RESPONSIBLE INVESTMENT

"Making contributions to industrial growth, employment and society is what will distinguish an industry and sustain it over a long period of time"

Peter Brooke - 1996
Founder, Advent International


Our founder, Peter Brooke, understood the importance of responsible investment when he started the business more than 35 years ago. For us, it has always been about thinking longer term and seeing business performance through a wider lens. As the role of business in society continues to evolve, we believe our focus on responsible investment drives positive change as well as improved performance.

We recognize that our success hinges on the smooth functioning of society. Our commitment to our employees, portfolio companies, investors and the broader community reflects this conviction.

 

RESPONSIBLE INVESTMENT

Limited Partners

Colleagues

Portfolio companies

Communities where we live and work

Environment

Other stakeholders

 

 

EMBEDDING ESG ACROSS THE INVESTMENT CYCLE

Our investment philosophy is centred around the sustainable growth of the businesses in which we invest. We believe that the consideration and thoughtful management of ESG risks and opportunities at all stages in our investment process helps to protect and enhance reputation and financial performance and create stronger, more valuable companies.

 

ENVIRONMENTAL / SOCIAL / GOVERNANCE

 

ENVIRONMENTAL

We recognize the importance of managing our impacts on the environment and have developed a rigorous process for assessing risks and opportunities at all stages in our investment lifecycle. We aim to drive efficient use of energy and natural resources, reduce waste and protect biodiversity during the course of our ownership.

 

ENVIRONMENTAL
STRATEGY IN ACTION

Cataratas manages some of Brazil’s most iconic national parks, helping more than five million people enjoy the country’s national splendor every year.

Since Advent invested in 2014, the company has enhanced its commitment to responsible tourism, ensuring these precious ecosystems are protected and preserved for future generations.

Some of the parks and zoos have become laboratories for conservation. Working with scientists from around the world, Cataratas has been at the forefront of protecting endangered species such as jaguars, tapirs and sea turtles, helping to reintroduce them to their natural habitats.

Find out more about Cataratas’ conservation initiatives:

grupocataratas.com/sustentabilidade

Leading pan-European food packager Faerch is committed to increasing its in-house recycling operations without compromising on critical product features like extended shelf life and food safety.

The company is a sustainability leader and pioneered the use of food packaging with ‘true circularity’. Its mono-PET packaging next to being made entirely from recycled material, can be recycled into new packaging without the addition of any virgin material.

By contrast, many other packaging solutions can only be ‘downcycled’ – recycled into lower-quality, non-food-grade products – after use.

The strategic acquisition of the recycling company 4PET Group in 2018 has made Faerch a first mover in tray recycling and provided the company with the modern infrastructure and expertise to achieve its sustainability goals.

faerch.com

As a division of Sovos Brands, noosa yoghurt deploys a range of innovative practices to conserve precious water resources.

Because the noosa farm in Colorado is not connected to municipal water works, the company built an advanced treatment facility that reuses wastewater to flush out the dairy barns.

This water is then filtered to remove solids, and the remaining nutrient-rich water used to irrigate some of the crops grown to feed dairy cattle.

This process has significantly reduced the volume of water that noosa needs to draw from the mainline supply. In 2017, the company received a Colorado Environmental Leadership Award.

sovosbrands.com/noosayoghurt

Based in the Czech Republic, Zentiva is one of Europe’s leading manufacturers of generic pharmaceuticals.

Since becoming an independent company in 2018 with Advent’s backing, Zentiva has established its own environmental program. Its manufacturing sites have set goals to reduce water usage, eliminate single-use plastics and offset greenhouse gas emissions.

Company sites have launched initiatives to recycle and reuse production waste from drug packaging, and to plant thousands of trees to help mitigate deforestation.

As Zentiva grows through acquisition, its environmental practices will be deployed at new manufacturing sites.

zentiva.com

 

SOCIAL

Our business, and that of our portfolio companies, is built on solid partnerships. That is why, as investment professionals, it is important for us to build strong employee relations and be a responsible member of the communities in which we operate. We believe that we and our portfolio companies have important roles to play in the community and that our reputation as an employer helps to attract, retain and develop the talent that is vital to our future success.

 

SOCIAL
STRATEGY IN ACTION

 

GOVERNANCE

Strong corporate governance is essential to the financial integrity and success of our firm and that of our portfolio companies. Across our platform we abide by high ethical and legal standards.

 

GOVERNANCE
STRATEGY IN ACTION

INNIO’s gas engines provide critical grid loading balancing, thereby facilitating renewables energy and a quicker transition to green energy. At the same time, INNIO is the leading supplier of engines for the conversion of biogas to electricity, providing a carbon neutral power source to the grid and income to farmers.

Looking ahead, INNIO is keen to enable the hydrogen economy. Built on its leadership in the conversion of gaseous energy carriers to electricity, in 2020, Jenbacher announced the final approval of a hydrogen cogeneration plant in Germany. The plant can flexibly switch between 100% hydrogen or natural gas inputs, or anything in between, paving the way to a carbon neutral future.

innio.com

In 2014 Advent invested in Ocensa, Colombia’s largest crude oil pipeline and a critical strategic asset for the country.

During Advent’s investment period, the company created a comprehensive risk framework for potential ethical and compliance issues. Given its vital role in safeguarding Colombia’s oil flows,

Ocensa needs to ensure that its suppliers and vendors match its own policies – including vetting and supervising their employees.

At the time of Advent’s exit, the company undertook strong due diligence and its contracts with suppliers required compliance with Ocensa’s own policies.

ocensa.com.co

Headquartered in Germany, Advent portfolio company Röhm is a major global supplier of methacrylate chemicals.

To ensure safety while transporting thousands of tons of hazardous chemicals each year, the company has developed a rigorous Transport Risk Analysis (TRA) process. After conducting desktop research on potential risks, Röhm sends inspectors out to travel and document each route.

The results are compiled into a comprehensive report that can run into hundreds of pages.

Röhm also requires customers to submit to an audit of their own storage facilities – thus ensuring the TRA covers the entire chain of custody, from manufacturing plant to point of delivery.

roehm.com

Backed by Advent, YDUQS is among Brazil’s biggest providers of post-secondary education, with more than 500,000 students enrolled at its institutions each year.

Communication and transparency are central to YDUQS’s corporate strategy. The company publishes a yearly sustainability report based on Global Reporting Initiative standards, detailing its environmental, social, governance and financial performance.

YDUQS’s Corporate Social Responsibility policy establishes guidelines and priorities for the vast array of community engagement projects that the company supports. In 2018, more than 112,000 students and 7,300 staff participated in volunteering activities, helping more than 3.3million people.

yduqs.com.br

 

TRANSPARENCY AND COMMUNICATIONS

As a responsible investor, we recognize the importance of transparency and communications to facilitate ongoing dialogue and promote strong partnerships. In the coming years, we plan to enhance this communication as we continue to build upon our Responsible investment programs.

 

© 2002-2020 Advent International Corporation. All rights reserved

LinkedIn