Focus area: Climate risk and resilience in portfolio companies of buyout funds
Focus area: Climate risk and resilience in portfolio companies of buyout funds
Integrating climate, physical and transition risk exposure
In order to identify, monitor and build resilience to climate change within the Permira buyout funds’ portfolio companies, our ESG integration approach, monitoring and reporting is refined annually to consider current trends and regulatory developments. We continue to integrate physical and transition risk exposure within our ESG approach, considering the TCFD guidelines.1
Given the material significance of climate risks to economic stability, Permira believes that it has a responsibility to drive wider and faster action. Highlights from 2022 include:
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buyout funds’ portfolio companies reporting Scope 1 and 2 GHG emissions (2021: 49%)
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buyout funds’ portfolio companies reporting Scope 3 GHG emissions (2021: 24%)
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buyout funds’ portfolio companies procuring and/or generating renewable energy (2021: 58%)
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portfolio companies with validated Science-based Targets and a further 3 with formal commitment
Additional highlights from 2022 include:
Building on our previous broad-based climate-risk screening across the portfolio, in 2022, we undertook a deep-dive scenario analysis for areas which were deemed higher risk for the buyout funds, with a view to publishing a TCFD statement.1
Implemented a technology-enabled platform to calculate firm emissions and estimate portfolio company emissions where no actual data is available (i.e. financed emissions). This is also available as an option for portfolio companies to calculate their own emissions.
Expanded portfolio engagement, including through dedicated climate sessions in our sustainability conference in 2022.
Internally, we continued to assess the practical implications of setting a Science-based Target (SBT) for Permira, including engaging with a number of buyout fund portfolio companies on setting SBTs and reviewing our approach to footprinting. SBTs are targets that are set in line with the requirements of the SBTi and which provide companies with a clearly defined pathway to reduce emissions in line with the Paris Agreement goal to keep global warming to 1.5°C above pre-industrial levels.
Climate change (number of companies reporting)2
Board oversight of climate-related risks and opportunities relevant to business
Green / renewable energy
Setting science-based targets
Net Zero commitments
Focus area: Diversity, equity and inclusion in portfolio companies of buyout funds
Permira encourages the buyout funds’ portfolio companies to reflect on their corporate culture and identify which areas of their business require focus to improve their DEI efforts.
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1 At present, Permira has not yet published a TCFD-aligned report but has taken steps to begin preparing for reporting under the FCA’s TCFD aligned disclosure rules from 2024 (for the 2023 reporting period). The disclosures set out in this report take account of the TCFD guidelines where relevant.
2 50 buyout fund portfolio companies (across Permira VIII, Permira VII, Permira VI): ABS, Althea and Vacanceselect (where exits were signed before the end of 2022), and Acuity (a new P8 investment signed in January 2023) were all excluded. For the 22 companies in the PGO funds (across PGO1 and PGO2), nine companies completed the data request, five were completed based on public information, and the remaining eight were either excluded or did not respond. For the first time, data for listed companies across buyout and PGO were based solely on publicly available data, where available, otherwise, all data is self-defined and self-reported by portfolio companies and has not been subject to audit or verification by Permira. For companies where 2022 data were not yet available, information is drawn from the most recently available report (e.g. 2021 or 2022).