Delivering Value Sustainably Sustainability Report Edition 10 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 02 Contents Responsible Investment at Apax Chief Executives’ statement 03 The Apax values 05 Apax at a glance Our journey Our approach to sustainability A spotlight on climate across the portfolio Sustainability at the firm Portfolio highlights 04 06 07 08 ESG Highlights Environmental Q&A with Toi Toi & Dixi Q&A with infogain Social Q&A with Lutech Governance Q&A with Tosca Selected performance metrics 10 11 12 13 14 15 16 17 18 Committed to climate action Committed to Inclusion & Diversity Community contribution 20 21 Collaboration & additional resources The Apax Foundation 23 Apax Gives Back 25 Supporting social mobility 24 Aligned with industry principles 27 Further information 29 Collaborative initiatives Our offices 28 30 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 03 Chief Executives’ statement For Apax, 2022 was an important year to reflect on our own sustainability efforts as we celebrated our 50th anniversary. This milestone is thanks to our founders, who had the foresight and resolve to commit to building Apax as sustainably as possible. Since inception, sustainability has been a core part of our identity, and we continue to build on our work in this arena, be it supporting companies which deliver tangible societal and environmental impact through our dedicated Impact strategy; serving as an important facilitator and advocate for carbon reduction across the portfolio; pioneering the use of data through our in-house data analytics platform; or working together to support the people and communities around us. As we publish this report, we face a multitude of issues including conflict, humanitarian displacement, a rise in the cost of living and inflation, all of which continue to shine a spotlight on the need for action. Concerted effort to tackle carbon Apax has the conviction that companies must engage on climate action, and as such launched a CO2 measurement exercise in 2021 to assess the carbon footprint of majority owned portfolio companies across the Apax IX and Apax X funds. We continue to progress this important initiative and are proud to deploy such a rigorous approach to climate data. This exercise has also enabled us to identify key hot spots and decarbonisation opportunities that individual portfolio companies can integrate into their overall strategic roadmaps. Internally, Apax has been carbon neutral since 2019 and we continue to make strong progress in tackling our own scope 1, 2, and 3 emissions. This year, as part of our longstanding ‘Apax Challenge’ initiative, which helps raise funds for important causes, we collectively helped to support reforestation efforts in California, raising over $13,000 to plant 13,000 trees in Butte Country. capabilities and heightened data accessibility, all of which is provided to investors through our investor portal. Alongside this, we have built additional mechanisms to collect and validate ESG KPIs from our portfolio companies. This is of increasing importance, as in addition to reporting our portfolio’s progress, we are also seeing ESG requirements impact our portfolio companies more directly with disclosure requests from customers, suppliers, and regulators. Association (“BVCA”) Summit. We were also pleased this year to invite investors to hear from Apax’s co-founder and Impact pioneer Sir Ronald Cohen, who shared his thoughts on the Impact Revolution. We remain committed to prioritising sustainability and we look forward to updating you on our continued progress in 2023. Importance of industry collaboration The private equity industry can have an enormous influence on global sustainability initiatives as a collective, and we contribute regularly and actively on various ESG topics, frequently speaking on sustainability matters at industry conferences such as the British Private Equity & Venture Capital Data at the heart of transparency At Apax, we continue to prioritise data integrity. As detailed in last year’s report, the data science team within Apax’s Operational Excellence Practice (“OEP”) has built a comprehensive data analytics platform designed to pool all financial and non-financial portfolio company data streams within its systems. The full Apax ESG indicator set was merged into this data platform in late 2021, creating additional state-of-the-art analysis Mitch Truwit Co-CEO Andrew Sillitoe Co-CEO Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 04 Apax at a glance Apax is a sector-focused, global private equity advisor that works to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion,(1) investing in companies across four global sectors: Tech, Services, Healthcare, and Internet/Consumer. Sector expertise Tech The Firm’s flagship product is Apax Global Buyout, complemented by synergistic strategies, including: Apax Global Impact Services Apax Digital Apax Mid-Market Israel Co-Founded by Impact pioneer Sir Ronald Cohen, Apax’s success over its 50-year history is built on a commitment to create a positive impact on the people and communities around it, as it is this that drives sustainable, long-term value. Apax Credit Healthcare 50 Years since founding Celebrating 50 years Our strategies $65 > bn Commitments(1) Apax Listed Private Equity Internet/ Consumer 7 Find out more about our stategies on our website 180 80 c. c. Global offices Investment professionals(2) Portfolio companies(3) Sectors Operating specialists(2) Portfolio company employees 4 28 100,000+ (1) Commitments since 1981, converted from fund currency to USD at FX rates as at 31 December 2022. (2) As at 31 December 2022, pro-forma for known joiners. Includes employees, advisors and consultants. Excludes OEP coordinators. Operating advisors and consultants are not employees of Apax. (3) As at 31 December 2021, there were c.80 portfolio companies held by all Apax Funds (including one company which closed in mid-2022 due to a lengthy regulatory approval process), of which 41 are majority and 39 minority owned. Majority owned for this report is defined as those companies where all Apax Funds combined hold a 50.1% ownership or more. Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration The Apax values Apax has a distinct culture with four values that guide decision-making and underpin its goal of delivering strong returns to investors. These values help the Firm make the right choices by seeking to: + act without compromising on principles, + recognising that enduring relationships are based on trust, honesty and transparency; ake the most of its global platform by m acting as one global team to harness the best talent for oppotunities, wherever they arise; We choose right over easy We have impact through insight and tenacity A duty to all stakeholders to treat them with respect and to “do the right thing” + empower its people to be entrepreneurial An entrepreneurial spirit to seek out differentiated opportunities and perspectives OUR VALUES and creative; and + create an environment in which continuous improvement and introspection are highly valued and in which team members feel an “obligation to dissent” when necessary. The Apax values inform investors, management teams, employees and other stakeholders about what the Firm stands for, and are a foundation of its longevity as an institution. We succeed as one global team Working collaboratively across teams and geographies to achieve optimal results We learn, adapt and grow Seeking out and learning from diverse perspectives to improve continuosly 05 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Our journey Responsible Investment at Apax Apax Portfolio ESG highlights Community contribution 2020 ESG performance data: by sector1 Collaboration & resources Internet/ Consumer Company Internet/Consumer Company A Company B Company C Company D Company E Company F Company G Company H Healthcare Company A Company B Company C Company D Services Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Tech Company A Company B Company C Company D Company E Company F Company G Company H CO2 emissions (tons) Electricity (Kwh) Business travel by air (Miles) Renewable energy used (KWh) Water used (m3) Waste treated (tons) Environmental incidents Employees FTEs 106 72,000 4,680 9,785,008 1,999 7,150 ,80 0 2,464 1,712,020 46,232 101,131,158 198 765,976 4,747 9,483,590 50,000 10 0,0 0 0 122,012 1,199,663 383 1,663,451 2,400,000 60,779,826 765,976 2,401,408 720 1,597 12,500 700 99,390 7,582 80 275 233 529 2,170,072 No No No No No No No No 133 5,387 1,538 316 687 7,0 92 482 778 35,063 634,745 - 83,104 95,576 104 No No No No 2,335 1,140 10,950 4,045 1,085,480 3,585,580 2,010,171 3,138,111 - 1,652,739 86,003 1,159,048 - - 490,000 5,423 16,535 1,062,605 69,020 - 770,000 24 410 403 28,109 - No No No No No No No No No No 3,793 6,585 329 728 855 69 806 2,495 1,786 1,465 793,654 35,075,987 2,412,746 66,133,726 380,000 3,648,106 5,522,527 900,067 13,912,940 52,906,981 57 62 132,931 5 15 52 No No No No No No No No 762 1,333 2,069 1,480 1,731 1,875 7,847 6,263 15,466 14,856 10,880,357 35,814,790 938 11,367 1,489 382,867 16,313 37 957 8,648 996 8,654 Services 17 Tech Men FTEs AntiDiversity harrassment policy policy Sick days Voluntary turnover Workers Council Code of conduct Anticorruption policy 1,10 0 n/a 393 334 2,158 55,898 1,885 22,500 14 3,488 1,051 132 94 1,012 148 79 Yes No Yes No Yes Yes No Yes No Yes Yes No Yes Yes Yes Yes No No Yes Yes Yes Yes No Yes Apax Portfolio ESG highlights Community contribution Collaboration & resources 18 Cyber security function 2020 ESG performance data: by fund1 63 5,188 890 171 459 6,666 207 399 Yes Yes Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes 792 1,543 Yes 912 228 Yes Company Sector 7,0 61 3,889 Yes Apax Europe VII 1,542 2,373 Yes Company A Internet/consumer Company Tech 645 B 3,148 No CO2 Yes emissions Yes (tonnes) Apax VIII 4,280 Company 106 A Company 193 B Company 360 C Company 26 D Company 539 E Company 506 F Apax 492 IX Company 381 A Company B Company 238 C Company 397 D Company 632 E Company 195 F Company 515 G Company 892 H Company 3,050 I Company 1,423 J Company K Company L (1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees Healthcare Responsible Investment at Apax GOVERNANCE Women FTEs 06 Our sectors SOCIAL(2) ENVIRONMENTAL Collaboration Company M Company N Company O Company P Company Q Company R Company S Company T Apax X Company A Company B 70 199 648 142 228 426 275 379 No ENVIRONMENTAL 2,305 Yes Services 223 Yes Internet/consumer 535 Yes Internet/consumer 495 Yes Services 43 No Healthcare 267 Yes Internet/consumer 1,989 Yes 1,294 Yes Services 1,084 No Services Services 524 No Internet/consumer 936 Yes Services 1,437 No Tech 1,242 Yes Tech 1,216 Yes Tech 983 No Services 4,662 Yes Healthcare 4,830 Yes Tech Healthcare Services Internet/consumer Tech Services Tech Services Internet/consumer Healthcare Internet/consumer Tech Water Yes Waste 1,521 Business 207 RenewableYes Electricity travel by air energy used used treated 3 239 No Yes (tons) (Kwh) (Kms) (KWh) (m3) Yes 93,954 1,066 Yes Yes Yes 32,351 1,667 No Yes 46,232 101,131,158 122,012 60,779,826 99,390 529 8,654 900,067 52 No 66,133,726 66,677 n/a 52,906,981No 132,931Yes Yes n/a 754 No Yes -No -Yes Yes65826 4,680 9,785,008- 1,663,451No 1,597Yes 80 Yes 54 1,999 7,1501,009 ,80 0 10 0,0 0116 0 2,400,000Yes 12,500Yes 275 Yes 382,867 -6 -No -Yes Yes 20314,856 634,745 -No 95,576Yes 104 Yes 35,814,790155 4,747 9,483,590 383 7,582Yes 2,170,072 Yes n/a 701 2,401,408No Yes 3,034 177 Yes Yes 490,000Yes 770,000 Yes15539 Yes 938 1,085,480 1,652,739 5,423 24 11,367 3,585,58086,003 -No 16,535Yes 410 Yes 141 106 72,00050,000 720 No Yes 110 Yes 1,489 2,010,171 1,159,048 1,062,605 403 Yes 309 No Yes 37 380,000 -No -Yes Yes n/an/a 957 793,654 57Yes 5 Yes n/a 3,648,106 107 Yes -No -Yes Yesn/a296 -Yes Yes35,402948 Yes 15,466 35,063 83,104Yes Yes 10,880,357 2,901 748 Yes 8,648 35,075,987 5,522,527 13,912,940 15 2,464 1,712,020 700 233 996 2,412,746 62 16,313 3,138,111 69,020 28,109 198 765,976 1,199,663 765,976 - - - - - - - Yes No Yes No Yes No Yes (2) Yes SOCIAL YesEnviron- No mental Employees Yesincidents Yes FTEs Yes Yes Yes Yes No 7,0 92 No No 6,263 Yes Yes Yes No No 6,585 Yes No Yes 1,538 No No Yes 316 Yes No No 2,495 No No No 4,045 No No Yes 778 Yes Yes Yes No Yes No Yes Yes Yes Yes Yes No No No 3,793 No 329 No Yes 728 No Yes 133 No Yes 855 No - 1,333 No Yes 2,069 No Yes 1,480 No Yes 69 No Yes 2,335 No 1,731 No 1,140 No 806 No 687 No 1,875 No 1,786 No 7,847 No 1,465 No 482 No 10,950 No No 5,387 762 GOVERNANCE Women FTEs Men FTEs AntiDiversity harrassment policy policy No Yes Sick days Voluntary turnover Workers Council Code of conduct Anticorruption policy Cyber security function 6,666 1,423 426 4,830 Yes Yes 55,898 2,901 1,012 748 Yes Yes Yes Yes Yes Yes 4,280 890 171 506 2,373 399 2,305 648 142 1,989 1,542 379 Yes Yes No Yes Yes No Yes Yes Yes Yes Yes Yes n/a 393 334 n/a 32,351 22,500 754 1,051 132 701 1,667 79 No Yes No No No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes 645 106 193 63 360 397 632 195 26 792 515 912 539 459 892 492 3,050 381 207 7,0 61 3,148 223 535 70 495 936 1,437 1,242 43 1,543 1,216 228 267 228 983 1,294 4,662 1,084 275 3,889 No Yes Yes Yes Yes Yes No Yes No Yes Yes Yes Yes Yes No Yes Yes No Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 66,677 658 0 1,10 0 1,009 0 0 n/a 203 1,521 n/a 3 2,158 n/a 3,034 35,402 15 1,885 93,954 n/a 26 54 14 116 110 309 n/a 6 207 107 239 155 94 296 177 948 539 148 1,066 No No No Yes Yes Yes No No No Yes Yes No No Yes No Yes Yes Yes No Yes Yes Yes Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes No Yes No Yes Yes Yes No Yes Yes Yes Yes Yes No Yes No No Yes Yes Yes Yes Yes No No Yes Yes No Yes Yes No Yes No Yes Yes No Yes 5,188 238 199 524 Yes No Yes Yes n/a - 3,488 141 No No Yes Yes No No No Yes (1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees 2009 + Established to build on the Firm’s 2011 + Adopted PEGCC longstanding commitment to charitable giving 2012 + Became a signatory Guidelines for Responsible Investing + Started collecting ESG indicators to the UN PRI from the Apax Funds’ portfolio companies Releasing potential sustainably A+ 2019 Apax Partners Sustainability Report 2016 + Received A+ PRI assessment in Strategy 2015 + Received first A+ PRI assessment & Governance module in addition to A+ in the PE module in Direct PE module + Joined the BVCA Responsible + Carbon neutral since 2019 + Became a member of the Thirty Percent Coalition (1) From Apax’s own operations. + Awarded the BVCA Responsible Investment Awards for best practices and for portfolio engagement + Published first + Became a founding partner of Level 20 Investment Advisory Group 2020 2013 2021 2022 + Signed up to the Initiative Climate + Launched online tool in the International: Set a reduction commitment for own operations and offset all CO2 emissions to be a Carbon Neutral firm from 2019 onwards(1) Sustainability Report to increase transparency to LPs + investor portal to provide direct access to LPs to the Apax ESG indicators suite across the entire Apax Funds’ portfolio Became a signatory of the ILPA Diversity in Action initiative + Launched Carbon Measurement programme for portfolio companies in funds AIX and AX + Became a member of the Sustainable Markets Initiative Private Equity Taskforce PESMIT 2023 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Our approach to sustainability The focus on sustainability and on creating a positive impact is in the firm’s DNA. Sustainability is embedded throughout the Apax Funds’ investment process, from due diligence through to the Funds’ ownership and exit. Supported by Apax’s OEP team, investment teams are responsible for identifying and monitoring portfolio companies’ ESG footprint, and to drive value or mitigate risk relevant to particular material ESG issues. Apax adapts and expands its KPI monitoring when necessary to obtain a more detailed understanding of the situation at individual portfolio companies and across the portfolio as a whole in relation to emerging issues such as cyber security, climate change, and workforce diversity. 2011 Became a signatory to the PRI Aligned with industry principles Apax’s ESG programme is closely aligned with industry principles, and incorporates ESG issues throughout the life of an investment. Apax has collected a large suite of ESG indicators from the Apax Funds’ portfolio companies since 2012. This focus has enabled Apax to monitor how the Funds’ portfolio companies address the UN Sustainable Development Goals (“SDGs”) in their day-to-day operations. Apax is also able to share toolkits with portfolio companies that enhance their processes and foster best practices among the portfolio group. 2012 130+ Began collecting ESG data from portfolio companies ESG indicators monitored Measuring & monitoring Our ESG indicators allow us to assess how the Funds’ portfolio companies address the UN’s SDGs. Select sample KPIs from Apax’s comprehensive monitoring programme: Environment + Electricity & fuel consumption + Renewable energy + Business travel + Carbon emissions + Paper & recycled paper usage + + Water usage and reduction Waste management Social + Workforce composition + Employee satisfaction + Employee development + Inclusion & Diversity + Workplace harassment + Employee engagement + Health & Safety + Community contributions Governance + Board composition + Corporate governance + Risk management + Compliance + Anti-corruption practices + Whistleblowing + Information risk management 07 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 08 A spotlight on climate across the portfolio At Apax we recognise that climate change is one of the most pressing issues facing our global society today. While environmental disclosure has become an important agenda item for companies and governments, carbon accounting remains nascent and complex – which presents implicit challenges for those seeking to report and set climate goals. In addition to inconsistent data, the varying frameworks and standards that continue to emerge require companies to be more rigorous in their carbon accounting approaches. To that end, Apax launched a comprehensive CO2 measurement programme in Q4 2021. To ensure consistency and completeness, Apax engaged an external advisor to support majority owned companies in establishing their CO2e baseline footprint. In addition to a complete inventory and accompanying worktool for measuring Scope 1, 2 and 3 emissions going forward, each portfolio company also receives a hot spot analysis and high level decarbonization scenarios. We are already seeing portfolio companies use the outputs of this programme with other stakeholders, including customers. As of the end of 2021, Apax completed the carbon baselining for more than 60% of majority owned portfolio companies across Apax IX and X. The Apax ESG team is proactively engaging these companies on decarbonisation initiatives that complement their value creation strategies. Apax is actively monitoring the guidance and recommendations put forth by the Task Force on Climate-Financial Disclosure (“TCFD”). Like other firms, we are evaluating our readiness to report against the four pillars of the TCFD framework. As a member of the Climat International (“iCI”) initiative, we participate in the group’s Global, North America, and UK chapters. In doing so, we are able to stay informed about the latest climate developments and engage with peers to advance progress in this important area. Apax launched a comprehensive measurement programme to address the complexities of carbon accounting While most standards focus on Scope 1 and 2, Apax’s baseline covers all three: Direct emissions Indirect emissions Indirect upstream & downstream Scope 3 emissions Scope 1 Scope 2 Scope 3 Key scources Buildings & vehicles Purchased electricity Entire value chain Typical share <5% 5 - 30% 50%+ Calculation Simple Simple Very complex Reduction potential Small Varies Large CO2 programme overview Inputs Data validation & emissions calculation Operations data Finance data 23 of 36 companies have established a CO2e baseline(1) HR data Validation Synthesise into metric units for evaluation Additional data Portfolio companies Deliverables Scope 1,2 & 3 baseline Address data gaps & calculate foorprint GHG manual & tutorials Evaluate external factors and / or limitations Decarbonisation levers 3rd party (1) Apax identified 36 portfolio companies within Apax IX and Apax X for its inaugural CO2e baselining exercise. Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 09 Portfolio highlights Bees on the rooftop of T-Mobile Netherland’s head office Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration ESG highlights Apax continues to enhance its comprehensive ESG data analytics platform, which is fully accessible to LPs 130+ ESG KPIs collected 85% of all majority owned investments reported(1) 94% of portfolio companies not affected by climate transition risk(2) Portfolio company employees(3) 47% female male 52% 73% are subject to GDPR 49 companies reported of which 35 are majority owned Healthcare 12% Internet/ Consumer 16% Digital 18% Services 29% Tech 25% Reporting portfolio companies by sector 82% have a Health & Safety policy 86% of companies conduct an annual employee survey All data as at 31 December 2021. (1) As at 31 December 2021, of the 41 majority owned companies held by all Apax Funds, 35 participated in the 2021 ESG data survey, representing 85% of all majority owned companies. Of the 6 majority owned companies not providing data in the 2021 ESG Survey, 5 are recent investments made in H2 of 2021. (2) As self-reported by portfolio companies. (3) One company, representing approximately 1% of employees, did not disclose gender distribution of their workforce with the remainder due to employees not wishing to be gender identified. 10 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Environmental Apax focuses on Tech, Services, Healthcare, and Internet/Consumer businesses, which are generally “asset light” sectors with fewer material environmental indicators and impacts. Nonetheless, we recognise the heightened urgency associated with climate change and the need for all companies to undertake climate action. Climate Action Apax believes a credible assessment of a company’s emissions is the first critical step in any decarbonisation journey. As such, we launched our CO2 programme in 2021 and have made significant progress to date with majority owned portfolio companies (outlined in more detail on page 8 of this report). 34 companies covered by detailed CO2e baseline measurement(1) 94% of companies not affected by climate transition Apax also collaborates with other private equity peers in the initiative Climat International to continue to develop and define best practices for assessing and mitigating climate risks. Environmental Materiality Within the portfolio, electricity usage is the most material environmental indicator for nearly 60% of reporting companies, followed by fuel usage and air travel. Apax supports portfolio companies in advancing environmental initiatives that are most relevant to their business and operations. In fact, of the 16 portfolio companies that reported electricity usage in 2020 and 2021, a combined total reduction of 5% in kWh was achieved. We believe that operating with environmental responsibility and stewardship is not just the right thing to do, but equally a source of innovation and profitable growth. 60% of majority owned portfolio companies(1) have completed a CO2e baseline measurement 55% of companies have initiatives to meet energy reduction targets (1) In Apax IX and Apax X. (2) 28 companies self-reported electricity usage in 2021. Most material environmental indicator per portfolio company 90% of companies not affected by extreme weather events Zero environmental incidents 63% asset light portfolio No material indicators 49 companies in total Electricity Fuel usage Air travel Water Paper Waste production Distribution of electricity usage (kwh) 18% of electricity usage reported by 22 portfolio companies 82% of electricity usage reported by 6 portfolio companies 28 companies in total(2) 11 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Tackling sustainability through innovation Q Can you give us a quick introduction to environmental sustainability at Toi Toi? A Environmental sustainability is incredibly important to Frank Ehmer Partner, Apax Holger Wirtz CTO, Toi Toi & Dixi The Apax Funds acquired TOI TOI & DIXI (or “TOI TOI”, previously the ADCO Group), the European leader in route-based sanitation services for portable toilets and sanitary equipment, in 2019. The company covers the entire value chain from production, rental, cleaning, and waste-disposal, servicing everything from public events and construction sites to parks and swimming venues. Given the nature of TOI TOI & DIXI’s business model – offering products and services on a rental basis, the need for a fleet of vehicles, the use of chemicals and water, etc. – TOI TOI is acutely aware that quality, conserving resources, and environmentally friendly processes across the entire service chain are integral to both the firm’s success, and to protecting the environment more generally. To achieve this, TOI TOI is dedicated to intensive R&D investment and maintaining its own in-house production capabilities. Frank Ehmer, Partner at Apax, spoke with Holger Wirtz, CTO of TOI TOI, about the company’s environmental efforts and its approach to innovation. us. It is one of the three sustainability pillars we focus on alongside ‘products & services’ and ‘employees’. As a company, we aim to minimise the environmental impact of our activities, in particular regarding energy, waste and water. Given we are in the sanitation services space, there is also a strong focus on the use of chemicals, and we ensure the maximum level of environmental responsibility in our use of resources for that purpose. Operationally, sustainability is integrated at all levels of the business, and we are currently formalising our sustainability strategy, which will include specific targets. We established a sustainability committee in 2021 consisting of senior employees from across the business. This committee ensures that sustainability is an integral part of the strategic agenda and it drives as well as monitors progress of the various initiatives. We were also proud to publish our first sustainability short report last year and will be publishing a more detailed report this year in accordance with GRI standards, building on international best practice. Q What are some of the challenges you face in your industry? A Thinking specifically around environmental sustainability, we operate a business model which is predicated on physically visiting and cleaning mobile toilet cabins. Not surprisingly, the majority of our CO2 emissions come from our service vehicle fleet. While considerations around hygiene render the physical visit a necessity, we can pull other levers to reduce emissions. Also, we are fortunate to have the scale needed to dedicate resources to focus on minimising the use of chemicals as well as researching alternatives and innovations, allowing us to tackle most challenges in-house. Q Can you tell us more about your in-house innovation? A We pride ourselves on innovation within our business operations and we apply these same principles to our sustainability efforts. We are continuously assessing our potential impacts on the environment, and we have an excellent research and development team who are systematically optimising our existing products and services, while also developing and pioneering new solutions for the future. This allows us to manufacture, recycle, and refurbish long-life, sustainable products in-house and we have found this method to be far more efficient in the long term. Q Can you tell us specifics about the various initiatives you’ve implemented to tackle your footprint? A Through our R&D work we’ve implemented innovative solutions across the spectrum, from realising a circular economy approach for our toilet cabins to tackling carbon emissions from our fleet. We have started to recycle our toilet cabins that are at the end of their lifespan (after approximately 20 years), using them to mould new cabins. We have also successfully produced and commercialised new cabins from old fishing nets. With respect to our fleet, which covers 77 million kilometres per year, we have made huge strides forward over the last years in reducing its emissions. Continuous improvements in areas such as route optimisation have contributed to these reductions. Of course, we are also reviewing the introduction of alternative vehicles and have just put our first allelectric service vehicle into operation. However, as we have very specific demand for our trucks, we can’t use a ready plug and play solution. Instead, we are developing our own prototypes in close collaboration with our service personnel, fleet coordinators, and truck manufacturing team. Innovation doesn’t just yield benefits with respect to our products, but also regarding our supply chain. For example, utilising recycled materials for our toilet cabins as outlined earlier helps us become independent from virgin material which is getting increasingly more expensive and harder to get. Also, all our products are retrofittable so we can introduce new solutions instead of having to introduce a whole new product line. These small modifications can create big change. Q Why are these innovative solutions so important? A Ultimately, our approach, and the fact our R&D department is constantly working on sustainable product improvements, safeguarding our IP along the way, enables us to maintain our position both as a world market leader and as a pioneer of innovation in sustainable products and services. These innovations allow us to do good for the environment, while also making us far more efficient and competitive. And doing most of it in-house means we can roll out solutions more quickly, with a long-term view. 12 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration The commercial importance of carbon reporting Q Tell us about how customer needs have shaped climate reporting and action at Infogain? A We formalised our ESG efforts and reporting Rohan Haldea Partner, Apax Ayan Mukerji CEO, Infogain The Apax Funds acquired Infogain, a leader in digital transformation and software services, in June 2021. With a team of over 5,000 globally, Infogain provides human-centred digital platform engineering services to companies including Fortune 500 customers, supporting them in their artificial intelligence, experience design and cloud journeys. Despite being an asset-light business, sustainability has always been an area of focus for Infogain, with dedicated teams across environment, social, governance and inclusion. It is also an example of a business where sustainability is not only an internal goal but also a commercial imperative. In 2020, one of its largest customers required Infogain to report Scope 1, 2 and Scope 3 emissions in detail, in line with the customer’s own target to be carbon negative. Not calculating and reporting GHG emissions will have significant commercial consequences for Infogain – a trend we are seeing accelerate more broadly. Infogain has stepped up its sustainability operations to not only meet this request, but to go above and beyond in terms of setting and achieving its own carbon targets. Rohan Haldea, Partner at Apax spoke with Ayan Mukerji, CEO of Infogain, about the increasingly commercial aspect of prioritising sustainability, how this has catalysed positive change, and what the future of sustainability looks like at Infogain. (1) From Apax’s own operations. processes following the request of a major customer. This involved tracking and reporting regularly on our scope 1, 2 and 3 emissions. Providing this information was vital in sustaining our relationship with this key customer. It also catalysed our internal activities and helped push us to make changes to the way we operate and how we culturally think about sustainability, in order to achieve our own targets, independent of our customer’s requirements. We expect other major multinational businesses to implement similar reporting requirements across their supply chains, and so it is crucial that companies are prepared ahead of time as it will have commercial benefits in addition to benefitting the planet. It is not only the right thing to do, but also the smart thing to do. Q What impact has this had on the business from a sustainability perspective? A It has had a big impact – we’re pleased to report that we have made meaningful reductions in our carbon footprint since 2019, with per capita carbon emissions down by more than half even as the business has continued to grow rapidly. Looking at it more granularly, our electricity usage has trended downwards, as have our mobile, stationary and business travel emissions. We’re really pleased with this progress and will continue building on this success. Q Did the insights gained from the emissions reporting to the customer lead the company to setting its own targets? A Definitely, as a company we have set a target to be carbon neutral by 2030. We are already tracking well and have plans in place to make this a reality. We are targeting reduction on a per capita basis as we are expecting the firm to continue to scale. Q How are you implementing changes to achieve these targets? A The COVID pandemic led to a meaningful drop in emissions, as it did for many businesses, and we aim to keep our emissions at these lower levels. For example, we have implemented a remote working policy which has helped reduce our office emissions and emissions related to employee commuting. This has also led us to significantly reduce our real estate footprint, downsizing facilities by approximately 13,340 and 80,659 square feet in 2021 and 2022, respectively. When we do have people in our offices, we make efforts to concentrate teams in one area, thereby reducing electricity and air conditioning usage in other parts of the office. At the same time, for our remote workers, we have kicked off an initiative to educate them on reducing their carbon footprint in their own homes. We eliminated the use of single use plastics in our offices, kicked off a project to utilise solar panels (expected to be completed by Q1 2023), and are reducing our business travel across the board. Going forward we have come full circle as we are now looking at our own supply chain emissions. In the next twelve months we will be asking our vendors and service providers to report, and where possible, make changes to their usage to complement our efforts. Q And what are some of the challenges you face? A Currently, our biggest challenge is centred on purchased goods and service emissions, so reducing our scope 3 “value chain” emissions. We are making great progress on Scope 1 and 2, but as our business utilises contractors, we have to think carefully about how our use of contractors impacts our overall carbon footprint. The second challenge, and I think this is standard across almost all businesses and industries, is how to best collect, monitor and report environmental data, and whether there are ways to automate these processes so they can be systematically implemented. Currently, there is a significant effort involved in order to pull all the required information from different areas of the company, assign relevant categories and accurately calculate the emissions. These things are still in their infancy but given Infogain’s digital skillset we are exploring internally what technologies we can build and leverage, and potentially roll out more widely, to address this. 13 Responsible Investment at Apax Social Apax believes diversity in the workplace is a key driver of growth and success for any organisation because different perspectives and backgrounds drive creative problem-solving and ultimately better decision-making. Inclusion and Diversity Portfolio companies are equally prioritising Inclusion and Diversity (“I&D”) in the workplace. Across the 100,000+ people employed within the Apax Funds’ portfolio companies, female gender representation reached 47% in 2021. Portfolio companies are achieving and sustaining this by: + Formalizing I&D policies and governance frameworks + Setting I&D targets + Establishing I&D committees + Including I&D metrics in senior management performance reviews 90% of companies have grievance procedures 47% female employees + O ffering regular I&D training and education. Portfolio highlights Apax expects these initiatives will continue to drive more workforce diversity. To illustrate, between 2019 and 2021 alone, the number of female CFOs in the portfolio has increased 2.5x. Apax is also using its ownership and influence to drive diversity at the Board level. Across majority owned portfolio companies, female Board representation stands at 29% as of the end of 2021.(1) Wellbeing Overall company success is highly dependent on a productive and engaged workforce. Portfolio companies continue to promote positive and safe work environments by implementing health & safety policies and grievance procedures, promoting work-life balance, offering health and fitness programs and conducting engagement surveys to ensure employees feel heard, valued and supported. 82% of companies have a health & safety policy 20% of CFOs are female 52% male employees 29% female board members(1) Sustainability at the firm Community contribution Collaboration 14 Distribution of employees by portfolio company 102,497 Total FTEs 8 50% companies with 6,500 average FTEs 48 companies in total Workforce and board composition Total workforce 40 Female 47% Employees in management positions Direct reports to CEO Board Composition of Portfolio Companies(1) Female CEO Male 52% 44% 56% 44% 56% 29% Female CFO Female COO companies with 1,250 average FTEs 20% 15% 6% (1) Composition reflects Apax appointed Board seats where appointed member is not an Apax employee. Gender data is based on input from Apax deal teams and public sources and is not self-reported by individual directors. (2) 48 companies self-reported workforce composition in 2021. 71% 80% 85% 94% Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community Communitycontribution contribution Collaboration The importance of an inclusive working environment Q Lutech is clearly committed to creating a positive work environment, can you tell us more about this? A Taking a step back, in an increasingly complex and Gabriele Cipparrone Tullio Pirovano Partner, Apax CEO, Lutech The Apax Funds acquired Lutech, a leading IT services, software and technology company in Italy, in 2021. Founded in 2001, Lutech designs and enables digital transformation and innovative enterprise technologies for private and public sector clients. Lutech’s leadership team has long been committed to building a healthy and productive work environment and a common identity in which all employees can recognise themselves regardless of their workplace or specific role. As part of its values, Lutech emphasises a strong focus on the needs and growth paths of its people, both employees and collaborators, and has recently launched important initiatives to reinforce this. Gabriele Cipparrone a Partner at Apax spoke to Tullio Pirovano, CEO of Lutech about Lutech’s commitment to creating an inclusive working environment that encourages growth and progress for all employees. interdependent world, we are acutely aware of the need to act in a sustainable manner so as to ensure that new generations have the same opportunities as today. Private companies such as ours are key players in this journey toward a responsible economy that generates positive environmental, social and economic impacts. Indeed, we believe that companies, suppliers and the entire supply chain can represent spaces for resource efficiency, process innovation and inclusive involvement of all stakeholders. A major part of this – the S within ESG – is how we work collectively as a team, how employees are treated, and the opportunities that exist for all employees. This is incredibly important, and one of our major commitments is to reduce internal inequalities and differences, striving to make the company even more inclusive and sensitive to diversity, in open dialogue with the local areas and communities in which we are present. Q How are you supporting this commitment? A To support this commitment, we established a ‘People Engagement’ function within our HR structure in 2021 to support ongoing internal communication with employees and to to increase employee engagement and wellbeing. We believe that engagement initiatives start from listening to the needs and interests of employees. In July 2021, the first “Lutech Next” HR survey was sent to employees, asking for feedback on the needs for training, social responsibility, engagement and welfare. The results of this survey were communicated transparently to all employees and provide much-needed insight for planning our initiatives for 2022 and beyond. Without this important step, it is difficult to assess both strengths and weaknesses, and to understand what is needed for the organisation as a whole. For us, this fell in to five particular focus areas. Q Can you tell us about these focus areas? A From the results, we decided to focus on five areas, these are: training, the value placed on training by employees to improve their performance and achieve goals; corporate social responsibility, making sure we work as a team to address environmental initiatives, digital education, supporting local communities and so on; diversity and inclusion, with a particular focus on generational integration, female empowerment, and cultural and ethnic identity; community and internal engagement; and finally company welfare, particularly around health and wellbeing, individual or group counselling and coaching, parenting support and psychological support for processing traumatic events. Last year, our focus was on awareness and data Collaboration gathering, making sure that we knew where we stood, and where we wanted to be, and that our employees were engaged on our mission. Looking ahead to the end of this year, we want to utilise this data to make progress, including: Q Can you give any examples where you have rolled -Introducing Diversity & Inclusion policy tools by the end of 2023 out initiatives to address these points? -Establishing awareness-raising activities on the value of Inclusion and Diversity, including through external initiatives and the sharing of best practices A As mentioned, we’ve recently made great progress on all fronts, but taking company welfare as an example, in December 2021, we introduced a SmartCaring service to offer free specialised counselling by psychologists, coaches and experts to support mental/physical and relational wellbeing for people both professionally and personally. This service, which is accessible 24 hours a day, 365 days a year, is offered to all group employees and their adult family members living in the same household. This service can be used however an individual sees fit, but we hope it will help people manage changes at work, or in their private lives; the establishment of more constructive personal and professional relationships; the improvement of communication with partners or colleagues or, simply, the desire to identify a growth path and the most effective tools to support it. Q You’ve mentioned diversity and inclusion as a focus area, can you tell as about your plans in regard to this? A As you say, Diversity and Inclusion is a big focal point for us, and we advocate the importance of working in an inclusive environment respectful of all diversity. -Launching a project to support gender balance in STEM subjects, which will be selected internally -Creating an internal working and monitoring group dedicated to I&D - Identifying any wage gaps -Drafting a formal company policy on Diversity & Inclusion . These are our KPIs for the year ahead, and we hope to make significant progress towards making Lutech an even more diverse and inclusive workplace. 15 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Governance Apax recognises that corporate governance is a key driver of long-term business success. Companies with good governance protocols can foster transparency and accountability, build trust with shareholders, employees, and customers and reduce financial, legal, and reputational risks. Governance standards Apax deal teams conduct a thorough risk assessment during diligence of a company’s governance profile and maturity. Companies new to a Fund or with less experience receive support in adopting suitable policies and processes within a year of investment. Apax is particularly focused on ensuring all portfolio companies have robust anti-corruption policies, codes of conduct and cyber security protocols in place. Cyber security The increased frequency and sophistication of cyber attacks has significant financial, legal, and reputational consequences that can negatively impact a company’s operations, brand image, and customer trust. Apax believes investing in cyber security measures is imperative to protect sensitive data, intellectual property, and other valuable digital assets. Apax’s Operational Excellence Practice has a dedicated programme led by in-house experts to help portfolio companies mitigate and manage cyber risks, safeguard against potential threats and ensure compliance with data privacy and information security laws and regulations. 86% 86% 76% 73% 100% of companies include anticorruption protections in 3rd-party contracts of companies report cyber security incidents to the board of companies are subject to GDPR 1 Standard setting Provide a set of best practice security controls that all Apax Fund portfolio companies should have in place or look to institute during the course of the investment lifecycle. Support 96% of companies have appropriate risk management systems Cyber Security Programme of companies monitor compliance with policies of relevant companies are compliant with GDPR 3 Facilitate access to key security vendors, as well as a suite of policies, tools and templates to aid portfolio companies. Monitoring 2 Monitor how portfolio companies’ cyber security capabilities are maturing, identify any incidents, and proactively help uncover new risks. 16 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community Communitycontribution contribution Collaboration Building a best-in class sustainability function Q You recently formalised your sustainability efforts with Karin’s appointment as Global Director of Sustainability, can you tell us about what led to this appointment? A Mike: At our core, Tosca has always been a sustainable company, one focused on creating sustainable solutions for clients through reusable packaging and eliminating waste in the supply chain. Sustainability is built into our vision and our values. Following our recent acquisition of Polymer Logistics and Contraload, the senior leadership team agreed that now was the right time to set more ambitious, formalised ESG targets and bring in a sustainability expert to set and execute on our long-term strategy. Ashish Karandikar Partner, Apax Mike Wasson COO, Tosca Karin Witton Global Director of Sustainability To ensure the success of a sustainability strategy, it is critical that businesses underpin their efforts with robust corporate governance structures. Given the highly complex issues faced by companies seeking to be sustainable, the process of building good sustainability governance is not always easy. Apax Fund portfolio company Tosca, a global leader in reusable packaging, is a company not only committed to delivering effective solutions that contribute to its customers’ sustainability goals, but one committed to achieving its own ambitious targets. Ashish Karandikar, Partner at Apax, spoke to Tosca’s Mike Wasson, COO, and Karin Witton, Global Director of Sustainability, about the company’s approach to sustainability governance. Karin: As an ESG professional, I was excited to join Tosca given the inherent sustainability of the product. When I joined, there was a lot already happening on the sustainability front, but there wasn’t enough structure around it – what was really needed was a long-term perspective and a formal consideration of the various risks and opportunities. It is also crucial that leadership buy into ESG, which they do at Tosca. Similarly, our Board, Apax and the Operational Excellence Practice have been a great support. Q Mike, you mentioned your recent acquisitions, talk us through some of the challenges regarding sustainability for a newly integrated company? A Mike: This was another driver for bringing in-house an ESG expert and leader. It was important to bring consistency across the three companies from a sustainability perspective. We had a head start here, as the two companies we acquired also focused on reusable packaging, with sustainability as part of their DNA. But sustainability has many different facets, so we needed to create alignment on which areas we wanted to focus on first. Karin: The most important step in the process is to get buy-in from all stakeholders. We spoke to every member of the executive leadership team and sought internal and external perspectives to understand the actions already being undertaken across the different business units on sustainability, ensuring that what people internally consider to be important aligns with what the business is required to do externally. Q Employee engagement is clearly important, could you tell us more about your internal Sustainability Committee (“SC”), what it does and what it hopes to achieve? A Karin: Engagement on sustainability can sometimes break down at the middle management level in any organisation, where people are often focused on getting their respective tasks done. Sustainability in this context becomes an afterthought. Our Sustainability Committee is aimed at representing a cross-selection of people from the business, below the leadership level, to increase engagement, hear new ideas and hopefully move quicker as an organisation towards our goals. The committee meets regularly, and feedback is shared with senior management. It makes sustainability a collective team effort. Q Can you tell us about the ESG goals you previously mentioned, how did you set those? A Karin: To set our goals, we came together as a senior leadership group in various workshops. We started with a ‘blue-sky’ brainstorming session and from there, we narrowed down our ideas: where do we need to be in 2030, and what is achievable by this date? This process led to 30 specific goals, broken down into eight groups, covering everything from broader targets on greenhouse gas reduction and workforce diversity to more specific targets. We have outlined these goals in our first ESG report and will track against them annually. Q That leads nicely on to your inaugural ESG report, can you tell us more about that process? Any advice for others looking to publish a report? A Karin: From a governance perspective, our ESG report was an important part of formalising our sustainability efforts and putting our strategy and targets on paper. In terms of advice: think carefully about what you want to communicate, and have your metrics reflect that narrative; collect and organise your data well ahead of time; and work with a reliable third-party consultant who understands your business and sustainability goals. Q Finally, any advice for any other company looking to accelerate their sustainability journey? A Mike: Sustainability is an ethereal concept, and you need to break it down to the basics. You need to tackle it in manageable pieces, and take it step by step. It also can’t simply be a leadership ‘issue’. It must be driven by the behaviour of every team member. As a Sustainability function, you need to ensure that employees understand how what they do contributes to the mission, vision and values of the company. Finally, people want recognition for the work they are doing to help achieve sustainability goals. Ultimately, having a strong sustainability plan can be transformative for your company, as it touches every part of the business – people, process, assets, brand image, etc. Tosca is proud to help its partners achieve their sustainability goals, and to positively impact the earth, people, and communities through our sustainability initiatives. 17 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 18 Selected performance metrics(1) SOCIAL(2) ENVIRONMENTAL Company Apax VIII Company A Company B Company C Company D Company E Apax IX Company A Company B Company C Company D Company E Company F Compant G Company H Company I Company J Company K Company L Company M Company N Company O Company P Company Q Company R Apax X Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Company K Company L Company M Company N ADF1 Company A Company B Company C Company D Company E Company F Company G Company H Company I Sector CO2 emissions (tons) Business Electricity travel by air (Kwh) (Miles) Transition Physical risk climate risk affected affected GOVERNANCE Environmental incidents Employees (FTE) Women AntiHarassment Grievance Men Policy mechanism Diversity Policy Injuries(4) Fatalities(4) Health & safety Policy Annual employee survey Code of conduct Anticorruption Policy Dedicated cyber security function Healthcare Internet/Consumer Internet/Consumer Services Services 13,437 3,833 3,397 1,344 31,499,562 7,583,0 61 6,182,276 - 2,152,274 64,854 - No No No No No No No No No No No No No No No 3,236 1,473 805 7,80 0 1,529 1,750 879 461 5,164 280 1,293 594 344 2,636 1,249 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes 6 13 2 24 0 0 0 0 0 Yes Yes Yes Yes Yes Yes No Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Healthcare Healthcare Internet/Consumer Internet/Consumer Internet/Consumer Services Services Services Services Services Services Services Services Tech Tech Tech Tech Tech 15,300 106 775 230 960.0 14,844 2,024 13,709 17,80 0 32,054 1,239 448 8,106 2,622 1,798 11,565,993 72,000 2,130,008 617,302 1,152,000 3,920,460 1,973,921 3,064,121 7,688,178 28,052,103 720,226 1,153,380 34,396,000 6,119,70 0 4,176,165 840,000 50,000 280,766 984,762 1,681,084 86,003 6,827,0 0 0 481,913 73,909 2,120,801 7,119,766 1,600,000 1,693,547 994,980 - No No No No No No No No No No Yes No No No No No No No No No No No No No No No No No No No Yes No No No No No No No No No No No No No No No No No No No No No No No 2,511 1,376 127 725 512 332 894 931 72 1,032 1,907 4,856 1,614 3,305 2,370 1,611 2,247 10,642 869 1,141 63 468 220 107 235 390 27 696 321 652 477 1,050 376 475 1,124 4,321 1,642 235 64 257 291 225 659 541 45 336 1,265 4,204 1,137 2,253 1,845 1,136 1,114 6,321 Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes No Yes No Yes No Yes Yes No No Yes Yes Yes 7 1 22 4 22 4 7 212 178 51 2 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes No Yes No Yes Yes No No Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes No Yes No No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes No Yes No No No Yes Yes Yes Yes Yes Healthcare Healthcare Healthcare Internet/Consumer Internet/Consumer Services Services Tech Tech Tech Tech Tech Tech Tech 174 6,373 38,274 233 709 1,052 1,617 556 2,156 6,026,447 83,965,032 122,354 1,200,000 2,092,611 1,416,453 173,427 - 1,805,386 1,379,975 1,023,118 152,344 120,057 1,000,000 361,615 255,246 80,051 - No Yes No No No No Yes No No No No No No - No Yes No No No Yes Yes No No No No No Yes No No No No No No No No No No No No No No No 2,093 1,981 4,402 6,303 45 445 2,080 2,425 917 4,853 2,732 576 2,067 72 245 1,545 2,481 6,009 30 268 358 871 288 1,391 717 127 1,417 27 1,844 436 1,921 294 15 177 1,722 1,554 627 3,461 2,015 455 650 45 Yes Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes No No No No Yes No No No Yes No 25 109 44 149 7 134 19 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 No Yes Yes Yes No No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No Yes No No Yes No Yes No Yes Yes Yes No Yes No No Yes Yes Yes Yes Yes Yes No - - - No No No No No No No No No No No No No No No No No No No No No No No No No No No 804 169 212 93 311 1,241 800 1,550 528 57 104 52 81 292 334 276 112 122 41 230 947 1,214 Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No Yes No No No Yes No Yes Yes No Yes - 0 0 0 0 0 0 0 0 0 No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Digital Digital Digital Digital Digital Digital Digital Digital Digital (1) Apax collects a large number of ESG data points from portfolio companies, the overview reflects only a small selection of the ESG information available to investors in the Apax investor portal. All data as at 31st December 2021. (2) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview. (3) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees. (4) Work related both for injuries and fatalities. Note: A “-” implies that data was not provided by the company. Responsible Investment at Apax Sustainability at the firm Portfolio highlights Sustainability at the firm Community contribution Collaboration 19 Apax’s Thrive hosted a rooftop reception for staff on the London terrace for Pride Month Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 20 Committed to climate action Apax measured and monitored the firm’s carbon emissions annually with 2019 as the baseline year. Although the majority of 2020 emissions reductions were the result of the COVID-19 pandemic, 2021 emissions have remained well below 2019 levels, even as business travel has started to normalise to pre-pandemic levels. Apax firm emissions globally (metric tonnes of CO2e) Scope 1 Scope 2 Scope 3 - Business travel - Employee commuting - Other scope 3 Total 2019 2020 2021 30 413 31 4,632 632 489 392 203 1,461 4,324 499 1,041 308 133 220 - 5,151 - 1,436 As part of our ongoing focus on ESG data quality, in 2021 we partnered with Plan A, a software company that enables businesses to measure, report, and reduce their emissions and expanded the scope of our firm’s GHG footprint by including materially relevant Scope 3 categories previously not captured in our 2019 baseline. In line with the GHG protocol guidelines the additional categories in our footprint include emissions related to Employee Commuting, Remote Working and Cloud & Hosted Servers – which in total account for an incremental ~25% of 2021 emissions. VIDEO Apax has been carbon neutral since 2019 by purchasing high quality carbon credits to offset unavoidable firm emissions. We partnered with Climate Care in 2021 to support two projects - the Myycorrhizal Forestry project in Chile and the Mississippi Valley Reforestation in the US.(1) 201 1,696 “Winner of Nature and Biodiversity Project of the Year at the 2022 Edie Sustainability Leaders Awards, this innovative project applies natural soil microbes called mycorrhizae to seedlings in order to improve the health and growth rate of trees planted across degraded lands in Chile.” Climate Impact Partners website (1) Both projects are registered under the Verified Carbon Standard (“VCS”) as an Afforestation, Reforestation and Revegetation (“ARR”) project and have been developed in compliance with the Verified Carbon Standard and VCS AFOLU Requirements. Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Committed to Inclusion & Diversity Apax has an unwavering commitment to inclusion and diversity. We are focused on helping our people feel a sense of belonging and strive to create an organisation where everyone is given the tools and opportunities to thrive. We know this makes us stronger and more innovative, which in turn helps us better serve our investors, our portfolio companies, and the communities in which we work. Over the last twelve months, we have continued to push forward important initiatives. We aim to: + Embed I&D into our business strategy and how we live Apax’s values in creating an inclusive culture that supports our growth goals + B ecome a career destination across all dimensions of diversity that strengthens our talent and leadership pipelines + P rovide our people with a positive employee experience that allows them to feel seen, safe and connected + Build trust and confidence in our processes and our commitment to inclusion + L everage our influence to accelerate equality in our communituies Diversity at Apax Firmwide Inclusion at Apax Investment professionals 43% 27% I&D Committee 39% 4% Thrive Female employees Employees identify as non-white 87% of firm disclosed what makes them diverse Our partners Female investment professionals LGBTQ+ representation Apax has an Inclusion and Diversity Committee that consists of Senior Partners accountable for championing our journey. Thrive is Apax’s internal LGBTQ+ network. The network has three objectives: Community: building a community of Apax LGBTQ+ team members and allies Education: enhancing awareness of LGBTQ+ issues and diversity Recruiting: supporting recruitment of diverse talent Rise Rise is Apax’s internal women’s network. Rise helps to create an inclusive community that supports women and allies within Apax though networking, education, and career development. In 2022 Rise hosted 11 events that brought together members of the extensive Apax network. 21 Responsible Investment at Apax Community contribution Apax employees in London volunteering as part of Apax's Gives Back Days Portfolio highlights Sustainability at the firm Community contribution Collaboration 22 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration The Apax Foundation The Apax Foundation is chaired by Sir Ronald Cohen and its Trustees include: Simon Cresswell, Partner, General Counsel Peter Englander, Co-CEO of the Apax Foundation Rohan Haldea, Partner and Co-CEO of the Apax Foundation David Marks, Former Partner and Director of Taxes Roxana Mirica, Partner Shashank Singh, Partner Mitch Truwit, Co-CEO Jason Wright, Partner £1.5 million average annual donations since 2006 4 active partnerships in four continents The Apax Foundation aims to make a meaningful difference in the communities where the Apax team work and live. It has two principal mandates. Social mobility The first is to support charities that advance social mobility in under-served communities, with a special focus on provision for refugees. Emergency response: Ukraine The Foundation’s second mandate is to support the personal giving of all Apax employees through a staff ‘matching’ scheme, which matches charitable donations made by members of the Apax team globally and also supports the efforts of members of the team who are actively involved with charities. The Foundation has also continued its commitment to the venture philanthropy charity Impetus, providing funding, pro bono support, and employee volunteering with Impetus partner charities. This year the Foundation has made new commitments to two venture capital impact funds, Base10 and Capria. Base10 focuses on investment opportunities that support the automation of the real-economy, covering healthcare, logistics, retail and financial services, and 50% of carry proceeds from the fund are donated to scholarships for underrepresented minorities in the US. Capria focuses on tech startups in the Global South, covering India, SE Asia, Latin America and Africa. Both firms seek marketleading return levels, whilst holding a clear purpose and impact ethos. The Apax Foundation donated to the Red Cross’s Ukraine appeal and also extended the staff matching scheme to provide additional support for donations made by the Apax team to charities aiding those affected by the conflict in Ukraine. Apax volunteers giving an insight into private equity as part of Apax’s Give Back Days Staff matching scheme Impetus The Apax matching scheme is designed to encourage and support our team’s personal involvement with charities close to their hearts. Impetus is a venture philanthropy charity focused on improving the education and employment prospects of young people from disadvantaged backgrounds. >£8m cumulative donations worldwide >£2m in donations since 2007 23 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Supporting social mobility Social mobility is the focus for the Apax Foundation’s major grants. We support a range of charities, large and small, working to help people in deprived communities lift themselves out of poverty. The Apax Foundation’s social mobility portfolio encompasses a mix of enterprising start-ups and larger, more established organisations. Apax looks to fund projects that will bring lasting economic and social benefits, and to support charities in all the regions in which Apax operates. Fundación para la Acción Social por la Música Inspired by El Sistema in Venezuela, FASM uses music as a tool to help transform the lives of children in deprived areas Opportunity Network (US) Provides access to career opportunities, professional networks and competitive colleges for high-achieving, low-income students Build NYC Breaking Barriers (UK) Training and support for refugees in London to help them secure stable and fulfilling employment Sponsors for Educational Opportunity (SEO) London (UK) Prepares talented students from ethnic minority or low socio-economic backgrounds for career success Several members of the Apax team are actively involved with the charities we support, including serving as board members. >£12 million cumulative donations Build (US) Provides entrepreneurship programming to over 6,000 students in more than 50 cities in the US, partnering with educators to create more equitable opportunities for students through experiential learning Mann Deshi (India) Empowers women in rural India with the knowledge, skills and access to capital to become microentrepreneurs in Spain TERN (The Entrepreneurial Refugee Network) (UK) Supports refugees in the UK to develop their own businesses through advice, mentorship, access to business networks, and access to finance Education Outcomes Fund, Middle East and Africa EOF aims to pool $1 billion in aid and philanthropic funds to support governments to pay for results in education and youth employment over the next decade Build NYC was established in 2016 to provide New York City youth with entrepreneurship training. By empowering students to develop and run small businesses, BUILD NYC supplements traditional classroom instruction with real-world business experiences and critical skill-building. Apax’s Digital team has worked with BUILD NYC since 2019 and the Apax Foundation has supported the charity through the staff matching scheme in the past. The extent and duration of the team’s commitment to BUILD NYC qualified the organisation for funding from the Apax Foundation’s social mobility programme this year. The funding will support BUILD NYC in delivering a college and career readiness programme to c.650 students in the 2022-23 school year. 24 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Apax Gives Back Apax Gives Back community service days 2022 271 participants across 23 volunteering days giving back to 19 charities. Charities that benefited from the Apax team’s time and talents include: London Apax team challenges Sustainability Challenge A firm-wide challenge to reduce our C02 impact. We partnered with One Tree Planted and, over 2 weeks in April, the team’s carbon reduction actions raised $13,000 to plant 13,000 trees in Butte Country, California. New York $13,000 raised to plant 13,000 trees Mumbai Shanghai Apax Challenge A firm-wide challenge held annually in October during Apax’s ‘wellness month’. This year, we partnered with the Human Practice Foundation and achieved our goal of raising £25,000 through the team’s activities to build and equip a library for a primary school in Kenya. $25,000 raised for a Kenyan primary school 25 Responsible Investment at Apax Collaboration & additional resources Portfolio highlights Sustainability at the firm Community contribution Collaboration 26 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 27 Aligned with industry principles Apax is a proud signatory of the UN’s Principles for Responsible Investment (“PRI”) since 2011. Principle 01 Principle 02 Principle 03 Principle 04 Principle 05 Principle 06 Incorporate ESG issues into investment analysis and decision-making processes. Be active owners and incorporate ESG issues into our ownership policies and practices. Seek appropriate disclosure on ESG issues by the entities in which we invest. Promote acceptance and implementation of the Principles within the investment industry. Work together to enhance our effectiveness in implementing the Principles. Report on our activities and progress towards implementing the Principles. Apax conducts pre-investment ESG due diligence on every deal the Apax Funds invest in. Apax has a well-defined responsible investment policy which is embedded in its investment activities and which guides its practices. Post-investment the Firm’s ESG processes monitor and report on key environmental, social and governance indicators. The ESG KPI’s provide insight into the footprint of each portfolio company and this helps drive value creation projects. Apax regularly participates in industry wide conferences on sustainability matters and is a panel member at most of the leading Responsible Investment conferences. This provides a platform to share our learnings on the implementation of the Principles. Apax was a member of the PRI Private Equity Advisory Committee (“PEAC”) from 2016. During this time, the PEAC collaborated on the production of the PRI LP DDQ and the PRI Portfolio Monitoring Guide. Apax produces this sustainability report annually and it is available on the Apax website. The report provides details on its activities and is now in its tenth edition. This due diligence focuses on the identification of ESG risks, the company’s ability to manage key ESG considerations, and its performance related to ESG matters in the past. See the PRI website for full details at www.unpri.org. Apax is currently an active member of the BVCA responsible investment advisory group. Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration 28 Collaborative initiatives Responsible investment Signatory of the UN’s Principles for Responsible Investment since 2011. Diversity & inclusion Founding partner of Level 20, ILPA Diversity in Action and member of the 30% Coalition. Climate action One of Apax’s core focus areas is climate change and carbon reduction. Apax has participated in many collaborative ESG initiatives over the past decade, most notably as a member of the PRI’s Private Equity Advisory Committee (“PEAC”) and as a member of the BVCA’s Responsible Investment Advisory Group. The PEAC collaborated on the production of the PRI LP DDQ which has recently been updated and is now also incorporated in the ILPA DDQ. Apax strongly supports standardisation of the processes for monitoring and assessing ESG in the PE sector. Apax believes that a broadly diverse work environment leads to better performance both within Apax as well as the Funds’ portfolio. The Firm has been growing its pool of diverse talent and enhancing its internal policies and practices since 2015 to foster an inclusive work environment where all people can thrive. Apax became a founding partner of Level20 in 2015, joined the 30% Coalition in North America in 2020 and is also a founding partner of ILPA’s 2021 Diversity in Action commitments. LIMITED PARTNERS’ PRIVATE EQUITY RESPONSIBLE INVESTMENT DUE DILIGENCE QUESTIONNAIRE Read more Sustainable Markets Initiative Private Equity (“PESMIT”) TaskForce Read more Read more An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact LP Responsible Investment Due Diligence Questionnaire Read more European gender diversity report 2022 Driving diversity Women working in European private equity & venture capital Level 20 Read more Diversity & Inclusion Survey Read more The Thirty Percent Coalition Read more ILPA Diversity in Action Read more We are constantly looking for ways to measure and reduce emissions both from our own firm and from the Apax Funds’ portfolio companies. Apax joined the initiative Climat International (“iCI”) in June 2021 and signed up to the iCI commitments in order to participate with industry peers in a collaborative initiative to assess and mitigate private equity’s exposure to climate change risk. Apax became a member of the Sustainable Markets Initiative Private Equity (“PESMIT”) TaskForce chaired by HRH Prince of Wales in June 2021. The taskforce consists of 23 CEO’s of global private equity firms and is aimed at defining objectives and actions which the industry can support and implement to advance the development of sustainable markets. iCI Read more Apax hosted initiative iCI drinks reception in its London office following the annual iCI members meeting in September 2022 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Further information Inside Apax Modern Slavery and Human Trafficking Statement March 2021 Across the Apax Funds’ portfolio Responsible Investment & Stewardship Policy January 2022 So urci ngre port ort 2021 port eport ESG Report Social impact report 2021 Our purpose in action ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT 2021 2020/2021 INMARSAT ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021 Apax Modern Slavery Statement Read more Apax Responsible Investment Policy Read more takko.com Inmarsat ESG Report Read more Takko Sourcing Report Read more ThoughtWorks Social Impact Report Read more Verint ESG Report Read more SUSTAINABILITY SHORT REPORT 2022 All together better ESG Report Tosca 2022 ESG Report Fiscal Year 2022 1 Paycor ESG Report Read more Tosca ESG Report Read more T-Mobile Netherlands CR Report Read more Toi Toi & Dixi Sustainability Report Read more 29 Responsible Investment at Apax Portfolio highlights Sustainability at the firm Community contribution Collaboration Our offices New York 601 Lexington Avenue 53rd Floor New York, NY 10022 United States +1 212 753 6300 Shanghai London Munich 33 Jermyn Street London, SW1Y 6DN United Kingdom +44 20 7872 6300 Theatinerstr. 3 Munich, 80333 Germany +49 89 99 89 09 0 Tel Aviv Museum Tower 4 Berkowitz Street Tel Aviv Israel +972 3 777 4400 65th floor, Shanghai World Financial Center 100 Century Avenue Shanghai People’s Republic of China +86 21 5198 5600 Hong Kong Mumbai Piramal Tower, 6th Floor Peninsula Corporate Park Ganpatrao Kadam Marg Lower Parel (West) Mumbai 400013 India +91 22 4050 8400 16/F Nexxus Building 41 Connaught Road Central Hong Kong People’s Republic of China +852 2200 5813 30 Sustainability Report Edition 10 © 2023 Apax Partners
