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Eurazeo

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

In 2014, Eurazeo disclosed its comprehensive CSR strategy, incorporating quantified objectives for 2020. This CSR strategy is divided into four actions: invest responsibly, establish exemplary governance, create sustainable value and be a vector of change in society.

At the heart of Eurazeo's value creation model, CSR is integrated into every stage of the investment process: phase of identification of investment opportunities, during the transformation phase, and at the exit phase.

To facilitate the implementation of a pragmatic and value-creating CSR approach, Eurazeo has laid down a CSR roadmap (corresponding to the third part of the CSR strategy) made available to all its portfolio companies. Eurazeo aims is to see it deployed by all of portfolio companies by 2020. The roadmap has three major objectives for 2020:

- provide a solid CSR foundation: 100% of portfolio companies to have deployed the 7 Eurazeo's "CSR essentials"

- identify the challenges and opportunities of sustainable performance: 100% of portfolio companies to have quantified CSR progress targets;

- accelerate and maintain sustainable value creation: 100% of portfolio companies to be involved in at least one CSR acceleration program.

01.5. Additional information [optional]


LEA 02. Reasoning for interaction on ESG issues (Not Completed)


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]

Prioritization of topics to address is based on, among other criteria, analysis of ESG annual reporting results for the portfolio companies, as well as CSR strategy and 2020 objectives achievements. Regular meetings are held with each portfolio company to exchange on CSR issues as well as define and follow plans of action.


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take following your engagements.

04.3. Indicate whether your organisation defines milestones and goals for engagement activities carried out by internal staff.

04.4. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.5. Additional information. [Optional]

Through its CSR strategy, applied to Eurazeo and all fully consolidated companies and equity-accounted associates, Eurazeo has define 2020 as the overall timeline of its approach: the CSR strategy incorporates 2020 quantitative objectives for each of the four pillars.

To facilitate the implementation of a pragmatic and value-creating CSR approach, Eurazeo has laid down a CSR roadmap made available to all its investments. The follow-up of achievements and progress made in the field of CSR was made reliable thanks to the deployment of a reporting system, used by 19 companies of the portfolio in 2016. The CSR reporting results of each company are given annually to their management teams and diverse boards, on the basis of which are established plans of progress and quantitative targets. One of the three main objectives of the CSR road map is that  100% of portfolio companies to have quantified CSR progress targets by 2020. These quantitative targets are usually defined with a timeline and incorporate milestones.

All along the transformation phase and CSR progress plans defined with portfolio companies, Eurazeo holds CSR meetings with portfolio companies (at least quarterly). In 2016, 95 CSR meetings as well as 3 CSR awareness-raising seminars were held with subsidiaries.

Eurazeo also regularly organizes meetings and seminars gathering all portfolio companies to allow them sharing their experiences and CSR best practices (such as the annual briefing meeting for CSR reporting, Human Resources Club, working group on sustainable procurement, etc.)

Moreover, Eurazeo makes regular visits to the sites of its portfolio companies. Companies are encouraged to perform or to undergo audits and to put in place practical measures to help them achieve goals set up.


Process for engagements conducted via collaborations

LEA 05. Process for identifying and prioritising collaborative engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

05.1. Indicate whether your organisation has a formal process for identifying and prioritising collaborative engagements

05.2. Describe the criteria used to identify and prioritise collaborative engagements

05.3. Additional information [Optional]

As an investment company, Eurazeo closely works with the AFIC (Association Française des Investisseurs pour la Croissance, French Private Equity Association) and PRI on responsible investment topics.

In December 2011, Eurazeo signed the Principles for Responsible Investment (PRI) of the United Nations, thereby confirming its goal of factoring non-financial criteria into its management, investment strategy and portfolio of companies. Eurazeo also signed the United Nations Global Compact in 2014, and its two first Communications on Progress (COP) were submitted at the Advanced level.

Priorities are identified based on CSR analyses, materiality of ESG factors and trend forecasts of private equity and other sectors as well as CSR regulations.

Conscious of their responsibility as long-term shareholders of their portfolio companies, Apax Partners, Ardian, Eurazeo, LBO France, and PAI Partners, have decided to launch in 2015 the "Initiative Carbone 2020". This initiative is the French private equity sector's first collective commitment. It calls for the responsible and transparent management of portfolio company greenhouse gas emissions. The signatories of the IC20 have thus decided to mobilize in order to contribute to the COP21 objective of limiting global warming to 1.5 degrees Celsius.

Supported by the PwC methodology, the five French private equity players have tested and formalized a common and long-term approach to reducing the greenhouse gas emissions of their investments. Among other actions, they will publish the direct and indirect carbon footprint of these companies as of 2020 in cooperation with their management teams (refer to the appended breakdown of the commitment). The signatories also hope to share both the methodology and the commitments with all sector players that wish to participate in the fight against global warming.


LEA 06. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

06.1. Indicate if you define specific objectives for your engagement activities carried out collaboratively.

06.2. Indicate if you monitor the actions companies take following your collaborative engagements.

06.3. Indicate whether your organisation defines milestones and goals related to engagement activities carried out via collaborations.

06.4. Indicate if you do any of the following to monitor and evaluate the progress of your collaborative engagement activities.

06.5. Additional information. [Optional]

Eurazeo completes annual questionnaires for the AFIC (Association Française des Investisseurs pour la Croissance – French Association of Investors for Growth), PRI and UN Global Compact.

As a signatory of the Global Compact, Eurazeo especially completes an annual Communication on Progress (COP), reaching the Advanced Level from its first year of membership (2014).

Regarding the “Initiative Carbone 2020”, the French private equity players involved have tested and formalized a common and long-term approach to reducing the greenhouse gas emissions of their investments. Among other actions, they will publish the direct and indirect carbon footprint of these companies as of 2020 in cooperation with their management teams (refer to the appended breakdown of the commitment).

Eurazeo monitors and evaluates the progress of its engagement activities at least once a year.


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers (Private)


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of engagements your organisation participates in.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

Collaborative engagements

10.2. Additional information. [OPTIONAL]


Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort (Private)


LEA 12. Engagement methods (Private)


LEA 13. Engagements on E, S and/or G issues (Not Applicable)


LEA 14. Companies changing practices / behaviour following engagement (Private)


LEA 15. Examples of ESG engagements (Private)


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