Our ESG journey

Our ESG journey

The Permira funds have been working to deliver value to investors for more than 35 years and have a longstanding commitment to the integration of ESG in the investment process.

In 2022, Permira confirmed ESG targets for its newest buyout fund, Permira VIII. These targets relate to governance of ESG (ESG policies or strategies, an ESG working group or committee, agreed key performance indicators (KPIs) for the board), climate change and board gender diversity. The targets represent an important milestone and we believe that these targets will help to create value in the underlying portfolio companies and will seek to support portfolio companies, ensuring they are ready for the future.

2022
  • Won BVCA Excellence in ESG award
  • Classified new buyout fund (Permira VIII) as Article 8 under SFDR
  • Recruited three new ESG team members – ESG / Climate Specialist, Permira Credit ESG Lead and ESG Associate1
  • ESG Group became ESG Steering Committee
2021
  • Joined ILPA Diversity in Action
  • Refined Values-based investing framework for new buyout fund (Permira VIII)
  • Founding member of ESG Data Convergence Initiative
2020
  • Founding member of UK’s initiative Climat International
  • Multi-million Euro Permira Relief Fund for Covid-19 response2
  • First climate risk assessment (225 private equity and credit companies)
  • New external third-party cyber monitoring in private equity portfolio
2019
  • BVCA ESG e-learning completed by 90% of investment professionals
  • Launched Diversity Steering Committee
2018
  • Cyber Framework for investment teams introduced
  • Second ESG Roundtable (gender pay gap-focused)
  • Became a CarbonNeutral® company3
2017
  • Developed ESG Guidelines for portfolio companies
  • First ESG Roundtable
  • Launched The Permira Foundation (registered charity)
2016
  • First ESG report produced for investors
2015
  • Recruited Permira’s first dedicated Head of ESG, Adinah Shackleton
  • Developed a formal ESG data collection approach
  • Joined BVCA Responsible Investment Advisory Group
2012
  • Won the British Private Equity & Venture Capital Association (BVCA) Responsible Investment Award
2011
  • Signatory to UN Principles for Responsible Investment (PRI)
2010
  • ESG Group established, led by Jörg Rockenhäuser, Partner
  • Formalised ESG Framework developed to build lasting value
2022
  • First ESG margin ratchet executed, using EcoVadis ESG ratings, and seeking to embed the mechanism to offer ratchets in the documentation for new deals and refinancings4
  • Hired dedicated ESG Lead for Permira Credit (joined January 2023)
  • Further roll-out of a cyber security cloud-based portfolio monitoring programme (launched Q1 2022)
2021
  • ESG framework enhanced for Permira Credit strategies, including a new due diligence guide and risk rating revision
  • Roll-out of a cyber security cloudbased portfolio monitoring programme for direct lending (PCS) portfolio companies
  • Joined ELFA to enhance ESG integration in structured credit and to engage with peers in the CLO management industry
2020
  • Permira Credit ESG Group formed
  • First ESG KPI questionnaire for direct lending (PCS) portfolio companies5
  • First top-down calculation of the carbon footprint of the direct lending portfolio and climate risk assessment of the direct lending and CLO portfolios undertaken
2019
  • Diversity Steering Committee established
2018
  • Permira becomes a CarbonNeutral® company
  • Achieved “A+” rating in Principles for Responsible Investment (PRI) reporting for the Strategy & Governance and “A” for the Fixed Income modules for first time
  • First ESG survey of CLO managers
2017
  • Permira Credit first reports to UN PRI (as AUM met PRI’s reporting thresholds)
  • The Permira Foundation launched as a registered charity
2015
  • Recruited first dedicated Head of ESG, Adinah Shackleton
  • Permira joined the BVCA Responsible Investment Advisory Group
2011
  • Permira became signatory to UN PRI

Looking ahead

We will continue to leverage our ESG expertise to add further rigour to our ESG due diligence, monitoring and engagement across the investment lifecycle. We also plan to continue to focus on regulatory commitments, including adopting climate disclosure, assessing and considering the practical implications of Science-based Targets.

 

We will monitor tools that were introduced for Permira and a selection of portfolio companies: one to help measure and track their carbon footprints, and another to support the development of DEI programmes. We look forward to increasingly using technology to help drive and measure ESG progress across our firm and funds’ portfolio companies.

Our approach

Permira takes a proactive approach to responsible investment in seeking to build lasting value.

How Permira seeks to build lasting value
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1 Permira Credit ESG Lead and ESG Associate joined in February 2023. The planned hires are subject to changes, with no guarantee of joining.

2 See more details here.

3 Carbon neutrality refers to Permira’s business operations and business travel (i.e. Scope 1 and 2 GHG emissions, and category 6 Scope 3 GHG emissions, only). For 2021-2023, certified carbon emission reduction credits have been purchased from the Acre Amazonian Rainforest REDD+ Portfolio in Brazil, through third party Natural Capital Partners (now merged with ClimateCare and operating as Climate Impact Partners) as part of the commitment to annual renewal of the firm’s CarbonNeutral® status. The CarbonNeutral Protocol was created and is managed by Climate Impact Partners.

4 Applicable to primary direct lending transactions.

5 Pilot programme for PCS4 in 2020, expanded to other PCS funds from 2021 onwards.