Focused on building and improving sustainable businesses
Our sustainability strategy is focused on building sustainable businesses that are structurally optimised to exploit mega-trends globally and deliver exceptional returns for our investors while using evidence based KPIs to report our performance against a quantitative measurement framework
- The world is changing driven by mega-trends of technology, decarbonisation and resource efficiency and healthcare markets. Many long-term trends are now accelerating providing a vision of how we live, how we work and what we want, and need, to consume.
- We target these sectors as we believe there is a gap in the market to invest in large growth businesses with high exposure to these trends
- We aim to build sustainable businesses that have a structural advantage by design
- Exposure to strong long-term growth fundamentals
- Future proof business models to mega-trends, regulation and government policies
- High-resilience models with embedded sustainable operating practices
- Attract exit appetite across strategic, PE and public markets
- We will target companies with a proven structural advantage, or create them through transformation and consolidation or the re-design of inefficient business models, all with a high dependency on better technology.
- The United Nations’ Sustainable Development Goals (SDGs) provides an architecture for addressing the global impact of climate impact and of growing inequality, by fundamentally shifting the ways that societies produce, consume, and operate.
- SCP built as a sustainable business: SCP a best-in-class sustainable business in its own operations
- Build better portfolio companies over our investment
- Active Value Creation approach to execution
- Improve ESG standards across the board
- Move all portfolio companies towards B-Corp status
- Use data for advanced measurement performance
- Measure KPIs against identified SDG Trace Indicators at
- SCP portfolio and portfolio company level
- Use SCP data capability to track and compare to peers
- Third-party validation and partnerships
- ”Waterline“ ESG requirements
- ESG approach into DD and IC process
- Detailed report on ESG to stakeholders
- Best-practice reporting with GRI standards as a minimum
SCP’s quantitative approach to measuring impact
In partnership with a leading ESG consulting firm, SCP is developing a quantitative approach to measuring performance against our aligned sustainability objectives for our portfolio companies, the fund and SCP itself and will report performance regularly to our stakeholders including publication of a public sustainability report
- For Resource Efficiency and Technology sectors we will aim to measure CO2 emissions per unit value add (SDG trace 9.4.1) and material footprint per unit of value add (SDG trace 12.2.1), also tracking the tons of carbon dioxide equivalent emissions avoided per dollar invested – by actual emission reduction or replacement
- For Health we will aim to measure Health efficiency through a measure of performance value add per unit (SDG trace 3.8.2);
- We will aim to add secondary trackers of R&D spend per dollar invested (SDG trace 9.5.1), Proportion of medium and high tech industry value add in total performance (SDG trace 9.B.1), and volume growth of data and communications infrastructure supported (SDG trace 9.C.1);
- Finally we will aim to report performance against gender and other diversity targets (SDG trace 5.5.2).
- The measurement and reporting of ESG targets remains an evolving sector and SCP will continue to evolve with the market, potentially altering and enhancing its strategy as this important area evolves.
- Board and shareholder agreement on well-defined Portfolio Company specific goals and appropriate measurements beyond SCP Fund measurement – since each company will have difference characteristics to enhance beyond general SCP thematics
- SCP will apply GRI-reporting standards or similar to reporting on portfolio targets (where appropriate)
- SCP will accelerate portfolio companies towards B-corp status (meeting the standards or actually registering)
- All our companies will produce published sustainability reports for our stakeholders