Ardian Circle, an ESG driver promoting a sustainable and shared transformation
Ardian Circle, an ESG driver promoting a sustainable and shared transformation
Convinced that private equity success does not boil down merely to financial returns, Ardian has devoted a decade to developing an ambitious responsible investment approach. Following initial deployment in the Buyout business, Ardian’s corporate engagement program was gradually rolled out in the Expansion and Infrastructure businesses. By 2023, 171 companies in the Buyout, Expansion, Infrastructure, Real Estate, Private Credit and Co-Investment businesses were covered by an annual ESG review. Companies in which Ardian holds a majority or significant minority stake – 89 in all in 2023 – get customized treatment, which includes identifying targets, plus an individual road map whose progress is monitored over time. The goal is to achieve measurable advances in all sustainability areas, such as diversity, inclusion and the environment.
“We wanted to build on these efforts through a more hands-on program that would provide a springboard for action,” explains Candice Brenet.
We decided to get our portfolio companies together around shared sustainable transformation issues. The idea is to have an internal or external sustainability specialist provide in-depth insights on a given theme, while creating opportunities for collective intelligence. We wanted to create a trusted private setting in which decision-makers could talk to each other.
Reflecting the realities of a fast-changing and ever more complex world, Ardian Circle workshops are regular gatherings that give companies the chance to unpack a specific sustainability theme. Whether virtual or in person, each workshop explores a different topic, such as measuring the sense of inclusion, performing a carbon footprint assessment, managing the energy crisis or building ESG communications. The aim is to present an overview, compare different perspectives and provide insights into major ESG trends that might inform company deployment strategies, while always ensuring that intentions are put into practice. Warmly appreciated by participants, the program’s hands-on approach is also a great opportunity for the Ardian’s Sustainability team to share its knowledge of best practices in a range of areas over the course of discussions grounded in a business approach.
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171 companies
in the Buyout, Expansion, Infrastructure, Real Estate, Private Credit and Co-Investment businesses were covered by an annual ESG review by 2023
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89 of these companies
(companies in which Ardian holds a majority or significant minority stake) get customized treatment
Knowledge sharing and collective intelligence
Knowledge sharing and collective intelligence
“We quickly delve into practicalities and technical details,” says Ségolène Blanche, Sustainability manager at Cérélia, a French agrifood firm specialized in manufacturing pie crusts and pizzas. “The workshops typically kick off with a presentation by Ardian itself. For the carbon footprint session, the Sustainability team shared feedback on its own GHG emissions measurement initiative. This was followed by a presentation from an outside expert. For the ESG communication session, a specialized agency shared best practices in integrated reporting.”
Regular workshop attendee Robert Trebus, Sustainability Director at d&b audiotechnick – exited in September 2023 -, a German speaker and amplifier manufacturer, agrees.
ESG topics tend to be heavy on standards and processes, but the workshops take a totally practical approach, providing concrete examples that do a great job of illustrating more theoretical points.
“We soon get into real-life situations, looking at what needs to be done and where to get started. High-caliber speakers make the program even more effective.”
Thierry Charlemagne, Environment and Sustainability Director at LISEA, which holds the concession for the high-speed rail link connecting Tours and Bordeaux, also picks up on this aspect. “As players in low-carbon travel, we have a keen interest in issues linked to Europe’s Green Taxonomy, so we really appreciated the presentation on that topic. The session helped us to get to the next level and move forward with our finance team in positioning our activities effectively within the framework of the taxonomy.”
Like the other participants, Thierry Charlemagne also stresses the collective aspect. “The gatherings themselves certainly supply lots of data and raw materials on ESG themes, but the discussions with our business peers are a welcome opportunity to take a step back and look at innovative topics that are vital to all of us. The workshops are a chance to get valuable information about progress, best practices and much more besides.”
Building an extensive and innovative resource center
Building an extensive and innovative resource center
Two years after its launch, the program has clearly met one of its main goals, which was to fuel dialogue and engagement with companies. Ardian Circle has grown into a community, bringing corporate management teams and Ardian investment teams together around ESG themes. Portfolio companies have seen what their shareholder can offer them in terms of resources and turnkey content. Ardian is being encouraged by the positive feedback from participants to take the program to the next level. To do this, the Ardian’s Sustainability team may leverage these direct contacts with portfolio companies to precisely identify the panel of available resources and expertise. Candice Brenet is thinking about what comes next:
We will set up a fully-fledged resource platform, offering access to replays, toolkits, and documents. Companies could come in search of documentation whenever they want, not just during meeting times.
All of which will provide participants with additional resources to create sustainable value.
