Permira believes that a focus on sustainability is an important part of building lasting value in the funds’ portfolio companies.
Environment, social and governance (“ESG”) and sustainability matters are considered throughout the investment process and are expected to be a key part of the governance of the funds’ portfolio companies. Permira expects the funds’ portfolio companies to deploy sound ESG practices in their operations. Permira also engages with portfolio company management teams post-investment and through the investment period to understand how ESG risks and opportunities are being managed by the Permira Funds’ portfolio companies.
Integrating ESG through the investment process
Asset selection & origination
- ESG screening and analysis of portfolio investments and teams
Diligence & deal execution
- ESG forms part of due diligence carried out by investment teams including compliance, liabilities, reputational issues, risks and opportunities. Potential issues and mitigation measures explored with support from ESG specialists
- External advisers engaged where required
- Material ESG matters integrated into value creation plans for monitoring over lifetime of investment
Value creation & monitoring Business transformation
- Material issues raised in due diligence addressed by portfolio company management teams
- Engagement with portfolio companies, including through ESG reviews and site visits to identify opportunities for improvement
- Financial and non-financial data gathered, monitored and addressed where appropriate
- Detailed consideration is given to progress made by portfolio companies on ESG during the life of the investment
- Consideration given to information for an exit process and sensitivities of likely acquirers
Permira is a signatory to the UN-supported Principles for Responsible Investment (“PRI”) and reports annually on its progress in integrating ESG in its investment processes.
Read the PRI transparency report 2018 here
Adinah is the Chair of the BVCA’s Responsible Investment Advisory Group and a member of Invest Europe’s Responsible Investment Roundtable (Affiliate Network).
*Employee and enterprise value data for the current Permira funds’ portfolio companies in aggregate as at 31 December 2016