Governance in portfolio companies
Our 2021 request for information showed that 57% of companies disclosing had a dedicated ESG working group or committee, while 76% were monitoring ESG-related KPIs. We saw similar levels of companies disclosing specific policies on areas like anti-bribery, corruption and whistleblowing. Further engagement is planned to increase the number of companies reporting overarching ESG policies and strategies.
Governance policies – role of the board (number of companies reporting)2
Governance policies – monitoring and reporting (number of companies reporting)
Additional policies (number of companies reporting)3
ESG initiatives at Permira
The Permira Code of Business Conduct and Ethics and business principles outline our expectations within the firm and for each portfolio company. Numerous global policies help us ensure that we manage and operate our business prudently while complying with applicable laws and regulations. These include risk management, confidentiality and security, conflicts of interest, anti-corruption/anti-bribery and anti-money laundering.
ESG integration is overseen by a specialist team and cross-functional ESG group.
In 2021, we expanded the ESG team, welcoming Nomsa Fulbrook-Bhembe to a newly created role of ESG Vice President. Nomsa brings additional expertise to our ESG group that includes our Head of ESG, Adinah Shackleton; Chief Risk Officer, Christopher Crozier; Chief Operating Officer, Ignacio Faus; and Head of Investor Relations, Chris Davison. The group also includes members of the investment, marketing and communications teams, as well as the Portfolio Group. Finally, the Portfolio Review Committee works to ensure appropriate oversight of broader value creation of the Permira private equity funds’ portfolio companies, including reviewing any ESG updates provided by investment teams.
We continue to invest in growing our ESG expertise as a strategic priority for the firm.
Supply chain management
We assess our main suppliers on modern slavery risks, applying risk ratings and requesting policies or further information where required. This approach has been extended year-on-year since 2016 and now covers all of Permira’s international operations.
1. With a focus on private equity buyout funds where we have the greatest influence. The focus is on buyout funds, where we have the greatest influence. Within the buyout funds, more focus is placed on companies with higher ESG risk or opportunity. Engagement in the PGO portfolio is more limited and may focus on ESG risks identified during due diligence or emerging post-investment, as relevant. For direct lending, there are fewer opportunities for direct engagement and has previously been focused on companies where the funds have equity or there is no sponsor. With a focus on private equity buyout funds where we have the greatest influence.
2. The data presented in the bar charts includes 46 buyout fund portfolio companies for 2021 and 41 portfolio companies for 2020. For 2021, 4 companies were excluded where a) exits were signed / pending by the end of 2021, b) no reporting submission was received because the investment was completed in December 2021 (1 company).
3. On the bar charts, there is a category for 'Not reported'. This indicates where there was no response or data for that particular question.