Our approach

Charterhouse actively manages ESG and sustainability-related matters in our firm-level operations and investment processes. This not only benefits our team, but the wider society, the environment and helps to build resilient businesses that generate long-term value.

Charterhouse’s ESG approach is aligned with the our investment approach and values:

Connect

Bringing people and capital together in carefully nurtured investment opportunities in which growth potential and value creation is positively influenced by the responsible management of ESG risk and opportunity.

Collaborate

One firm, one team working in a true partnership with management. We take an open, active and flexible approach, harnessing the skills, knowledge and experience of our entire team to help us support and build businesses over the long-term, integrating ESG principles which help promote financial performance as well as resilience and responsiveness to adapt to new challenges.

Change

Unlocking growth potential by supporting ambitious management teams, and by providing them with support and tools to mitigate ESG risk and recognise ESG opportunities among other things.

We continuously strive to improve the way we integrate ESG in our investment activities and also at firm level.

ESG policy

Partnering with incumbent management teams to manage risks and opportunities as core feature of our investment approach, and as ESG emerged as a conceptual management and responsible investment approach, we formalised our ESG policy in 2013. We believe that the long term financial success of our portfolio companies can be positively influenced by robust management of ESG opportunities and risks. It applies to Charterhouse and its funds.

Read full policy statement

PRI

Charterhouse became a signatory to the Principles for Responsible Investment in 2013, and is actively committed to the 6 principles.

Our PRI Transparency Reports

Public Transparency Report Charterhouse Capital Partners LLP 2016
Public Transparency Report Charterhouse Capital Partners LLP 2017
Public Transparency Report Charterhouse Capital Partners LLP 2018
Public Transparency Report Charterhouse Capital Partners LLP 2019
Public Transparency Report Charterhouse Capital Partners LLP 2020

ESG integration

Charterhouse integrates responsible investment principles into our daily operations and investment process.

We recognise the long-term positive benefits for our investors, portfolio companies, stakeholders and wider society by incorporating the robust management of environmental, social and governance (“ESG”) opportunities and risks throughout everything we do.

Accountability

ESG accountability and responsibility is executed at all levels of the firm, with engagement from Senior Management and under the supervision of the Charterhouse ESG Committee.

The ESG Committee defines our ESG Policy and approach to ESG integration at firm and portfolio level and is supported by the ESG Director who manages ESG integration and ESG-related activities to achieve the Charterhouse sustainability objectives.

ESG Committee

Modern slavery

In our commitment to responsible investing and good practice in business, we take address and mitigate the risks of any modern slavery or human trafficking in our business and in our supply chains.

Our approach and steps we take are described in our annual modern slavery statement published pursuant to section 54 of the Modern Slavery Act of 2015.

Modern Slavery Statement

Our ESG evolution

Since the formalisation of our ESG Policy in 2013, we have enhanced the Charterhouse ESG agenda each year to strive for best practice as has been evidenced by our consistently improving PRI ratings.

  1. 2013
  2. 2014
  3. 2015
  4. 2016
  5. 2017
  6. 2018
  7. 2019
  8. 2020
  9. 2021

  1. 2013

    • Signed up to UN PRI
    • Implemented ESG policy
    • Gap analysis of firm’s ESG processes

  2. 2014

    • ESG training for Investment Team

  3. 2015

    • Implemented ESG Questionnaires as part of all diligence

  4. 2016

    • Launched data and monitoring tool
    • ESG Policy updates
    • Launches ESG Workgroup
    • ESOS energy consumption audit
    • Annual Level 20 sponsor
    • PRI Assessment Score BB

  5. 2017

    • Launches ESG Live
    • Updated ESG Questionnaires
    • Launches ESG onsite visits
    • Investment Team ESG Notes launched to raise awareness of relevant ESG news and matters
    • Implement ESOS recommendations
    • PRI Assessment Score AB

  6. 2018

    • Established Portfolio Team
    • Launched Annual ESG Conference for portfolio companies
    • Various initiatives implemented to reduce paper and plastic consumption
    • Introduced ESG Integration Guidance for Investment Team
    • PRI Assessment Score AA

  7. 2019

    • Launched Annual ESG Review
    • ESG Policy updated
    • Formalised Diversity and Inclusion Policy and reviewed recruitment process
    • Launched portfolio cyber security assessment
    • Carbon offset business travel
    • PRI Assessment Score AA

  8. 2020

    • Victoria Proctor as Head of Talent Management
    • Refreshed our internal Performance Review process
    • Ran four, firmwide, ESG-related training sessions
    • Actively supported our portfolio companies in their response to Covid-19
    • Set up our employees in a sustainable work from home environment, adapting to the new normal
    • Rolled out Cyber assessments and subsequent action plans across the portfolio
    • Enlisted a specialist consultancy to run climate risk and opportunity assessments
    • PRI Assessment Score AA+

  9. 2021

    • Integrated the ESG function into the Portfolio Team
    • Launched sustainability page on Firm’s website
    • Launched DEI programme led by specialist DEI consultants
    • Identified net zero science-based targets
    • Provided ESG-related Firm-wide training
    • Embedded SFDR and other indicators in our ESG data framework
    • Launched implementation of Greenstone’s Investor Portal as our ESG data tool
    • PRI score of Investment & Stewardship Policy 66%/4 stars, Direct Private Equity: 70%

Climate change

The Charterhouse climate change strategy and objective is to build a portfolio of sustainable and enduringly successful companies that are resilient to, and prepared for, climate change risk and which are then able to harness climate change-related opportunities.

We integrate climate change into our decision-making process and ownership practices to enable our portfolio companies to adopt business models which will support the global aim of limiting global warming to a maximum of 1.5⁰C above pre-industrial levels. By aligning our monitoring framework to climate related disclosures, such as recommended by the Task Force on Climate-related Financial Disclosures (TCFD), we are supporting our portfolio companies in embedding processes which will enable performance monitoring and reporting ion climate-related indicators as these become increasingly important.

For several years, we have taken steps to reduce our own environmental footprint and have offset emissions from business travel as outlined in our annual ESG Review. Charterhouse is implementing a net zero plan as leading signal for our portfolio companies.

Charterhouse is a member of the Initiative Climat International (ICI), a global community of Private Equity firms, committed to taking real action on climate change. We collaborate with peer members to better understand climate change, manage its risks and harness opportunities, and share knowledge and best practice methods. The enhanced insight and expertise, alongside the unique transformational and growth levers of our industry, enables increased momentum in managing financial risk and emissions in our portfolios, integrating climate change analysis into investment processes, actively engaging with portfolio companies to reduce GHG emissions and their carbon footprint, and, ultimately, limiting global warming to the Paris Agreement’s objective of well below two degrees Celsius.

Diversity, equality and inclusion

Charterhouse recognises that by creating an inclusive and diverse environment, it will foster a deeper sense of loyalty enabling everyone to thrive.

Diversity Policy

We are committed to promoting and progressing diversity, equality and inclusion within the firm and our portfolio companies.

Diversity Policy

Charterhouse seeks to attract and retain the best talent and will continue to learn from best practice to ensure that differences cannot be barriers to progression.

Gender, sexual orientation and identification, race and ethnicity, nationality, religion, disability, age, marital or civil partner status and socio-economic background differences should be embraced and cannot be barriers to progression.

We have launched an internal DEI initiative, spear-headed by external DEI specialist consultants to achieve an objective view of our behaviours and processes, raising awareness of unconscious bias, and to support an enhanced and sustained diverse Charterhouse culture.

External initiatives

Charterhouse is a financial sponsor of Level 20, a not-for-profit organisation dedicated to improving gender diversity in the European private equity industry. Charterhouse executives support and participate in Level 20's mentoring programme, mentoring, inter alia, women in the Private Equity industry and encouraging female members of our team to work with an outside mentor.
   
Charterhouse is also a member of Out Investors, a global organisation that was founded with a mission to make the direct investing industry more welcoming for LGBT+ individuals and by holding networking events and facilitating mentorship in the industry.

The Charterhouse Charitable Trust

The Charterhouse Charitable Trust (registered charity no. 210894) was established in 1954. It is a grant-giving charity, donating to various charities in London.

Its Board of Trustees includes Charterhouse’s General Counsel, Deputy Finance Director, an Investment Team Director and ESG Director. Its role is to review and approve charitable donations to charities primarily benefitting young people encountering challenging circumstances.

Charitable initiatives outside of the UK supported by The Charterhouse Charitable Trust included:

The Downside Fisher Youth Club

A charity which supports socially excluded children and young people from Bermondsey and it's neighbouring areas.

Street Doctors

A charity which empowers young people affected by violence with the skills and knowledge to save lives.

The Charlie Waller Memorial Club

A charity which raises awareness and supports young people in enhancing their mental health and wellbeing.

Family Action

A charity providing practical, emotional and financial support to those who are experiencing poverty, disadvantage and social isolation across the country.

Alex, The Leukodystrophy Charity

Offering support and information for all those affected by a genetic leukodystrophy.