Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 30% reduction in energy consumption at Frías due to new plant with more efficient processes
• 170 MWh reduction in energy consumption at Salto due to solar panels and gas heater replacement (23% of 2020 electricity consumption)
• 71% of generated waste valorized through recycling processes (vs 63% in 2018)

Social Achievements

• 26% reduction in accidents with sick leave compared to 2019 (-8% LFL)
• 432 million euro of joint aggregated value generated by portfolio companies (€236m in personnel expenses and €26m in input taxes)
• 88% of permanent positions LFL vs 76% national average
• 300 new permanent hires in 2020 (182 LFL portfolio)

Governance Achievements

• Increased number of independent directors on PEF III’s Board (9% vs 4% in 2019)
• Zero sanctions and significant fines received in the past 3 years
• Monthly executive meetings and increasing presence of independent directors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations and workforce
• Room for improvement in corporate governance
• Need to increase the representation of women in the workforce

Mitigation Strategies

• Comprehensive contingency plans implemented in portfolio companies to maintain business continuity
• Reinforcement of Boards of Directors and management teams
• Initiatives to increase the proportion of women in the workforce
• Implementation of safety measures to prevent COVID-19 contagion

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 7 out of 10 companies consider ESG issues in purchasing decisions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNPRI

Certifications: ISO 14001 (6 out of 10 companies certified or plan to be)

Third-party Assurance: PwC

UN Sustainable Development Goals

• 2, 8, 12, 14

Portfolio companies contribute directly and indirectly to the accomplishment of 8 SDGs, including relevant SDGs unserved by the Spanish economy.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 25% Reduction of energy consumption intensity (energy consumption MWh per M€ sales) versus 2020
• Significant reduction in energy consumption from non-renewable sources (87% vs. 79%)
• Average energy consumption has been reduced by a 20%
• Reduction of hazardous waste generation by 22%
• Several portfolio companies have embarked on Scope 3 carbon footprint calculation

Social Achievements

• 1,036 quality jobs (permanent contracts) have been created in the portfolio in 2021
• Diversity of the portfolio companies’ workforces has increased to a 31%
• Average number of women at portfolio companies’ Board of Management has increased to a 3%
• Training resources have increased compared to the previous year to an average of 13.9 hours of training per person per year

Governance Achievements

• Companies’ performance is unblemished, with zero cases of corruption, sanctions or other relevant events occurring in 2021
• Governance bodies are starting to show higher rates of representativeness and independence
• Update of the Sustainable Investment Policy
• Redesign of the ESG Scorecard for portfolio companies
• Analysis of portfolio companies’ contribution to SDGs

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Adapting to the new requirements of the Sustainable Finance Disclosure Regulation (SFDR)

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Adapted and redefined the set of KPIs part of the ESG Scorecard in order to track ESG performance of portfolio companies
• Examined the KPI monitoring system in place to detect the KPI gaps and analysing the alignment of existing ESG practices and policies required by the technical draft regulation

Supply Chain Management

Responsible Procurement

• ESG clauses on Alantra PEF III’s LPA
• Environmental information is checked at Supplier Approval Questionnaires

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UNPRI, 2030 Agenda and its SDGs, UNGC, ILPA, SFDR

UN Sustainable Development Goals

• SDG 16
• SDG 8
• SDG 5
• SDG 7
• SDG 12
• SDG 13
• SDG 6

The report details how portfolio companies contribute to these SDGs through various initiatives.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Vegetarian Express estimates it has helped reduce CO2 emissions by 15,000 tonnes since 2016 by directly replacing meat and dairy products.

Social Achievements

• Nine of the 50 companies in the ranking feature female founders.
• Many companies are highlighting initiatives related to health and wellbeing.

Governance Achievements

• 17 companies have taken investment from private equity backers.
• Vegetarian Express gained B Corp accreditation in 2019.

Climate Goals & Targets

Environmental Challenges

• High inflation
• Supply chain disruption
• Cost-of-living crisis impacting consumers
• Increasing brand building costs
• Fierce competition
• Demand for vegan products slowing due to cost-of-living crisis

Mitigation Strategies

• Companies are adapting their strategies, focusing on value and quality, direct-to-consumer models, and securing investment to strengthen reserves.
• Vegetarian Express secured a £15m investment to support expansion and operational improvements.

Supply Chain Management

Responsible Procurement

• Careful sourcing of ingredients (e.g., Bold Bean Co.)
• Sustainable sourcing practices (e.g., MOJU)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corp

Sustainable Products & Innovation

• rPET bottles (Tŷ Nant)
• Plastic-free packaging (Bold Bean Co.)