Driver of positive impact
SUSTAINABILITY REPORT 2020 3
Ardian’s Sustainability Vision
Ardian empowers individuals to collectively create sustainable value for all stakeholders.
Ardian’s Sustainability Pledge
At Ardian, our codes of conduct are designed to create a thriving economy and ensure sustainable success.
• We put sustainability at the heart of our daily business
• We design solutions to maximize alignment of interests
• We are committed to transmitting the value we create to future generations
• We are proof that good practice is good for business TABLE OF CONTENTS 5
Diversity & Equal Opportunities
07 President’s foreword • Dominique Senequier 32 Driving diversity in the workforce
08 Prioritizing positive impact 33 Diversity at Ardian • Taking a leading role in reform 10 Ardian’s Sustainability Vision 34 Diversity in portfolio companies
11 Who we are • Setting the diversity agenda 12 Our sustainability journey 36 Diversity in Expansion portfolio
14 Interview • Candice Brenet • Case study: Opteven, France 16 Responsible investment: maximizing positive impact 37 Diversity in Fund of Funds
18 Interview • Philippe Poletti • Moving the needle on gender equality
Impact Climate
40 Determined to act against climate change
22 Tailoring our approach to maximize our impact 41 Special focus • Initiative Climat International
24 Special focus • Sustainable buyout: supporting impactful growth 42 Climate in Ardian • Mitigating our impact 25 Key characteristics 43 Climate in portfolio companies
26 Measurement in Fund of Funds • Designing ambitious roadmaps for climate action 27 Measurement in portfolio companies 44 Climate in Infrastructure portfolio
28 Measurement in Buyout portfolio • Case study: EWE, Germany
• Case study: SLV, Germany 45 Climate in Fund of Funds
29 Measurement in Real Estate portfolio • Supporting GPs tackling climate challenges
• Case study: Europa, France 46 Outlook FOREWORD 7
Responsibility has been at the heart of Ardian has been developing its approach to Ardian’s investment philosophy for many years. responsible investing since 2008, gradually But it has never felt more relevant or vital to us learning how to measure different aspects of than now, amid the terrible pandemic that has sustainability and exploring ways to improve changed the global economy and our lives. performance. In most cases we came to these This calamity has forced us all to think more challenges early and so had to develop our deeply about the health and resilience of own methods and tools where none existed our societies. In bringing great economies to already. This has been a central part of our a standstill, it has focused our attention more journey – the hard, practical task of turning than ever on human values and the things that our ideas and values into tools and join us to each other. methodologies that will allow us to invest better and more responsibly. The only coherent response to the huge challenges the pandemic has forced upon us Across all our activities, Ardian’s investment is to redouble our focus on long-term choices. professionals, supported by our dedicated We must make our societies more sustainable sustainability team, are working with portfolio and our economies more resilient if we are companies to help them make the transitions to protect ourselves from shocks and disasters that will secure their long-term success. – and deliver better outcomes for everyone. We apply the principles of responsible investment to all our activities because we As an investment house that supports scores believe this is the way that all investment of companies, Ardian has a major role to play will soon be done. in realizing this vision. Our advocacy within these companies creates a ‘multiplier effect’ There is already ample evidence that that ampli es the impact Ardian can have on companies that prioritize sustainability offer its own. Our commitment to use our in uence is superior long-term returns. The uncomfortable rooted both in our ideals – that nance should truth, however, is that we no longer have be an agent of change and a force for good in “the long term” in which to overcome threats society – and in our pragmatism as investors. such as climate change and social inequality – we need major improvements now. So, we We are more convinced today than ever that have no choice but to accelerate our transition companies which do not have responsibility towards better ways of operating. in their DNA will ultimately lose value and become obsolete. We see our central task, I am determined that Ardian will be among therefore, as equipping ourselves and the those driving this process forward and companies we invest in to succeed in a world rede ning the way success in the nancial where issues such as job creation, sharing and corporate world is understood. values, climate change, diversity, social cohesion and inclusion are becoming more critical every day. This is how we understand our role as an agent of change: to create the companies of the future. If we fail in this, Dominique Senequier we see no other route to success. PRESIDENT OF ARDIAN 9
Prioritizing positive impact Ardian’s Sustainability Report focuses on three key priorities – Impact, Diversity & Equal Opportunities, and Climate – and how Ardian is tackling them within its own operations, through its investments and its portfolio companies.
Sustainability is rising up the business At Ardian, we have placed sustainability agenda for companies, shareholders at the heart of our business because we and investors. No longer an optional are convinced that issues such as creating extra, sustainability is now a critical positive impact, reinforcing diversity Impact Diversity Climate factor at the heart of business and equal opportunities, and combating operations. As one of the worldʼs climate change affect the world we live Ardian has a responsibility to create & Equal Climate change is the de ning largest private investment houses with in, as well as company performance positive social outcomes: provide challenge of our times. How we $100bn under management or advised, and investorsʼ returns. We want to build good returns for the savers and Opportunities respond to this challenge will shape pensioners whose money we invest; our future for generations to come. Ardian is committed to driving positive resilient business models that enable the to enable the employees in our Diversity is an increasingly important impact on society. companies we invest in to make a positive portfolio companies to share in the Because most of our climate impact issue for society at large, and success they help to create, and to comes through the investments impact on society and the environment. for the business community, it has bene t society as a whole. we make rather than within our This commitment dates back more than become a material factor. Companies own of ces, we are determined to need to re ect that within their people a decade, but todayʼs ongoing Covid-19 Business and the fi nancial industry can – This is why Ardian is a leading leverage our position as an industry and corporate culture to ensure that advocate in our industry for leader and drive positive change pandemic has underlined the critical need and must – play a major role in driving their workplaces are as inclusive responsible investment practices. In through our investments. for robust leadership on environmental, the sustainability agenda through as possible. order to maximize our contribution, social and governance (ESG) issues. investments and the real economy. we must take into account the Ardian is a founding member of Ardian is committed to diversity, speci cs of each investment strategy the Initiative Climat International, both within our company and in and build tailored approaches and whose members commit to society as a whole. We believe that dedicated tools to monitor incorporating climate risks and diverse and inclusive organizations performance and support the shift to opportunities into their investment are more creative and innovative, At a glance sustainable resilient business models. analysis and engaging with their and outperform their peers. Hiring portfolio companies to measure people with more diverse pro les will Building on our existing framework and progressively reduce GHG enhance our collective intelligence, for Ardian’s Buyout, Expansion and emissions. Ardian has long + + + leading to sustainable performance. Infrastructure companies, we created recognized the detrimental impact Diverse and inclusive workforces ensure our proprietary Sustainability climate change has on society 18 0 1,600 700 that companies are able to harness COMPANIES CURRENTLY FUNDS IN THE FUND OF FUNDS PORTFOLIO EMPLOYEES IN 15 OFFICES AROUND Measurement Methodology. and the global economy. the best talent available and that they INVESTED IN THE WORLD The analysis was recently published: re ect the world in which we live. Sustainable Buyout, Investing for Ardian is also deeply committed the economy, society and the planet. to promoting and providing equal opportunities to all. As can be This innovative and holistic evidenced through our actions with approach supports companies in the Ardian Foundation, we work to their transition to more sustainable improve educational and employment and more resilient businesses by % € M opportunities for people from 70 24,150 2.3 providing an accurate view of PROPORTION OF ARDIAN STAFF EMPLOYEES IN PORTFOLIO COMPANIES HAVE ARDIAN FOUNDATION’S BUDGET underprivileged backgrounds. THAT ARE SHAREHOLDERS BENEFITED FROM PROFIT-SHARING AT EXIT BY ARDIAN TO IMPROVE SOCIAL MOBILITY IN 2020 their contribution to society and SINCE 2008, REPRESENTING 1 TO 6 MONTHS’ SALARY the environment. OUR VISION WHO WE ARE 11
Ardian’s expert Sustainability team develops and implements our strategy across all activities at the corporate and investment level, with the support of our Sustainability Committee and close In today’s global economy, cooperation with Ardian teams. success and sustainability are inextricably intertwined. Success is not simply measured SUSTAINABILITY TEAM in outstanding nancial returns. It is also measured in the contribution that companies make
CANDICE BRENET PIERRE KLEMAS APRIL TISSIER TAMARA KRZISCH LAURA ANDREMONT to society and the environment. MD, Head of Sustainability Director Manager Analyst Analyst
SUSTAINABILITY COMMITTEE Ardian strongly believes that nance, including EXECUTIVE COMMITTEE MEMBERS the private investment industry, is instrumental in leading the way to a more sustainable future.
Our commitment to sustainability stretches far beyond simply transforming our own internal PHILIPPE POLETTI MATHIAS BURGHARDT OLIVIER DECANNIÈRE JÉRÉMIE DELECOURT BENOÎT VERBRUGGHE operations. We also leverage our investment Head of Ardian Buyout Head of Ardian Head of Ardian UK Head of Corporate Member of the Chair of the Sustainability Infrastructure and International Executive Committee expertise to drive positive impact throughout all Committee Development the sectors into which we invest via our portfolio companies and underlying funds.
The Covid-19 pandemic is bringing incalculable disruption and instability to the global economy. It has never been more important to build and grow businesses which are robust enough to YANN BAK EDOUARD BOSCHER BERTRAND CHEVALIER MICHAEL FERRAGAMO STÉPHANIE GRACE Managing Director, COO of Investor Relations Managing Director, Head of Global Compliance Head of Brand and withstand the economic headwinds that await us. Buyout; President of Fund of Funds Communications Ardian Foundation 13
Our sustainability 2008 2009 2010 journey Profit-sharing charter First ESG portfolio The Ardian created after Dominique review of five companies Foundation Senequier sets out principles in the Buyout portfolio is launched of shared value, to ensure Ardian becomes one of shared rewards the first private equity firms to sign up to the UN Principles for Responsible Investment (PRI)
2016 2015 2014 2013 2012 2011 Ardian calculates ESG training Ardian co-founds Financial Ardian becomes an Transparency to LPs First ESG its carbon footprint is incorporated the Initiative Climat assessment of employee-controlled increased by incorporating monitoring for the first time into Ardian International, to help ESG initiatives company an ESG section in standard campaign of University private equity firms tackle is introduced Funds’ management reports our GPs Publishes its The Ardian Sustainability climate change in their Responsible Committee is created investment process Investment policy
2017 2018 2019 2020 Ardian creates the Millennial Ardian Introduces its Green Sustainability Measurement Ardian is awarded EDGE Executive Committee Challenge for Ardian offices methodology launched for Certification recognizing Buyout activity and expanded our commitment to gender Becomes a member of Starts mapping its portfolios to Expansion activity equality the UN PRI’s private equity in line with the United advisory committee Nations Sustainable Ardian joins the Investor Leadership Impact Measurement Development Goals Network to help push for methodology launched for increased workplace diversity the Infrastructure activity 15
“Our new tools give us a better macro view of the impacts of our investments and make it easier to link our work with portfolio companies to the Sustainable Development Goals.”
Big step, How has Ardian’s approach to Moreover, we constantly Is this a major shift from data we gather. But sustainability changed in recent years? seek to refine our your previous approach? already this is delivering approach, so that we real value to Ardian teams, large scale Candice Brenet: We have entered can better support our CB: Tailored sustainability portfolio companies and a new era for ESG globally, and at investments in their approaches, depending on investors, allowing more Ardian is at a critical turning Ardian. We have long been committed to sustainability journey. the investment strategy, and sophisticated and holistic sustainability through our investments individualized roadmaps analyses. point as it seeks to drive and positioning ourselves as real drivers For the past 18 months are fundamental to the way forward its positive impact of positive impact. we have co-developed Ardian does business and on a large scale, an innovative Sustainability will not change. These What are your Over the past two years, we have recent developments are sustainability ambitions says Candice Brenet, Measurement methodology heavily invested in our internal capacity which we applied to our complementary. Our new for the years ahead? Head of Sustainability to accelerate this transformation, Buyout and Expansion tools give us a better macro CB: at Ardian in our operations and in our investments. portfolios and which view of the impacts of our Climate action will investments and make it remain a strong focus and we plan on scaling to We are determined to take our easier to link our work with we are considering other activities. sustainability strategy to the next portfolio companies to the introducing global targets level and are focused on using Sustainable Development for diversity and equality. Sustainability has also our unmatched insight to scale and Goals. become more technical grow our positive impact. Profit-sharing is at the core of and we have invested This data management our DNA and we will extend massively in structural tools system allows us to better this policy to all direct This is a very major ambition, to manage and capture compare, analyze, investment teams, probably how do you plan to scale impact data through our consolidate and benchmark by the end of 2020. and innovations? engagement program. performance indicators for We really want to our portfolios, paving the encourage profit-sharing CB: First of all in terms of resources, This currently includes way to integrate financial in all portfolio companies we have strengthened the sustainability the Expansion, Buyout, data. These tools also help where we are a direct team which is now composed of five Infrastructure and Fund us identify the companies shareholder, and not just full-time experts. We have broadened of Funds portfolios and that we need to focus more those where we hold the team’s skillsets, so they are totals 86% of our AUM. attention on. a majority position. And complementary, meaning we have However, we want to scale we will encourage other a much more 360-degree vision of this to include the Real We’re at a very early stage profit-sharing mechanisms how we can scale our social and Estate and corporate of extracting the value in addition to profit-sharing environmental value. data as well. and intelligence from the on exit. 17
ESG INTEGRATION THROUGHOUT THE INVESTMENT CYCLE Responsible Pre-Due Diligence
Investment: April Tissier Manager, maximizing Ardian Sustainability Team O1 Ardian’s differentiating factor Due positive impact ”lies within our ambitious annual Exit Engagement program with Diligence portfolio companies and GPs. O5 O2 Beyond the impressive scope of the review, with an average Our Responsible Investment policy, which we of 56 companies and 183 GPs, publicly shared in 2016, actively integrates ESG the dedicated resources and factors into our investment process. It takes into methodology are unparalleled. account the speci c nature of each investment Indeed, with portfolio companies strategy, from due diligence to investment decisions, O4 O3 we have a tailored, individualized throughout the period that we hold an ownership approach, where we co-design stake and beyond. All new investment team analysts Sustainability roadmaps with receive dedicated training on sustainability annual interviews. These include processes, and we provide regular updates on onsite visits, insights from our responsible investment to existing staff. network of external experts and dedicated training sessions when We want to make clear how private equity is a needed. For our Fund of Funds Ownership Investment force for good. In 2009, we were one of the early activity, we benchmark the signatories to the UN Principles for Responsible Phase Decision performance of our GPs based on Investment (PRI) and we served a two-year term our annual survey and then on the PRI’s Private Equity Advisory Committee. provide one-on-one feedback In 2020, we received A+ scores in all areas of sessions to share best practices the assessment. and discuss how to improve. O1 PRE-DUE DILIGENCE O4 OWNERSHIP PHASE
“ For any direct investment opportunity, preliminary Ardian’s Sustainability team leads the monitoring and screening ensures that the investment team avoids integration of ESG management within the portfolio investing in sectors which are explicitly banned. companies and funds, in collaboration with the investment ARDIAN VS. INDUSTRY AVERAGE Ardian refuses to invest in the tobacco and team and external experts when appropriate. The PRI SCORES IN 2020 pornography industries and excludes any investment cornerstone of our Sustainability program is our series in companies manufacturing and/or distributing of annual engagement campaigns with portfolios. controversial weapons. PEERS ARDIAN O5 EXIT
O2 DUE DILIGENCE The investment team seeks to conduct an ESG Vendors STRATEGY & GOVERNANCE A A+ The investment team systematically performs Due Diligence (VDD) as often as possible. In Real Estate, an ESG analysis while taking into account the fund’s the investment team measures the value creation (or mandate’s) strategy as well as the details of each achieved on the property since acquisition. In accordance DIRECT PE INVESTMENTS A A+ opportunity. This is carried out with the support of with Ardian’s internal charter, at exit, and under certain the Sustainability team, along with specialized ESG conditions, Ardian aims to redistribute a portion of consultants and experts when necessary. capital gains to employees. INFRASTRUCTURE A A+
O3 INVESTMENT DECISION CONSULT FUND OF FUNDS A A+ OUR RESPONSIBLE A summary of the ESG analysis is included INVESTMENT POLICY in every investment memorandum submitted to ON OUR WEBSITE REAL ESTATE B A+ the Investment Committee. WWW.ARDIAN.COM 19
What does the Covid-19 crisis teach us about sustainability and resilience? “Not only do we encourage % Philippe Poletti: It confirms what we 86 already believed intuitively: companies companies to become OF PORTFOLIO COMPANIES, FOR with the most advanced sustainability WHICH CLIMATE CHANGE IS A practices tend to be more resilient. Our more sustainable, we also MATERIAL ISSUE, HAVE ACTION PLANS initial post-Covid analysis shows a direct TO REDUCE THEIR GHG EMISSIONS equip them to act.” AND/OR ENVIRONMENTAL FOOTPRINT correlation between companies that fared well during the crisis and the companies with the best sustainability performance, as measured by our methodology.
Sustainability We knew before the crisis that The Covid-19 pandemic Because the issues are so with the managers and sustainable companies perform better, has reinforced the urgent, we must help them define a long-term roadmap, and the coronavirus crisis encourages us importance of that. to change, to be better which we review every year in the to continue on this road. companies and to make to see what progress has Inula, one of our portfolio positive impacts. been made. companies, is a prime Covid era If company budgets get squeezed, example – it sells essential will that mean firms cut funding to oils and natural therapies, How does Ardian’s Why is the Sustainable The coronavirus economic sustainability initiatives? and its sales have risen Sustainable Buyout Buyout strategy so slowdown is squeezing company thanks to the increased strategy fit into this? important? budgets, but sustainability must PP: Commitment to sustainability does focus on health and not necessarily entail increased budgets. wellbeing. The company’s PP: Our Sustainable Buyout PP: It is a first step towards not be pushed off the priority It can be about giving employees more sustainability program and strategy bridges the gap providing a more rounded list due to financial expediency, responsibility for tackling sustainability purpose-led strategy have between impact investing vision of our impact and says Philippe Poletti, Chairman issues in the workplace and in their daily also helped to motivate and ESG integration. that of our investments. lives. In fact, many sustainability employees and make the We invest in companies that One of our biggest of Ardian Sustainability measures, such as improving energy business more resilient are not social businesses priorities is to ensure that Committee. efficiency, can save considerable during the pandemic. but still produce positive we can deploy this way of amounts of money. externalities. By investing, investing at a large scale. we can transform them How can finance help into high-performing And it is not a proprietary How do you make the case for sticking companies recover strongly and resilient companies approach that we want to to a sustainability transformation from the impacts of a that provide measurable keep to ourselves. We program amid a global slowdown? recession? impacts on society have to engage with the and the planet. industry on topics such as PP: Sustainability is not a “nice-to-have”, PP: Not only do we sustainability measurement it’s a “must-have” and it is key to encourage companies to We do this by providing methodologies, so that companies successfully transforming become more sustainable, companies with individualized there is a global shift in best themselves, so they can be more resilient. we also equip them to act. support and ESG roadmaps, practice. Companies have The companies that scored giving equal weight to a hugely important role Sustainability not only makes companies highest in Ardian’s 2019 the impact of their supply to play in meeting global 6,500 better businesses, it also addresses the sustainability ranking were chains, their own operations sustainability challenges JOBS CREATED ORGANICALLY concerns of investors, consumers and also the most resilient to the and the goods and services and investors have a vital IN OUR BUYOUT PORTFOLIO SINCE 2013 (EXCLUDING M&A regulators, all of whom want to see firms pandemic during the early they sell. When we invest in role to play in helping BUILD-UPS) do the right thing. months of 2020. a company, we sit down them to do so. Impact
22 TAILORING OUR APPROACH TO MAXIMIZE OUR IMPACT 24 SUSTAINABLE BUYOUT: SUPPORTING IMPACTFUL GROWTH 25 KEY CHARACTERISTICS 26 INTEGRATING SUSTAINABILITY FROM A TO Z 27 LEVERAGING THE SUSTAINABILITY POTENTIAL 28 CASE STUDY: SLV, GERMANY 29 CASE STUDY: EUROPA, FRANCE 2121
Impact Impact 22 TAILORING OUR APPROACH TO MAXIMIZE OUR IMPACT 24 SUSTAINABLE BUYOUT: SUPPORTING ImpactImpactIMPACTFUL GROWTH 22 TAILORING OUR APPROACH TO MAXIMIZE OUR IMPACT 25 KEY CHARACTERISTICS 24 SUSTAINABLE BUYOUT: SUPPORTING 26 INTEGRATING SUSTAINABILITY FROM A TO Z IMPACTFUL GROWTH 27 22 LEVERAGING22 TAILORING TAILORING OURTHE OUR APPROACHSUSTAINABILITY APPROACH TO TO MAXIMIZE MAXIMIZE POTENTIAL OUR OUR IMPACT IMPACT 25 KEY CHARACTERISTICS 28 24 CASE24 SUSTAINABLE SUSTAINABLE STUDY: SLV, BUYOUT: GERMANYBUYOUT: SUPPORTING SUPPORTING 26 INTEGRATING SUSTAINABILITY FROM A TO Z 29 CASEIMPACTFUL IMPACTFULSTUDY: EUROPA, GROWTH GROWTH FRANCE 27 LEVERAGING THE SUSTAINABILITY POTENTIAL 2525 KEY KEY CHARACTERISTICS CHARACTERISTICS 28 CASE STUDY: SLV, GERMANY 2626 INTEGRATING INTEGRATING SUSTAINABILITY SUSTAINABILITY FROM FROM A ATO TO Z Z 29 CASE STUDY: EUROPA, FRANCE 2727 LEVERAGING LEVERAGING THE THE SUSTAINABILITY SUSTAINABILITY POTENTIAL POTENTIAL 2828 CASE CASE STUDY: STUDY: SLV, SLV, GERMANY GERMANY 2929 CASE CASE STUDY: STUDY: EUROPA, EUROPA, FRANCE FRANCE 23
IMPACT IMPACT
Sustainable Buyout is a new segment in sustainable Tailoring our investment that seeks to bridge the gap between approach to maximize impact investing and ESG integration. In 2019: our impact $ 30,000 Bn WERE ALLOCATED TO ESG INVESTMENT DURING PORTFOLIO MONITORING We believe that our business, as an investor, and our responsibility, as a global leader, is to ensure that our companies and investments are agents in this change. Taking into account the specificities of each investment $ 715 Bn strategy allows us to maximize positive impact. WERE ALLOCATED TO IMPACT FUNDS Source: GIIN Annual Survey 2020, Global Sustainable Investment Alliance 2019.
In this section, we examine how Ardian is absolute score, capturing the real impact driving action to scale positive impact on produced, with a relative score quantifying our portfolio companies, Real Estate and the maturity within an industry. This helps Infrastructure assets, and our Fund of Funds Ardian to measure and maximize investments. the potential for change across a broad 1. The UN Sustainable 2. The Impact 3. The Theory range of companies. Development Goals Management Project of Change Measuring the full impact of a company (UN SDGs) is increasingly important and this is why By providing an equal weighting to the supply Primarily designed for impact The Theory of Change looks we have moved beyond a straightforward chain, operations and products & services, Agreed in 2015 by all funds, the Impact Management at the relationship between ESG assessment of our investments. the methodology measures the contribution governments, the UN SDGs Project analysis grid promotes inputs, outputs and impacts, of a company not as an isolated entity, but as de ne global priorities and a framework towards impact helping us to measure and For the past ten years, Ardian has been an actor operating within – and in uencing – aspirations for 2030. Their measurement. To be aligned with achieve effective long-term closely measuring and monitoring its portfolio its wider ecosystem. Holistic, universal and success relies on action and its activities, Ardian decided societal contributions, companies’ most material ESG indicators. rigorous, this methodology takes into account collaboration by all actors as to use 3 out of 5 dimensions of one step beyond the usual However, these were largely focused on the impacts, both positive and negative, of a investors and companies. the IMP (What, Who, How much) output KPIs. the companies’ operations and industry company’s own value chain – along with those to assess its contributions. benchmarks. A critical limitation of this approach of its suppliers – and its products and services. At Ardian, for each sustainability was that it missed an important part of the issue, we mapped the contribution Ardian has also been inspired by picture. For example, a company could have a This expanded vision of the company can made by Buyout portfolio the classi cation of IMP and can high ESG score based on internal policies and be leveraged to chart a far more ambitious companies to the relevant categorize its portfolio into: “Does initiatives, despite the fact that it developed transition to a sustainable model. SDG targets. or may cause harm”, “act to avoid products which could harm the environment. The methodology was inspired by three harm”, “bene t to stakeholders” international frameworks: and “contribute to solutions”. CONSULT OUR Ardian’s revised Sustainability Measurement Please note that none of our SUSTAINABLE BUYOUT Methodology goes beyond standard ESG portfolio companies is ranked as STUDY ON OUR WEBSITE: integration to include the full value chain of “Does or may cause harm.” WWW.ARDIAN.COM the company, providing Ardian teams with a measurable assessment of each company’s full societal impact as well as potential areas for improvement. It combines a sector-agnostic 25
IMPACT IMPACT SPECIAL FOCUS SPECIAL FOCUS
Sustainable Buyout: supporting impactful growth Sustainable Buyout is:
Our bespoke measurement technique plays a key role in our Sustainable Buyout approach, Targeted which seeks to bridge the gap Thibault Basquin Head of Americas Investments A continuous, highly selective investment approach between ESG integration is enhanced by assessing the potential for social at Ardian Buyout and impact funds. and environmental impact, delivering top performance.
We want to ensure that the We want the companies that ”companies we invest in through we invest in to help to build our Buyout fund will improve their contribution in the future. Accountable a world that is more attuned to Companies that have proper environmental and social issues. risk management tools in place Demonstrates and quantifies all material impacts, are clearly better equipped to positive and negative, throughout the entire value For them to do that successfully, react to crises. They are more chain of the portfolio companies. we must be able to measure agile and more reactive. progress. That is why we In the past, some people have highlighted the performance devised our new Sustainability of a few of their portfolio Transformative Measurement Methodology – companies to claim they were so we can accurately assess making a difference throughout Scales a broad spectrum of companies into sustainable their portfolio. We want to be and resilient businesses that meet the long-term societal the overall impact of the sure that all our investments and economic interests of all. Leverages governance companies we invest in. make a difference.“ and external ecosystems to fuel this transformation. Rewarding
Generates high social and financial performance that rewards all stakeholders, including employees through profit-sharing schemes. OF DIVESTED COMPANIES THAT OUTPERFORMED FINANCIAL TARGETS HAVE % RECEIVED A PORTION OF THE CAPITAL 70 GAIN VIA ARDIAN BUYOUT SINCE 2008 27
IMPACT IMPACT MEASUREMENT IN FUND OF FUNDS MEASUREMENT IN PORTFOLIO COMPANIES Integrating sustainability from A to Z Leveraging Vladimir Colas the sustainability In our Fund of Funds business, we use our own Member of the Executive innovative, full-spectrum approach to leverage Committee and Co-Head sustainability practices throughout our investments. of Ardian US potential This approach not only allows us to assess ESG integration at all stages of the investment process, Sustainability has become an providing us with critical information for investment ”increasingly important part of the decisions, but it also allows us to actively engage investment decision-making process As sustainability leaders in the private During the holding period, Ardian’s with GPs on sustainability issues on a regular basis. for Fund of Funds managers in the investment sector, we devised a bespoke Sustainability team conducts annual US. We are in the business of approach to measuring the potential sustainability reviews with on-site visits. making long-term investments and and performance of our portfolio. With the help of external consultants, generating long-term returns. You we talk to the company’s management and What we measure and when cannot do that unless you integrate We do not have thematic funds – all our funds analyze the company’s sustainable strategy. we assess ESG performance, sustainability into your analysis. are generalist and invested in a wide variety We can also organize calls or meetings with from before we invest in a fund of sectors, so our approach must be universal. portfolio companies dedicated to ESG issues The US lags Europe on this, when appropriate. until exit but it is growing at a faster pace Previously, 90% of an assessed company’s as investors realize that it is best sustainability score was based on its own Measuring impact allows the investment practice. Clients are taking it into operations. Now the score is evenly split teams to have a greater, more holistic Due diligence consideration and it produces between a company’s supply chain, its own understanding of the type of deals • We perform a systematic analysis of GP better returns. operations and customers’ use of its products they are making in order to build more commitments to sustainability. For primary Philanthropy and profit-sharing and services. resilient companies. transactions, ESG performance accounts initiatives are two areas in for 10% of the global GP rating. particular where US-based GPs We will invest in companies that currently have The ambition behind the impact measurement are leading the way. issues if we think we can support their transition approach is to make the companies we invest Investment Decision to a more sustainable business model. By doing in more sustainable. Metrics are key to putting • The investment team systematically includes a “ that, we can have a positive impact on the actions behind the words. To do things right, summary of the ESG analysis in the investment memo. companies and the wider world. it is critical to have these tools.
Ownership period • We send an annual questionnaire to GPs and assess their performance and progress at % investment process and corporate level. The results 92 OF GPs NOW HAVE A RESPONSIBLE allow us to develop a benchmark of the portfolio, INVESTMENT POLICY (+22 PERCENTAGE which is also used when re-investing with a GP. POINTS COMPARED TO 2017) Measurement identifi es Individualized assessment the levers that portfolio • We engage actively with GPs to support % % companies can use them in becoming more sustainable through 85 83 our annual monitoring program by providing OF GPs SYSTEMATICALLY OF GPs INTEGRATE ASSESS ESG PERFORMANCE ESG IN PORTFOLIO to drive change individualized feedback in order to support DURING DUE DILIGENCE MONITORING (+14 progress on ESG integration. (+17 POINTS SINCE 2017) POINTS SINCE 2017) 29
IMPACT IMPACT MEASUREMENT IN BUYOUT PORTFOLIO MEASUREMENT IN REAL ESTATE PORTFOLIO
Europa FRANCE
Overview Challenge We always take sustainability” into account We created our Ardian Real Sustain Europa is a Paris office building when we invest in Real tool to track and manage the ESG that Ardian Real Estate bought in performance of our properties 2017. Europa was built in 1993, Estate, to ensure that during the entire holding period, so structurally, technically and the investments we make SLV allowing us to assess the impact in terms of energy consumption, create properties that are that our ownership brings to a its performance was poor. In addition, GERMANY property. asbestos and lead were present. To be resilient and future-proofed in line with the highest international for the long term. Before acquisition, we assess the standards and become a Grade A property to identify the key areas building, the property required a Stéphanie Bensimon“ Overview Challenge Solution for improvement, using the Real complete refurbishment. Sustain tool. Once we have Head of Real Estate SLV is a B2B company that SLV strives to fully integrate ESG The company has introduced completed the purchase, we specializes in interior and exterior considerations into its supply chain. formalized Supplier Quality perform a deep-dive analysis on Solution lighting for residential and This is a particular challenge Guidelines, which it regularly how to improve ESG performance commercial projects. It sends more because many of its suppliers are updates. It includes ESG criteria and monitor progress throughout We launched a dramatic overhaul EUROPA ESG EVOLUTION: than 2,200 packages a day to based in China, where ESG in its selection and monitoring of the ownership period. When we of the property to make it as efficient FROM INVESTMENT TO EXIT more than 100 countries around the regulations are less well-developed suppliers, who must meet ESG sell the asset, we carry out a final as possible and attractive to tenants. SCORE IMPROVED world through its 15 subsidiaries. and well-enforced than in Europe. requirements. FROM 5.3 TO 7.1 assessment to demonstrate how we The building was pre-let to a large have improved the property media conglomerate under a “green YEAR 01 YEAR 03 The company has built up its own according to ESG criteria. lease” that included specific energy audit team in China that carries out performance targets and reporting specific ESG and health and safety REMOVED DURING obligations. At acquisition, the audits. SLV aims to audit its Age REFURBISHMENT property’s Ardian Real Sustain score suppliers every six months. Most was 5.3, and after work is % audits and quality checks include completed, we aim to have Social Location on-site visits. Teams in Germany achieved a score of 7.1 out of 10. 40 and China are also responsible for 16 Our aim is that the building will earn managing suppliers and quality TONNES OF ASBESTOS SUPPLIERS EARNING TOP RATINGS a BREEAM Excellent certification IN ESG AND HSE AUDITS IN 2019 control to provide the most reliable once the work is completed, Tenants Management (COMPARED TO 7% IN 2018) and best quality products. thanks to the improvements that 32 we have implemented to create TONNES OF LEAD a best-in-class building. Flexibility Technical 31
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Diversity
Diversity&Diversity Equal 31 31 &Opportunities& EqualEqual
32 DRIVING DIVERSITY IN THE WORKFORCE OpportunitiesOpportunities33 TAKING A LEADING ROLE IN REFORM 34 SETTING THE DIVERSITY AGENDA 36 CASE STUDY: OPTEVEN, FRANCE 37 MOVING THE NEEDLE ON GENDER EQUALITY 3232 DRIVING DRIVING DIVERSITY DIVERSITY IN IN THE THE WORKFORCE WORKFORCE 3333 TAKING TAKING A ALEADING LEADING ROLE ROLE IN IN REFORM REFORM 3434 SETTING SETTING THE THE DIVERSITY DIVERSITY AGENDA AGENDA 3636 CASE CASE STUDY: STUDY: OPTEVEN, OPTEVEN, FRANCE FRANCE 3737 MOVING MOVING THE THE NEEDLE NEEDLE ON ON GENDER GENDER EQUALITY EQUALITY
DiversityDiversity & Equal& Equal OpportunitiesOpportunities
32 DRIVING32 DIVERSITY DRIVING INDIVERSITY THE WORKFORCE IN THE WORKFORCE 33 TAKING33 A LEADINGTAKING A ROLE LEADING IN REFORM ROLE IN REFORM 34 SETTING34 THE SETTING DIVERSITY THE AGENDADIVERSITY AGENDA 36 CASE 36STUDY: CASE OPTEVEN, STUDY: FRANCEOPTEVEN, FRANCE 37 MOVING37 THE MOVING NEEDLE THE ON NEEDLE GENDER ON EQUALITY GENDER EQUALITY 33
DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY AT ARDIAN Taking a leading Driving diversity role in reform in the workforce We have embarked upon a bold and ambitious Maria Stasse set of targets and are committed to creating teams that represent the society in which we live. Co-Head of Human Resources, We draw on the rich talent, life experience Ardian and backgrounds that individuals have to offer. Companies with diverse and inclusive teams The HR team is leading Ardian’s make better decisions 87% of the time, ”work on implementing a new according to recent research.* Diversity Inclusion and Diversity policy within is not just fundamentally the right thing for % We define Inclusion and Diversity the company and is bene ting from as the framework that allows everyone to companies to do – more diverse companies the full support of the Executive are more pro table, grow faster and are realize their true potential within a group, Committee, which is essential on more agile than their competitors. 33 while being respected and feeling free to this topic. We developed a D&I OF PORTFOLIO COMPANIES AND ASSETS CONSIDER GENDER EQUALITY PART OF express their ideas and their singularities, Charter, which sets concrete There is no debate about whether companies THE COMPANY’S STRATEGIC GOALS no matter if it is religion, gender, age, national and measurable objectives to be need to boost inclusion and diversity in their origin, educational background, mental and reached by 2022, along with workplaces. The question is how this can be physical disabilities or sexual orientation. local action plans deployed by achieved most rapidly and effectively. Diversity Committees created in our main of ces. In this section, we examine how Ardian is We have an ambitious roadmap but working to improve inclusion and diversity in we know that results will not come our own workplace, within our Fund of Funds, Setting high standards instantly. It requires a long-term vision and commitment to change the way and our portfolio companies. We look in • As part of signing up to France Invest’s gender we recruit and integrate people into detail at insurance company Opteven and diversity charter, 25% of our Investment Committee the workforce from all walks of life how we support them to improve their must be female by 2030, rising to 30% by 2035, with and with a wide variety of diversity performance, and we talk about women comprising 40% of investment teams by 2035. experiences, and social and the work on social inclusion that we do • We have been awarded the EDGE ASSESS level one educational backgrounds. through the Ardian Foundation. certi cation. EDGE measures and assesses commitment to gender equality. As part of the certi cation process, “ * Source: “The power of all talent - Driving we are analyzing potential wages gaps within Ardian’s performance through diversity and inclusion” global operations. We will also publish a policy on Korn Ferry, June 2019. equivalent work for equivalent pay, and a exible working policy by 2021. Ardian Foundation The Ardian Foundation supports diversity Ardian Women’s Club and equal opportunities, inclusion and social • The Ardian Women’s Club was launched in May 2018 mobility around the world. by and for women of Ardian, to create a mutual support • The Foundation, which in 2020 celebrated Drawing on network for them to share their experiences and its 10 th anniversary, supports 39 partner charities knowledge. Among the various actions proposed globally, all of which focus on providing educational the breadth of the talent by the Club, it provides volunteers to act as mentors to opportunities and work skills to disadvantaged children its members, more than 40 of whom are now receiving and young people. pool is good for a one-year program of one-to-one support and advice. • In April 2020, the Foundation created a On top of this program, a new concept of mentoring has dedicated fund of €180,000, representing 10% business and society been recently launched and will be covering themes such of its annual budget, to help the organizations as career development, management, empowerment we support and their beneficiaries withstand and work-life balance. the impact of the Covid-19 pandemic. 35
DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY IN PORTFOLIO COMPANIES
Setting the diversity % agenda 40 Laura Andremont ARDIAN TARGET FOR PROPORTION Analyst, OF WOMEN IN INVESTMENT TEAMS BY 2035 AS A SIGNATORY Ardian Sustainability Team TO FRANCE INVEST’S GENDER At Ardian, we are convinced that diverse The ILN allows us to share best EQUALITY CHARTER and inclusive teams are stronger and more practices with our peers on how to Through the commitments effective. So, we strongly encourage our improve gender balance within our we make, our aim is to improve portfolio companies to transform their own firm, along with our portfolio ” Diversity and Equal Opportunities, operations to reflect this belief. companies and our funds.We are also which are a key pillar of our a signatory to the French private equity sustainability program. This is how we seek to leverage the association France Invest’s gender power of Ardian’s multiplier effect, diversity charter, which commits us We actively monitor and seek turning our ambition to be a to achieving gender balance within to improve several diversity KPIs, comprehensive driver of positive impact Ardian and our portfolio companies. such as promotions, employee into a reality by making our portfolio retention and salary gaps. companies more sustainable. As a leading private equity investment This data collection, coupled house, we can create positive change with interviews with portfolio Our determination to help create at scale. This effect is magnified companies, allows us to better a more diverse workplace was by being able to learn from others who understand the dynamics behind the driving force behind our decision have implemented best practices. inclusion and diversity initiatives. to take part in the Investor Leadership Going forward, we aim to share Network (ILN), which we joined best practices and tools within in August 2019. The network is the portfolio, supported by backed by the G7 and brings together dedicated workshops. 14 major institutions and investment managers from Europe and North “ America to address issues of sustainability and long-term growth.
INVESTOR LEADERSHIP NETWORK’S PARTNERS
MEMBERS OF ARDIAN’S MILLENNIAL EXECUTIVE COMMITTEE, ALL AGED UNDER 35
The Millennial Executive Committee brings together a group of employees under the age of 35 across the company to 15 develop ideas in collaboration with Ardian’s departments. 37
DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY & EQUAL OPPORTUNITIES DIVERSITY IN EXPANSION PORTFOLIO DIVERSITY IN FUND OF FUNDS
Moving the needle on gender equality
The private equity industry has historically Our most recent campaign had an lacked diversity, and performance remains increased focus on diversity, with Opteven poor, especially within investment teams questions introduced on the number of and in executive positions. At Ardian, women in investment teams and whether FRANCE we recognize the need to tackle this GPs are involved in diversity-related crucial issue, and we work with our GPs industry initiatives, with the aim of to improve gender diversity. raising awareness of the issue. Overview Challenge Solution We closely monitor our GPs on how The questionnaire shows that GPs Ardian bought a majority stake in All companies are expected to Opteven scored highly (93/100) they implement policies in the companies are increasingly tackling this issue, Opteven, an insurance company contribute to the achievement on the Gender Equality Index on they invest in, from due diligence to with more than half of them now having specializing in mechanical of full and productive employment factors such as the average pay disposal, as part of our ESG engagement a proactive diversity program or breakdown cover, maintenance and decent work for all women gap between women and men, campaign. Although funds are still policies, up 13 points from last year. contracts and assistance, in 2018. and men, including for young the variation in individual pay rises getting to grips with the issue, most people and persons with disabilities, and the number of women returning GPs have, or are introducing, formal Headquartered in Lyon, Opteven and equal pay for work of equal to work after maternity leave. guidelines and starting to engage with operates in 8 European countries, value. These challenges are It also recorded scores above sector-wide initiatives to move towards with offices in Italy, the UK, Spain underlined by the United Nations 85% for employee satisfaction for gender equality. and Germany. In 2018, it managed Sustainable Development Goals n°8 company treatment of issues almost 500,000 claims and it has “Decent Work and Economic such as gender, origin, sexual a portfolio of more than 1 million Growth” and n°5 “Gender Equality”. orientation, and disability, automotive service contracts according to the Great Place to and nearly 3 million breakdown Women are under-represented in Work survey 2019. assistance contracts. executive positions at Opteven. Although 53% of employees are Opteven is launching several women, just 22% of top executives initiatives to increase diversity are female. and equal opportunities, such as % setting up procedures for recruiting support managers without seeing CVs to prevent any risk of 53PROPORTION OF GPs discrimination during the first THAT NOW HAVE A PROGRAM selection stages of job applications. TO PROMOTE DIVERSITY /100 In 2020, Opteven committed 93 itself to a goal of increasing the proportion of employees with OPTEVEN’S SCORE ON disabilities among its workforce. GENDER EQUALITY INDEX It aims to reach a target of 6% of its workforce having disabilities within the coming years. 39
Climate
40 DETERMINED TO ACT AGAINST CLIMATE CHANGE 41 INITIATIVE CLIMAT INTERNATIONAL 42 MITIGATING OUR IMPACT 43 DESIGNING AMBITIOUS ROADMAPS FOR CLIMATE ACTION 44 CASE STUDY: EWE, GERMANY 45 SUPPORTING GPs TACKLING CLIMATE CHALLENGES 41
CLIMATE CLIMATE SPECIAL FOCUS
Determined to act against Initiative Climat climate change International
Climate change threatens grave Ardian co-founded the Initiative Climat The PRI aims to use the Initiative Climat consequences for our planet’s future, We seek to International (iCi) with four other GPs in 2015 International, the only climate nance should our society fail to take dramatic in an effort to create a collaborative platform initiative focused on unlisted investments, steps to decarbonize. build climate which provides practical tools for private to help rms to develop private equity- investment rms to help ght climate change. speci c ways to implement forward-looking This section outlines how we are tackling resilience and climate risk assessments, in line with the climate change, within our own Ardian believes that the private equity sector recommendations of the Taskforce for operations, in our Fund of Funds and our to reduce will be better able to tackle climate change Climate-related Financial Disclosure (TCFD). portfolio companies, and in the industry if companies work together. at large through the Initiative Climat our emissions, Through our involvement in the infrastructure International. We also explore how one Initiative members sign up to a statement working group that we are leading, we have of our assets in our Infrastructure portfolio, spurring others recognizing the impact of climate change on been helping to develop a tool that provides German utility EWE, is leading the the economy and commit to integrating climate-related risks and opportunities for development of the hydrogen economy. to follow suit climate issues into their investment processes. each type of infrastructure asset. They also commit to measuring the emissions As a nancial services company, of majority-owned portfolio companies In 2019, Ardian hosted the PRI in Person our direct environmental impact where these are materially signi cant. workshop “Get up to speed on climate is low. But as a long term investor, The aim is to create open-source tools change”. This event aimed to provide GPs we have a responsibility to act and a and support material to help signatories with practical tools and knowledge to signi cant role to play in driving positive integrate climate change-related issues address climate change risks and climate action through our investments. throughout their portfolio. opportunities in private investments.
Climate change is a key risk issue Since launching, 43 nancial organizations for our investments, both through have joined the iCi, which was backed by physical impacts and because of the French private equity and venture capital dislocations created as governments association France Invest and then endorsed act to decarbonize their economies. by the UN PRI in 2018. Our investments must be as climate- robust as possible. We also know that climate change creates opportunities 43 NUMBER OF SIGNATORIES for companies and investors that adapt TO THE INITIATIVE positively and provide solutions. CLIMAT INTERNATIONAL 43
CLIMATE CLIMATE CLIMATE IN ARDIAN CLIMATE IN PORTFOLIO COMPANIES
Mitigating Designing ambitious our impact roadmaps for climate action Ardian is committed to cutting the carbon footprint of its own operations and to be a leader in climate action for the financial services sector and beyond. Where we have a significant minority holding
or are majority shareholders – Buyout, Expansion In 2016, we carried out our first carbon footprint Tamara Krzisch and Infrastructure – we can directly help assessment on scopes 1, 2 and 3 of the Greenhouse Analyst, companies identify the source of their emissions, Gas Protocol to track our impact and develop Ardian Sustainability Team reduce them, increase their energy efficiency strategies to mitigate our carbon emissions. and compensate where possible for Pierre Klemas unavoidable emissions. Almost all our carbon footprint (96%) comes from As an investor with sustainability Director, at the heart of our operations, it is our travel and purchases. As a result, we launched ” Ardian Sustainability Team Since we launched our ESG portfolio a working group on carbon neutrality to establish crucial we engage our employees engagement program in 2009, we have helped a strategy to cut our emissions based on a twin-track in efforts to act on climate change 126 companies transition to more sustainable It is paramount to be proactive approach: cutting carbon intensity and offsetting and cut our emissions, in order operations. With every company, we have a in the management of unavoidable emissions. to lead by example. We need to ” climate-related risks and change as a company. It’s what comprehensive discussion when we first invest to opportunities throughout our our employees want, and it’s what define its most material issues. We have signed up to a 100% renewable energy investment life-cycle. That is why the talented people we are aiming contract for our Paris HQ and introduced a number of we are constantly using the best to attract want as well. There is Taking a long-term view, we use the best tools ‘green challenges’ to raise awareness of sustainability available standards to improve our great enthusiasm and momentum at to help businesses understand the risks and issues, and engage our different teams to behave approach. Beyond carbon all levels to act, from the Executive opportunities that climate change can bring, more sustainably in areas such as the use of water, accountability, we identify all the Committee to our newest and to become more resilient and successful. plastic and transportation. possible levers to avoid and employees. For some companies, the impacts of climate reduce greenhouse gas emissions We have held workshops on sustainable food and zero change look a long way off. Our role is to bring within our portfolios. Specific waste, to give employees real options for permanently “ it to the table and help companies anticipate roadmaps are designed to help changing their behavior to more responsible habits. the issues that may arise. portfolio companies to engage towards net-zero emissions. We New initiatives include: We support our companies by: also develop dedicated training • Development of a soft mobility and videoconferencing • ASSESSING MATERIALITY sessions and workgroups to systems to limit travel-linked emissions DROP IN CARBON support our portfolio companies INTENSITY PER • MEASURING EMISSIONS AND • Organization of communications programs with internal % going forward. staff to promote good practice EMPLOYEE IN OUR PARIS ASSESSING RISKS & OPPORTUNITIES OFFICE OVER 3 YEARS • Researching options for the purchase of carbon credits 28 • DEFINING INDIVIDUALIZED ROADMAPS “ to fund projects to offset and reduce emissions • TAKING ACTION
Employee-led reduction Our most recent environmental audit of direct and indirect emissions found that we had reduced the carbon intensity per employee of our Paris office by % 28% over three years. Employees have launched initiatives to reduce emissions through our Green 5 GW Challenge, which incentivizes teams to cut their use TOTAL RENEWABLE HEAT & POWER CAPACITY +326INCREASE IN CAPITAL of single-use plastic cups. UNDER MANAGEMENT AS OF 30/11/2020 COMMITTED BY ARDIAN TO NOTE: INCLUDES NEVEL WHICH CLOSING RENEWABLE ENERGY PROJECTS IS EXPECTED IN Q1 2021 BETWEEN 2016 AND 2020 45
CLIMATE CLIMATE CLIMATE IN INFRASTRUCTURE PORTFOLIO CLIMATE IN FUND OF FUNDS
Helping GPs to tackle climate challenges
We train our investment teams to be aware of Some GPs specifically refer to climate-related climate issues and to monitor their funds’ exposure guidelines from external bodies such as Green hydrogen is now to climate issues. Throughout the lifetime of the the Taskforce for Climate-related Financial “recognized by many investment, we look at risks and opportunities, Disclosures (TCFD). There is a growing stakeholders as a major as well as exposure to longer-term trends. recognition of the need to integrate climate change into the investment process, with 17% contributor to achieving CO2 GPs are increasingly aware of the necessity to of GPs saying they plan to have such a policy reduction goals. As a result, tackle climate change issues and a growing by the end of the year. Ardian expects decisive number have established initiatives to measure action by governments and reduce the carbon footprint of their portfolio EWE companies, integrate climate topics into their GERMANY that will allow cost due diligence and monitoring processes, with competitiveness and boost the aim of reducing the environmental impact the energy transition to of their portfolio. Overview Challenge a low carbon economy. At company management level, many GPs are Around The partnership with EWE is a regional utility based in Ardian is determined to support implementing initiatives in their own offices 2/3 Lower Saxony in northern Germany. the decarbonization of the energy EWE strengthens Ardian to reduce resource and energy use, funding of GPs monitor whether their portfolio It runs a telecom network and an system in line with the requirements Infrastructure teamʼs carbon offsetting projects and joining industry initiatives to work on climate issues at a larger companies have environmental energy business that operates of the Paris Agreement and the EU’s work in forecasting across the value chain, including Green Deal. Utilities have a key role scale. In addition, they are running training policies during their ownership, gas and electricity transmission to play in this change by phasing future investments sessions for their own staff and portfolio and half that number measure companies’ management teams. networks, and power generation out fossil fuels and switching to in green hydrogen. environment-related value creation consisting of a mix of renewables renewable sources of energy. on exit, using measurements such as and conventional generation. Investors such as Ardian can help “ However, there is significant room for improvement to facilitate these initiatives. Benoît Gaillochet as only 13% have dedicated guidelines to reduction in energy consumption. integrate climate issues into their investment Ardian is the only private shareholder, Co-Head Infrastructure Europe having acquired a 26% stake in process. For most GPs, climate-related investment the company in December 2019. guidelines are integrated within the firm’s wider EWE is deploying significant efforts Solution responsible investment policy. to accompany the energy transition, notably via the development of a As part of its first investment in green hydrogen economy. a pilot project, EWE plans to launch hydrogen production and % Hydrogen can be used in cars, filling stations, which will be used trucks, ships, trains and even to fuel municipal vehicles such as aircraft, as well as many industrial buses, cars and garbage trucks. % 40REDUCTION IN EWE’S processes that are currently Green hydrogen will be key SPECIFIC CO EMISSIONS highly polluting. It can also store to future decarbonization efforts 2 FROM ELECTRICITY 82 energy produced by renewable and EWE is at the forefront and PRODUCTION FROM 2005 PROPORTION OF GPs WITH ENERGY power sources. ready to play a major role. LEVELS REDUCTION INITIATIVES Outlook
We are living through extraordinary times, be better prepared for future impacts and grappling with the global Covid-19 to identify new markets, products and pandemic and its effects, as well as business models. Failing to do so leaves the increasingly apparent early impacts them ill-prepared to manage the challenges of climate change around the world. of tomorrow.
These challenges only reinforce Ardian’s Businesses must also become more diverse conviction that we must all play our part in and inclusive of all parts of the population, making society and the economy more to ensure they have access to the best resistant to future shocks. available talent, to increase social mobility and to re ect the world in which We believe a company like ours has they operate. a key role to play in those efforts and that sustainable, responsible investment It is not enough to claim that we and with a long-term perspective is crucial the organisations we invest in are to our future prosperity. becoming more sustainable. We must be able to demonstrate this, which is why At the same time, it is becoming clear measuring the impact of our investments that we need to act now. Investors such as is so important. Being able to see what Ardian can play an outsize role in creating works, and to show others, allows us a more sustainable future because our to invest more effectively and make investments can help businesses become our portfolio companies and assets more resilient and create positive impact more sustainable. on society and the environment. We have come a long way since Sustainability is not simply a “nice-to-have,” we launched our sustainability journey it is imperative to a company’s future. in 2008, and we know there is still a long More sustainable companies perform better, way to go. However, sustainability is not provide better returns and are more likely an optional extra. It will be a vital part to thrive in the long term. We are agents of business and investment operations of change, creating the companies of in the future. the future. At Ardian, we are con dent Taking account of climate risks and seeking we can play a part in building a more climate solutions enables companies to sustainable tomorrow.
Design and production: Illustrations: Jérôme Masi
Pictures: ©Ardian ©Europa ©EWE ©Opteven ©SLV Published by the Communications Department of Ardian, December 2020 20, place Vendôme 75001 Paris, France www.ardian.com