Analyse préliminaire de la société cible au regard de la politique d’investissement de Sagard NewGen, réalisée par les équipes d’investissement (politique d’exclusion sectorielle et géographique)
Our commitments as an investment company
- For the environment
Sagard joined the International Climate Initiative (formerly the 2020 Carbon Initiative) in May 2017 in order to play its part in addressing the issue of climate change, one of the major international challenges of today and for the decades to come.
We are committed to sound environmental management, pollution prevention and biodiversity protection in our operations and investments.
As a management company, Sagard is committed to achieving carbon neutrality by the end of 2021.
- For effective human resources management
Human resources management is a key component of our ESG policy because our employees are our most important asset and the drivers of our business performance and sustainability. Attracting and retaining top-quality talent is a major priority.
To that end, we safeguard the well-being of our teams by providing a healthy and pleasant working environment and an appropriate remuneration policy. The remuneration policy is based on fairness and aligns the interests of employees and shareholders while discouraging excessive risk-taking. In accordance with regulatory requirements, since 2021 the policy also includes components relating to ESG risk management.
We endeavour to involve all our employees in the Funds’ decision-making process, with a focus on transparency, engagement and training.
Particular attention is paid to building gender-diverse teams with complementary professional backgrounds. In December 2019, we signed the France Invest Gender Equality Charter.
The success of our human resources policy is illustrated by our low turnover rate and the fact that our employees enjoy long careers with us, which is vital to cohesion and effective decision-making.
- To ethical governance
Our policy for managing conflicts of interest, along with the ethics principles practised by our teams of professionals, ensure an honest and ethical approach when conducting business.
Ethics guidelines are issued to all of the management company’s employees. Throughout their careers, employees commit to complying with the professional ethics guidelines in force within the company and to avoiding any situation that may present a conflict of interest.
The Sagard NewGen Investment Committee has investment decision-making responsibility solely for Sagard NewGen.
An Investors’ Committee for the two Sagard Europe funds (MidCap and NewGen) manages any potential conflicts of interest and, where necessary, is consulted in accordance with the relevant rules and on the specific matters set out in the Funds’ By-Laws.
Our commitments as an investor and shareholder
In 2014, Sagard signed the Charter for Capital Investors created by French private equity association AFIC (since renamed France Invest), which highlights the importance of shared value creation, long-term growth and transparency.
In July 2020, Sagard signed the United Nations Principles for Responsible Investment (UNPRI) and promptly completed its first reporting exercise.
Sagard now integrates ESG issues into its investment approach, with four main objectives:
- Achieving full regulatory compliance on ESG issues.
- Deploying measures to reduce its carbon footprint.
- Setting up value-sharing schemes in all the portfolio companies.
- Ensuring that at least one-third of the portfolio companies contribute to the United Nations’ Sustainable Development Goals.
At each stage of the investment cycle, Sagard raises the portfolio companies’ awareness of ESG issues and integrates its ESG strategy into all its investment processes.
Option 1 : Due Diligence ESG pré acquisition par un expert
5 objectifs :
- Evaluer le contexte propre à l’entreprise
- Identifier ses enjeux ESG
- Evaluer sa politique ESG
- Définir des objectifs et un plan d’action
- Prise en compte de l’évaluation ESG lors des comités d’Investissement
Option 2 : Due Diligence ESG post acquisition par un expert
(Objectifs identiques à l’Option 1)
- Définition du plan d’action ESG
- Sujets ESG matériels à l’ordre du jour du Conseil de Surveillance
- Déploiement du plan d’action ESG
- Suivi des indicateurs de performance ESG par participation, par l’équipe d’investissement
- Processus d’amélioration continu
- Intégration des enjeux ESG dans le processus de sortie
- Valorisation des actions et des progrès ESG réalisés par le management
- Vendor Due Diligence ESG, si opportune
Focus on climate considerations and our investment strategy
Climate considerations are an integral part of Sagard’s ESG strategy and are systematically factored into each investment. This approach is aligned with the principles of the International Climate Initiative (formerly IC20), of which the Company became a member in 2017.
The iCi is the first private equity initiative supporting efforts to manage and reduce greenhouse gas emissions produced by companies. Its signatories have decided to work together to support the campaign to achieve the COP21 target of limiting global warming to 1.5°C.
To address climate considerations, Sagard’s strategy is split into three phases:
- Investment phase: take climate considerations into account in the development of the target company: a pre-assessment of the materiality of climate considerations is carried out during the investment phase using the method devised by the International Climate Initiative.
- Holding phase, depending on the assessments carried out in the investment phase and any issues identified:
- raise awareness among managers about climate considerations, if necessary;
- raw up an action plan, which may include a carbon footprint assessment, to reduce emissions and/or facilitate climate change adaptation;
- monitor the plan, particularly through indicators.
- Divestment phase: highlight the progress made on climate considerations.
The ESG strategy and investor relations
Sagard regularly presents its ESG strategy to investors. Information regarding all ESG matters is generally released annually:
- in Sagard’s annual report, which includes an ESG section;
- in the annual presentation made to the Investors’ Committee.
On a more informal basis, Sagard is committed to answering questions put to the company by investors on ESG matters.