Delivering Value Sustainably
Apax Partners Sustainability Report Edition 6 Apax Partners 01 Sustainability Report
Apax Partners Contents Delivering Value Chief Executives’ statement 02 Sustainable investing and portfolio monitoring 03 Sustainably A global portfolio 06 A selection of portfolio ESG KPIs 07 Environmental impact 08 Social impact 09 Governance 10 ESG performance overview 11 Case studies 13 Apax Foundation 15 Our values 17 Conclusion 18 Apax Partners 02 Sustainability Report
Chief Executives’ statement
Delivering Sustainable Returns Committed to It is of increasing importance to investors in the Apax Funds that with the toolkits to support them in creating diverse and their assets are responsibly invested and are delivering harassment-free workplaces. We strongly believe that sustainable returns. At Apax, we aim to provide that assurance encouraging diversity is not only the right thing to do, but also delivering value through our fully embedded responsible investment programme. contributes towards better decisions and outcomes. Since 2009, the Firm has been committed to integrating Long-standing Reporting environmental, social and governance (ESG) considerations into sustainably its investment processes. We are delighted that this approach Since 2012, Apax Partners has produced an annual Sustainability has been recognised within the private equity sector as industry- Report. This provides an opportunity to highlight the wide- leading. ranging efforts made by the Apax Funds’ portfolio companies to improve their impact on society combined with delivering on their Dedicated Operational Expertise shareholder value creation objectives. We trust you will find the Integral to the success of our responsible investment programme 6th edition of the Report an interesting read and a testament to is the work carried out by Apax’s Operational Excellence Practice our ongoing commitment to making a sustainable contribution to (OEP). The OEP is a team of operational and functional experts the societies in which we operate. who work on specific areas within the Apax Funds’ portfolio to target step-change results. The OEP regularly helps identify ESG risks and value creation opportunities during the due diligence assessment of potential investments. Post-investment, the team engages with portfolio companies to seek out sources of value Andrew Sillitoe Mitch Truwit Mitch Truwit Andrew Sillitoe Co-CEO, Apax Partners Co-CEO, Apax Partners Co-CEO, Apax Partners Co-CEO, Apax Partners creation or risk mitigation which could require further focus. This year, once again, there have been numerous examples of the OEP’s programmes delivering a positive impact, particularly on ...encouraging diversity climate change through significant reductions in CO2 emissions. Driving Diversity & Inclusion is not only the right thing Since our appointment as co-CEOs, we have been committed to a long-term vision of a more gender-balanced firm. In 2018, we to do, but also contributes broadened these initiatives to include the Apax Fund portfolio
towards better decisions companies. We have enhanced diversity and harassment due diligence in the appraisal of opportunities for the Apax Funds, and and outcomes ... increased monitoring for diversity, inclusion and harassment metrics across the portfolio. The OEP developed a detailed project plan and is providing portfolio companies and deal teams Apax Partners 03 Sustainability Report Sustainable investing... What we do
Active ownership Pre-investment Post-investment
Apax Partners has a well-defined Pre-investment activity focuses on the Post-investment the Apax Funds’ portfolio Responsible Investment policy, which is identification of ESG risks, the company’s companies contribute to the Firm’s ESG embedded in its investment processes. ability to manage ESG considerations and its processes by monitoring and reporting on key performance related to ESG in the past. environmental, social and governance indicators. These in turn are reported in the Apax Partners Sustainability Report to provide transparency for investors in the Apax Funds.
Since adoption of the PRI Principles (see below) in 2011, sustainability has been Apax investment professionals undertake pre-investment ESG due diligence for The pre-investment due diligence is backed up post-investment by an annual embedded into Apax’s investment process as a tool to help release the full each new investment made by the Apax Funds. The due diligence will cover the Environmental, Social and Governance KPI collection cycle. Through the data potential of the businesses in which the Apax Funds invest. This means that ESG areas that Apax believes are key to understanding the ESG profile of the collection, Apax is able to capture the ESG footprint of the Apax Funds’ portfolio issues relating to sustainability are raised at an early stage in any potential particular company in which the Apax Funds are considering an investment. The companies and establish the possible areas of materiality which require further investment opportunity and are monitored throughout the Apax Funds’ Operational Excellence Practice’s extensive knowledge and expertise is routinely focus from the investment team to create value or mitigate risk. ownership of the company. tapped into by Apax investment professionals during pre-infor insight into how a For Apax, the key goal of the data collection is to get a better understanding of target company’s existing operations might be optimised, ESG risks can be The Firm coordinates its sustainability efforts through a Sustainability the materiality of certain KPIs to the overall operations of a portfolio company. This addressed and mitigated, and avenues for value creation can be unlocked during Committee consisting of eight members from different functions within helps the investment team to put in place value creation or risk mitigation initiatives the Apax Funds’ ownership. the Firm. in a far more focused manner, in conjunction with the OEP, in order to drive the Prior to the closing of each new investment, the findings of the ESG due diligence value relevant to the particular material issues (such as natural resource efficiency The Committee meets on a monthly basis and reviews all matters relating process are reviewed by a member of the Apax Sustainability Committee and programmes). to Apax’s internal and external sustainability-related activities. The Committee incorporated into the final Investment Committee documentation. Key ESG ensures that implementation of sustainability matters is achieved across issues, representing either a risk to the portfolio company’s business or an the investment team, the Apax Funds’ portfolio and the Firm. opportunity for value creation, are highlighted as part of this process.
Incorporate ESG issues into investment Seek appropriate disclosure on ESG issues Work together to enhance our effectiveness 1 analysis and decision-making processes 3 by the entities in which we invest 5 in implementing the Principles www.unpri.org Be active owners and incorporate ESG Promote acceptance and implementation of the Report on our activities and progress 2 issues into ownership policies and practices 4 principles within the investment community 6 towards implementing the Principles Apax Partners 04 Sustainability Report Portfolio monitoring... How we do it
Extensive ESG data collection Comprehensive portfolio participation
A distinctive and differentiating feature of the Apax From the first year of investment onwards, portfolio monitoring process is an annual ESG portfolio companies in the Apax Funds contribute KPI data collection cycle through which the Firm ESG data annually into the sustainability software monitors, tracks and reports on the Environmental, platform. Over the investment time horizon, Social and Governance impact of the Apax Funds’ companies increase the breadth and depth of their portfolio companies.(1) data collection leading to ample ESG data being available at exit. In early 2012, Apax developed a comprehensive set of key performance Performance data on ESG KPIs was reported by 31 portfolio companies indicators across environmental, social and governance areas based on across the Apax Funds(1), this group of companies is referred to as the ‘Apax the Global Reporting Initiative (GRI), LP questionnaires and other reporting ESG Group’(2). There were eight new additions to the ESG Group in 2017: standards focused on the reporting of non-financial ESG metrics. The ESG Attenti, ECi, Kepro, MATCHESFASHION.COM, Safetykleen, Syneron KPI set consists of qualitative and quantitative data and has grown from an Candela, ThoughtWorks and Tosca Services. initial 80 KPIs in 2012 to over 120 in 2018. It covers a broad range of topics and includes areas such as cyber security and diversity and inclusion. No longer in the ESG Group in 2017 are GardaWorld, GHG, Genex and Paradigm, due to full or partial exits. The annual data collection cycle is designed to highlight each portfolio company’s performance in its key areas of risk and opportunity. A The Apax ESG Group generated approximately US$19.7 billion (€17.5bn) sustainability software platform facilitates and streamlines the data capture 31 US$20bn in global revenues in 2017 and employed c.113,000 full time equivalent of the KPI information and additionally functions as a central repository for Portfolio companies Revenues employees (FTEs) globally. The scale of the combined operations of Apax ESG information and its related supporting documentation across the Buyout Funds portfolio companies puts the Apax Funds on a par with many portfolio. 120 KPIs c.113,000 FTEs of the world’s largest multi-national companies and necessitates For Apax, the key benefit of this project is that it affords significant visibility a proactive focus on sustainability as a fundamental part of the Firm’s and relevant data capture which in turn drives improvement of the ESG wider corporate responsibility. footprint across the overall Apax Buyout Funds portfolio, as well as within each individual portfolio company. The Firm is able to provide this information to LPs on an ongoing basis providing transparency on the Sustainability portfolio’s underlying ESG footprint. software system
(1) Portfolio companies reporting ESG KPIs are in the Apax Funds that have invested primarily in “buyouts”, being AEVI, AEVII, AVIII, (2) The ESG Group currently consists of the following portfolio companies: Acelity, Aptos, Assured, Attenti, Azelis, Cole Haan, and AIX (the Apax Buyout Funds) and exclude AMI and ADF. “Buyouts” refer to private equity deals completed by Funds, which, Duck Creek, ECI Software, Engineering, Evry, Exact, Full Beauty, Global Logic, Ideal Protein, Idealista, Kepro, based on their size, risk-reward profile, growth potential, and cash flow generation ability and potential, have been categorised by MATCHESFASHION.COM, Nupharm365, One Call Care Management, Psagot, Quality Distribution, Safetykleen, Syneron Apax as “Buyout” investments. Portfolio companies in which the Apax Buyout Funds hold a minority investment do not report Candela, Takko, The Boats Group, ThoughtWorks, TIVIT, Tosca Services, Unilabs, Vyaire and Wehkamp. their ESG KPIs. Apax Partners 05 Sustainability Report Portfolio monitoring... How we drive value creation
An innovative approach...... driving value creation...... contributing to global goals
Apax believes that its approach to obtaining ESG The Apax OEP uses the ESG KPIs to analyse The detailed regular collection of environmental KPI data from the portfolio is innovative. The the materiality of certain ESG factors to value and social KPIs enables the Firm to look at process is designed to be self-sustaining and creation or risk mitigation in the portfolio. the Apax Funds’ portfolio companies through self-governing on the part of the portfolio the lens of environmental and societal impact. companies, allowing each to take full responsibility for their respective ESG policies.
The benefits of the ESG KPI data collection are three-fold: Equipped with this insight, the OEP then engages with those portfolio More and more Apax Funds’ portfolio companies are working towards – Providing transparency to the Apax Funds investors on the ESG companies where there is a materially accretive outcome to implementing aligning with the UN Sustainable Development Goals (SDGs): ranging from footprint of the Apax Funds portfolio companies, thereby enabling an improvement programme. Examples of ESG engagements supported programs to save energy, water, and other resources; to commitments to them to communicate to their underlying clients more effectively and by the OEP include: source renewable energy; to the waste management of products to be in a meaningful way on ESG impact. Engaging in projects to reduce the costs and consumption of natural reused, recycled and disposed of properly at the end of their useful lives. resources. The OEP has worked with a number of preferred partners on The SDGs task all enterprises and investors to measure and manage – Enabling the Apax investment team to get a better understanding projects across the Apax Funds’ portfolio. The team has engaged with their impact on people and the planet – positive and negative, intended of the materiality of certain KPIs to the overall operations of a portfolio companies looking to reduce their carbon footprint, cut energy costs and and unintended, and were unanimously committed to by 193 nations company, helping the team together with the Apax OEP to put in place gain a strategic competitive advantage. Where relevant, the OEP will be in 2015. By developing a set of targets and indicators, companies can value creation or risk mitigation initiatives in a far more focused manner. involved in supporting those portfolio companies where there is a material effectively communicate their performance based on their social and – Creating continued awareness for portfolio companies of the impact expected from enhanced natural resource efficiency. environmental goals. importance of measuring and managing the impact of their Reducing risks through improved governance and policy implementation. businesses on both people and the planet. The ESG KPI collection process also provides insight into corporate policies and governance practices. Based on our findings in the data collection, the OEP and Compliance group work together to address specific opportunities for enhanced policy implementation or risk management in areas like anti-corruption and anti-money laundering.
The UN Sustainable Development Goals Read more Apax Partners 06 Sustainability Report A global portfolio In this section: The Apax Funds have a globally diversified portfolio A selection of portfolio ESG KPIs 07 consisting of companies with headquarters across 14 countries with differing regulatory frameworks. Environmental impact 08 Europe Total capital invested globally at year end 2017 was Social impact 09 USD 14.9 billion, in 38 companies, generating 15 combined revenues of USD 23.3 billion(1). Companies Governance 10 $6.2bn ESG performance overview 11 Invested cost $10.4bn Revenue
Rest of North America the World 17 6 Companies Companies $7.1bn $1.6bn Invested cost Invested cost $2.5bn $10.4bn Revenue Revenue
(1) Includes all minority owned companies except Guotai Junan Securities. Apax Partners 07 Sustainability Report A selection of portfolio ESG KPIs
ESG Group evolution
Apax ESG Report +/+ New investments -/- Exits Portfolio company Electricity Employees Code of ethics Diversity policy participation kwh 2013
Releasing potential sustainably Apax Partners Sustainability Report Edition 2 92% 890m 168,000 96% 61%
2014
Apax Partners Sustainability Report Edition 3 100% 875m 202,000 100% 74%
2015
Releasing potential sustainably Apax Partners Sustainability Report Edition 4 100% 748m 151,000 93% 66%
2016 100% 599m 150,000 85% 63%
2017
Delivering Value Sustainably
Apax Partners Sustainability Report Edition 6 100% 389m 113,000 90% 55% Apax Partners 08 Sustainability Report Environmental impact of the Apax Funds portfolio
Environmental achievements Breakdown of electricity usage Examples of environmental initiatives
Across the Apax Funds’ portfolio, we have a high number of initiatives in place that 15 companies reported reduce complexity, waste and natural resource consumption. These initiatives Most material reduction Kwh of 18% of electricity usage environmental indicator in packaging electricity range from: reducing electricity usage via replacing traditional light bulbs to LED, 7 351,709 tonnes materials saved 6 reducing paper usage by setting default double sided printing in all of the offices and 5 reducing water usage by investing in low flow fixtures, auto shut off faucets and 4 1 other water reducing features.
3 2 6 portfolio companies reported reduction reduction by tablets, establishing dedicated printing 1 Electricity 39% 82% of electricity usage in paper in gas usage Energy centres, reusing envelopes for internal purposes 2 Paper 16% 20% usage 12% and using an online forms signing system. 3 Airplane travel 16% 389m kwh 389m Kwh of electricity usage 4 n/a 16% reported by reported by 21 companies Safetykleen will be moving over to a new 5 Fuel for cars 10% ERP system in the UK business and the use of 21 companies TIVIT has been conserving energy in a variety of 6 Waste 3% handheld devices for sales and service activities ways such as through lighting and air will reduce significantly the amount of paper the conditioning automation. Examples include company uses. shorter periods of lighting and air conditioning See examples of environmental impact initiatives for full details throughout the day, lighting turned off at specific At Unilabs there are many local initiatives in points where not needed, alternating of switches place, for instance in Denmark where almost in meeting rooms, substitution of incandescent 40% of all flamingo/stryrofoam boxes are being and fluorescent lamps for LED lighting, air re-used (compared to 2016) and in Portugal conditioning optimisation and automation and where patient reports are no longer being frequency inverters installed in data centre printed out leading to a 20% reduction in cooling towers. Environmental performance overview Resources usage The Apax Funds’ portfolio This insight into where the main part of the paper usage . consists of a growing number of “asset light” usage in the portfolio is located enables the Neuraxpharm has also been focused on n n n n n businesses, due to Apax’s focus on four OEP to work with the largest users in the energy conservation by adapting lighting n n n n n specific sectors which do not have a significant portfolio to identify reduction initiatives that can and air conditioning settings. It reports an n n environmental impact: Tech & Telco, Services, help further decrease the usage. annual saving of 293,052 kWh on air Waste n Healthcare and Consumer. The most material conditioning and of 58,657 kwh on lighting 2,375 tonnes of waste n n environmental indicator for the companies With over 70% of portfolio companies optimisation programmes. This was achieved n n is electricity usage and here, as with other reporting that they have energy reduction mainly by switching off unused equipment reported by 16 companies n n n initiatives in place, the Apax Funds’ portfolio is environmental indicators, the majority of during weekends and holiday periods. Cole Haan has continued to improve its n focused on reducing its global environmental resources usage is reported by a small number recycling efforts in its Greenland facility. impact where possible. The portfolio’s Wehkamp installed 7,000 extra solar panels and of companies. As the chart above highlights, Co-mingled recycling, separation of metal from environmental stewardship initiatives will help LED lighting in their new distribution centre in 82% of all electricity usage in the Apax ESG construction waste and a major focus on baling Zwolle, NL in order to provide a renewable power Group is reported by six companies. protect the planet while improving efficiency, and recycling cardboard has begun to show a source. In addition, the company installed Cloud reducing costs and preserving their ability reduction in treated waste. The distribution Energy Optimizer (CEO) in their HQ, which will Electricity usage in the ESG Group on the to do business in the future. We believe it is centre recycled the equivalent amount of lead to an improvement of the climate control whole reduced by over 30% in 2017. This is not just the right thing to do, it can also boost cardboard (or more) as was purchased in 2017. due to the exit from the ESG Group of two innovation and profitable growth. installation resulting in a guaranteed saving of companies with relatively high usage and a 12% gas usage in the Wehkamp HQ. For many years now, Engineering’s significant number of new companies joining Technological Infrastructure Services (SIT) the Apax Funds’ portfolio who do not yet office has been operating a dense and highly have the ability to track their resources usage. efficient network dedicated to restoring On a like-for-like basis the 16 companies Paper damaged computers by simply replacing their components, just as might happen within a reporting data both in 2016 and 2017 reported 60,540 tonnes of paper a decrease in electricity usage of over 7% mechanical workshop. This is an example of or 29 million kwh. purchased by 20 companies how an approach to sustainability can also generate a reduction in business costs. Psagot is reducing paper consumption by double-sided printing, providing Board materials
Data representative of year ended 31.12.2017 Apax Partners 09 Sustainability Report Social impact of the Apax Funds portfolio
Diversity and inclusion Breakdown of employees Examples of social impact initiatives
At Apax we have the conviction that a broadly diverse work environment leads The Apax Funds’ portfolio companies have put in place many initiatives to make an to better performance within Apax, as well as within the portfolio. The best impact on their workforce by conducting regular employee surveys, implementing decision-making and highest quality governance require the broadest diversity improved training programmes and putting in place career development practices. of perspectives, including gender, ethnicity, and sexual orientation. In addition, the portfolio companies make an impact on the communities in which 24 companies account for they operate through their community engagement. A few examples of each are In early 2018, Apax expanded its existing diversity and inclusion project to include 37% of employees set out below. the portfolio companies in the Apax Funds. The objective of the project is to get to a balance of women in leadership positions across the portfolio, as board members and as C-level executives. Human Capital Community As a first step, Apax expanded its data collection effort and added a set of Boats Group has actively set up a number Acelity has leveraged relationships from questions related to diversity and inclusion. The responses enabled Apax to get 113,000 of employee related initiatives in order to across the continuum of care and with local improve its human capital management organizations to donate hundreds of a better understanding of the status of diversity and inclusion within the portfolio full time employees practices. Amongst others it created a thousands of dollars in product, global companies and at portfolio company board level. (FTEs) in the professional reimbursement program, disaster response efforts and to support ESG Group in 2017 launched its first employee engagement military and surgeon training in developing Gender, diversity and inclusion overview survey, improved company communication countries. Examples of these philanthropic through a closed loop within all offices activities include the dedication of its staff worldwide with weekly updates and in response to Hurricane Harvey, providing en er ers t launched an internal bi-weekly newsletter. access to its products and donations to n b n n It created internal transfer/promotional support the American Red Cross. Likewise, 7 companies account n n guidelines and processes and launched job teams in Las Vegas and the surrounding for over 63% of employees postings for all internal and external territories provided access to much- n n n n n 2 positions. needed wound therapies following the mass shooting on October 1, 2017. The ECi Software received the n n n b A n Servants Heart Foundation, a key Social impact summary FTEs into the ESG Group total. Like-for-like prestigious great place to work component of the Acelity CSR program, As highlighted in the chart above, the Apax employee growth across 24 companies certification in September 2017 also continued to donate thousands of P es an pra t es p rt pan es ESG Group contains a small number of large reporting in 2016 and 2017 was 6.7% or 6,500 from the independent analysts employers, seven companies combined FTEs. dollars to support key programs in n at Great Place to Work®. ECi account for over 63% of the overall ESG Group communities across the globe. n Health & Safety and employee well being earned this credential based on workforce (on average employing around extensive ratings provided by its MATCHESFASHION.COM created n n n 10,000 FTEs). The remaining 37% A Health & Safety policy is in place at over 80% (26) of all portfolio companies reporting in 2017, employees in anonymous surveys. ‘Matches Mob’, an employee forum that of the workforce is employed by 24 smaller will be used to channel sustainability which is similar to 2016. There were around 870 ThoughtWorks has a employers in the portfolio, on average in this actions, including charitable actions. This work related accidents reported across the ESG dedicated focus on developing group of 24 companies 1,700 FTEs per will be used to drive forward a united and Group, significantly down from 2,100 in 2016. a diverse workforce and company are reported. cohesive philanthropic strategy. They have continues to explore unique Days lost due to illness is also tracked by most implemented a ‘Give a Day Away’ On the basis of this insight, the OEP developed a detailed project plan to offer The ESG Group workforce decreased ways to enhance efforts to portfolio companies. In 2017, 24 out of 31 programme - whereby all employees are support in creating diverse and harassment-free workplaces. This support considerably year-on-year and stood at 113,800 increase the number of women companies in the ESG Group provided this entitled to a paid day to volunteer for a FTEs at year end 2017. The decrease is due to and underrepresented continues throughout the lifecycle of a deal: from due diligence (referencing, information. On average 3.5 days were lost per charity. legal DD, management assessments) to ownership (policies, objective setting, the exit of two large employers from the Apax minorities in its workplace. In recognition of ESG Group, combined accounting for around FTE due to illness compared to 3.1 days on average in 2016. these efforts ThoughtWorks became the TIVIT implemented a volunteer program governance structure, best practice sharing). 50,000 FTEs. The eight new companies in the winner of the highly recognised Anita B.org in 2017 in Brazil with the adoption of public Apax ESG Group reported on average 1,300 Top Companies for Women Technologists schools where the volunteers from the FTEs and brought just over 10,000 additional to work for the third consecutive year. company did the maintenance and gave classes to the students. It also has a donation program for warm clothing that is delivered to charities and the ‘Tree of 1 2 3 4 Dreams’ program that encourages employees to choose needy children to give gifts to at Christmas. 3.5 sick days per FTE / year 870 reported work related accidents
Data representative of year ended 31.12.2017 Apax Partners 10 Sustainability Report Governance of the Apax Funds portfolio
Governance summary Improving governance and policy implementation Examples of corporate governance and supply chain improvements At Apax we realise that good corporate governance is the foundation of effective Throughout 2017, eight companies were added to the Apax Funds’ portfolio. A number of Governance is a key area of focus for the portfolio and companies are encouraged corporate management. For us, corporate governance means the application of these companies did not yet have mature governance systems in place. The Apax OEP to focus on continuous improvement of their governance practices from the start international and national values and principles of responsible and transparent and Compliance teams are working with these companies in order to ensure that going of the investment, with a particular emphasis on anti-corruption practices and company management and control that are geared towards sustainable added forward they will apply best practice with regard to their codes of conduct and anti-corruption establishing robust codes of conduct. Likewise, supply chain improvements are a value. policies. key focus area for portfolio companies with exposure to supply chain risk. We expect full compliance with the laws and regulations of each country in which A number of examples of improvements are outlined below. nti orruption we operate, as well as with international standards. It is the necessary condition for ode o nti o petition ealt and Sa ety our engagement with society. ondu t et i s poli ies poli y 6 6 6 Corporate governance improvements Overview of compliance and policies Takko Fashion takes the publicly available and Cole Haan has developed
TAKKO FASHION p an e subject of working conditions CODE OF CONDUCT its own audit standards and scoring. Following Taking responsibility for our corporate activity is an important pillar of our company’s policy. It is our view that in a global economy social responsibility of international companies is not only restricted to sales aste markets but must also apply in all regions where they operate, wherever possible. and social responsibility very TAKKO FASHION takes the subject of working conditions and social responsibility very seriously at home on from this licensee factories will be subject to a and abroad.
Therefore TAKKO FASHION joined the Fair Wear Foundation, the Accord on Fire and Building Safety in Bangladesh and is signatory of the partnership for sustainable textiles.
Takko Fashion is committed to: En iron ental anage ent • a standard of excellence in every aspect of our business and in every part of the world, Appropriate risk management sytems and controls in place • ethical and responsible management in all our operations, • respect for the rights of all individuals, • respect for the environment and seriously at home and • compliance with building and fi re safety. new management systems based program in
Consistent with our brand values we expect the same commitments to be shared by all suppliers and producers of Takko Fashion products (“business partners”) and that they conduct themselves with the i ersity poli y poli y poli y utmost fairness, honesty and responsibility in all aspects of their business.
01 FAIR LABOUR CONDITIONS Not target of investigation relating to anti-corruption laws LTM EMPLOYMENT IS FREELY CHOSEN 1.1 Business partners shall not engage in any form of servitude, forced, bonded, indentured, traffi cked or abroad. For that reason Takko non-voluntary labour. 2018.
Business partners will risk allegations of complicity if they benefi t from the use of such forms of labour by their business partners. Business partners shall act with special diligence when engaging and recruiting migrant workers both directly and indirectly. No fines paid for health & safety non-compliance LTM Business partners shall allow their workers the right to leave work and freely terminate their employment Fashion joined the Fair Wear provided that workers give reasonable notice to the employer. Business partners shall ensure that workers are not subject to inhumane or degrading treatment, corporal 6 6 6 6 punishment, mental or physical coercion and/or verbal abuse. Modern Slavery and Human Trafficking Statement All disciplinary procedures must be established in writing and are to be explained verbally to workers in clear and understandable terms. MATCHESFASHION. Compliance with all local environmental regulations INTRODUCTION Foundation, the Accord on This statement has been published in accordance with the UK Modern Slavery Act, which requires businesses to disclose the steps they are taking to tackle slavery, servitude, forced and bonded 66 labour, child labour and human trafficking (together known as ‘modern slavery’). It sets out the steps that Matchesfashion Limited (t/a MATCHESFASHION.COM) takes to prevent modern slavery within our own business and our supply chains. This statement relates to actions and activities during the COM is committed to financial year 1 February 2017 to 31 January 2018. No serious environmental incidents LTM takko.com Fire and Building Safety in OUR COMMITMENT MATCHESFASHION.COM is committed to preventing modern slavery in its corporate activities and creating a better way of across its supply chains. We have zero tolerance approach to slavery and human trafficking. Compliance with all materially relevant local labour regulations OUR BUSINESS AND SUPPLY CHAIN Bangladesh and is a signatory MATCHESFASHION.COM is a global luxury retailer of men’s and women’s fashion, as well as homeware products. We stock over 400 established brands and deliver to more than 170 countries across the world. We are primarily an online retailer, but also operate seven stores in London and host a number of international events throughout the year. Our operations are supported by a team working, building on the of over 650 employees, a majority of whom are based in our head office in London. In addition, we manage one distribution centre and a photography studio (both London-based) and a local office in Monitoring of compliance with compliance policies and procedures Hong Kong. MATCHESFASHION.COM’s operations also include our in-house brand, Raey. of the partnership for sustainable textiles. Our supply chain includes an international portfolio of brands that vary in size; from the world’s largest and most influential fashion houses to small artisan and boutique designers. To support our general business operations in the UK we have a number of suppliers relating to functions including (but not limited to) logistics, technology, office management and professional services. ll e ployees edi ated passion of employees who are MATCHESFASHION.COM is majority owned by Funds advised by Apax Partners.
No serious employee related incidents OUR GOVERNANCE
Operations Board: The key purpose of the Operations Board is to focus on building our long-term trained in yber yber yber se urity Takko continued the improvement of working vision and strategic plan and is ultimately accountable for ensuring we are a responsible business. eager to drive positive social Sustainability Committee: We established our Sustainability Committee in 2017, with senior representatives from across MATCHESFASHION.COM and our sustainability advisors, Eco-Age. The Anti-corruption protections included in 3rd party contracts Committee meets on a regular basis to discuss the strategic direction of our sustainability activities and progress against projects and targets. Here, our Chief HR Officer and Eco-Age provide updates se urity un tion insuran e on our modern slavery strategy. conditions related to fire and building safety in and environmental impact onitoring o Sub ontra tor ad eren e to anti orruption poli ies 2017. It increased its number of social audits in within the business and across 6 6 6 the supply chain: a total of 486 audits were 6 n a 6 its relationships. The business conducted during the 2017/2018 business year, has partnered with consultancy Eco-Age to an increase of 30% in comparison with the develop a comprehensive sustainability previous year. programme with the aim of placing sustainable Cyber security Anti‑corruption In 2017, Takko reworded its Code of Conduct and ethical practices at the heart of what it does. During the year, no public allegations more comprehensively, to prevent any The first step was the launch of the Code of Cyber security has become an increasing misunderstandings amongst its suppliers. The Conduct on its site and a comprehensive survey of corruption were made against any area of focus for many companies and has Code of Conduct forms the centrepiece of its has been sent to all its brands. Eco-Age will offer portfolio company or their employees. Procurement Compliance work and is based on ongoing support to brand partners and suppliers been given even more priority with the the International Labour Organisation standards with the objective of collating all information and implementation of the EU GDPR (ILO standards). It regulates the fair treatment of improving sustainability performance together. regulation in May 2018. workers in its production facilities and sets out Wehkamp appointed a Head of Compliance in standards for good working conditions. 2017 who takes on the overall responsibility for We are convinced that good corporate governance strengthens the trust placed Apax added a number of cyber security in the Apax Funds’ portfolio companies by their business partners and employees Cole Haan continues to compliance at Wehkamp group level. Following and data protection related KPIs to its data actively participate in Social this appointment, a corporate code of conduct and also by the Apax Funds’ institutional investors. collection and as a result was able to engage Accountability International’s and a compliance program are being developed. Robust corporate governance systems are in place across the Apax ESG group. where necessary with the portfolio. Almost (SAI) corporate membership Regular compliance update meetings take place all companies in the Apax ESG Group handle and has worked with SAI to between the Head of Compliance and the Board. Virtually all companies have a code of conduct and/or a code of ethics which transition its supply chain Following the investment by the Apax Funds, guides their business activities. Portfolio companies that are new or which have personally identifiable information and over program to one that works Candela has been revising its template historically had less focus on governance are actively encouraged to adopt half of all companies have cyber security with its supply chain partners agreements, implementing a revised Code of insurance. to continuously improve appropriate codes and processes within the first year of investment. Ethics and revising its anti-corruption policy. working conditions and reduce risk. Its re-positioned Code of Conduct has been made
Data representative of year ended 31.12.2017 Apax Partners 11 Sustainability Report 2017 ESG performance data:(1) by Sector
Environmental Social(2) Governance
CO2 Business Water Waste Environ- Anti- Anti- Cyber emissions Electricity travel by air used treated mental Employees Women Men Diversity harrassment Voluntary Workers Code of corruption security Company (tons) (Kwh) (Miles) (m3) (tons) incidents FTEs FTEs FTEs policy policy Sick days turnover Council conduct policy function
Consumer Company A 1,112 7,210,200 500,000 13,076 295 No 359 168 191 No Ye s 21 79 No No No No Company B - - - - - No 457 256 249 No Ye s 3,308 63 Ye s Ye s No Ye s Company C - - - - - No 205 84 121 No Ye s - 10 No Ye s No No Company D 55,156 105,800,000 1,266,113 93,800 606 No 8,426 8,090 336 No Ye s 56,322 1,480 Ye s Ye s Ye s No Company E 5,447 8,860,431 - 1,620 40 No 2,108 1,233 875 Ye s Ye s 50 1,341 Ye s Ye s Ye s Ye s Company F 1,683 16,399,157 3,420,875 33,896 992 No 1,704 1,155 549 Ye s Ye s 6,480 601 Ye s Ye s Ye s Ye s Company G 793 7,206,128 - 8,280 2,369 Ye s 829 385 444 No Ye s 18,918 52 Ye s Ye s No Ye s Company H 338 2,391,562 2,036,028 3,566 35 No 562 383 179 No Ye s 679 179 No Ye s Ye s Ye s
Healthcare Company A - - - - - No 7,922 6,224 1,698 Ye s Ye s 48,567 557 Ye s Ye s Ye s Ye s Company B 231 390,000 - 450 - No 2,792 2,030 762 Ye s Ye s 82 414 No Ye s Ye s Ye s Company C - - - - - No 1,004 825 179 Ye s Ye s - 184 No Ye s Ye s Ye s Company D 33,028 24,137,968 46,355,434 61,786 1,679 No 4,968 2,440 2,068 Ye s Ye s 286 631 Ye s Ye s Ye s Ye s Company E - 5,945,950 - 5,958,321 163 No 4,347 2,946 1,401 Ye s Ye s 45 1,513 No Ye s Ye s Ye s Company F 521 1,264,006 - 1,659,387 191 No 819 332 487 Ye s Ye s 489 145 Ye s Ye s Ye s No Company G 1,234 7,326,313 662,283 37,075 935 No 649 351 298 No Ye s 2,577 40 Ye s Ye s Ye s Ye s
Services Company A 441,097 - - - - No 2,417 496 1,921 Ye s Ye s 2,072 234 Ye s Ye s Ye s No Company B 751,124 4,678,321 6,702,904 244,423 1,126 No 1,671 864 807 Ye s Ye s 10,596 Ye s Ye s Ye s No Company C - - - - - No 1,468 303 1,165 Ye s Ye s 18,017 161 Ye s Ye s Ye s No Company D - - - - - No 600 128 472 No Ye s - - Ye s Ye s Ye s Ye s Company E 601 230,000 3,295,000 15,000 5 No 132 28 104 No No 756 20 No Ye s Ye s No Company F - - - - - No 4,721 3,189 1,532 Ye s Ye s - 565 No Ye s Ye s No Company G 239 999,865 1,978,864 - - No 1,057 349 708 No Ye s 1,633 156 No Ye s Ye s Ye s Company H 2,183 1,200,000 110,000 5,100 11 No 836 380 456 Ye s Ye s 8,547 218 Ye s Ye s Ye s Ye s
Tech & Telco Company A 4,544 19,114,164 26,287,013 501,413 - No 11,179 2,884 8,295 Ye s Ye s 40,639 2,044 No Ye s Ye s Ye s Company B 6,059 26,488,864 - 1,160,000 12 No 10,273 3,140 7,133 No Ye s 1,702 625 Ye s Ye s Ye s Ye s Company C 9,526 65,525,495 8,623,638 107,763 18 No 9,679 3,363 6,316 Ye s Ye s 5,587 1,034 Ye s Ye s Ye s Ye s Company D 3,000 81,417,952 19,580,848 3,420 - No 8,527 2,481 6,046 Ye s Ye s 60,595 977 Ye s Ye s Ye s Ye s Company E - - - - - No 4,871 1,901 2,970 No Ye s - - No No Ye s Ye s Company F 5,386 2,320,907 8,276,804 - - No 1,382 469 913 No Ye s 9,386 194 Ye s Ye s Ye s Ye s Company G 423 2 74 3,510,617 - - No 1,347 398 918 No Ye s - 174 Ye s Ye s Ye s Ye s Company H 200 - 1,609,344 - - No 852 397 555 Ye s Ye s - 92 No No Ye s Ye s
(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (see page 4) (2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees
Data representative of year ended 31.12.2017 Apax Partners 12 Sustainability Report 2017 ESG performance data:(1) by Fund
Environmental Social(2) Governance
CO2 Business Water Waste Environ- Anti- Anti- Cyber emissions Electricity Travel by Air used treated mental Employees Women Men Diversity harrassment Sick days Voluntary Workers Code of corruption security Company Sector (tons) (Kwh) (Miles) (m3) (tons) incidents FTEs FTEs FTEs policy policy (FTEs) turnover Council conduct policy function
Apax Europe VII Company A Consumer 55,156 105,800,000 1,266,113 93,800 606 No 8,426 8,090 336 No Ye s 56,322 1,480 Ye s Ye s Ye s No Company B Healthcare 33,028 24,137,968 46,355,434 61,786 1,679 No 4,968 2,440 2,068 Ye s Ye s 286 631 Ye s Ye s Ye s Ye s Company C Services 2,183 1,200,000 110,000 5,100 11 No 836 380 456 Ye s Ye s 8,547 218 Ye s Ye s Ye s Ye s Company D Tech & Telco 9,526 65,525,495 8,623,638 107,763 18 No 9,679 3,363 6,316 Ye s Ye s 5,587 1,034 Ye s Ye s Ye s Ye s Company E Tech & Telco 423 2 74 3,510,617 - - No 1,347 398 918 No Ye s 0 174 Ye s Ye s Ye s Ye s
Apax VIII Company A Consumer 5,447 8,860,431 - 1,620 40 No 2,108 1,233 875 Ye s Ye s 50 1,341 Ye s Ye s Ye s Ye s Company B Consumer 1,683 16,399,157 3,420,875 33,896 992 No 1,704 1,155 549 Ye s Ye s 6,480 601 Ye s Ye s Ye s Ye s Company C Consumer 793 7,206,128 - 8,280 2,369 Ye s 829 385 444 No Ye s 18,918 52 Ye s Ye s No Ye s Company D Consumer - - - - - No 457 256 249 No Ye s 3,308 63 Ye s Ye s No Ye s Company E Consumer 1,112 7,210,200 500,000 13,076 295 No 359 168 191 No Ye s 21 79 No No No No Company F Healthcare - 5,945,950 - 5,958,321 163 No 4,347 2,946 1,401 Ye s Ye s 45 1,513 No Ye s Ye s Ye s Company G Healthcare 231 390,000 - 450 - No 2,792 2,030 762 Ye s Ye s 82 414 No Ye s Ye s Ye s Company H Healthcare 1,234 7,326,313 662,283 37,075 935 No 649 351 298 No Ye s 2,577 40 Ye s Ye s Ye s Ye s Company I Services - - - - - No 4,721 3,189 1,532 Ye s Ye s - 565 No Ye s Ye s No Company J Services 441,097 - - - - No 2,417 496 1,921 Ye s Ye s 2,072 234 Ye s Ye s Ye s No Company K Services 751,124 4,678,321 6,702,904 244,423 1,126 No 1,671 864 807 Ye s Ye s 10,596 156 Ye s Ye s Ye s No Company L Services 239 999,865 1,978,864 - - No 1,057 349 708 No Ye s 1,633 156 No Ye s Ye s Ye s Company M Tech & Telco 4,544 19,114,164 26,287,013 501,413 - No 11,179 2,884 8,295 Ye s Ye s 40,639 2,044 No Ye s Ye s Ye s Company N Tech & Telco 6,059 26,488,864 - 1,160,000 12 No 10,273 3,140 7,133 No Ye s 1,702 625 Ye s Ye s Ye s Ye s Company O Tech & Telco 3,000 81,417,952 19,580,848 3,420 - No 8,527 2,481 6,046 Ye s Ye s 60,595 977 Ye s Ye s Ye s Ye s Company P Tech & Telco 5,386 2,320,907 8,276,804 - - No 1,382 469 913 No Ye s 9,386 194 Ye s Ye s Ye s Ye s
Apax IX Company A Consumer 338 2,391,562 2,036,028 3,566 35 No 562 383 179 No Ye s 679 179 No Ye s Ye s Ye s Company B Consumer - 0 - - - No 205 84 121 No Ye s 0 10 No Ye s No No Company C Healthcare - - - - - No 7,922 6,224 1,698 Ye s Ye s 48,567 557 Ye s Ye s Ye s Ye s Company D Healthcare - 0 - - - No 1,004 825 179 Ye s Ye s 0 184 No Ye s Ye s Ye s Company E Healthcare 521 1,264,006 - 1,659,387 191 No 819 332 487 Ye s Ye s 489 145 Ye s Ye s Ye s No Company F Services - - - - - No 1,468 303 1,165 Ye s Ye s 18,017 161 Ye s Ye s Ye s No Company G Services - - - - - No 600 128 472 No Ye s - - Ye s Ye s Ye s Ye s Company H Services 601 230,000 3,295,000 15,000 5 No 132 28 104 No No 756 20 No Ye s Ye s No Company I Tech & Telco - - - - - No 4,871 1,901 2,970 No Ye s - - No No Ye s Ye s Company J Tech & Telco 200 - 1,609,344 - - No 852 397 555 Ye s Ye s 0 92 No No Ye s Ye s
(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (see page 4) (2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees
Data representative of year ended 31.12.2017 Apax Partners 13 Sustainability Report
Case study: Reducing CO2 through facilities and freight optimisation
Overview On 17 July 2017, Apax IX completed the acquisition of 100% of the outstanding shares in Candela (previously known as Syneron Candela). Candela is a global medical device company that is a leader in non-surgical aesthetics. The company designs, manufactures and distributes energy-based devices (EBD) to core (dermatologists and plastic surgeons) and non-core customers for them to perform non-surgical aesthetical procedures such as hair removal (c.45% of revenue), tattoo and pigmented lesions removal (c.20%), wrinkles, scars and vascular lesions removal (c.20%) and body shaping (c.10%).
Current status Network optimisation The group employs c.920 people globally and has a balanced In particular the project focused on integrating the Candela geographical footprint between North America, Europe & logistics network, more specifically: rationalizing the global Middle-East and Asia Pacific. The Company is headquartered distribution footprint and outsourcing to third party logistics in Wayland, MA, U.S.A.. The Company’s business model is providers, consolidating inbound and outbound shipments primarily based on the sale of capital equipment but it also from manufacturing locations to warehouses and customers, generates recurring revenues through the sale of consumables optimizing transport modes and service levels based upon and services. manufacturing and/or customer requirements. Candela currently has 21 warehouses across the globe with Future Outcomes multiple shipments taking place in the production process After the OEP project has been fully implemented and the between the warehouses, totalling over 110,000 shipments network optimisation has concluded, the company will have or combined more than 100 million miles. gone from a network of 21 warehouses to 7 warehouses. A focus on value creation projects More importantly the total number of shipments will have reduced by 34% and with that it is estimated that total miles Following the investment by the Apax Funds, the Apax travelled in freight will have dropped by 43 million miles. Operational Excellence Practice worked closely together The reduction in overall shipment miles will lead to a substantial with the company and the deal team to focus on value creation reduction in CO2 emissions at Candela during the investment projects involving the company’s asset intensive network of period by the Apax Funds. warehouses and an optimisation of its shipment methods. Apax Partners 14 Sustainability Report
Case study: Eliminating waste in the supply chain and improving carbon footprint
Overview Tosca Services is a leading provider of supply chain solutions to the perishable markets of protein, eggs, produce and cheese. The company is primarily engaged in pooling and leasing reusable plastic containers (RPCs) focused on changing the way perishables flow through the supply chain from farm or field to shopping cart – increasing quality, efficiency and sustainability while eliminating waste.
Founded in 1959, Tosca has a rich history of innovation that has Optimising the Network driven its growth from a regional cheese barrel refurbishment Tosca Services has an extensive logistics operation in place to business into a leading North American provider of reusable manage the transportation of the containers to and from its containers and supply chain solutions. Headquartered in customers. Their nationwide network of 14 service centres Atlanta, Georgia, the company today employs over 650 people allows them to efficiently move product while maintaining the and operates 14 service centres across the United States highest standards of cleanliness and food safety due to their working with the nation’s largest and most influential grocery ISO 22000 certification. More than 100+ million containers are retailers and suppliers. issued every year and this number is increasing. Because the Environmental Impact of RPCs business is growing, the number of containers and the miles Through its products, Tosca enables its customers to take travelled are also increasing. It is therefore critical for the waste out of their supply chain – not only packaging waste but business to optimise its network and to carefully manage miles also food and labour waste. The numerous benefits of their travelled per truckload. reusable packaging are demonstrated by Tosca’s reusable egg Since the investment by the Apax Funds the Operational crate: reducing product shrink by 50% due to the RPC’s strong Excellence Practice (OEP) has worked with the company to put construction and protective features; saving 53% labour in place a transportation management facility. This has enabled managing the egg department with RPCs vs one-way Tosca to focus on ongoing route optimisation and reduce miles corrugated boxes; protecting product quality with enhanced travelled. The company has been able to reduce miles travelled ventilation that cools eggs to 45° in 1 day (vs eggs in corrugated by around 10% since engaging with the OEP, and going boxes which take 5-6 days to cool to 45°); and removing 1.5 lbs forward the company expects this number to decrease further. of corrugated packaging from entering the supply chain for This reduction in miles travelled has reduced fuel consumption every RPC used. and has a positive environmental impact on the carbon footprint As of December, 2018, Tosca has diverted more than 779,384 of Tosca’s operations. tons of corrugated packaging from entering the supply chain since they began issuing RPCs in 2000. Apax Partners 15 Sustainability Report The Apax Foundation Striving to make a positive contribution
The Apax Foundation is the channel Trustees of The Foundation for Apax Partners’ corporate giving globally The Apax Foundation and has made donations averaging over is chaired by Sir Ronald Cohen and £1 million a year since its inception in 2006. its Trustees include:
Social mobility is the focus for the Apax Simon Cresswell Foundation’s major grant giving, alongside our Partner, General Counsel historic commitment to social entrepreneurship. Apax Partners Peter Englander We benefit from a steady flow of introductions Co-CEO of the to leading charities in the field, both from within Apax Foundation Social mobility Apax staff ‘matching’ scheme the firm and from our wider network. Rohan Haldea Social mobility is the main focus of the Apax Foundation’s Our matching scheme is designed to encourage and Partner, Apax Partners charitable giving. We support a range of charities, large and support our team’s personal involvement with charities The Foundation has continued its commitment and Co-CEO of the small, working to help people in deprived communities lift close to their hearts. The Apax Foundation has made total to our staff ‘matching’ scheme, which matches Apax Foundation themselves out of poverty. The Apax Foundation has made cumulative donations of around £3 million to charities to which David Marks total cumulative donations of £5.6 million to charities working members of the Apax team have given their time and skills.(1) charitable donations made by members of the in this field.(1) Senior Taxation Advisor, Apax team and also supports the efforts of Apax Partners members of the team who devote significant John Megrue time to charitable endeavours. Ex-Chairman, Apax Partners U.S. The Foundation has also continued its Shashank Singh commitment to the European private equity Partner, Apax Partners community’s collective charity, Impetus – The Mitch Truwit Co-CEO, Apax Partners Private Equity Foundation. We have increased Jason Wright our engagement with the Impetus-PEF by Partner, Apax Partners running a Summer work experience programme in our London office for the last two years with Impetus – The Private Equity Foundation Social investments Impetus-PEF charity partner, IntoUniversity. Impetus – PEF accelerates the growth of innovative charities A proportion of the Foundation’s invested endowment fund and social enterprises helping disadvantaged children and is allocated to social investments - in other words, investments young people to get the start in life they deserve. that generate a positive social impact as well as a financial return. Among these are Finance in Motion, whose mandates include the European Fund for Southeast Europe (EFSE) and the Green for Growth Fund Southeast Europe, and two Bridges Fund Management funds: the Bridges Evergreen Fund, and the Bridges US Sustainable Growth Fund.
(1) Donations made to 31 December 2017 Apax Partners 16 Sustainability Report The Apax Foundation continued
The Apax Foundation’s social mobility portfolio Social mobility examples encompasses a mix of enterprising start-ups and larger, more established organisations. We look to fund projects that will bring lasting economic and social benefits, and to support charities in all the regions in which Apax operates.
Social mobility/social entrepreneurship
Charity Period Country Grameen America North America Joblinge Germany
Grameen America 3 years initially followed US Grameen America is a not-for-profit microfinance organisation Joblinge works to reduce youth unemployment in Germany founded by Nobel Laureate Prof. Muhammad Yunus, providing through a 6-month programme targeting unemployed by 3-year re-commitment small loans to people of limited means in the US to enable high school leavers. Joblinge targets the most challenging Joblinge 1 year initially followed Germany them to start up their own small businesses. The Grameen cases, who have already been through government training by two 3-year re-commitments concept, which specifically aims to help the poorest, is new to schemes without success. Its programme consists of the U.S. and the Apax Foundation was one of its early backers. training, intense mentoring, internships and ongoing coaching Mann Deshi 1 year initially India throughout the participants’ apprenticeship, with a job Mosaic/ 3 years initially followed UK placement as the final aim. The programme has proved 4-6 The Prince’s Trust by rolling re-commitments times more effective than comparable government schemes. Breaking Barriers 1 year initially UK
Non-Profit Incubator/ 3 years China Xingeng Workshop Opportunity Network 3 years US
TERN (The Entrepreneurial 1 year initially UK Refugee Network
Mann Deshi India Mosaic UK Mann Deshi is dedicated to the economic empowerment of Mosaic (part of The Prince’s Trust) is an initiative to help young women in rural India and works to empower them with the people fulfil their potential. The Apax Foundation was the knowledge, skills and access to capital to become successful founding supporter of the Mosaic Enterprise Challenge, an entrepreneurs with more control over their lives. online business game that runs in schools in disadvantaged areas throughout the UK and culminates in a grand finals event at which the winning teams pitch their business idea to a panel of judges drawn from the business world. Apax Partners 17 Sustainability Report The Apax Values Driving the right behaviours to deliver superior returns
Apax has a distinct culture with four values that Shaping our industry’s values guide decision-making and support its goal We are committed to working with the industry on of delivering strong returns to investors. corporate responsibility issues including environmental, social and governance best practice, as well as raising the standard of transparency and disclosure to all our These values help the Firm make the right choices We have impact through stakeholders. As such, we were engaged from the by seeking to: earliest stages in the development of the Walker We choose right over easy insight and tenacity Guidelines on Transparency and Disclosure in the UK, and continue to be actively involved through committee - act without compromising on principles, A duty to all stakeholders to treat them An entrepreneurial spirit to seek out recognising that enduring relationships are representation on PERG (formerly known as the Walker with respect and to “do the right thing” differentiated opportunities and perspectives Guidelines Monitoring Group). based on trust, honesty and transparency; - make the most of its global platform by acting Our as one global team to harness the best talent values for situations, wherever they arise; - empower its people to be entrepreneurial and creative; and We succeed as one global team We learn, adapt and grow - create an environment in which continuous improvement and introspection are highly valued Working collaboratively across teams Seeking out and learning from diverse and in which team members