Returns with Purpose – Q+A with Impact Chairman Ian McAuley

Ian, what motivated your choice to chair Impactful Companies instead of traditional growth-oriented companies that do not prioritise impact?

With a degree in civil and environmental engineering, one could argue that I have always been involved in building things that contribute positively to society. I am also a pragmatist who recognises that growth can be beneficial if managed responsibly and with a clear purpose, ensuring that its impact on communities and the planet is carefully considered, assessed, and managed for a positive overall outcome. With over forty years of business experience, I have always aimed to engage in work that would allow

want to criticise individuals more directly focused on growth, as everyone must make their own impact and decisions based on their circumstances and priorities. However, after researching Palatine’s approach and structure, I found them highly appealing and their ethos resonated deeply with me. The combination of the Palatine Impact Fund’s success and especially the teams I work with at Palatine made the opportunity to Chair two Palatine businesses quite irresistible.

As Chairman of two Palatine Impact Fund investments, Isle and Papilo, could you discuss how the concept of “returns with purpose” has evolved in both companies?

For Papilo, the evolution involved understanding that Palatine invested for “profits with a purpose.” In the previous company arrangement there hadn’t been much discussion with management and employees about investment, structured goals, processes, or assistance from people who understood the “with purpose” aspect. Now, a sweet spot has been established within the team, through structured processes, which balances growth with purpose. Discussing this and the four Palatine themes of impactful business in meetings has proven beneficial and healthy for all. Also, Palatine’s ESG assessment structure, which is based on six pillars, is truly impressive.

What has evolved significantly at Papilo is the ability of individuals to engage with this approach and structure. Initially, there was uncertainty about how to contribute, however as people became involved in the processes, and contributed to the end product, their understanding of ‘with purpose’ grew. This allowed the whole team to unlock potential by optimising returns while retaining the purpose element. It became a mutually enriching experience, with both sides benefiting and gaining a deeper understanding of each other. As a result, the evolution led to colleagues stating that “we are a purpose-driven company,” emphasising their commitment to doing good. The ESG framework became a key differentiator for Papilo, leading to rapid and impactful growth, improved structures and processes, and clearer articulation of business services and their value to clients. Papilo’s journey over the past year has been highly successful.

Isle is a different type of entity, whose purpose, due to the nature of the business, aligned inherently from its inception with “returns with purpose” and positive impact. Despite being only a few months since the investment, Isle’s team demonstrates a real drive to grow the business at a significant rate.

What strategies or frameworks have you found effective in maximising both financial returns and positive societal impact? How do you encourage your teams at Isle and Papilo to focus on both?

This is one of the bigger challenges, particularly as really busy people don’t often feel they have time to take out of the business and think in the long term.

Fortunately, I’ve been lucky throughout my career to receive mentorship from experienced individuals who have guided me through various challenges. Additionally, my dad’s lessons from my football days taught me that success isn’t created by just having the will to win games. As the old saying goes having the will to prepare to win is key. So you do the meticulous preparation, consistent training, attention to detail and even polishing your boots. For me, strategy represents more than just a concept—it embodies discipline, process, and structure which produces action that must be executed efficiently and effectively.

Palatine’s contribution lies in its strategies, strong structure and well-established processes. We bring to this mix our talent, innovative ideas, and the ability to convince busy individuals that strategic planning is a worthwhile investment of their time and effort. It’s crucial to guide people carefully through this journey—understanding where we’ve been, where we are now, and where we aim to be. Establishing this framework enables us to track progress, assess our current standing, and set ambitious goals, especially regarding “returns with purpose.”

This aspect has been gratifying in our strategy discussions as it encourages forward-thinking and imaginative projections of our future impact. We aim for improved business returns while fostering a stronger sense of purpose. We want to show excellent (ESG) practices and detailed metrics and analyse how we measure them. This process naturally fuels ambition and drives us closer to our desired outcomes.

Despite facing challenges, maintaining structured discipline becomes a habit for successful individuals. Preparation and hard work are vital for success, and interestingly, those who plan and execute well often seem “lucky.” Our approach formalises this “luck” factor by combining structured processes with talented individuals, aligning with the impact investment fund’s goal of fostering purposeful growth and benefiting society.

In what ways has the investment from Palatine Impact Fund supported you and your teams at Isle and Papilo in focusing on “returns with purpose”?

For me effective investment is more than providing financial resources. For maximum impact it also encompasses investing in people, processes, and systems, which is what Palatine emphasises. Palatine’s involvement goes far beyond the simple “here’s the cheque; we’ll see you in 5 years”. They are proactively engaged in all aspects of investment and are dedicated to ongoing support and improvement. From the beginning of the investment journey, ESG has been a focal point, guided by its comprehensive six-pillar assessment and dedicated Sustainability team. Palatine offers a wealth of capabilities and services, making a significant investment in their company’s success. They approach investments with care and purpose, believing this approach leads to positive outcomes. Some team members may initially feel too busy, but as they engage more, they realise the value Palatine’s brings and that shapes a positive perspective on their investment.

If we turn that perspective around to engage our teams, particularly the management team, we can emphasise that this is not just an external investment but also an investment in ourselves. By envisioning where we aim to be in five years, the management team can contemplate their contributions beyond monetary terms—such as their skills, leadership, guidance, and mentorship across the organisation. This alignment ensures everyone works collaboratively towards shared goals. Maintaining discipline, having competent personnel, efficient processes, reliable systems, and a clearly defined endpoint are key. I firmly believe in aiming for destinations rather than embarking on journeys. While we may encounter interesting detours along the way, having a set destination guides our efforts. One crucial factor for me at the outset is creating a “North Star” which represents, in simple terms, our end destination encompassing financial, personnel, and ESG metrics.

When you observe a company excelling at what they do and working with purpose you learn from them, emulate their practices, and continuously raise your standards. This isn’t by chance; Palatine has thought this through thoroughly, and their guidance aligns seamlessly with our company’s ethos. This has a ripple effect, where we receive support from our clients and significant compliments on our ESG reporting, further strengthening our partnerships.

Reflecting on your career, what has been the most challenging and enjoyable aspect so far?

I was born into a shipbuilding family and grew up in Glasgow which gives a good grounding. My father, from an early age, instilled in me a competitive drive and a thirst for continually improving. I was the first in my family to have the privilege to attend university and my life since then has taken many unexpected turns. I think I had a strong desire to keep learning and achieve personal growth coupled to a mindset to do that in great teams, without compromising others and doing something of value. Seeking out and working with purpose-driven individuals and organisations became an almost intuitive pursuit. Along the way I even got to go to Harvard Business School and was there during 9/11. It was truly a life changing experience for many reasons.

My lifelong career in water, energy and environmental businesses , spanning global environments, has been both a passion and a challenge. I’ve had the privilege of living and working in various parts of the world, such as the USA and Belgium and gaining experience in over 30 different countries. That has been immensely enjoyable and enriching. While navigating the complexities of utility firms, particularly in today’s landscape, I’ve embraced each experience as a continuous learning curve—one that, so far, has yielded positive outcomes.

Undoubtedly, one of the most fulfilling aspects of my career has been the people I’ve had the pleasure of working with. Interacting and collaborating with individuals and teams is what motivates me each day. One of my greatest joys is seeing the success of those I’ve worked alongside over the years. For instance, watching a former colleague progress from a YTS trainee to an office manager and hearing them credit our collaboration for their growth was incredibly rewarding.

I stick to a few favourite maxims and one of the best I’ve encountered is “great leadership is helping ordinary people to do extraordinary things,” I’ve been fortunate to experience that firsthand. For instance, starting a business in Scotland as part of a larger global group and competing with established companies that had been around for centuries. Surprisingly, we became the largest in Scotland within five years, which was remarkable. Even better, we’ve all stayed connected and still meet up occasionally. We were just ordinary individuals, but together, we achieved extraordinary feats. It all ties back to what we’ve discussed—, having ambition and passion, having the will to prepare, embedding structure and discipline and then effectively combining all of that with people, processes, and systems to achieve success. Extraordinary things can happen that way. Luck may play a part but it can’t be the defining element.

The greatest source of joy in my life though is my two daughters. When I reflect on purpose, it inevitably leads me to thoughts about them. I often contemplate, when considering the opportunities I have, whether my daily actions contribute to making the world a better place for them, today, tomorrow and indeed once I’m no longer here. It a personal perspective that guides and drives me, perhaps my own measure of investment with returns.