ESG Review

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Download the Cinven ESG Review in PDF format

ESG Report 2016

Our ESG procedures

We have embedded ESG processes throughout all stages of our involvement in an investment.

Pre-investment due diligence

  • Before an offer is made to acquire a business we consider whether there are any ESG risks. This forms part of due diligence and the overall risk assessment of the business.
  • Assurance is sought that the company is fully compliant with relevant ESG laws and regulations.
  • If an ESG issue is raised during due diligence, we fully consider whether it is unacceptable or simply a risk to be addressed.
  • Independent analysis and expert advice is sought from specialist third party consultants, for instance environmental consultants, as required.
  • Where any ESG risks are identified, we develop a plan, agreed with management, to address and remedy the issues raised.
  • Legal advice is sought. This can lead to decisions on whether further obligations or warranties are appropriate, for instance in the purchase documents or as on-going obligations.

Post-investment monitoring

  • As part of our active ownership approach we ensure that allour portfolio companies regularly review any ESG issues that have been raised as part of the due diligence process.
  • Where action has been agreed, we monitor delivery and outcomes.
  • An update of any actions undertaken is incorporated into our quarterly reviews and ESG is a regular agenda item on our Portfolio Review Committee.
  • If we become aware of any additional ESG matters during the period of our ownership of a portfolio company we seek rectification of the situation through discussion with management and the development of an action plan.
  • If a serious ESG risk is identified the issue is escalated immediately to our Portfolio Review Committee and, depending on the gravity of the issue, to our Executive Committee.
  • In terms of corporate governance, we seek to ensure that portfolio companies’ boards take responsibility for all ESG topics.

Exit

  • We always seek to ensure that our portfolio companies continue to thrive under their new ownership when our involvement ceases.
  • As part of the exit process, we sometimes commission a further independent environmental audit.
  • If such an audit raises any issues of which we have been unaware, we seek to agree with management remedial steps to address the issues prior to our exit.