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Bridges Fund Management

PRI reporting framework 2020

You are in Direct – Private Equity » Post-investment (monitoring)

Post-investment (monitoring)

PE 09. Proportion of companies monitored on their ESG performance

09.1. Indicate whether your organisation incorporates ESG issues in investment monitoring of portfolio companies.

09.2. Indicate the proportion of portfolio companies where your organisation included ESG performance in investment monitoring during the reporting year.

 (in terms of total number of portfolio companies)

09.3. Indicate ESG issues for which your organisation typically sets and monitors targets (KPIs or similar) and provide examples per issue.

ESG issues

List up to three example targets of environmental issues

Example 1

          Reduction in tonnes CO2 emitted (e.g. World of Books, estimating the tonnes of GHG emissions averted through their re-use and recycling of books)
        

Example 2 (optional)

          Tonnes waste avoided from landfill (e.g. Wholebake, a manufacturer of healthier snack bars, is reducing ingredient and packaging waste and increasing recycling)
        

Example 3 (optional)

          Carbon savings from ingredients which are direct meat or dairy replacements (Vegetarian Express, UK’s leading supplier of specialist plant-based ingredients to the food service industry)
        

List up to three example targets of social issues

Example 1

          Status of young people: Number in education, employment or training (e.g after completion of one of our SOCs aimed at improving life chances)
        

Example 2 (optional)

          Patient satisfaction with care (e.g. % Alina patients satisfied with comfort and convenience of care provided at-home)
        

Example 3 (optional)

          Number of people in stable accommodation (e.g. through our SOC investments that offer access to supported accommodation)
        

List up to three example targets of governance issues

Example 1

          % portfolio companies Boards reviewing impact/ESG performance at least annually, using Impact scorecard
        

Example 2 (optional)

          % companies reviewing Board diversity
        

Example 3 (optional)

          Gender pay gap and action plans
        

09.4. Additional information. [Optional]


PE 10. Proportion of portfolio companies with sustainability policy

10.1. Indicate if your organisation tracks the proportion of your portfolio companies that have an ESG/sustainability-related policy (or similar guidelines).

10.2. Indicate what percentage of your portfolio companies has an ESG/sustainability policy (or similar guidelines).

(in terms of total number of portfolio companies)

10.3. Additional information. [Optional]

Our investment and dedicated impact teams work with the management team of the prospective portfolio company to identify and manage ESG factors, using in-house risk assessment and the B Impact assessment (powered by BLab) to identify opportunities. These both inform the 100-day plan and bespoke Impact scorecard which are used to track performance and monitor progress towards targets and compare it to industry benchmarks. Given that we typically hold a majority stake in our portfolio companies and Board seats, our investment team is able to engage on an ongoing basis on ESG matters. 

ESG issues are reviewed regularly at Board meetings with investee companies, as well as at our own monthly firm-level portfolio review meetings. Once a year, each investee provides a snapshot of any new or outstanding ESG issues, as well as progress against targets, through our Impact Scorecard covering a set of impact KPIs across the different stakeholders (direct beneficiary, employees, environment and community). Bridges impact management team will then work closely with the organisations to take stock and develop new impact targets and impact initiatives for the year.


PE 11. Actions taken by portfolio companies to incorporate ESG issues into operations

11.1. Indicate the types of actions taken by your portfolio companies to incorporate ESG issues into operations and what proportion of your portfolio companies have implemented these actions.

Types of actions taken by portfolio companies

Implemented by percentage of portfolio companies

(in terms of total number of portfolio companies)

Implemented by percentage of portfolio companies

(in terms of total number of portfolio companies)

Implemented by percentage of portfolio companies

(in terms of total number of portfolio companies)

Implemented by percentage of portfolio companies

(in terms of total number of portfolio companies)

Implemented by percentage of portfolio companies

11.2. Describe how your organisation contributes to the portfolio companies’ resourcing and management of ESG issues.

Our investment team works with the management team of the prospective portfolio company to identify and manage ESG factors, using in-house risk assessment and the B Impact assessment (powered by BLabs) to identify opportunities. These both inform the 100-day plan and bespoke Impact scorecard (which includes targets and benchmarks), reviewed regularly at Board meetings with investee companies. Given that we typically hold a majority stake in our portfolio companies and Board seats, our investment team is able to engage on an ongoing basis on ESG matters and inform progress. We also identify and engage 3rd party stakeholders to support our companies on ESG/ impact management (e.g. 3rd party sustainability consultancy to build a bespoke carbon tracking tool for our portfolio companies).


PE 12. Type and frequency of reports received from portfolio companies

12.1. Indicate the type and frequency of reports you request and/or receive from portfolio companies covering ESG issues.

Type of reporting 

Typical reporting frequency 

Typical reporting frequency 

12.2. Describe what level of reporting you require from portfolio companies, and indicate what percentage of your assets are covered by ESG reporting.[OPTIONAL]

90%+ of our assets are required to report ESG KPIs


PE 13. Disclosure of ESG issues in pre-exit

13.1. Indicate whether during the reporting year your organisation disclosed information on ESG issues to potential buyers prior to exit for private equity investments.

13.2. Apart from disclosure, describe how your organisation considers ESG issues at exit.

Bridges' considers ESG risks and opportunities at every stage of the investment process. Before every investment we make, our deal team works with management to identify ESG risks - which are graded as high, medium or low priority, based on a materiality assessment - and also, very importantly, to identify ESG opportunities where we can create value. After we invest, this analysis feeds into the 100-day plan - and we review progress in all of these areas at regular intervals throughout the course of our ownership, as a standing item in board meetings, biannual portfolio reviews and annual full scorecard reporting. So when it comes to exit, ESG considerations are already an intrinsic part of the business' strategy and a critical part of how it thinks about risk and opportunity. That's going to be of interest to any potential buyer. Prospective buyers' value it because they recognise that businesses that do this well tend to be better-run, more sustainable companies.

13.3. Additional information.


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