achievements

• Reduced monthly paper cup consumption by 90% in Paris office (7,100 cups saved)
• 28,000t of CO2 emissions avoided at Italmatch (50% of 2017 total direct emissions), resulting in €3.9m energy cost savings
• 12% reduction in waste per ton of raw materials consumed at Italmatch between 2015 and 2017
• 60% of CLS's revenues from activities directly supporting UN Sustainable Development Goals (41% in Climate Change and Biodiversity, 21% in illegal fishing detection, 13% in Economic Development, Sustainable Cities and Communities, 6% in Fight Against Poverty and Empowerment of Vulnerable Communities)
• PwC headquarters refurbishment in Rome resulting in 70% increase in natural light, 46% electricity savings for lighting, and >15% energy savings for cooling

Social Achievements

• €48m+ shared with 20,250 employees of 27 portfolio companies since 2008
• Launched Ardian Women's Club with 30 female employees receiving mentoring
• Extended internal profit-sharing program globally to all employees regardless of seniority or salary
• Mentoring program for all employees under 26
• Ardian Foundation funding 24 charities across seven countries, promoting educational opportunities and workplace skills for disadvantaged youth
• 3,2,1 entrepreneurship program supporting nine entrepreneurs in Greater Paris

Governance Achievements

• Employee-controlled company with staff owning 55% of share capital
• Formal statement of equal professional opportunities between men and women
• ESG factors included in variable compensation schemes for management teams in Ardian Infrastructure assets
• Proprietary ESG tools and systems for monitoring and improving performance in portfolio companies
• UN PRI A+ rating in five of six modules reported on

Climate Goals & Targets

Environmental Challenges

• Climate change risks and opportunities
• Improving ESG performance across portfolio companies and Fund of Funds GPs
• Maintaining high standards in ESG practices as the company grows globally

Mitigation Strategies

• Developed proprietary ESG tools and processes
• Intensive engagement with portfolio company management teams to identify and address material ESG issues
• Annual ESG monitoring survey for Fund of Funds GPs
• Co-founded Initiative Climat 2020 (IC20) to measure and reduce carbon footprint of portfolio companies
• Increased Ardian Foundation budget to significantly increase donations over three years
• Developed tailored ESG approaches for each investment activity

Supply Chain Management

Responsible Procurement

• Code of Conduct for suppliers to Real Estate Funds

Climate-Related Risks & Opportunities

Opportunities

• Investing in renewable energy assets

Reporting Standards

Frameworks Used: UN PRI, UN Sustainable Development Goals, TCFD

Certifications: BREEAM, LEED

UN Sustainable Development Goals

• Various UN SDGs mentioned in relation to CLS and portfolio company impact

CLS's activities directly support the achievement of several UN SDGs

Environmental Metrics

ESG Focus Areas

• Climate action
• Diversity & equal opportunities
• Measurable impact

Environmental Achievements

• 32% reduction in carbon intensity per employee between 2015 and 2019
• 60% reduction in electricity-related emissions between 2019 and 2020
• 61% reduction in energy-related emissions between 2019 and 2020
• 22% consolidated carbon reduction targets in climate roadmaps (Scopes 1, 2, and 3) for all Infrastructure assets

Social Achievements

• Profit-share bonuses paid to more than 28,000 employees at 37 portfolio companies
• Launched Ardian Circle initiative for portfolio company executives to collaborate on sustainability and digitalization
• 80% of Buyout, Expansion, and Infrastructure portfolio companies implemented long-term profit-sharing mechanisms
• Ardian Women’s Club established to empower, connect, and inspire women

Governance Achievements

• ESG Deal Kit developed to integrate ESG considerations into every step of the deal process
• 75% of funds raised or in fundraising since SFDR came into effect classified as Article 8 or Article 9
• 100% of portfolio companies and assets in engagement program have individualized ESG targets in their roadmaps

Climate Goals & Targets

Environmental Challenges

• Evolving ESG regulations globally and multiple disclosure frameworks
• Climate change impacts on agricultural suppliers for portfolio companies like Frulact
• Lack of consistent diversity data across portfolio companies

Mitigation Strategies

• Developed a Sustainability Measurement Methodology covering the entire value chain
• Supported Frulact in identifying and addressing sustainability risks, including climate risk assessments for new plants
• Partnered with Diversio to establish standardized diversity metrics and monitor portfolio company performance

Supply Chain Management

Responsible Procurement

• Investment exclusions based on Responsible Investment Policy

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment in clean hydrogen infrastructure (Hy24)

Reporting Standards

Frameworks Used: TCFD, EU Sustainable Finance Disclosure Regulation (SFDR), UN Sustainable Development Goals, SASB

Certifications: EDGE Move (Level 2)

UN Sustainable Development Goals

• SDG 5
• SDG 10
• SDG 13
• SDG 16

Portfolio companies' contributions mapped against relevant SDGs

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Development of Air Carbon tool for measuring Scope 3 CO2 emissions in airports.
• Implementation of renewable energy sources (solar panels) at various airports.
• Initiatives to increase the use of Sustainable Aviation Fuel (SAF).

Social Achievements

• Collaboration with various stakeholders (airlines, public transport, local communities) to improve airport accessibility and reduce environmental impact.
• Urban regeneration projects around airports to improve local communities.
• Establishment of a Transport Working Group (TWG) to share best decarbonization practices.

Governance Achievements

• Implementation of incentive schemes for airlines using greener aircraft.
• Development of a framework for 'airport green charges' to promote reduced environmental impact.

Climate Goals & Targets

Environmental Challenges

• Significant growth in air traffic projected for the coming years.
• Need to reduce Scope 3 emissions (aircraft operations) which constitute the majority of aviation emissions.
• Scaling up the production and availability of SAF.
• Development and deployment of hydrogen-powered aircraft.
• Need for significant investments in decarbonization technologies and infrastructure.

Mitigation Strategies

• Promoting modal shift (train, metro) to reduce airport access emissions.
• Incentivizing airlines to use more fuel-efficient aircraft and SAF.
• Investing in on-site renewable energy generation at airports.
• Developing and implementing innovative technologies (e.g., Air Carbon, TaxiBot).
• Collaboration with various stakeholders to develop a systemic approach to decarbonization.

Supply Chain Management

Responsible Procurement

• Collaboration with energy providers to increase SAF availability.

Climate-Related Risks & Opportunities

Opportunities

• Development of renewable energy infrastructure at airports.
• Creation of new revenue streams from energy production and sale.

Reporting Standards

Frameworks Used: GHG Protocol, Airport Carbon Accreditation (ACA), Science Based Targets initiative (SBTi)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Various initiatives contribute to these goals through renewable energy adoption, urban regeneration, and emissions reduction.

Environmental Metrics

ESG Focus Areas

• Transition
• Sustainability Intelligence
• People

Environmental Achievements

• Renewable assets in the Infrastructure portfolio contributed 3.05 MtCO2 in avoided emissions in 2023
• Ardian will cut its own emissions per employee by 30% between 2022 and 2028.
• Via Melzi D’Eril achieved a 27% lower emissions per square meter of floorspace than before its conversion, equivalent to a saving of 120 metric tons of CO2 per year.

Social Achievements

• 33,000+ portfolio company employees have benefited from profit sharing at exit.
• Launched Act4Change program, giving employees three paid days a year for pro bono work.
• Force Femmes Booster program supported ten female entrepreneurs.

Governance Achievements

• Established a new governance structure with a General Management Team and expanded Executive Committee.
• Increased investment in cybersecurity and fraud prevention.
• Launched a five-year Climate Plan requiring all controlling investments to set a climate transition roadmap by 2028.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic and geopolitical environments.
• Slowed pace of realizations.
• Difficult fundraising environment.
• Evolving ESG regulations.
• Talent acquisition and retention in sustainability.

Mitigation Strategies

• Diversification of product range and LP base.
• Focus on high-quality, resilient assets.
• Development of a five-year Climate Plan.
• Investment in data science and AI capabilities.
• Training programs for employees on climate issues and ESG regulations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable purchasing policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Investing in assets and technologies that support the transition to more sustainable economies and societies.

Reporting Standards

Frameworks Used: International framework for integrated reporting

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ardian Air Carbon, Opta

Awards & Recognition

• Firm of the Year in France and Secondaries Firm of the Year in Europe by Private Equity International
• France Invest Award for gender balance.