Sustainability

ESG is in our DNA

As our planet and society faces unprecedented challenges, we see private equity as a force for good.

Doing the right thing has always been part of our makeup. Some call it ESG. We call it our DNA.

This means doing more than simply being good corporate citizens. We are focused on driving positive outcomes across our portfolio, to scale businesses sustainably so that they have a positive impact on society, the environment and the economy alike.

Our role as a sustainable investor allows us to use our expertise and network to inspire, guide and educate mid-market management teams to make ESG improvements which drive financial performance and deliver strong returns.

We’ve been doing it for over a decade and have never looked back.

For a detailed look at how we embed ESG, download our Sustainability Report below:

Download Our Sustainability Report

 

Outcomes

Good intentions are one thing, but our approach to sustainability is grounded in a commitment to transparency regarding how we evidence the outcome we generate to our investors, stakeholders and portfolio companies.

Recent successes include:

  • 72% of our portfolio took steps to minimise energy consumption and reduce the its carbon footprint
  • 6 of our portfolio companies are carbon neutral
  • 7,253 jobs supported across the portfolio
  • 88% of companies have one woman or more on the Board of Operations
  • 181 Mental Health First Aiders across the portfolio
Sustainability

Why it matters

Doing the right thing and acting sustainably is no longer a nice-to-have. We are in the decisive decade for tackling climate change, making sustainability an existential concern for every business. Consumer and societal expectations around business ethics have also never been higher.

As the regulatory environment strengthens, our focus has always been on thinking beyond compliance, pushing boundaries and improving outcomes – not just because it’s the right thing to do, but because it’s a financial imperative.

There is a clear correlation between companies with a high ESG rating and strong financial performance. Our own experience over the last decade has shown us first-hand that improved ESG outcomes contribute to sales growth, talent retention, brand value and strong returns.

Sitting still is not an option if you want to build a profitable business today, with a lasting legacy for tomorrow.

At our 2022 Impact AGM, Georgie Edwards, Principal Consultant at Anthesis, spoke about why ESG matters in her presentation ‘Has the Penny Dropped?’

Watch the full presentation here

How we do it

We have led the way in the UK mid-market private equity industry, pioneering an award-winning ESG framework and successfully integrating our ESG programme across our portfolio for over a decade. ESG is embedded throughout Palatine with all our teams contributing to making it a key focus in what we do and stand for as a business.

Over that time, our approach to sustainability in applying our ESG lens has evolved from risk mitigation to value enhancement, and it is now embedded in every strategic growth plan across our portfolio.

By implementing, monitoring and evaluating ESG initiatives forensically across a diverse range of businesses and industries, we have armed ourselves with a genuine depth of knowledge and a tried-and-tested approach.

Impact Investing

Building on our award winning ESG strategy we raised a returns focused impact fund in 2017. Through this fund we invest in companies with the intention to create social or environmental change and, importantly, measure and report the change they are creating.

Learn more about the Impact Fund

Insights

Buyout Fund holds Carbon Neutral AGM

READ MORE

Meet Steph, who leads our Sustainability team

We’re absolutely facing a humanitarian and environmental crisis on planet earth, whether that’s through climate change, environmental degradation, and biodiversity loss, broadening inequalities. The timeframe in which we can act is shortening. I think now more than ever, businesses need to step up to the sustainability table and take action. We need to act fast, and we need to act with responsibility.

It’s never seen as the sustainability team’s role to deliver sustainable outcomes. The investment team and value enhancement team are very knowledgeable in this area. As Board directors, they will encourage and inform management teams to ensure sustainability is high on the agenda, monitored and that it’s embedded within the strategic growth plan from the outset. Ultimately, as a team we work collaboratively to help ensure a long-term positive outcome.

 

Steph Wall

Sustainability Director – Palatine

OUR OWN ESG MANAGEMENT