ESG Overview - Advent International
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ESG Overview
Advent International ESG Overview
CONFIDENTIALITY NOT AN OFFER PAST PERFORMANCE
These materials contains confidential proprietary No Advent Entity is undertaking to provide impartial In considering the prior performance information
information of Advent International Corporation advice or give advice in a fiduciary capacity, and one contained herein, the recipient should bear in mind
(“Advent International”), one or more investment or more Advent Entities may have financial interests that past performance is not indicative of future
funds managed or advised by Advent International associated with an investment in an Advent Fund, performance, and there can be no assurance that an
(each, an “Advent Fund”), and their respective including the receipt of management fees and other Advent Fund or other Advent Entity will achieve
affiliates and/or portfolio companies (collectively, allocations and distributions. Any offer or solicitation comparable results in the future.
the “Advent Entities”) and is furnished in confidence relating to the securities of any Advent Fund may
solely to the recipient for the specific purpose of only be made by delivery of a Private Placement
evaluating the recipient’s potential or current Memorandum (a “Private Placement Memorandum”) ACCURACY
investment in an Advent Fund (the “Permitted of such Advent Fund and only where permitted by These materials not been audited or verified by any
Purpose”). By accepting this presentation, the law. This presentation is qualified in its entirety by the third party and is subject to change at any time
recipient agrees that without the prior written more detailed information in the Private Placement without notice. Certain information contained herein
consent of Advent International, the recipient shall Memorandum and the governing documents of the was based on or obtained or derived from data
not (i) copy, distribute, make available or otherwise applicable Advent Fund or, in the case of information published or prepared by other parties, including,
disclose any information in this presentation to other provided to existing investors in an Advent Fund, the without limitation, personnel of Advent Fund portfolio
parties, or (ii) use such information for any purpose periodic reports delivered to investors and the companies (“Third-Party Information”). While such
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disclosure of the information included in this to make an investment in an Advent Fund should be Advent Party makes any representation or warranty,
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as a courtesy and not pursuant to any contractual or is not intended to constitute legal, tax or accounting Party shall have any liability to any recipient of this
other obligation to the recipient or any other person; advice or an investment recommendation. presentation or any other person relating to or
(y) by providing such information at this time, Advent Prospective and existing investors should consult resulting from the use of or reliance on any such
International is not creating and is not intending to their own advisors about information contained herein or any errors therein or
create any type of obligation to provide similar such matters. omissions therefrom.
information at any time in the future; and (z) Advent
International has no duty to update such information THIRD PARTY
and may decide not to provide the same type of AIFMD
These materials do not constitute an offer to invest These materials may contain trade names, trademarks
information in the future. or service marks of other companies. Advent
in any fund. A formal offer will be made only on
registration under Article 42 of the Alternative International does not intend the use or display of
Investment Fund Managers Directive (the “Directive”) other parties’ trade names, trademarks or service
or upon the granting of the appropriate passport by marks to imply a relationship with, or endorsement
the relevant EU regulatory authority under the or sponsorship of, these other parties.
Directive (as appropriate).
2
Advent International ESG Overview
CONTENTS
04 05 06 07 08
MESSAGE FROM OUR OUR GLOBAL APPROACH OUR APPROACH TO ESG IN ADVENT RESOURCES FOR S&P GLOBAL SUSTAINABLE1
PARTNERS THE INVESTMENT PROCESS SUSTAINABILITY COLLABORATION
09 10 11 12 13
CLIMATE & GHG EMISSIONS CYBER SECURITY STANDARD DEI & TALENT DEVELOPMENT: DEI & TALENT DEVELOPMENT: DEI & TALENT DEVELOPMENT:
ADVENT LEADERSHIP ADVANCING DEI IN EUROPE OUR APPROACH IN LATIN
ACADEMY AND ASIA AMERICA
14 15 23 30 37
DEI & TALENT DEVELOPMENT: ENVIRONMENTAL: SOCIAL: GOVERNANCE: ADVENT LEADERSHIP:
PARADIGM MANAGING IMPACTS FOCUS ON STAKEHOLDER ENHANCING GOVERNANCE SUSTAINABLE MARKETS
RELATIONSHIPS THROUGH EXPERTISE, INITIATIVE
PROCESSES AND CULTURE
CASE STUDIES CASE STUDY CASE STUDIES
Grupo Cataratas Aditya Birla Aimbridge Hospitality
Hermes UK First Watch INNIO
38 40
ADVENT IN THE GLOSSARY
COMMUNITY
Click on each page number above to go straight to that page 3
Advent International ESG Overview
MESSAGE FROM
OUR PARTNERS
At Advent, we look at business performance
through a wider lens. As the role of business
in society continues to evolve, we firmly
believe our focus on Responsible Investing Our sector and regional expertise offers In keeping with Advent’s ethos of collaboration
Advent a global perspective on opportunities, and partnership, we have developed and
not only creates positive change in broader risks and adaptation strategies across deployed four new innovative programs this
society and our own performance, it also geographies and industries, enabling us to year that can help our companies become
source compelling investments. Taking a better, faster: Advent’s collaboration with S&P,
reduces systemic risks and uncovers longer-term view also allows Advent to which standardizes metrics collection and
opportunities created by shifting global position our portfolio companies to benefit
from sustainability megatrends, such as the
baselining; our cyber security model, which
mitigates risk; DEI assessments, which promote
conditions and markets. global transition to a low carbon economy and diversity and inclusion across the portfolio; and
the drive toward net zero. We recognize that greenhouse gas (GHG) emissions pilots, which
The long-term success of any business companies must anticipate and respond to provide a starting point in the journey of our
these trends to be well positioned in the portfolio companies to reduce emissions. These
must take into account these evolving and changing competitive landscape. programs are designed to advance companies’
dynamic global trends. Private equity has a unique role to play in
sustainability programs and engrain ESG in
corporate strategy. They are described in more
effecting the change necessary to accelerate
detail in this ESG Overview Report.
the transition to a more sustainable future.
Our active ownership model enables us to As Advent continues to advance our approach
drive change and shape the value creation to embedding ESG in value creation, we remain
approach of companies across numerous committed to challenging ourselves and our
sectors of the global economy. We support portfolio companies to think about
our portfolio companies in designing the role ESG and sustainability play in setting
sustainability strategies in a way that aims to corporate strategy and in identifying additional
accelerate carbon reduction commitments, opportunities and levers to unlock value.
increases diversity, protects data, promotes
transparency, protects biodiversity, maintains The Advent Partners
responsible supply chains and builds more November 2021
sustainable businesses for the future.
Advent International ESG Overview
OUR GLOBAL
APPROACH
EUROPE
Being a responsible investor means
respecting communities, transparently
107
INVESTMENT
communicating, managing risk, and NORTH
PROFESSIONALS
creating value through operational AMERICA
excellence. 82 London
Luxembourg ASIA
INVESTMENT
We recognize the importance PROFESSIONALS
Paris Frankfurt 28
of frequent and transparent INVESTMENT
communications with our investors, Boston Milan PROFESSIONALS
our portfolio companies and our Shanghai
New York Madrid
employees. This ESG (environment, Palo Alto
social and governance) report is Mumbai
designed to provide insight into Hong Kong
our approach to ESG and a snapshot Mexico City LATIN
AMERICA
of various ESG initiatives within
our portfolio. Bogotá 35
INVESTMENT
PROFESSIONALS
São Paulo
15 12 4 495+ $81bn 250+ 380+
OFFICES COUNTRIES CONTINENTS EMPLOYEES ASSETS UNDER INVESTMENT INVESTMENTS
MANAGEMENT PROFESSIONALS ACROSS 42
COUNTRIES
All data as of 30 September 2021, except AUM which is as of 30 June 2021.
Advent International ESG Overview
OUR APPROACH TO ESG IN
THE INVESTMENT PROCESS “We view ourselves as good
stewards of businesses who
build and position companies
for long-term success”
INVESTMENT SOURCING ACTIVE OWNERSHIP ESG REPORTING
Advent identifies, targets and sources the most Once an investment has been made, Advent At Advent we communicate regularly with our
We believe that active compelling investment opportunities through conducts an additional, post-acquisition follow limited partners about ESG. Our ESG Overview
identification and appropriate a disciplined origination process. We employ up ESG review, to be completed once we have Report describes Advent’s philosophy and
management of ESG issues are strict due diligence standards to ensure full access to management, with the goal of approach to ESG in the investment process and
alignment with Advent’s investment thesis, more precisely assessing company-specific the firm. The report highlights key initiatives and
important to value creation,
its value creation approach, and stewardship risks and opportunities. With the support of features selected short case studies on a variety
operational excellence, and risk
commitment for the long term. These third-party advisors, we map company-specific of portfolio companies that are addressing
management. standards incorporate sector expertise and issues against the applicable Sustainable challenging ESG issues in interesting and
regional perspective into the decision-making Accounting Standards Board (SASB) meaningful ways. In addition, we provide portfolio
process to ensure a consistent approach. materiality sector index and recommend company level ESG reporting that illustrates key
actions, as appropriate. The output from these risks and opportunities within our five most
ESG pre-diligence screens and targeted ESG-
reviews informs action plans, serves as a recent funds (GPE VIII and IX; LAPEF VI and VII;
related diligences are performed by external
baseline for our ESG profile, and provides and Advent Tech) on a semi-annual basis.
experts for specifically identified ESG issues,
material for our regular reports for Advent’s
as applicable. Investment decisions are made
limited partners.
by consensus and are determined over a series INVESTMENT REALIZATION
of investment committee meetings where risks At Advent, we view ourselves as good We aim to ensure a healthy future for our
and opportunities, including ESG stewards of businesses who build and position portfolio companies, realizing our investment
considerations, are thoroughly assessed. companies for long-term success. Typically, value and handing on a more robust, valuable,
we sit on the boards of our portfolio companies better-managed company at the close of our
as well as on audit, compensation and other investment period.
committees and work in close partnership with
our management teams. We work with our
portfolio companies to support them in driving
operational and strategic improvements,
including identifying and managing ESG issues
that may be significant for their corporate
strategy, such as environmental, health and
safety profile, diversity, equity and inclusion
(DEI), cybersecurity, supply chain, GHG
inventories and comprehensive ESG
assessments and scoring.
We view ourselves as good stewards
We provide guidance and resources to our
of businesses who build and position
portfolio companies as they undertake these
companies for long-term success
initiatives under our active ownership model.
Advent International ESG Overview
ADVENT RESOURCES
FOR SUSTAINABILITY
Advent continues to advance our approach We start by assessing the health of the As part of these efforts, we have developed and
to embedding ESG in value creation. business to understand whether leadership is deployed four new innovative programs this
aligned and if there is a shared perception of year that are helping our companies become
We are challenging ourselves to continually strategic risks and opportunities. In keeping better, faster:
identify additional opportunities and levers with Advent’s ethos of collaboration and
to unlock value, for virtually every company, partnership with our portfolio companies, we
across all our sectors. bring resources designed to accelerate organic Our collaboration with S&P Global
growth by sector and to inform value creation
and preservation initiatives.
Our cyber security model
Advent has a robust ecosystem of resources
and expertise to support our management
teams and companies. We leverage insights Our DEI & talent development approach
derived from the organization to be used as
a blueprint for leadership priorities.
Our greenhouse gas emissions pilots
These new programs build on our existing
ecosystem of insights, benchmarks, tools and
experts and are adapted regionally to best
support our management teams and
companies. Our teams support management in
execution of key initiatives and tracking data-
driven results. They have become part of the
best practices, proven playbooks and resources
Advent offers.
Advent International ESG Overview
Sustainability Resources for Portfolio Companies:
S&P GLOBAL SUSTAINABLE1
COLLABORATION
We believe that strong ESG management of experience analyzing the impact of
improves portfolio companies’ accountability sustainability practices on a company’s
to their stakeholders, reduces systemic risks long-term value creation.
Advent is proud to be the first private equity firm to and uncovers opportunities created by shifting Advent’s relationship with Sustainable1 enables
work with S&P Global Sustainable1 on promoting key global conditions and markets. our portfolio companies to develop critical ESG
ESG practices in a group of our portfolio companies. S&P Global Sustainable1 and Advent announced metrics that will better inform their strategy
As a responsible investor and business operator, in May 2021 a collaboration to develop and operations. Our structured approach to
Advent considers ESG factors at all stages of its sustainability best practices at Advent and value creation includes supporting the
investment and value creation processes. participating portfolio companies. Building development of each portfolio company’s
on our history of growing and positioning business model-specific ESG programs.
companies for long-term success, we have Companies can benchmark against their own
adopted the internationally recognized S&P industry best practices and understand the
recognized Corporate Sustainability Assessment roadmap to operational excellence in ESG.
(CSA) to measure process and performance We will use the CSA to help determine how
improvement. The CSA is widely acknowledged mature portfolio companies’ ESG programs
We have adopted the internationally to be one of the most advanced ESG scoring are and set a baseline against which progress
recognized S&P Global Corporate methodologies and draws upon over 20 years can be measured.
Sustainability Assessment (CSA) to measure Sustainable1’s research team will analyze both
process and performance improvement. public and private company data. These
analyses will inform an internationally recognized
and finance focused ESG assessment of the
company’s exposure to observable ESG risks
and its ability to capture ESG related
opportunities. The insights Advent and its
portfolio companies gain from the CSA platform
will inform stronger ESG programs and enable
the firm to measure performance improvements
over the coming years.
Advent International ESG Overview
Sustainability Resources for Portfolio Companies:
CLIMATE & GHG EMISSIONS
Measuring GHG emissions and setting Each reduction goal or net zero commitment
climate change targets has become a creates ripple effects through the value chain,
priority for many institutions and driving other companies to measure emissions
and develop reduction plans. Advent recognizes
businesses around the world, including
the importance of providing resources to
our investors and portfolio companies.
support our portfolio companies in addressing
these trends and in baselining their ‘carbon
footprint’. This is why we are piloting GHG
footprint exercises for a set of companies across
the portfolio, to inform their value creation plans
and position them for future success.
Advent recognizes the
importance of supporting
our portfolio companies
in establishing their
baseline carbon footprints.
Advent International ESG Overview
Sustainability Resources for Portfolio Companies:
CYBER SECURITY STANDARD
Cybersecurity is an increasingly Since the program’s
high profile ESG issue. At Advent inception, the average
we have been preparing our global score for the NA portfolio
portfolio of companies to deal with has improved by over
the increasing frequency and
sophistication of cyber breaches,
40%
malware, and ransomware attacks.
Being able to grow rapidly through
an acquisition strategy, with
confidence in systems integration ADVENT CYBER SECURITY PROGRAM Companies are requested to take actions North American portfolio has already improved
and cyber protection, will help our focused on: by over 40 percent.
Bringing ‘the best of Advent’ to help our
businesses create value more portfolio companies, Advent leverages world (i) setting up appropriate risk governance, Importantly, Advent board members received
with regular presentation of cyber status training to enable them to better govern
quickly. Strengthening cyber class experts that many companies would
have difficulty accessing on their own. Cyber and progress at executive and board level, portfolio companies’ cyber risk. There are now
security and establishing processes
security has become critical to protecting (ii) building and implementing a specific monthly webinars with company CISOs and
for integrating cyber protection
value, as such Advent has developed an improvement plan able to manage and CIOs that include an initial presentation
across many legacy systems makes
internal standard to assess cyber security reduce the risk level of the company, followed by discussion of key issues in cyber
an acquisitive growth strategy much security.
practices and maturity across our portfolio. (iii) having an updated Incident Response Plan,
more seamless for our portfolio
This systematic approach to cyber risk (iv) contracting cyber insurance, where
companies. Demonstrating good
management was rolled out globally across applicable. NEXT STEPS
practices in managing cybersecurity
our North American (NA), European, and Latin Advent’s Cyber Security Program will continue
risks can also lead to lower All participating companies are re-assessed
American portfolios starting in 2020. Nearly to evolve to address the nature of rapidly
insurance costs for companies and periodically to ensure they have appropriately
every portfolio company participates in this changing cyber threats as well as the actions
is critical to protect sensitive data improved their risk level.
program, no matter the size or the industry. needed to responsibly manage those risks,
and businesses processes from Advent’s Cyber Security Program assesses protect intellectual property (IP) and safeguard
criminal activity. maturity across key areas of cyber security RESULTS customers’ data privacy. The bar will be higher
systems and management against a minimum Each company’s score is informed by each year.
set of standards and globally accepted assessment survey results and selected deep
frameworks such as NIST (National Institute dive interviews. Cyber security action plans are
of Standards and Technology) and CIS (Center tailored to each company’s situation and are
for Internet Security). These assessments cover very pragmatic and measurable.
governance and management oversight, Companies’ cyber security improvement over
incident readiness and data protection tools. the initial 2020 results will be evaluated on a
Cyber assessment results are shared with all regular basis. European and Latin American
companies with industry-specific benchmarks companies’ scores will be reassessed in early
and recommendations from our external cyber 2022 to inform future action plans. Since the
security partners and advisors. program’s inception, the average score for theAdvent International ESG Overview
“The most compelling dynamic was
the way the program did not call out
Sustainability Resources for Portfolio Companies: DEI as a topic in the curriculum but
DEI & TALENT DEVELOPMENT embedded inclusive leadership into
every aspect of the program. I am
continuing to leverage the many
lessons learned in this work.”
Lisa Craig VP Operational Excellence,
Serta Simmons Bedding
OUR DIVERSITY, EQUITY We are making positive change globally across mentorship, sponsorship, and importantly In keeping with the Advent mission, the final
AND INCLUSION MISSION Advent’s offices, within our portfolio professional development. The latter does not step in the ALA curriculum was a value creation
companies and in the communities in which happen on its own. The ALA program is project. Teams with a balanced set of functional
We are committed to advocating we operate. At the portfolio company level, we designed to give DEI high potential talent the skills were given a company and tasked with
and promoting diversity, equity and are working alongside management to drive general management skills and tools they need answering the overarching question: what are
inclusion within Advent, our boards, initiatives to enhance diversity in our investee to better prepare them for and accelerate their the key areas of opportunity to create value in
our portfolio companies and our companies. We engage with external parties to journeys to executive, C-level careers. this company? The teams explored everything
advisors. We believe success means perform people assessments which enable our To optimize the value of the experience, from pricing model to organizational
equality of opportunity for all of our companies to baseline KPIs that focus on participants went through a Hogan management to digital strategy, and ultimately
people, thus creating an inclusive employee engagement and diversity, in order assessment to evaluate the strengths and presented a plan for maximizing the long-term
environment that values diversity of to build stronger companies for the future. development needs in their individual value of the company.
background, experience, ideas and leadership styles. With the guidance of their An enduring part of the value of the ALA
ADVENT LEADERSHIP ACADEMY Hogan coaches, participants approached the program has been the network of peers from
opinions. Enhancing diversity
efforts across all underrepresented Inspired by issues of social justice highlighted ALA experience strategically to best support across Advent’s portfolio. Many diverse leaders
over the summer of 2020, Advent decided to their own professional advancement. find themselves being ‘one of a kind’ at their
groups supports our most
invest in accelerating DEI progress in its level in their organizations. Having a network of
important asset, our employees,
portfolio companies and creating conditions peers in similar situations from whom to learn
and, we believe, makes us more for change. Together with Harvard Business “It meant so much that Advent and with whom they can exchange ideas and
competitive and better investors. School (HBS), Advent created the Advent provide support is one of the greatest benefits
would make this kind of investment
Leadership Academy (ALA) – an executive of the program. Also, as there are more cohorts,
education program aimed at advancing the in us. The program was an active alumni program will further stimulate
career opportunities of diverse, high potential outstanding, dynamic and collaboration by encouraging past participants
leaders across its North American portfolio. engaging. I feel a tremendous to share insights and best practices gained in
The concept gained momentum quickly, and one sector or geography with fellow leaders
both curriculum development and applications
amount of loyalty and I really elsewhere in the Advent portfolio.
from every portfolio company were fast- want to pay it forward. Fortunately, Advent is now preparing for its second ALA
tracked to enable the first cohort of 40 in my role I have the opportunity program and is excited that the ALA 2022
participants to begin the 13-week intensive
to do just that. #sograteful” cohort in North America will also include several
program in March 2021. candidates from Advent’s Latin American
Laura Sorensen
Advent believes that DEI is about not only portfolio companies.
Chief People Officer, First Watch
hiring diverse people, but also providingAdvent International ESG Overview
Sustainability Resources for Portfolio Companies:
DEI & TALENT DEVELOPMENT
ADVANCING DEI & TALENT DEVELOPMENT
IN EUROPE AND ASIA
Building on the success of the initial ALA program, a
“The CHROs networking meeting has been
similar effort is being launched in Europe this coming
spring to enhance skills and experience for a group of
informative and inspirational. It has been wonderful
high potential leaders across Advent portfolio to catch up with the network of colleagues in the
companies in Europe. same function at different portfolio companies and
Across our portfolio companies in Europe and Asia,
learn from the way they have handled their
we have recently established a baseline of key metrics challenges. We stayed in contact even after the
on gender and other measures of diversity at the meeting and colleagues shared more details about
leadership and board levels to inform a data-driven one specific project that inspired me most. We have
approach to improvement. James Brocklebank, a “translated” it into our company world and already
Managing Partner based in London, has a unique lens implemented. A great quick win.”
on industry best practice through his participation on
the advisory board of Level20, the industry’s European Ines Windisch Head of Corporate Affairs & Human
diversity initiative. Resources, Zentiva Group
To create momentum and a forum for progress, the
Chief Human Resource Officers (CHROs) across these
companies meet regularly for peer-to-peer talent-
focused meetings. For example, one portfolio
company recently presented on their DEI efforts to
inform a best practices conversation among the
group. CHROs report finding this collegial forum for
exchanging ideas very helpful in shaping their own
programs within their very different companies,
industries and regions.Advent International ESG Overview
“The Trainee Program offers a unique environment that encourages
trainees to lead impactful projects within organizations and provides
the opportunity to interact with and learn from experienced professionals
Sustainability Resources for Portfolio Companies: early in their careers. It allowed me to graduate from a prestigious MBA
program and afterwards contribute to a portfolio company’s growth as a
DEI & TALENT DEVELOPMENT member of the management team.”
Jean Pablo De Mello
CFO Lojas Quero-Quero
EVOLVING OUR APPROACH TO DEI Our DEI activities, which are embedded in our Office, led a DEI panel for a LAVCA (Latin
& TALENT DEVELOPMENT IN LATIN talent programs, are focused on three areas: America Venture Capital Association) event, on
AMERICA Since 2018, female Advent Recruitment, Advent Culture and how to increase the participation of women in
Advent’s guiding principle is to provide membership in our Development, and Portfolio Ecosystem. private equity in Latin America.
equality of opportunity across our firm and our investment team The goal of our Recruitment activities is to Our Portfolio Ecosystem supports improving
portfolio companies. The Advent senior increase awareness of private equity as a great DEI at our portfolio companies in part by
has increased from
leadership team in Latin America supports our career option for women and position Advent as connecting Advent and our external ecosystem
Talent Programs and is committed to
improving DEI both at the fund and the
6% to 27% the most desirable employer. The unique Talent
program model attracts high potential female
across the region. We have held best-practice
sharing sessions leveraging our global Advent
portfolio company level. candidates to Advent and at the same time Connect platform, where executives from across
Our bespoke Talent programs, which have benefits our portfolio companies by bringing the region can learn from each other and
been in place in Latin America since 2003, are these talented candidates into the potential replicate good practices (e.g., C&IT shared their
the foundation of our talent attraction and pipeline for leadership positions in management approach and results in August with ~100
development model across our firm and teams and boards. Since 2018, female participants from our Latin American portfolio).
portfolio. These include the Portfolio Trainee membership in our investment team has We also encourage our companies, and push
Program, which has attracted 500 individuals increased from 6 percent to 27 percent. The search firms, to increase diversity in the
since 2010 at the portfolio company level, and junior deal team is 40+ percent female, which recruitment processes for portfolio company
the Investment Team Trainee Program, which reflects the impact of our recruitment efforts. positions. During 2021, we hired four new female
represents almost 90 percent of all junior level In the Culture and Development pillar, we executives to join the C-Level, filled three Board
talent at the firm. The MBA Program, which promote a culture that embraces diversity and of Director (BOD) seats with highly experienced
targets top US and European business schools inclusion within the firm and that levels the and respected women, and had an IT female
to place talented people to lead high impact playing field for diverse team members. During senior executive join an Advisory Committee in
projects in our portfolio companies during 2021 we held training sessions on unconscious Mexico for Sophos Solutions, a Colombian IT
their summer internships, has recruited 30 bias, mentorship, inclusive hiring, retention and Services company. We are also mapping top
executives since 2014. Finally, our Field inclusive culture. In addition, senior members of female executives in Brazil in conjunction with a
“In addition to the substantial
Operations Program, that sources high our investment team participated in events for leading search firm in the region, to build the
private equity industry knowledge
potential mid-level professionals to place in local and regional private equity and women’s pipeline for BOD and C-Level roles.
that I acquired and the businesses
our portfolio companies, has attracted 50+ in which I had the chance to advocacy organizations, e.g., recently Mauricio
people since the program’s start. analyze and invest, I also had the Salgar, a Managing Director in our Bogotá
opportunity, as part of my MBA
summer internship, to work for an
Advent portfolio company in
Argentina. This experience
500 individuals have joined
contributed to the development
of my operational capabilities.”
our Trainee Program since 2010
Juliana Zapata
Vice President Bogotá OfficeAdvent International ESG Overview
Sustainability Resources for Portfolio Companies: The Paradigm team is comprised of award-
DEI & TALENT DEVELOPMENT winning experts in organizational behavior,
people analytics, data science, psychology,
sociology, strategic communications, change
management, and employment law.
PARADIGM
Focus on Inclusiveness at Individual
and Organizational Levels
Pricing and Logistics
To help our portfolio companies embed
inclusiveness in their organizations, Advent
Paradigm Blueprint assessments draw from
multiple sources: formal practices, informal
help guide the implementation of
recommended programs.
has sponsored a North America-wide DEI norms, and the resulting outcomes. The In the second half of 2020 and early 2021,
assessment approach with Paradigm, a DEI evaluation considers not only the inclusivity of Advent conducted Paradigm DEI assessments
Our pricing
strategy varies
and training depending
company on the natureorganizational
with deep of an policies, but also the results of on 18 companies across its North American
engagement,
expertise. Our Northincluding
Americanthe audience size, level
portfolio thoseof
policies and how they are incentivized, portfolio. Participants have benefitted from the
customization, and other details. The belowreinforced,
companies employ approximately 125,000
offer and measured. consultants’ insights, tools and practices to
people. These businesses operate in various The data-driven analysis measures five areas advance their own company-specific DEI
general
industries parameters,
and but
have different please
team reach out to ask
structures Paradigm has found to be most critical to DEI programs. Each business identified and
andabout specific
internal services.
resources. Advent sought a and creating an inclusive work environment: committed to make progress on prioritized
common approach that could be applied to action items. All participating North American
every company. • Talent lifecycle
● Trainings: $3,500 for 45-min sessions,
The Paradigm team is comprised of award-
portfolio companies will continue to report
their progress annually to their respective
• Employee experience
winning$5,000+
experts infor 90-min to 3behavior,
organizational hours (depending on boards of directors, informed by a template
• External influence
people facilitator andscience,
analytics, data level ofpsychology,
customization) provided by Advent.
• Leadership involvement
● Listening Circles: $4,000 per session
sociology, strategic communications, change
management, and employment law. After • Employee representation.
● Cwith
working oac h ing600
over , Adcompanies
vi s i ng, a ndtoSdesign
trategy
ments: Varies
Engagediversity,
and implement - please
equity, and reach
inclusion out!
Paradigm’s Inclusion Quotient (IQ) - captures
(DEI) initiatives, Paradigm has powerful companies’ internal impact on employees as
insight into what works to move the needle. well as their external influence on customers,
Their impactful approach has been vendors, communities, and peers. This
Page 19 recognized in The Atlantic, Fortune, Fast data-driven approach enables companies to
Company, The Harvard Business Review, assess where barriers exist and prioritize the
The New York Times, TechCrunch, and The efforts that will have the most impact.
Wall Street Journal. Paradigm also provides expert resources toAdvent International ESG Overview
“We are passionate about promoting wellness,
starting with the integrity of your hair and
extending to supporting our communities and
minimizing our impact on the environment,
allowing us to drive social and environmental
awareness in the beauty industry.”
Environmental:
Managing Impacts
OLAPLEX
Founded in a California garage in 2014, in Santa million pounds of paper packaging, which it
Barbara, California, Advent portfolio company believes prevented approximately 23 million
Meeting market demands in ways
OLAPLEX recognized an unmet demand in the pounds of greenhouse gas from being emitted
that avoid unnecessary impacts on
beauty industry to create highly effective into the environment, conserved approximately
the environment is becoming part products free of potentially hazardous 37 million gallons of water and saved
of positioning one’s brand and substances, such as Parabens, Sulfates, approximately 29,000 trees from deforestation,
business for success. Advent Phthalates and Phosphates, found in many as compared to manufacturing, packaging and
portfolio companies implement beauty and haircare products. Through its distribution alternatives that are typically used.
innovative approaches to patented technology, OLAPLEX offers high The company continues to explore ways to
operational excellence as well as to quality products that help repair damaged hair reduce its carbon footprint and to contribute to
improving their environmental and that are “cruelty free”, i.e., not tested on a more sustainable future.
profile. Calculating GHG footprints animals. These efforts are well recognized in the industry,
has become a strategic priority Beyond avoiding potentially hazardous with OLAPLEX being one of only 21 haircare
across many industries. Protecting chemical ingredients in its products, brands accredited with the “Clean at Sephora”
biodiversity and restoring OLAPLEX’s corporate philosophy designation as of June 2021.
ecosystems has become a focal encompasses many dimensions of being a
responsible corporate citizen. The company’s
point as climate change mitigation
website encourages visitors to learn more
efforts advance. about becoming “more eco-friendly By shipping products without
consumers.” It advocates supporting ‘secondary packaging’ OLAPLEX
“sustainable brands actively trying to make a
difference” in other aspects of daily life, estimates between 2015 to 2021 it
including food containers, reusable coffee has avoided the use of approximately
2.9 million
mugs, and cleaning products.
OLAPLEX products are shipped without
‘secondary packaging’ – simply sending the pounds of paper packaging
product without a branded box inside a
shipping box. By shipping in this way, the
company estimates between 2015 to 2021 it
has avoided the use of approximately 2.9Advent International ESG Overview
RUBIX
In 2020 Advent’s leading B2B distribution Rubix has adopted a three-pillar strategy
portfolio company Rubix, developed a clear focused on working with its customers to Rubix’s digital strategy incorporates
and compelling ESG strategy combined with a reduce their environmental impact; reducing its elements of clear waste reduction
detailed operational roadmap and reporting own GHG footprint; and investing in its people.
and lower fuel usage
commitments. By embedding sustainability in This approach recognizes and leverages core
its business model and striving for best-in-class elements of the Group’s established and
ESG performance, Rubix’s approach will enable successful value creation strategy growing
it to set ambitious net zero targets combined service enabled revenues, digital penetration
with commercial value creation opportunities. and continuous improvement.
In its maiden ESG Report, Rubix outlines its As Europe’s leading distributor of maintenance,
road map for navigating regulatory repair and overhaul products, Rubix is well
requirements and aligning with international positioned to deliver solutions that improve the
frameworks. Providing such transparency to efficiency of its customers’ manufacturing
stakeholders enables customers and others to processes. Services comprise nearly 25 percent
understand the measured approach the of Rubix’s revenues and facilitate efficiency Rubix’s digital strategy incorporates elements Rubix recognizes data collection is key to its
company is taking to complying with through offerings that include vendor managed of clear waste reduction (through reduced uses journey towards net zero, with operations
international commitments and standards such inventory (to reduce among other things, the of paper catalogues, which are endemic in the across 22 countries and over 900 locations
as GRI, CDP, TCFD and SBTi and gives use and waste of single use products such as distribution industry) and lower fuel usage presenting a complex operational challenge.
confidence that this commitment is embedded protective equipment); Insites™ (which help to (through the Group’s virtual-first sales In 2021 the Group began work on a pilot to
in its strategy.
Environmental, Social and Governance report
optimize customers’ on-site inventory so that operating model that maximizes the value of automate the collection of GHG data with
Alignment with sustainability frameworks
fuel-consuming deliveries can be reduced); and customer interactions while minimizing physical third-party vendor Altruistiq. Altruistiq is
technical services such as air leakage reduction travel to customer premises by multiple building a digitally connected software
Our ESG framework roadmap and condition monitoring (which directly technical specialists). platform and methodology to track and
Ongoing from 2021 2022 2023 2024
reduce GHG emissions in customers’ calculate Rubix’s Scope 1, 2 and 3 GHG footprint
Frameworks and ratings: The Group’s continuous improvement
operations). more regularly than the current manual
Align ESG report with Global Reporting
Initiative (GRI) initiatives, established as part of its post-merger
Public disclosure to CDP integration program, sits at the heart of exercise. This will enable full scope 3 reporting
Signatory support for the Taskforce on
Climate-Related Financial Disclosure (TCFD), reducing the GHG from its own emissions. for the UK business, enable product-level
completed May 2021
E collaborations between upstream suppliers and
TCFD implementation and aligned reporting These include group-wide energy and waste
Support attainment of investor ESG ratings S reduction through packaging redesign, lighting downstream customers, and drive value-based
EcoVadis Enterprise subscriber
efficiencies and fuel use reductions by decision making on initiatives such as internal
G
Greenhouse gas emissions: optimizing delivery schedules. As a result, the combustion engine (ICE) vehicle swap-out.
Calculation of Scope 1 and 2 GHG inventory
Setting of Scope 1 and 2 emission reduction
Group has been able to post impressive Recognizing the global momentum towards
targets
reductions in Scope 1 and Scope 2 GHG national, regional and industry commitments
Calculation of full scope 3 inventory
Setting of Scope 3 emission reduction targets
inventory since 2018, enabling it to set public to GHG reduction, Rubix is investing becoming
Signatory commitment to the Science Based
Targets initiative
targets as a precursor to more a more formal more sophisticated at managing its GHG
Science Based Target exercise. footprint and other environmental aspects,
targets
Renewable energy roadmap with a clear understanding of the competitive
advantages that this will deliver.Advent International ESG Overview
AIMBRIDGE HOSPITALITY
Aimbridge Hospitality is a leading, global Aimbridge aims to demonstrate that it can be a The first step in helping customers achieve their
hospitality company offering best-in-class partner in reaching its customers’ goals and GHG reduction goals is to measure one’s own
hotel management services across a broad should be seen as a partner of choice for carbon footprint. To measure its own GHG
spectrum of franchised branded full service, stakeholders focused on ESG performance. footprint across its portfolio of properties,
select service, luxury hotels, destination At the properties it operates, Aimbridge Aimbridge undertook an ambitious initial effort
resorts, convention centers and lifestyle hotels. supports implementation of brand standards to calculate, or estimate where necessary, the
Aimbridge’s premium portfolio represents and ESG initiatives in line with Marriott, Hilton, GHG/carbon footprint of its properties.
approximately 1,500 properties in 49 states and Choice Hotels, IHG and other brand programs. Comparing property size with energy
20 countries, including those in its pipeline. For the more than 650 properties that consumption enabled Aimbridge to identify
Aimbridge is observing the increasing participate in Aimbridge’s energy management outliers that consumed much more – or much
expectations around ESG in its marketplace program, energy usage and cost is tracked, and less – energy than the portfolio average. Building
as owners, brands and investors focus on invoice recovery is increased/realized, making on its operational management expertise,
sustainability. Marriott, Hilton and other brands the properties more energy efficient and thus, Aimbridge is exploring the opportunity to help
whose properties Aimbridge currently more profitable. Additional measures can also its property owners reduce energy usage, cost
manages have made commitments to reduce help avoid unnecessary energy and water and greenhouse gas emissions, and may expand
energy consumption and GHG emissions, usage. For example, mandatory guest towel its environmental assessments to include water
among other goals, by 2030. daily opt-in/out at the hotels can reduce energy consumption and waste management, where
usage. Likewise, Aimbridge is working with its applicable.
chemical provider to reduce water usage. Leveraging these insights from across its 1,500
properties, Aimbridge can bring the experience
of significant scale, ESG brand standards and
Aimbridge is exploring environmental practices to owners across size,
geographies and property type and class,
the opportunity to help
making Aimbridge a more attractive prospective
its property owners operating partner for owners. As Aimbridge
reduce energy usage, advances its metrics around ESG influenced
cost and greenhouse programs, it is committed to communicating the
gas emissions. benefits these programs bring to its hotel
owners, as well as its employees and the
communities it serves.Advent International ESG Overview
Case Study
UN DECADE ON ECOSYSTEM RESTORATION
AND BIODIVERSITY 2021-2030 - GRUPO CATARATAS
Sponsored by the Smithsonian Institution in Brazil is home to some of the most biodiverse
the US and collaborating with well-known ecosystems in the world, such as the Amazon
global NGOs, such as the World Wildlife Fund and the Atlantic Rain Forest, many of which
In November 2020, Grupo Cataratas co-sponsored, (WWF), the World Association of Zoos and are facing serious existential threats. Changes
with the UN Decade on Ecosystem Restoration Aquariums (WAZA), Convention on Biological in the global environment threaten the
2021-2030 program, a 4-day Summit entitled Diversity (CDB) UN Environment Program ecosystems from which the fish, plants and
“Together Preparing for the Decade on Ecosystem (UNEP), this Summit helped create a animals come that are displayed at AquaRio.
coordinated network of biodiversity experts Protecting biodiversity is essential to Brazil’s
Restoration,” bringing together more than 70 from around Brazil and abroad. Grupo national parks and treasures, and to Cataratas.
internationally recognized experts and NGOs. Cataratas was uniquely positioned to bring
these various groups together and facilitate
coordination of research efforts to tackle
various aspects of these challenges.
Changes in the global environment
threaten the ecosystems from which
the fish, plants and animals come Foi necessário um grande comprometimento de toda a
equipe envolvida para readequar as operações
that are displayed at AquaRio. e finalizar o projeto dentro do prazo, com a garantia,
a todo o momento, do bem-estar animal.
Rebatizado de BioParque do Rio, esse novo modelo
de zoológico, focado no turismo sustentável, foi
inaugurado no início de 2021. Ele é também um
centro de conservação da biodiversidade, que
apoia a pesquisa e alia educação e entretenimento,
com experiências imersivas e enriquecedoras
para nossos convidados.
A meta é fazer do BioParque uma referência nacional
de projetos voltados à conservação integrada
de espécies ameaçadas de extinção, e ainda um ponto
de mobilização e articulação em prol de ações que
beneficiem o bioma da Mata Atlântica e unidades
de conservação do estado do Rio. Nosso objetivo
também é apoiar a política municipal de educação
do Rio de Janeiro.
Ao longo de 2020, o parque passou por uma CPI na
Câmara dos Vereadores do Rio de Janeiro, devido a
denúncias infundadas de maus-tratos a animais. O
inquérito concluiu não haver qualquer irregularidade
em nossos procedimentos. Saiba mais na página 49.
Relatório de Responsabilidade Socioambiental Corporativa 2020 21Advent International ESG Overview
Case Study
UN DECADE ON ECOSYSTEM RESTORATION
AND BIODIVERSITY 2021-2030 - GRUPO CATARATAS
Grupo Cataratas, together with its non-profit Methods of breeding fragile, critically
research arm Instituto Conhecer para endangered species in captivity and
Conservar and its online platform Academia accelerating the growth of wild populations The Rio Marine Aquarium (AquaRio) was
da Conservação, has a memorandum of are being pioneered at both AquaRio – for the first aquarium in the world to be able
understanding with the UN and a 3-year zebra sharks, sand tiger sharks, and butterfly to reproduce the butterfly ray in ex-situ
workplan to promote the UN Decade on rays – as well as at Bioparque Rio (RioZoo)
Ecosystem Restoration. This effort pulls with the blue and yellow macaw, tapir and
(aquarium) conditions.
together groups from zoos, laboratories and the Jaguar.
national parks, studying jaguar mapping and Butterfly rays (Gymnura altavela) are critically
habitats, ecosystem requirements, genetic at risk in the wild, with only approximately 5
composition, and ex situ (not in the wild) and percent of their global population remaining.
in situ (in the wild) animals. Grupo Cataratas The Rio Marine Aquarium (AquaRio) was the
has been involved in successful efforts to first aquarium in the world to be able to
reintroduce tapirs into their natural reproduce the butterfly ray in ex situ
environment, known as re-wilding, over the (aquarium) conditions. At AquaRio in 2019,
past several years. Researchers at AquaRio 5 butterfly ray pups were born, 3 males and
have made advances in understanding the 2 females, giving hope to goal of partially
bleaching of coral reefs and ways of reversing restoring this species in the ocean. These ex
this damage to central marine life habitats. situ reproduction studies are a big step
towards the conservation not only of the
butterfly ray but also many other species of
rays and sharks, as they make clear that
successful reproduction projects area feasible.
It is hoped that continued success will allow
the construction of biobanks to conserve
genetic material of the species.
Relatório de Responsabilidade Socioambiental Corporativa 2020Advent International ESG Overview
Case Study Advent is proud to have won the Latin
UN DECADE ON ECOSYSTEM RESTORATION America Venture Capital Association
(LAVCA) Environmental Deal of the
AND BIODIVERSITY 2021-2030 - GRUPO CATARATAS Year award in 2020 for our investment
in Grupo Cataratas.
10
The goal is to introduce
10 young birds each year
for 5 years to establish a
viable population
The arara canidé – or blue and yellow macaws them for forest life, including finding food
– can be found from Central America to south- sources and avoiding threats from predators as
eastern Brazil, Bolivia and northern Paraguay, well as powerlines. The macaw chicks born in
and is a species symbolic of the Brazilian BioParque do Rio will be monitored throughout
cerrado. At certain times of the year, they their development, as embryos in the egg until
migrate in search of food, traveling great they hatch. When they are mature enough, they
distances of more than 30 kilometers (20 will receive training before being translocated to
miles) a day. Because they primarily eat seeds the acclimatization enclosure in the Tijuca
and fruits, these macaws play a fundamental National Park. From there, they will be released
role in seed dispersal, which supports into the forest.
biodiversity, helping to balance the ecosystem The goal is to introduce 10 young birds into the
and reforestation. wild each year for 5 years to establish a viable
Due to wildlife trafficking, illegal hunting and population of blue macaws in the Tijuca National
habitat loss and fragmentation, the Canindé Park by 2025 and serve as a model for future
Macaw has become extinct in some areas of its reintroductions of macaws into the Atlantic
original distribution, including in the Atlantic Forest. Visitors to Grupo Cataratas’s BioParque
Rain Forest around Rio de Janeiro where it has do Rio can experience this project in person
been extinct in the wild for more than 200 when they enter the blue macaw immersion
years. enclosure where they will find about 50 pairs of
BioParque do Rio is currently carrying out the the birds and dozens of nests produced
breeding stage of macaws for this project. In especially for the reproduction of the blue and
August 2021, nests were installed in the park’s yellow macaws.
immersion area to raise baby birds, preparingAdvent International ESG Overview
Case Study
NET ZERO COMMITMENTS AND HERMES UK
From the beginning, Advent has supported owned or controlled by the company, but that
management in pulling together a holistic ESG Hermes indirectly impacts in its value chain
program. With ownership from the Chief (Scope 3). For example, emissions associated
Hermes is one of the largest dedicated parcel Transformation Officer and the newly hired with purchased good and services,
Head of ESG, it is now at the heart of all transportation and distribution of company
delivery companies in the UK, delivering more than
Hermes’ business priorities. As a foundational products, and employee commutes and business
650 million parcels per year. The business is
part of the company’s ESG program, Hermes travel are all included in Scope 3 emissions
effectively a platform connecting retailers, drivers, undertook its first ever “carbon footprint” according to global GHG accounting standards.
parcel shops and consumers in a four-sided exercise, to calculate how many metric tons of Through Advent’s collaboration with S&P, the
marketplace. The value that Hermes creates is CO2 -equivalent gasses (GHGs) were produced company was able to leverage S&P’s ESG
determined by the strength of the connections due to the company’s operations last year. assessment process to gather key ESG
between the sides of the marketplace. Hermes worked with a third party to establish information, benchmark performance against the
its baseline carbon footprint (GHG inventory), industry and target the most strategically
For Hermes, ESG is not a “nice to have”: it is essential which consists primarily of fuels consumed on valuable aspects of its program. Hermes UK has
to corporate strategy and the resulting success of site and in Hermes vehicles (Scope 1), a set of KPIs, targets and plans across five pillars
the business. And it is rapidly becoming a license to electricity purchased (Scope 2) and emissions of its strategy, E-S-G as well as Communications
operate in the logistics industry. that are the result of activities from assets not and Products, and reports to the executive-led
Hermes commits to being
Net zero by 2035You can also read
