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Responsible investment

Cinven is an active owner of businesses that seeks to contribute positively to the environment and society, both at the firm level and through its portfolio.

Overview

Responsible investment is a key priority for Cinven and is core to its investment strategy. When sourcing and assessing prospective investment opportunities, and subsequently during its ownership period, Cinven seeks to invest in, and build, businesses that are:

  • mitigating and adapting to climate change;
  • championing responsible production and consumption;
  • ensuring the efficient and sustainable use of resources;
  • embedding diversity and inclusion in everything they do; and
  • upholding the highest moral, ethical, governance and labour standards.

Cinven believes that a responsible approach towards its portfolio companies, their employees, suppliers and local communities, the environment and society is an essential part of its success.

 

In 2009, Cinven became a signatory of the United Nations’ Principles for Responsible Investment.

Embedding ESG into the investment lifecycle

Cinven is committed to creating value for its investors, portfolio companies and wider society by embedding ESG considerations throughout all stages of the investment lifecycle and supporting its portfolio companies to become more sustainable both during and after Cinven’s ownership.

Cinven has established appropriate processes, frameworks and governance models to support the incorporation of ESG factors throughout all stages of its stewardship of an investment.

Cinven’s approach to embedding ESG into the investment cycle is summarised in the diagram below.

External
advisers

External
advisers

External
advisers

Cinven
Annual ESG
Portfolio
Conference

External
advisers

Introduction to Cinven's ESG approach and requirements

Assessment of company’s ESG approach and reporting

Agree Action Plan with Cinven

Provide ESG performance and reporting updates to Cinven

Access to best practice and networking through Cinven portfolio and advisers

Ongoing engagement to encourage continuous improvement

Portfolio
Company

Designated Board member
responsible for ESG

Board
meetings

Regular ESG
updates

Policy and
performance
review

Cinven’s Portfolio Companies’ introduced to ‘ESG Guidelines for Portfolio Companies’ to explain ESG and cyber questionnaires, ESG policy and KPI reporting.

Cinven and its external advisers review the company’s ESG and cyber questionnaires and pre-investment ESG diligence; materiality/reporting and disclosure assessment undertaken.

Cinven and the company agree ESG priorities, ESG KPI reporting and timetable and discuss resourcing/external advisery support.

Company to provide quarterly ESG KPI data; ongoing dialogue/updates; Value Creation Plan update (where relevant); ongoing peer comparison.

Cinven annual ESG portfolio conference; regular access to Cinven ESG advisers; portfolio company networking.

Cinven and the company undertake an ongoing review of ESG KPI data and progress; redefine priorities; and support requirements.

1
Introduction to Cinven's ESG approach and requirements
Cinven’s Portfolio Companies’ introduced to ‘ESG Guidelines for Portfolio Companies’ to explain ESG and cyber questionnaires, ESG policy and KPI reporting.
2
Assessment of company’s ESG approach and reporting
Cinven and its external advisers review the company’s ESG and cyber questionnaires and pre-investment ESG diligence; materiality/reporting and disclosure assessment undertaken.
3
Agree Action Plan with Cinven
Cinven and the company agree ESG priorities, ESG KPI reporting and timetable and discuss resourcing/external advisery support.
4
Provide ESG performance and reporting updates to Cinven
Company to provide quarterly ESG KPI data; ongoing dialogue/updates; Value Creation Plan update (where relevant); ongoing peer comparison.
5
Access to best practice and networking through Cinven portfolio and advisers
Cinven annual ESG portfolio conference; regular access to Cinven ESG advisers; portfolio company networking.
6
Ongoing engagement to encourage continuous improvement
Cinven and the company undertake an ongoing review of ESG KPI data and progress; redefine priorities; and support requirements.

Cinven’s approach to ESG

After more than a decade of integrating ESG into its investment lifecycle, Cinven has developed a formalised approach to ESG. A summary of Cinven’s approach with respect to core ESG topics is outlined below.

Climate

Climate change poses a significant challenge to our society today, and in the coming decades. The impacts of climate change are being experienced around the world and require all stakeholders - including financial institutions - to act.

Private equity firms have an important role to play in supporting their portfolio companies to understand the potential impact of climate change on their businesses, and the potential impact of their businesses on climate and the environment. The transition to a net zero economy also presents opportunities to invest in businesses mitigating and adapting to the effects of climate change.

As outlined in Cinven’s most recent ESG Review, climate change is a high priority area of focus for the firm. Cinven is committed to:

 - Continue integrating climate-related financial risks and opportunities into its investment process, including supporting portfolio companies to undertake climate-related financial assessment aligned to the Task Force on Climate-Related Financial Disclosures (TCFD)

 - Supporting Cinven’s portfolio companies to successfully transition to a low carbon economy

 - Actively monitoring carbon emissions of Cinven’s portfolio companies on a quarterly basis alongside other environmental KPIs that are material to its portfolio companies such as energy consumption (including percentage renewables), water consumption, and waste generated that is not recycled.

 - Undertaking a review of its operational and financed emissions with a view to aligning its funds with decarbonisation targets.

Inclusion & Diversity (I&D)

Inclusion & Diversity (I&D) is a hugely important area of focus for Cinven’s employee engagement, its own firm performance and its engagement with its portfolio companies and other stakeholders.

Inclusion & Diversity has been shown to be a critical component for improving individual, team and company performance. The approaches and perspectives of diverse team members from different backgrounds, identifies and personality traits contributes to stronger solutions and decision-making. And in environments where diversity is clearly valued, those different solutions are more likely to materialise.

Additionally, Inclusion & Diversity is an essential aspect of human rights that must be respected. Private equity firms have a role to play in supporting underrepresented groups who face structural and cultural inequalities to access opportunities and be treated fairly.

Industry Initiatives

Cinven is proud to be actively involved in several industry initiatives focused on sustainability, climate and I&D:

Our portfolio companies and ESG

Allegro

Downloads

2017 Corporate Social Responsibility report

Download

Envirotainer

Downloads

Sustainability Report FY2018

Download

Envirotainer - Modern Slavery And Human Trafficking Statement

Download

The Cinven Foundation

The Cinven Foundation is a vehicle for the firm's corporate giving. The Foundation mainly supports education-related programmes, making a substantial donation to a limited number of charities each year.

The charities we back include:

  • Impetus

    The Foundation makes an annual donation to Impetus, of which Cinven is a member. Impetus raises significant sums from the private equity industry and its business partners to support charities that help young people to succeed.

    https://impetus.org.uk/ 

  • School Home Support (SHS)

    Working with schools, local authorities and other children's settings, School Home Support provides personalised support to children and families, tackling the underlying barriers to a successful education to improve the life chances of children. 

    www.schoolhomesupport.org.uk

  • The Access Project

    The Access Project supports students from disadvantaged backgrounds to access top universities, through a unique combination of tuition and in-school mentoring. They believe that every young person regardless of background can make the most of education, unlocking their potential and creating a fairer society.

    www.theaccessproject.org.uk

  • IntoUniversity

    IntoUniversity provides local learning centres where young people are inspired to achieve. At each local centre IntoUniversity offers an innovative programme that supports young people from disadvantaged backgrounds to attain either a university place or another chosen aspiration. 

    www.intouniversity.org

  • ThinkForward

    ThinkForward, an initiative developed by venture philanthropy organisation Impetus, runs early intervention mentoring schemes to enhance the prospects of disadvantaged young people. 

    www.think-forward.org.uk

  • Level 20

    Founded by a group of 12 senior women in the private equity industry, including Alexandra Hess of Cinven, Level 20 is a not for profit organisation which aims to inspire women to join and succeed in the private equity industry, and provide greater representation for women at all levels of the industry.

     

    Core to Level 20's ethos is the belief that gender diversity and, in particular at senior levels in the private equity industry, will lead to improved investment performance. 

     

    Level 20 plans to achieve its vision through a career mentoring programme, a formalised network and a commitment to philanthropy. Alexandra leads the mentoring programme for Level 20 with two of the co-founders.
    https://www.level20.org/

  • SEO/London

    SEO prepares talented students from ethical minorities or low socio-economic backgrounds for career success. 

    www.seo-london.org

  • City Gateway

    City Gateway is a charity based in East London, offering support, employment and apprenticeship opportunities for young people, women and families. Based in East London, they are a charity working with young people, women and families to give them the skills, experience and qualifications they need to achieve their ambitions. And through what they do, they help change society.

    www.citygateway.org.uk

The Foundation provides a way for Cinven to support charitable causes that are important to staff members. Subject to the Trustees' approval, it double-matches any charitable donation made by a Cinven employee up to a limit of £1,000 per person per year, and matches any charitable donation on the same basis up to £2,000. In addition, it makes ad-hoc donations to other individuals who are close to the firm who request sponsorship for participation in charitable events.