TOWARDS A SUSTAINABLE FUTURE
Sustainability Report 2018
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TOWARDS A SUSTAINABLE FUTURE - Sustainability Report 2018

Climate change and Impact

One step further for social and environmental good

Ardian follows distinct policies and processes for each of our investment activities which we apply at every stage of the investment process.

CLIMATE CHANGE

Climate change is clearly one of the most important collective challenges for the foreseeable future. In order to address this, Ardian has been extremely active over the past few years, engaging with climate change issues on numerous fronts and especially at industry level; we are a co-founder of Initiative Climat 2020 (IC20), which calls on GPs based in France to measure and reduce the carbon footprint of their majority owned companies. Ardian leveraged its position within the UN PRI and France Invest organizations to promote IC20 as an international framework for the global PE industry to contribute to COP21 objectives. The UN PRI has endorsed IC20 and recommends that GPs globally adopt it.

We receive increasing scrutiny from LPs during due diligence on our treatment of climate change risks and we see increasing appetite for regular reporting on this subject. Our existing company-level ESG engagement program identifies climate-related issues for each business and addresses them through the improvement plans we agree with the management team.

IMPACT

During 2018, alongside our largest Porfolio Engagement Program to date, we also undertook our first-ever mapping of the impact of Ardian’s Buyout, Expansion and Infrastructure portfolio companies, using the framework provided by the UN’s 17 Sustainable Development Goals for 2030*. This exercise widened the scope of our previous work, focusing not only on how sustainably each company operates its business but also on the wider social impact they have through their supply chains and the products and services they sell.

The next step is to develop a methodology to measure and monitor our companies’ impact on society from acquisition to exit for our existing funds, with impact scores at portfolio company level and fund level. We will start with the Buyout portfolio and hopefully increase the scope in upcoming years. In launching this work, Ardian is once again well ahead of other generalist GPs in making sustainability principles an integral part of its investment process.

We believe that by monitoring and improving our companies’ social and environmental impact, and setting specific goals to improve our impact during the holding period, we will have a positive impact on society as a whole.

THE UN’S 17 SUSTAINABLE DEVELOPMENT GOALS

Also known as ‘Global Goals‘, UN SDGs help to focus on what needs to be achieved and measured in order to address global challenges. Designed by the UN General Assembly and adopted by 193 states, the UN SDGs shape the debate by providing the framework used by more than 65% of PE investors when an additional 71% of businesses have already planned how they will engage with the SDGs.