Chief Executives' Statement
A Clear Commitment
From the outset we recognised the value a responsible investment strategy could bring not only to maximise economic returns for investors, but also to deliver a net benefit for society and the environment. Together with the management teams in the Apax Funds portfolio companies, we have over the years identified and capitalised on a wide range of ESG initiatives designed to create stronger, more robust, businesses by mitigating risks, enhancing value and improving sustainability.
A Fully Embedded Process
Our comprehensive sustainability programme is fully embedded in the investment process – from identifying ESG risks pre-acquisition, through to working with portfolio companies post-acquisition to monitoring their ESG indicators. Our goal throughout is to achieve a better understanding of the operations of each portfolio company, to assess their ability to manage ESG considerations, and to put in place risk mitigation and value creation initiatives.
Dedicated Operational Value Add
Apax’s Operational Excellence Practice (“OEP”) is a team of operational and functional experts who work on specific areas within the Funds’ portfolio to target step-change results. The OEP helps the Funds identify value creation opportunities during due diligence and generate operational impact during ownership. The involvement of Apax’s OEP, whether it is through due diligence, procurement efficiencies or optimising processes, plays an integral role in the success of the Firm’s responsible investment programme.
Supporting ESG Stewardship Initiatives
The goal of Apax’s ESG stewardship initiatives for the Fund portfolio companies is to help protect the planet while improving efficiency, reducing costs, increasing workforce stability, and preserving the companies’ ability to do business in the future.
This past year there were again many examples of ESG efforts coming to fruition across the Apax Funds portfolio. From the impressive reductions in electricity usage at data centres, the noteworthy savings in paper usage achieved through reuse programmes by retail companies, to the important work being done around strengthening human capital and talent. We are very pleased to see these initiatives delivering real benefit and receiving strong management support.
Andrew Sillitoe Mitch Truwit