Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Diversity & Inclusion
• Climate Risk
• Supply Chain Cooperation

Environmental Achievements

• Implemented ESOS suggestions for energy savings
• Analysed 2019 carbon usage
• Improved recycling initiatives introduced including for electrical items
• Implemented default double-sided printing
• Removal of paper cups
• Removal of non-segregated desk bins
• DEAS saved approximately 23 GWh through more than 150 energy projects between 2015 and 2019

Social Achievements

• Introduced a revised diversity and inclusion policy
• 53% of Associate hires are female
• My Family Care introduced for UK employees
• Regular training on maintaining wellbeing
• Regular team and office social events held
• Hosted events with South London Cares
• Servelec founded the Servelec Digital Academy – a degree apprenticeship programme

Governance Achievements

• Established an ESG committee
• Changed the way we start working with new investments to understand their position on important topics
• In 2019, 93% of investments had an anti-corruption policy, compared with 73% in 2018
• Began reviewing Montagu suppliers’ MSA policies
• Conduct modern slavery risk mapping over Montagu’s suppliers

Climate Goals & Targets

Environmental Challenges

• High carbon emissions within Montagu’s supply chain
• Need to improve the composition of the boards of their investments by broadening pools of long-list candidates
• Need to encourage more rigorous supply chain evaluation by their companies

Mitigation Strategies

• Assess high carbon emissions within Montagu’s supply chain
• Increase recycling, reduce waste and develop awareness of ‘green’ solutions
• Promote and support diversity and inclusion within the workplace
• Supply chain risk added to CORRGI diagnostic framework. 43% of portfolio completed supply chain risk analysis. One company has committed to scrutinising suppliers further using a third party sustainability survey that includes human rights analysis.
• Conducted a risk review of Montagu suppliers and acted on results.

Supply Chain Management

Responsible Procurement

• Review of Montagu suppliers’ MSA policies
• Modern slavery risk mapping over Montagu’s suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Principles for Responsible Investment, SASB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Investing

Environmental Achievements

• Achieved 'Carbon Neutral Plus' status by offsetting carbon footprint and supporting a UK tree planting project.
• Greenhouse gas footprint 95% smaller than 2019 baseline (largely due to reduced travel).

Social Achievements

• Introduced My Family Care for UK employees.
• Increased gender diversity in recruitment shortlists.
• Unconscious Bias training for 30 managers.
• Engaged with portfolio companies on diversity and inclusion topics.

Governance Achievements

• Updated Responsible Investing policy.
• Introduced standardized pre-deal analysis for environmental risks and opportunities.
• Joined Initiative Climat International (iCI).

Climate Goals & Targets

Environmental Challenges

• Decrease in business travel in 2020 (partially impacting carbon footprint reduction).
• Need for further improvement in carbon reduction strategies and diversity of senior leadership teams in portfolio companies.

Mitigation Strategies

• Prioritizing green travel options and implementing environmentally focused IT initiatives in 2021.
• Initiatives put in place to drive improvement in carbon reduction and diversity in 2021.
• Ongoing engagement with portfolio companies to assess climate risk and engage on material matters.

Supply Chain Management

Responsible Procurement

• Risk review of Montagu's suppliers; mandatory training for all employees on modern slavery and human trafficking; ESG incorporated into supplier questionnaires (Arkopharma).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Carbon Neutral Plus (Carbon Footprint Ltd)

UN Sustainable Development Goals

• SDG 3, 13, 15 (Arkopharma)
• SDG 8, 12, 14 (Aqualung Group)

Initiatives in portfolio companies contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Governance

Environmental Achievements

• 44% reduction in emissions from electricity consumption
• 80% of portfolio companies measure scope 1 and 2 emissions
• 54% reduction in operational carbon intensity

Social Achievements

• Launched Montagu Connect, an online forum for knowledge sharing and collaboration across the portfolio
• Launched a D&I working group that meets quarterly
• 78% of newly promoted managers are female

Governance Achievements

• Established the ESG Committee in 2019
• 100% of portfolio companies have a code of conduct
• 100% of portfolio companies discuss ESG topics regularly at the Board

Climate Goals & Targets

Environmental Challenges

• Increasing portfolio carbon emissions and intensity due to higher activity levels and new investments in businesses with healthcare manufacturing operations.
• Need to expand carbon emission measurement to include Scope 3 emissions across the value chain.

Mitigation Strategies

• Working with portfolio companies to develop meaningful carbon reduction plans in line with science.
• Providing support to companies by sharing templates, resources and training materials to meet their climate ambitions.
• Improving the measurement and disclosure of operational emissions.

Supply Chain Management

Supplier Audits: 55% of portfolio companies completed supply chain risk review in 2021

Responsible Procurement

• Code of conduct
• Policies to prevent modern slavery and human trafficking

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Governance, Risk and Compliance
• Cyber Security

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 55% since 2019
• Achieved 100% renewable electricity usage across London and Luxembourg offices (91% of total firm electricity usage)
• Frankfurt office awarded LEED Platinum certification
• 10% year-on-year reduction in energy consumption in London office through Mayor's Business Climate Challenge

Social Achievements

• Launched Governance, Risk and Compliance Connect and Technology Leaders Connect communities in 2023, hosting over 30 events and creating over 150 assets to support portfolio companies
• 26% of permanent C-level hires were female in 2023
• Hosted third Future Leaders’ Forum with 59% female attendees
• Supported St Thomas the Apostle College and One Southwark with over 500 and 30 hours of student engagement respectively

Governance Achievements

• Developed a new scoring, benchmarking and feedback methodology for ESG performance
• Reviewed and refined annual ESG questionnaire
• Embedded ESG into broader ‘Full Potential Plan’
• Created internal ESG guidance to support carve-outs and mergers & acquisitions

Climate Goals & Targets

Environmental Challenges

• Managing ESG across a diverse portfolio of companies
• Ensuring consistent data collection and reporting
• Supporting portfolio companies in setting and achieving science-based targets
• Addressing cyber security risks

Mitigation Strategies

• Developed standardized ESG diagnostic and action planning methodology
• Partnered with ESG data platform provider to simplify questionnaire and reporting
• Created Montagu Connect communities to facilitate knowledge sharing and collaboration
• Expanded cyber security program with a more systematic assessment and scoring methodology

Supply Chain Management

Responsible Procurement

• Foundations for Good Governance
• ESG due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD, SBTi, UNGC, EDCI, ILPA

Certifications: LEED Platinum (Frankfurt office), SKA Gold (London office)

Sustainable Products & Innovation

• Shine LED lamp kits (Miraclon)

Awards & Recognition

• Private Equity Manager of the Year Award (2022 Environmental Finance Sustainable Investment Awards)