ESG REPORT 2020 Transforming companies Bringing people together Generating sustainable performance - Alliance Entreprendre
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2020 Transforming companies
Bringing people together
ESG REPORT Generating sustainable performance
FOREWORD
Dear reader,
We are pleased to share with you Alliance Entreprendre’s very first ESG report. Amidst the major
challenges currently facing our planet, companies have a vital role to play alongside public
authorities and citizens to achieve real progress on the major environmental, social and societal
issues of tomorrow. Alliance Entreprendre has been committed to the continuous improvement
of its responsible investment policy for many years, and 2018 marked an important milestone
for the management company with the signing of the UN-supported Principles for Responsible
Investment (PRI) and the creation of an ESG charter.
In this first report we will present Alliance Entreprendre’s ESG policy in its capacity as a
management company, provide a quantitative and qualitative assessment of the companies
in which we invest and shine a light on the best practices applied by the companies and
managers we support. To do this, we reached out to all 19 companies in which we have invested
since September 2018. During the first half of 2020, we sent them a questionnaire containing
38 questions and indicators concerning the 2019 financial year.
We are aware that this first ESG report can be improved upon and is likely to evolve in the years
ahead. However, in this year in which we set up an ESG committee at Alliance Entreprendre,
we were determined to publish an inaugural report showcasing the ambition we all share to
step up progress on environmental, social and societal issues.
This report has been prepared by the members of Alliance Entreprendre’s ESG committee.
We would like to thank everyone who contributed directly or indirectly to this report and hope
that it will serve as an inspiration to our entire ecosystem and to all entrepreneurs seeking to
get involved in these issues.
Happy reading!
3
CONTENTS
EDITORIAL
Olivier Boré
EDITORIAL CEO of Alliance Entreprendre
Olivier Boré, CEO of Alliance Entreprendre
THE MANAGEMENT COMPANY
• Alliance Entreprendre
• Human capital Like many of today’s managers, I was born and grew up during the ‘Trente Glorieuses’ period,
• Leading by example never imagining at the time that our world could become what it is today: a globalized world
of interactions so varied and complex that it is all but impossible to predict what tomorrow
will bring. The unprecedented events we have lived through during the past year are a perfect
example. A world in which the significant progress made enables us to cure diseases that
ESG POLICY were once killers, or to access knowledge previously reserved for a handful of specialists in
just a few clicks. However, it is also a world in which wealth creation in one place leads to a loss
• The Alliance Entreprendre approach
of value elsewhere, where job creation there creates unemployment here, a world in which
• The ESG committee mountains of plastic drift across the oceans, and where air pollution currently kills around 9
million human beings every year.
• ESG Charter and Commitments
In the face of these dangers, the great philosopher Edgar Morin tells us that “we must avoid
• Incorporating ESG into private equity dogmatization, the hardening of our ideas, the refusal to challenge them with experience”.
In other words, we should not confine ourselves to a logic of statistics and Excel spreadsheets,
• Contribution to Sustainable Development Goals
or to conformist habits that could be harmful.
Given the urgency of these challenges, here at Alliance Entreprendre we have chosen to go
beyond what we have been doing until now, to intensify and accelerate our efforts to ensure
PORTFOLIO ESG SUMMARY that our actions have a deeper and faster impact on our ecosystem.
• Methodology The policy of responsibility towards our environment is based on two pillars:
• Analysis of 2019 ESG questionnaire results - LBO and Growth Capital
Leading by example: with humility yet purpose, apply to ourselves what we expect from others.
portfolio In particular : 1 - working relationships based on listening, mutual respect, well-being and
• Analysis of 2019 ESG questionnaire results - Venture portfolio diversity, 2 - access to value creation for all contributors, and 3 - reducing our environmental
impact.
Support : beyond financial investment, helping companies to make progress in implementing
2021 ROADMAP responsible policies with regard to 1 - the Environment, 2 - Social issues, and 3 - Governance.
This first ESG report is an important milestone for Alliance Entreprendre. It sets out the
current state of play and gives you a concrete idea of our achievements. It also represents our
commitment to report to you each year and share the fruits of our efforts to contribute, at our
level, to protecting our “shared home” and making our world more human.
4 5
THE
MANAGEMENT
COMPANY
6
23
1
ALLIANCE ENTREPRENDRE
AT A GLANCE EMPLOYEES
Alliance Entreprendre has been working alongside SMEs management teams to support their
2
growth and transformation projects for close to 25 years. Practicing an investment approach SUBSIDIARY
that has proved its worth, Alliance Entreprendre’s teams are recognized for their unrivaled BORDEAUX
expertise.
OFFICES
Figures as of September 30, 2020 PARIS & LYON
€476 3
EXPERTISES
Buyout
227 companies supported
76
Growth
since inception
MILLION Venture
assets under management/advisory
portfolio companies
€15MILLION
9% Natixis 67%
investment tickets up to Institutional
24%
investors
Private investors
Breakdown of assets under management/advisory
9
3 INVESTMENT TEAMS HUMAN CAPITAL
SHARING A SINGLE
PERFORMANCE CULTURE
23
EMPLOYEES
• The team acquires majority stakes with
investment tickets from €2-10 million in
companies with EV from €5-50 million
ALLIANCE
LBO
96%
on permanent contracts
COLLEGIATE AND
TRANSPARENT
• Sector: Industry &
Majority buyout
GOVERNANCE
30%
BtoB Services
An executive committee
women with expertise spanning
all business lines :
41 years
6 members including 1 woman
6-member
ALLIANCE • The team acquires minority stakes with
ESG committee
DÉVELOPPEMENT investments tickets from €2-15 million in
average age
Growth Capital companies with EV from €10-250 million
7 years
Minority buyout • Sector: Generalist
Retaining talent
average length of service • Introduction of 4 remote working days
per month to offer organizational
flexibility.
Appreciating human capital
• Financing of a works council.
•P
romotions and pay rises :
• Family benef its including 2 months’
1 2 people representing 52% of the
additional fully paid maternity leave and
total current headcount (70% of the
ALLIANCE
• The team acquires minority stakes with paid parental leave for men.
headcount excluding hires over two
investment tickets from €1-4 million in
innovative start-ups with turnover CAPITAL PRIVÉ years ago, executives and f ixed-term
contracts) have changed their role
• Special attention paid to well-being at
from €0.5-50 million Venture Capital work: free sports and sophrology classes
or pay grade since joining Alliance
• Sector: Digital & BtoB Services, Media offered to employees.
Entreprendre.
• B onuses linked to fund performance
• Seminar involving all employees held
offered to all employees.
every two years.
• Company profit-sharing schemes and
• Team training sessions.
incentives linked to an employer ’s
contribution.
• Annual assessment and improvement
process.
10 11
LEADING BY EXAMPLE
As a private equity management company, Alliance Entreprendre’s direct environmental
impact is minimal. Indeed, the environmental impact of our business essentially results from
office energy consumption, the use of paper and other consumables and employee travel.
The impact of Alliance Entreprendre is primarily focused on its portfolio companies.
Since 2020,
2019 indicators:
Alliance Entreprendre
has contributed to the prevention
Office energy Consumables of plastic pollution by installing a
consumption (kWh) (CO2 emissions in kg) water cooler and buying flasks for
all employees.
Electricity 71,213 Printed paper 144
Climespace A/C 42,182 Plastic cups 9
Fuel n.s. Coffee capsules 1,456
Water bottles 390
Transport
(CO2 emissions in kg)
Rail 367 Alliance Entreprendre
introduced selective sorting in
2019 with Elise, a company that
Air 5,727
recovers and recycles 100% of office
waste, creating sustainable jobs.
>85%
Organization of a charity run
On October 12, 2020, Alliance Entreprendre organized a charity run, committing to donating
€20 to charity for each kilometer covered.
Thanks to 12 employees, €2,100 was raised to support the Initiatives Cœur project
(www.initiatives-coeur.fr) masterminded by Vendée Globe skipper Samantha Davies.
On her sailboat christened Initiatives-Cœurs, she aims to raise money for the Mécénat Chirurgie
of our employees come to work Cardiaque charity that enables children with heart defects to receive operations in France
by bicycle or public transport which they cannot receive in their own country due to lack of financial or technical resources.
12 13
THE
ESG
POLICY
14
THE ALLIANCE ENTREPRENDRE APPROACH SPOTLIGHT ON THE
MY SEZAME TRAINING DAY
On September 17, 2020, Alliance Entreprendre organized an ESG training
day for its employees at the premises of Foodentropie, a food processing
For several years now, Alliance Entreprendre has been committed to continuously improving laboratory in Nanterre. All Alliance Entreprendre employees were invited to
its responsible investment policy. After signing the PRI and establishing an ESG charter in attend this training day, as well as the chairman of Galia Gestion and one of
2018, the creation of an ESG committee in early 2020 marked an important milestone and is its employees responsible for ESG matters.
testament to the ambition to make progress on ESG issues within the management company
and its portfolio companies. To help with the organization, Alliance Entreprendre
enlisted the services of My Sezame, a firm that supports
companies’ transformation drives through training,
coaching and inspirational speakers. My Sezame is one of
Initiative Climat the 100 French companies holding “B Corp” certification
International signed awarded to companies committed to the common good.
ESG report
published
Training day
My Sezame
First ESG data collection
Inspiration Sharing Action
2020
ESG committee set up
A seminar to improve understanding Presentation by a company Workshops geared towards
of ESG issues, raise awareness executive linking profitability assimilating the subject and
among teams and discover real-life to positive impact. incorporating it into our private
cases of innovative companies and equity business.
approaches that can inspire the
portfolio companies.
Gender equality Participation in
2019
charter signed PRI in Person
2019
EXECUTIVE
PRESENTATION
PRI signed Hubert de Boisredon,
CEO of Armor A teambuildin g a c tivity
First ESG analysis for an rounded off the day in which
investment Since joining Armor, Hubert de Boisredon
the group created a work of
art using recycled materials
Proprietary ESG assessment and his team have spearheaded a radical
in aid of the Les Apprentis
template created with Indefi transformation of the company, a 100-year
d’Auteuil association, which
old Nantes-based mid-cap company and a works on inclusion, training
leader in the production and sale of printing and job market insertion
2018
consumables. Aware of the potential negative initiatives for disadvantaged
environmental impact of its industrial young people.
Formal adoption
operations, he has revamped the company’s
of the ESG charter
business model by putting sustainable
development, innovation and meaning at the
core of its strategy through co-industrialization,
eco-design and managerial innovation as a
means of fostering employee engagement.
(2019 revenue : €280 million, 780 employees
in France).
16 17
THE ESG COMMITTEE COMMITTEE MEMBERS
At the end of 2019, CEO Olivier Boré charged Chloé Bessières with developing and CHLOÉ CAMILLE
overseeing an ESG policy at Alliance Entreprendre in order to provide support to the BESSIÈRES CENTELLES
management company on environmental, social and societal issues. Head of Investor Investment
Relations Director
3 QUESTIONS FOR
Chloé Bessières Head of Investor Relations
1 Could you explain how Alliance Entreprendre’s ESG committee was formed? NINON
LE BORU
Investor PAUL
When Olivier asked me to oversee the establishment of an ESG policy at Alliance Entreprendre,
Relations EECKMAN
I immediately told him I would like to set up an ESG committee comprising a number of
Associate Associate
people from the management company in order to speed up the spread of these issues
throughout the company. I was also keen to create a committee comprised solely of people
willing to volunteer their time on these matters in order to have an engaged and committed
working group that would push things forward.
As such, the five other committee members are people who volunteered to work on these
issues. By coincidence, the committee is made up of representatives of a number of different
teams at Alliance Entreprendre, which is a real asset.
2 What are the committee’s tasks and challenges? LAURA
NATHANAËL PANQUET
Above all, one essential belief shared by all committee members is the need for a highly MARTIN Principal
practical and pragmatic approach to ESG in order to make it a tangible issue for all our Managing Director
stakeholders. We favor a less exhaustive approach but one that makes more sense.
As such, the committee’s principal tasks are to define, in consultation with Olivier Boré, a
realistic yet ambitious roadmap of initiatives to be implemented and to ensure adherence to
the commitments made with the various stakeholders. Our challenge is to raise awareness
among all our teams and ecosystem in order to maximize the impact.
3 Almost a year on from its creation, what does the committee have to report? Operation
Always mindful of maintaining a practical approach, ten months on from the committee’s The committee meets twice a month to discuss current topics, the management of live projects
creation we are pleased to report on its initial achievements, such as the launch of our first and internal and external communication on ESG matters. Information is then relayed to all
data collection campaign among portfolio companies in order to begin a tracking process, Alliance Entreprendre teams through the executive committee and members of the ESG
the organization of a training day for all our teams, the implementation of numerous CSR committee, who also act as points of reference within their respective teams.
initiatives within the management company and the preparation of an initial report with a
clear and quantifiable roadmap for 2021.
18 19ESG CHARTER AND COMMITMENTS
PUBLIC COMMITMENTS
Alliance Entreprendre is driven by a spirit of social The Six Principles for Responsible Investment are a set of voluntary investment principles
and environmental responsibility, a commitment to proposing a range of possible ways of incorporating environmental, social and governance
local relationships and a highly ethical approach. (ESG) issues into investment practices. These Principles have been developed by investors
Alliance Entreprendre is attentive to entrepreneurs and under the aegis of the United Nations (UN). They have garnered the adherence of a global
supports them in their growth and buyout transactions. base of signatories representing a majority of professionally managed assets.
The six Principles for Responsible Investment
1 We will incorporate ESG issues into investment analysis and decision-making processes.
THE ALLIANCE ENTREPRENDRE
CHARTER
2 We will be active owners and incorporate ESG issues into our ownership policies and
practices.
Alliance Entreprendre undertakes to pay heed to ESG criteria throughout the investment
cycle. 3 We will seek appropriate disclosure on ESG issues by the entities in which we invest.
We will promote acceptance and implementation of the Principles within the investment
4 industry.
5 We will work together to enhance our effectiveness in implementing the Principles.
1 During the investment process
Alliance Entreprendre excludes f rom its investment scope companies whose activities 6 We will each report on our activities and progress towards implementing the Principles.
contravene the management company’s ethical principles. The sectors excluded are the
manufacture and sale of arms, particularly anti-personnel mines and cluster bomb producers, Signatory of the Charter of Commitments for Investors in Growth
companies involved in the extraction and sale of coal products, the drugs, prostitution and
pornography industries, and gambling companies (casinos, online poker, etc.). In 2008 the members of France Invest, professionals who provide equity financing for company
growth and buyout transactions, and who recognize the economic, social and environmental
Alliance Entreprendre pledges to systematically assess ESG criteria with regard to the target impact of their activities, adopted a Private Equity Charter comprising economic, environmental,
company characteristics prior to investment (size, sector, etc.). These criteria may be discussed social and governance objectives.
with the target companies’ management teams. This assessment is added to the investment
memo presented during investment committee meetings. Lastly, an ESG clause is included
Signatory of the Gender Equality Charter
in the shareholder agreement, mentioning the responsible investment policy and the
commitment to report ESG indicators at least once a year.
The Gender Equality Charter comprises 30 commitments to support equality, aimed at the
2 When tracking portfolio companies following targets. In the investment teams of asset management companies, women are to
make up 25% of the persons with responsibility for investment committee decisions by 2030
Alliance Entreprendre is committed to helping portfolio companies make progress on ESG and 30% by 2035; women are to make up 40% of investment teams by 2030. In companies
issues by engaging in regular discussion with management teams, particularly on governance supported by members of France Invest, women are to hold at least 30% of executive committee
bodies (supervisory board, board of directors, etc.). seats by 2030. Private equity fund investors must undertake to consider gender balance on
The management company is also committed to collecting ESG indicators from portfolio management company teams and in their portfolio companies in their decision to invest and
companies every year. The indicators collected are based on the recommendations of France must monitor over time the significant improvements made by these funds in terms of
Invest, specific requests from investors and ad hoc indicators depending on the company’s gender balance.
size and sector.
3 During exchanges between investors and partners
In accordance with the regulations in force (Article 173 of the law on energy transition for
green growth), Alliance Entreprendre undertakes to include an ESG chapter once per year
in its fund reports, covering the tracking indicators collected during the year as well as the
progress made by portfolio companies.
20 21INCORPORATING ESG INTO PRIVATE EQUITY
Alliance Entreprendre undertakes to pay heed to ESG criteria throughout the investment
cycle. The management company has changed its ESG indicator tracking template, using
a standard form developed by several leading players in order to contribute to standardized
3 QUESTIONS FOR
reporting and information and facilitate data entry by portfolio companies. Nathanaël Martin Managing Director of the Alliance LBO team,
concerning the ESG approach implemented
Since 2020, in addition to the annual collection of ESG indicators from the portfolio companies,
the Alliance LBO team has gone a step further by supporting management teams in ESG
matters via a specific procedure.
1 Tell us about the Alliance LBO fund
Alliance LBO is the team’s fourth-generation fund positioned in the SME segment and
focused on majority buyouts.
Still in the process of raising funds, the six-member team has already invested in six
At the time of the investment, the management team discusses non-financial aspects with SMEs in a range of BtoB and industrial sectors such as HR consultancy, software testing
the company’s manager. and industrial cleaning.
The purpose of this discussion is to establish one or two ESG topics to be studied in depth and Our daily work involves supporting these companies with structuring (strengthening
monitored over the long term with a view to creating value. The selected topic(s) will be defined management teams, reporting tools, consideration of ESG issues, etc.) and growth (establishing
in accordance with the risks identified following the data collection process, the company’s an external growth strategy).
sector or the interests of the manager,
with targets for improvement established. The team has decided to focus on a maximum
of two topics per portfolio company in order to ensure a qualitative approach and enlist the ould you explain in more detail what ESG initiatives you pursue with your
C
manager’s involvement.
2
portfolio companies?
Our aim is to help our SMEs make progress in this area. They have often “done something”,
whether at the request of their customers or as a result of initiatives undertaken spontaneously
on certain matters, particularly social issues.
Our aim is, on the one hand, to help them formalize their work through more regular
As part of the support mechanism, a specific ESG report is presented to the governance bodies, monitoring (definition of KPIs monitored over the long term by the Supervisory Board, annual
focusing on the monitoring of the targets set and measures adopted. ESG reports, formal definition of certain procedures) and, on the other hand, to select an
Alliance Entreprendre will also share the best practices implemented among portfolio ESG topic relevant to the company, in consultation with its management, when we come on
companies with the managers. board (for example, workplace accident rate for industrial companies, staff turnover rate for
consultancy services, etc.) for which we jointly define targets over the term of our investment
which we track more closely with the managers.
3 What is the ultimate goal of this approach?
A report on progress made with the company’s non-financial performance is prepared
upon disposal of the investment. Within our small cap segment, having ESG data available at the time of investing is still rare.
The initiatives we implement among portfolio companies, in much the same way as some
of our colleagues, will provide a long-term vision of the ESG path of our SMEs.
We include an annual in-depth ESG report on each portfolio company within our management
report, allowing us and our investors to track this data over an extended period. The cycle
is complete once we have proven the existence of a correlation between this ESG path and
value creation, something of which I am convinced given that each of us invests, at our own
level (employee, manager, investor), that bit more when there is meaning and coherence in
what we’re doing.
22 23CONTRIBUTION TO SUSTAINABLE
DEVELOPMENT GOALS
Careful management of our oceans and
Reduce inequality within and among
seas is a key feature of a sustainable
countries.
future.
Here at Alliance Entreprendre, we are convinced that the financial sector in general and private
equity management companies in particular have a role to play in the transition towards a fair
and sustainable society and the achievement of the 17 Sustainable Development Goals (SDGs).
Alliance Entreprendre contributes to the SDGs both directly, through the implementation Deforestation and desertification
The towns and cities of our hoped-for
pose major challenges to sustainable
of its CSR strategy, and indirectly, through its investments in participating companies. As a future offer opportunities to all.
development.
management company, Alliance Entreprendre contributes to the SDGs primarily through its
portfolio companies.
Promote peaceful and inclusive
Sustainable consumption and
17 GOALS FOR HUMANITY AND THE PLANET production is about “doing more and
societies, provide access to justice for
all and build effective, accountable
better with less”.
institutions at all levels.
The 17 Sustainable Development Goals were adopted in 2015 by all United Nations Member
States as part of the United Nations Programme for Sustainable Development to 2030, which
Combating climate change has Inclusive partnerships built upon
sets out a 15-year plan to achieve these goals. The Sustainable Development Goals aim to end
become an integral part of sustainable principles and values, a shared vision
poverty, protect the planet and improve the daily life of every person around the world while development. and shared goals.
opening up new opportunities in the future.
DIRECT
CONTRIBUTION
Gender equality is not only a
OF ALLIANCE
fundamental human right, but a ENTREPRENDRE
necessary foundation for a peaceful,
prosperous and sustainable world.
Economic growth must be shared to
create sustainable jobs and promote In keeping with its commitment to gender equality at work,
equality. Alliance Entreprendre signed the France Invest Gender
Clean water accessible to all is an Equality Charter in order to strive for better representation
essential element of the world in which of women on decision-making bodies.
we want to live.
The food and agricultural industries
offer key development solutions and lie The management company seeks to enhance
at the heart of eliminating hunger and the well-being of its employees, as shown
poverty. by the introduction of four remote
Sustainable energy is an opportunity
working days per month to offer
to transform lives, economies and the
planet. organizational flexibility.
Providing the means to live a healthy During the two lockdowns in
life and promoting the well-being
2020, free sports and sophrology
of people of all ages is essential for
classes were offered to all
sustainable development.
We must reassess and restructure our employees via video links.
economic and social policies with the
aim of ending poverty for good.
Quality education is the basis for
improving human lives and furthering
sustainable development.
Investment in infrastructure is essential
to achieving sustainable development.
24 25INDIRECT
CONTRIBUTION
VIA PORTFOLIO
COMPANIES EUROPEAN HOMES
Founded in 2004 at the initiative of the European Homes real estate group’s management
team, Abc Domino targets humanitarian initiatives designed to improve the living standards
of people undergoing extreme circumstances, particularly in the area of education.
The association works in Madagascar, ranked among the world’s poorest nations. It is active
in particular in the southern Toliara region, the coastal area south of the Onilahy river, an area There will also be
still underserved by humanitarian projects due to its isolation from the rest of the country. many more projects in the
The villages, which do not have running water or electricity, also suffer from a critical lack years ahead. In order to prepare
of schools. the pupils (baccalaureate or
lower secondary school level) for a
At the start of the school year in September 2019, more than 3,500 children (across six professional career, the association
primary schools, two secondary schools and one college) received an education in the rural is proposing the creation of an IT
villages delivered by 110 teachers whose salaries are also covered by the association. These
training center comprising three
initiatives were made possible by donations from companies and individuals. As the poor
classrooms (estimated cost of
water quality available in these villages had started to impact the work of the association,
€100,000), new accommodation,
three deep wells with water towers and solar-powered immersion pumps were also built.
sports facilities (estimated cost
of €50,000), and the creation of
orchards and nurseries in addition
to the vegetable gardens already in
place (estimated cost of €60,000).
Incorporated as an association under the French
law of 1901, Abc Domino is entirely dependent
on donations to finance its activity:
- costs of school-building in accordance with
The European Homes group supports Abc Domino through an annual financial contribution
anti-cyclone standards;
to the budget. All of the association’s projects are carried out by a team of around fifteen
- costs of materials, including transportation to
volunteers including seven retirees from the real estate group. A partnership has also been
remote rural areas from Toliara;
in place since 2010 with Fonds de Dotation Merci and a sponsorship scheme was set up with
- salaries of all Madagascan employees (teachers,
SLJ COHEN in 2012.
management and administrative staff, building
maintenance staff);
These partnership and sponsorship schemes are long-term initiatives that have provided
- school supplies (furniture, computers, etc.),
much of the funding for school canteens as well as training workshops for different manual
trades. Lastly, various national economic players, including GRDF, Groupe Systea and SG
Capital Partenaires, have signed partnership agreements promising regular financial support.
However, these projects could not have been fulfilled without the generosity of several
thousand donors, whom you can join at any time by visiting the association’s website at
www.abcdomino.org.
27GEOTEC
The GEOTEC foundation aims to support the work of registered public associations by
financing projects designed to help people in situations of difficulty better integrate into
society, support disadvantaged populations in West Africa and combat climate change.
Created in 2019 under the aegis of Fondation de France, the GEOTEC foundation is an initiative
of the company GEOTEC, which believes it has a role to play beyond its regular activities In France, the GEOTEC foundation has chosen to focus on
(geotechnical and environmental studies). combating all forms of social exclusion (health, disability, lack of
training or long-term unemployment) and promotes local solidarity
The company, which has operations in several regions of France and elsewhere, including and professional integration.
West Africa, wants to play its part in addressing the challenges presented by the
world of today. Its executive committee made up of company representatives In West Africa, the foundation supports projects developing literacy and access to
and qualif ied professionals f rom the charity sector is committed to water, electricity and sanitation. Frequently implemented at local level, these practical
supporting multiple projects every year and tracking their social initiatives work at the core of these regions’ development challenges.
impact.
In order to contribute to creating a future that addresses
the challenges associated with climate change, the
GEOTEC foundation is committed to supporting projects
that contribute to this cause.
ECHO STUDIO
Echo Studio is a production studio specializing in films that address social and environmental
issues. The production company has set itself the task of encouraging viewers to act by
presenting a particular perspective and offering hope for subjects and issues. Through its
documentaries and fictional works, the company showcases men and women who are
committed to building a better future.
In a wide range of formats (cinema, TV, e-cinema, online), the films address important themes
and causes, including education, the environment, migrants, human rights, health and food.
Echo Studio already has some ten films at different stages of production, including Forward
by Gilles de Maistre (released on September 25, 2019) voted Best Documentary at the Los
Angeles ColCoa Festival; Freedom, the film that represented Australia at the 2020 Oscars
(released on November 27, 2019); and Woman by Yann Arthus Bertrand (released in 2020).
29PORTFOLIO
ESG
SUMMARY
30SUMMARY
OF 2019 PORTFOLIO 2019 ALLIANCE ENTREPRENDRE
PORTFOLIO ESG ANALYSIS
Given the similarities between the types of companies supported by the Alliance Développement
and Alliance LBO teams in terms of size and ESG maturity, we have decided to present
ESG TRACKING a combined summary of the eight portfolio companies concerned in the pages below.
Methodology Conversely, as the start-ups monitored by the Alliance Capital Privé team are at different
stages of maturity compared to SMEs, a specific analysis of their indicators is set out further on.
For the collection of our portfolio’s 2019 ESG indicators,
a questionnaire was sent in the first half of 2020 to 19
portfolio companies representing all the transactions carried
out by the three investment teams from when Alliance Entreprendre Summary of results of 2019 portfolio ESG indicator collection exercise
published its ESG policy in September 2018. The breakdown of the 19
portfolio companies involved in this 2019 data collection process is as follows:
Funds concerned LBO and Growth Capital Venture Capital
Assets under management
4 investments made by the 4 investments made by the As of December 31, 2019 €178.6 million €115.6 million
Alliance Développement team Alliance LBO team
Minéris, CartoSpé, Lacroix and IPS Copac, Ouveo, Oasys, JRI Number of companies in
portfolio 33 37
Number of companies
8 11
approached
11 investments made by the Number of
Alliance Capital Privé team 8 8
respondents
365 talents, Clustaar, Echo Studio, Wizbii,
Media Musketeers, Make it Happen, Hivency,
My Job Glasses, Touch & Sell, Happytal and Smart Traffick
Response rate for the Alliance Développement Response rate
and Alliance LBO teams for the Alliance Capital Privé team
The collection of ESG indicators is based on a questionnaire currently used by many
leading market operators which we find well suited to our market segment. It contains 38
questions covering all key ESG topics: employment, equality in the workplace, training, value-
100%
sharing, health, safety, environmental policy, climate change, CSR policy, and business ethics.
Successful first data collection exercise
73%
This exercise was a resounding success with an overall response rate of 84%
(16 out of 19 companies). This first stage supports our decision to extend
the coverage of ESG indicator collection to the entire Alliance Entreprendre
portfolio from 2020
(around 70 portfolio companies in total).
32 332019 ESG ANALYSIS
SOCIAL
OF THE ALLIANCE LBO AND
ALLIANCE DÉVELOPPEMENT PORTFOLIOS
Portfolios with a national footprint This increase can be attributed partly to changes in consolidation scope following acquisitions
and partly to net job creations (90 FTE), representing an increase of almost 6% in one year,
The Alliance Développement and Alliance LBO portfolios are compared to 1% for the French economy as a whole over the same period.
characterized by workforces based largely in France. Apart from one portfolio
company* that carries out a significant portion of its work overseas with staff based Extensive value-sharing
in some 20 countries, the other 7 companies employ all of their staff in France.
The issue of value-sharing is central to the social and societal approach applied to our portfolios.
Contribution to job creation markedly higher than the national average All companies consulted in 2019 had implemented at least one value-sharing mechanism
and frequently had more: performance-related bonuses, incentives, profit-sharing, employee
In 2019, the eight Alliance Développement and Alliance LBO portfolio companies share plans. Above all, 75% of the companies (6 out of 8) have provided share plans for
increased their workforce by 177 FTE employees or 11% in France. The most significant non-executive employees. This reflects the commitment of the Alliance Développement
increases were seen in the Ouveo, Lacroix and Mineris groups. and LBO teams to ensure a broad distribution of the gains made through a successful
development project as well as a high degree of maturity among the management
teams supported in this regard.
This figure compares to the 6% of companies that reported having provided share plans to
employees in the BPI France/Le Lab CSR survey of SMEs and MSBs, “Aventure humaine – les
5.4% PME-ETI et la RSE”.
5.6%
87 1,778
Proportion of companies offering share plans
ww 90 for non-executive employees
1,601
75%
Organic External
FTE 2018 FTE 2019
growth growth
6%
1%
Net job French economy
creation rate net job creation rate
*Note that the 2019 ESG indicators collected for this portfolio company
related to France only.
34ENVIRONMENT
Long-term action required Proportion of companies having taken initiatives to reduce:
The Alliance Développement and Alliance LBO companies
analyzed could be classed as having a medium level of ESG greenhouse gas
maturity. Most of them have implemented initiatives related to waste emissions water consumption
recycling (88%), reducing inputs into the production process (75%) and
reducing greenhouse gas emissions (63%).
A majority have also established an official environmental policy. However, only a minority
63% 38%
of the companies have assessed their exposure to the risks (physical and transition) of
climate change or have an environmental management system, while hardly any of them
measure their carbon footprint.
This level of maturity is a reflection of the profile of the companies analyzed which, with the
exception of Lacroix a mid-cap company, are SMEs with an average workforce of 150 people
and revenues of €10-50 million. These companies rarely assign staff to ESG matters in
a broader sense, specifically environmental issues.
waste (with recycling) consumption of inputs
One of the challenges faced by Alliance Entreprendre is to
help these companies create, assess and monitor their
environmental policies. 88% 75%
Proportion of companies with
an established environmental policy
63%
Proportion of companies having identified their risks
(physical and/or transition) related to climate change
31%
Proportion of companies with an Proportion of companies having measured
environmental management system their carbon footprint
25%
13%
36 37GOVERNANCE
Significant contribution by Alliance Entreprendre to increasing female representation
on boards
With a rate of female representation on boards below 20%, the Alliance Développement and
Alliance LBO portfolios are below the 40% threshold established by the Copé-Zimmermann
Scope for short-term improvement law (which only applies to a very small portion of the portfolio companies in view of their
size). It should be noted, however, that the Alliance Développement and LBO teams have
Governance is probably the area in which Alliance Entreprendre has the appointed women to 4 out of a possible 12 positions in the eight companies analyzed
strongest levers for action, thanks to its systematic presence on bodies such as (a rate of 33%).
supervisory boards and boards of directors.
Female representation on the companies’ executive committees (17%) is in line with the rate
The results of this first data collection exercise highlight the work required by the teams recorded among CAC40 and SBF120 companies (see article in Les Echos, “Femmes dirigeantes:
in the short term to establish a systematic CSR assessment at least once per year within le compte n’y est toujours pas”, 18 November 2019).
executive and/or non-executive bodies (25% in 2019).
Over the longer term, the presence of independent directors on supervisory boards or boards
of directors (presence in 25% of the companies) is another indicator on which progress can be Female representation on boards
made. Most of the transactions carried out by Alliance LBO (majority stake strategy) provide
for the appointment of an independent director at the time of acquisition, although this is
not done systematically.
13%
Formal CSR review by supervisory boards/boards of directors
25%
ww
Female representation on executive committees
17%
Presence of independent
directors on boards Established CSR policy
25%
25%
38 392019 ALLIANCE CAPITAL PRIVÉ PORTFOLIO ESG ANALYSIS
SOCIAL
A portfolio with a national footprint
As with the Alliance Développement and Alliance LBO portfolios, the eight companies
analyzed in the Alliance Capital Privé portfolio employ 99% of their workforce in France.
This situation reflects the aim of these companies, which are still in the early stages of
implementing their business plans (fundraising carried out after September 2018), to
consolidate their development on the French market first, before subsequently targeting
international expansion.
A sharp increase in FTE jobs in 2019, resulting entirely from net job creations
In 2019, the eight Alliance Capital Privé portfolio companies that responded increased
their workforce by 121 FTE employees or 27% compared to the previous year. More
remarkable still is that this increase resulted entirely from net job creations, as none of
these companies took on employees through external growth operations in 2019. At the level of Alliance Entreprendre, the portfolio
analyzed (which, as a reminder, corresponds to all
the transactions carried out between September 2018 and
December 2019, with a response rate of 84%) recorded the net
creation of 211 FTE jobs in 2019, an increase of 10% (15% including
employees of acquired companies, +299 FTE jobs).
100%
0% Extensive value-sharing
570
Although the proportion is lower than in the Alliance Développement and Alliance LBO
121
portfolios, share plans for non-executive employees were implemented in 63% of the
eight companies analyzed. These plans represent one of the strongest vectors of value-
449 sharing for these start-ups, for which “traditional” mechanisms (incentives, profit-sharing
and performance-related bonuses) are more difficult to implement. Founders’ warrants are
an example of a tool used regularly.
Organic External
FTE 2018 FTE 2019
growth growth Proportion of companies offering share plans
for non-executive employees
63%
40 41ENVIRONMENT Proportion of companies having taken initiatives to reduce:
greenhouse gas
emissions water consumption
Initiatives illustrating
environmental awareness
Although the companies supported by Alliance Capital Privé are not
advanced in terms of their environmental procedures (13% have established
25% 38%
an environmental policy, none of them have implemented an environmental
management system or calculated their carbon footprint), which is normal given
that they were formed only recently, they nonetheless show a genuine environmental
awareness through numerous initiatives designed to save, reduce or recycle resources:
75% state that they have waste reduction or recycling programs, 63% attempt to minimize their
consumption of inputs and 38% their water consumption. This awareness is also reflected in
the support for charities such as Hivency, which sponsors beehives under the “Un Toit pour
les Abeilles” initiative, contributing to the protection of biodiversity and ecosystems. waste (with recycling) consumption of inputs
75%
Proportion of companies with an established environmental policy 63%
13%
ww
Proportion of companies having measured their carbon footprint
Proportion of companies with Proportion of companies having identified
0%
an environmental management their risks (physical and/or transition) related
system to climate change
0% 6%
42 43GOVERNANCE
Results in line with the start-up development stage Cutting-edge companies in the area of data protection and IT system security
The organization of governance within the eight companies The Alliance Capital Privé portfolio, which include a large number of digital companies,
analyzed in the Alliance Capital Privé portfolio is relatively similar to are highly aware of matters related to data management (personal and sensitive data)
that reported for the Alliance Développement and Alliance LBO portfolio and the security of their IT systems.
companies: presence of independent directors in 25% of cases and an established 75% of them have established sensitive and personal data management procedures and
CSR policy and review at least once per year at board or executive committee meetings 88% have an IT system security policy. Their experience and expertise in this area could
in 13% of cases. well be of use to the portfolio companies of Alliance Entreprendre’s other teams (Alliance
Développement and Alliance LBO), which may be less advanced in this regard with strategies
less focused on digital technology and/or BtoC.
The challenge for Alliance Capital Privé
will be to support the development of Data governance
governance within these high-growth (personal and sensitive data) Established IT system security policy
companies by encouraging them to
consider opening up their boards and
helping them to formally define their
CSR issues and monitoring indicators.
Formal CSR review by supervisory boards/
boards of directors
75% 88%
13%
Presence of independent Established
directors on boards CSR policy
25% 13%
44 452021
ROADMAP
462021 ROADMAP
2020-2021
TOPIC ACTION KPIS TO TRACK
TARGETS
Data collection campaign Number of companies approached > 50%
Response rate to the annual ESG
with management Response rate > 70%
questionnaire
teams
Better
support for portfolio companies
in ESG matters
Improve
Training teams Number of training days the ESG expertise of all
in ESG matters management company teams
Female representation of 32% in the company
Female representation
and 23% on investment teams
in the workforce
in 2019, to be increased
Signing
Promoting equality of the France Invest Gender
Equality Charter
Increase by 10 points the percentage
Female representation
of women in management roles
in management roles
among portfolio companies
Implementation of a phased action plan
Adoption of the
Combating climate change Signing of the Initiative Climate 2020 to measure the carbon footprint of the
Initiative Climate 2020 (IC20) management company and portfolio companies
Number of employees having
Individual and group training for Percentage of employees having completed
CSR policy within the management company completed individual and
employees individual training during the year > 25%
group training
48 49NOTES
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