Good Entrepreneurship - GENUI II ESG Report
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Good Entrepreneurship
GENUI II ESG Report
2020# 02
Welcome.
Our objective is to create long-term value for investors through a balance of economic, social and ecological measures.
Is GENUI an impact investor? This question was not on our Now, does that make us an impact investor? Looking GENUI's Targets
minds when we founded GENUI in 2014 – not even when at one of the most prominent definitions of impact
we launched GENUI II in 2019. We knew we wanted to investing, that of the Global Impact Investing Network
generate an impact: something that goes beyond a merely (GIIN), it seems like a valid interpretation. GIIN defines
financial view of success. And, we took a long-term view impact investments as being “made with the intention to TOP QUARTILE
from the start, manifested by our investment structure generate positive, measurable social and environmental RETURN
allowing holdings beyond a decade. Both our values and impact alongside a financial return”. Others might argue
our time horizon led us to take into account environmental, that impact investing commands investment only in
social and governance matters. companies with a positive external social impact by virtue
of their business model. While GENUI II’s portfolio
And so, over the course of establishing GENUI II, we includes businesses with an inherently positive social CARBON
started to take more concrete actions to create a positive effect, like ZNS Bottrop or Physio Holding, it also includes NEUTRALITY
impact for society. We achieved carbon neutrality as a companies without meaningful positive social externali-
company and set ourselves the goal to ensure that all our ties, such as Mindcurv. What GENUI is committed to –
portfolio companies become carbon neutral during our over and above any labels – is creating long-term value
ownership, thereby accelerating the transition to a more for investors through a balance of economic, social and
environmentally sustainable economy. We also put our environmental measures. And we are serious about this:
heads together to design a set of key performance we measure, report and independently verify the impact EQUAL PAY
indicators (KPIs) and priorities allowing us to make and of our activities – no matter if it’s positive or negative,
measure tangible progress on core social and governance financial, environmental or social. So, you can judge for
aspects. While we promote diversity, family-friendliness, yourself to what extent we deliver on our objective and
and other key social aspects, we feel that achieving equal targets, and what label is most suited to describe our
pay in portfolio companies during our ownership is a very investment approach.
meaningful way to address social inequality and have
made it our central social goal. At GENUI, we call it Good Entrepreneurship.# 03
Contents.
I. Introduction # 04
II. Portfolio companies # 11
III. Management company # 29
IV. Appendix # 37# 04
Creating tangible ESG benefits lies at the heart of our strategy.
In 2020, we made our first steps towards realising carbon neutrality and equal pay at our portfolio companies.
E S G
We are committed to carbon neutrality. We drive equal pay and measure social impact. We are serious about good governance.
In the long term, a successful transition to a carbon Our ambition is to make successful companies even We know how important professional governance is
neutral economy is crucial for safeguarding the health of better. And we are convinced that organisations that are for the long-term success of a company. Hence, we
our ecology, society and economy. Hence, GENUI wants diverse, family-friendly and offer equal pay do better. implement robust governance structures and policies
to contribute to accelerating this transition by supporting We also invest in companies that have an inherent social both at GENUI and our portfolio companies and commit
portfolio companies in eliminating their negative impact: We measure their value to society and work to sustainability and impact management standards
environmental footprint. with them to increase it. of recognised international bodies.
2/3 1/3
2,210 tonnes €13.0m
Implementation of International Among the top 5% signatories
Portfolio CO2 offset by GENUI Portfolio Net value to society Finance Corporation's of Task Force on Climate-related
companies achieved and its portfolio companies realised generated by portfolio Operating Principles for Impact Financial Disclosures taking a
carbon neutrality. companies in 2020. equal pay. companies. Management. strategic approach to climate risks.1# 05
Sustainability is integrated in every aspect of what we do.
The GENUI Sustainable Investing Framework ensures that sustainability is not only embedded in our own operations, but
is integrated throughout our investment process and activities.
Sparring partner & Review & Selection &
Principles
advocating improvement diligence
Strategy & Independent Portfolio
Philanthropy
KPIs measurement management
Company Portfolio
Reporting & Responsibility & Future Governance &
disclosure accountability ownership monitoring
Sustainability is anchored in GENUI as a company through our sustainability principles as ESG considerations are integrated throughout the GENUI investment cycle. As early as the
well as our strategy and KPIs. It is owned by GENUI’s top leadership and supported by pre-deal stage, we make sure that through each investment, we generate either a positive
dedicated staff who ensure that we remain accountable to our sustainability goals and societal impact or reduce negative social externalities – through the nature of the business
make timely disclosures on ESG risks and performance. Beyond our business investments, or by introducing initiatives to improve ESG performance – in particular to achieve carbon
we contribute to our community by supporting impactful local social organisations. And at neutrality and equal pay. While planning the exit, we take into account the track record and
the broader industry level, we are engaged in advocacy initiatives to accelerate the devel- intent of the following owner. Throughout the process we ensure independent measure-
opment of an ecosystem that is conducive to sustainable and impactful investing. ment, reporting and disclosure.# 06
We strive to achieve sustainable impact while creating long-term value.
Our theory of change acts as the conduit between our immediate actions and long-term impact, and enables us to articulate our
contribution to the Sustainable Development Goals (SDGs).
Inputs Activities Outcomes Impact
Investing Investment capital Select companies for portfolio with neutral to Economic contribution by portfolio company
positive external societal impact and/or where activities Core SDGs linked to GENUI's targets:
Expertise of GENUI investment GENUI has significant potential additionality
team Contribution to societal outcomes addressed by SDG 5 SDG 13
Invest in and grow profitable and scalable portfolio companies
Support from GENUI's network businesses
of entrepreneurs Long-term value for investors
ESG Expertise of GENUI investment Identify material ESG issues to address at GENUI E | Carbon neutrality
and ESG teams and in portfolio companies Additional SDGs GENUI seeks to
S | Equal pay contribute to:
Advice from specialised Support portfolio companies to implement ESG
external ESG and social impact initiatives G | Robust governance and policies
SDG 3 SDG 4
consultancies
Philanthropy Non-profit vehicle for Make grants to impactful social non-profit Contribution to positive social change created by
SDG 7 SDG 10 SDG 12
philanthropic activities organisations grantees with a focus on improving opportunities
for children and youth# 07
We have a robust governance to steer our sustainability endeavours.
Our sustainability governance structure ensures senior-level commitment both from GENUI as well as its portfolio
companies. It enables us to continuously track progress and identify and implement ESG-related initiatives.
Roles & Responsibilities Governance Structure Activities
Stewardship by selected GENUI Semi-annual review of
investors’ ESG representatives GENUI Sustainable Investing
GENUI Sustainability Council Framework
Ownership by Founding Partner Continuous development of the
GENUI ESG coordinator to support GENUI ESG Team GENUI Sustainable Investing
portfolio companies Framework
ESG C-Level Manager ESG Coordinator Quarterly ESG update calls, KPI
tracking and ESG implementation
support for portfolio companies
ESG commitment, implementation, Annual agreement on ESG priorities by
tracking and reporting the board
Portfolio Company 1 Portfolio Company 2 Portfolio Company 3
Commitment for implementation
Advisory Board Advisory Board Advisory Board and tracking of ESG KPIs by C-level
management
ESG C-Level Manager ESG C-Level Manager ESG C-Level Manager
Implementation, tracking and annual
ESG Coordinator ESG Coordinator ESG Coordinator
reporting of ESG KPIs by the coordinator# 08
GENUI supports leading sustainability initiatives and principles.
We not only apply leading principles to our own investing and operational activities but also support initiatives which work towards
the promotion of sustainability-related aspects in the overall investing industry.
Sustainable Investing Principles Disclosures on Sustainability ESG Issues and Measurement Operational Principles Advocacy for Impact Investing
In our investment processes, we We make public disclosures on how In the sustainability assessment of We are a signatory of the Climate We are associated with organisations
employ principles that are estab- sustainability risks and opportunities potential investments, we prioritise Neutral Now initiative launched by promoting impact investing at the
lished industry benchmarks. These are incorporated in our activities. the topics identified by the Sustaina- the UN Framework Convention on German as well as global level. With
include the Principles of Responsible Our approach is in line with the bility Accounting Standards Board Climate Change (UNFCC) and the the Bundesinitiative Impact Investing
Investment developed by the United EU’s Sustainable Finance Disclosure (SASB) as particularly material with Women’s Empowerment Principles (Federal Impact Investing Initiative,
Nations (UN) and the Operating Regulation and Financial Stability regard to the respective industry. We established by the UN Global Germany), we work towards strength-
Principles for Impact Management Board’s Task Force on Climate-related also carry out impact analysis using Compact and UN Women. We ening the impact investing eco-
developed by the World Bank’s Financial Disclosures (TCFD). the Impact Management Project’s promote the principles of climate system in Germany and with GIIN,
International Finance Corporation. five dimensions of impact and the neutrality and women’s empower- towards deepening our engagement
IRIS+ framework. ment in all our portfolio companies. in the impact investing industry
globally.# 09
We place strong emphasis on measurement and transparent reporting.
We seek to apply the same level of scrutiny and rigour to the measurement and reporting of ESG impacts as our financial
performance. We work with established guidelines, principles and partners in this endeavour.
Aspect ESG Performance Financial Performance
Data collection, accounting and GENUI ESG team GENUI finance team
measurement / valuation Value for Good KPMG
Audit and verification of process, data, Ernst & Young* Ernst & Young
measurement / valuation
Process and data principles IFC Operating Principles German GAAP (HGB)
Valuation / measurement principles Social Return on Investment Principles International Private Equity and Venture Capital
Impact Management Project Valuation (IPEV) guidance
IRIS+
*
Ernst & Young‘s first review and validation of GENUI’s impact management process and impact reporting as reflected in this report is to be carried out in the course of 2021.# 10
Contents.
I. Introduction # 04
II. Portfolio companies # 11
III. Management company # 29
IV. Appendix # 37# 11
Our screening process ensures that we consider ESG from the start.
We not only screen for negative business practices but also assess ESG impact and management commitment of investment
opportunities as well as our own potential additionality right at the pre-deal stage.
Negative No investment in companies suspected of unethical or illegal business practices, such as those linked to arms, gambling, tobacco or
Screening human cloning.
Prioritisation of topics identified by SASB as particularly material with regard to the specific industry in the sustainability assessment of
Sustainability potential investments.
Due Diligence Internal due diligence supplemented by assessment of principal adverse sustainability impacts and quality of ESG governance and
processes conducted by specialist consulting firm ERM.
Climate Risk High-level climate-related risk scenario analysis in accordance with the TFCD guidelines conducted by specialist consulting firm ERM.
Analysis
Pre-deal Impact Assessment of the most material positive and negative externalities related to ESG factors, where appropriate, supported by the social
Estimation impact consultancy Value for Good.
Additionality Evaluation of GENUI’s potential contribution to better ESG performance during ownership period.
Evaluation Development of mitigation plan for any material issues and negative externalities identified during due diligence.
Management Management buy-in to implement identified ESG actions and the GENUI ESG KPI Tool as reflected in transaction documentation and
Commitment the post-transaction value creation plan.# 12
We employ a systematic approach to measure and manage impact.
Our impact analysis approach aligns with norms established by the Impact Management Project and IRIS+ framework of the GIIN.
Additionally we use a conservative approach to estimating the value to society created by select portfolio companies.
Methodologies for Impact Analysis Principles for Estimating Value to Society
1. Impact Management Project (IMP)1 and IRIS+ Scientific
We rely on robust and published scientific evidence to comprehend the impact
WHAT Is the outcome positive and important for people and planet? generated by our portfolio companies.
WHO Are those who experience the outcome underserved? Monetised
In line with our long-term value creation goals, we look beyond input and output
HOW MUCH How much of outcome has occurred across scale, depth and duration? measures by quantifying outcomes into monetised value for the society.
CONTRIBUTION Does the contribution compare favorably with counterfactuals? Proportionate
We only take into account the impact generated in proportion to our ownership share
Which risk factors are material and what is the likelihood of not achieving the
RISK and the duration of our investment.
expected impact?
Materiality-oriented
We focus only on the material impact areas that are most relevant for the respective
2. 2020 Value to Society Estimation portfolio companies.
For portfolio companies whose business models inherently have a social impact, we conducted an analysis to
estimate the value to society created in 2020. It was led by the consulting firm Value for Good. The methodology Conservative
was based on available evidence from third-party academic research which translates the social outcomes into
economic terms. For the two portfolio companies, ZNS Bottrop and Physio Holdings, assumptions underpinning We only take into account the impact on the direct beneficiaries, customers or clients,
the value to society calculations were based on multiple studies from the field of health economics. and work with conservative assumptions wherever possible.# 13
Our portfolio companies are contributing to people and planet.
We are proud of our portfolio companies’ 2020 performance on key environmental and social aspects and will continue to work
closely with them to drive improvements across GENUI’s ESG targets.
Carbon Neutrality Equal Pay Social Impact
Holding
Portfolio Net Carbon SDG 13
Gender- SDG 5 SDG 3
Industry Period Net Value to
Company Footprint* based Salary
(years) Society# (€m)
(kg CO2) Ratio**
Healthcare
Services
0.6 0
1.2 10.6
Healthcare
Services
0.6 n.t.## n.t.## 2.4
IT Services 1.1 0
1.0
0.0
Note: The data presented above is as of 31st December 2020.
*
Net Carbon Footprint refers to net scope 1, 2 and 3 carbon emissions after compensation. Please see page 37 for a brief description of what is included in them.
**
We measure gender pay gap as a ratio of the median pay of men and the median pay of women for each job description/title which includes at least 2 women and 2 men and takes into account differences in compensation not justified by differences in job
description, experience or performance.
#
Please see page 12 for the methodological approach and page 16 and page 21 for explanation of calculations carried out for respective portfolio companies.
##
n.t. stands for not tracked yet.# 14
1 Location in Germany
Bottrop, North Rhine-Westphalia
Initial Net Carbon Gender-based Net Value to
Investment Made Footprint Salary Ratio Society 2020
1.2
June
2020 0 €10.6m
zns-bottrop.de# 15
Zentrum für Seelische Gesundheit is a local leader for psychiatric care.
Zentrum für Seelische Gesundheit (ZNS), operating as a partial inpatient day clinic and an outpatient psychiatric clinic, is a one-stop
shop offering a range of psychiatric, psychotherapeutic, neurological and other related treatments.
Revenue Mental disorders are highly prevalent in Germany. ZNS treated thousands of patients in the relatively under-
They affect nearly 28% of the population annually1, expos- supplied Ruhr region of Germany.
ing this group to higher risks of co-morbidities, disability Compared to the German average, ZNS’s catchment area
and mortality, and significantly reducing their productivity. has a low penetration of day-care and outpatient
27% Anxiety and depression Certain demographic groups (e.g. people with lower psychiatry.4 Through a wide range of therapeutic services
24%
Depression
socio-economic status, women and people with a offered in 12 languages, ZNS is able to cater to a large
Insomnia
4%
Anxiety
migration background) are disproportionately affected number of migrant patients. Remote consultations, walk-in
6%
Panic by these disorders. In total, the direct and indirect cost of appointments and its central location further facilitate
6%
33% Others mental disorders in Germany stands at €147bn per year.1,2 access to mental healthcare.
Despite this, only 19% of those suffering from a mental
disorder received care in the previous 12 months.3 ZNS meets high standards for quality of care.
In 2018, it was licensed to operate as a Psychiatrische
Patients ZNS addresses this by catering to patients with moderate Institutsambulanz* and is closely monitored by regulatory
to severe cases of mental illnesses. bodies for compliance with stipulated guidelines.
ZNS offers day-care and outpatient treatment formats
depending on the type and severity of the patient’s Since GENUI’s investment in June 2020, several ESG
diagnosis. It employs approx. 110 people, including initiatives have been implemented.
30 doctors and numerous specialists from various These initiatives are continuously monitored in order to
50%
Migrant background
therapeutic practice areas. ZNS forms the nucleus of steer ZNS towards sustainable operations. ZNS has already
Non-migrant GENUI’s build & buy strategy that consists of acquiring achieved carbon neutrality within this short period.
background other healthcare practices.
*
Psychiatrische Institutsambulanz can be literally translated to Psychiatric Institute Clinic in English. These are clinics which are recognized under the German law (§ 118 SGB V) to offer outpatient psychiatric care.# 16
ZNS makes a positive social contribution by promoting mental health.
We conducted a mapping of ZNS’s impact along IMP’s impact dimensions and GIIN’s IRIS+ framework. This is complemented
by an estimation of its 2020 value to society based on studies on the benefits of outpatient psychiatry.
Dimension Assessment Description Net Value to Society 2020
ZNS contributes to good health and well-being (SDG 3). Treatment of
WHAT mental illnesses enhances individual welfare and social integration,
increases productivity and prevents chronic disorders.
Important negative Important positive
€10.6m
ZNS’s catchment area has a low penetration of outpatient psychiatry1.
More than 50% of its patients have a migrant background1 (migrant
WHO
population in Bottrop: 26%2), a demographic group more susceptible
Well-served Underserved to mental disorders. 98% of patients are publicly insured.
Key assumptions:
ZNS handles thousands of patients annually. Using conservative
To calculate the net value to society of ZNS's psychotherapy treat-
HOW MUCH assumptions and accounting only for GENUI’s holding period and
ments in 2020, we reviewed available academic evidence on the
ownership share, it created a net social value of €10.6m in 2020.
For few For many societal benefits of psychotherapy which revealed that for every Euro
spent on treatment, between 2.5 and 5.3 Euros are generated in value
Lack of treatment of mental disorders can lead to adverse economic, to society (e.g. due to more productivity).3,4,5,6
health and quality of life outcomes. ZNS contributes to the prevention Using ZNS’s revenues in 2020 as an approximation for the total costs
CONTRIBUTION
of these outcomes by improving access to mental health services in of psychotherapeutic treatment, we estimated the gross value to
Worse Better the region. society for a one year period following treatment (in line with the
duration of impact demonstrated by the studies).
Evidence risk: No primary data from ZNS is available to verify the
effectiveness of the treatment. We then adjusted the gross value to society to only consider a) the
RISK months in 2020 after GENUI’s investment and b) GENUI’s share in
Drop-off risk: Relapse of mental health conditions and lack of
adherence might negate the impact of the treatment. ZNS. Finally, the costs of treatment for deducted to arrive at the net
Low risk High risk
value to society of €10.6m.# 17
Despite being a recent investment, ZNS already turned carbon neutral.
More progress on ESG initiatives and reporting data is expected in 2021.
Environmental Social Governance
Material Issue* Select KPIs 2020 Material Issue Select KPIs 2020 Material Issue Select KPIs 2020
Scope 1 20,267 Female staff 80% ESG internal coordinator Yes
ESG management
CO2 emissions Scope 2 70,583 Gender diversity Female management 25% ESG C-level manager No
Scope 3 61,198 Gender-based salary ratio 1.2 Cyber security policy No
IT measures
Carbon footprint Footprint after compensation 0 Family-friendly Part-time employees 19% External IT tests No
Green energy Share of renewable energy 50.5% workplace Employees with flexible working hours 0% GENUI codes
Implementation status 0%
of conduct
Employee
Employees leaving 17%
satisfaction
2021 Goals
ZNS already operates in a high energy efficiency building. It will In 2021, the key priority will be to take additional measures for ZNS is upgrading its governance policies and codes of conduct.
continue its endeavour to be carbon neutral in 2021. employee satisfaction. It expects the process to be completed in 2021.
*
ZNS has no negative impact on other areas for which KPIs are tracked. These include impact on bio-diversity sensitive areas, water emissions, soil emissions, hazardous waste and hazardous waste spills.# 18
“With GENUI’s support, we achieved carbon
neutrality and initiated the implementation of
several ESG-related policies. We are yet to see the
long-term effects of COVID-19 on the mental well-
being of the general population as well as our own
employees. But this also sets the foundation for our
key priorities for 2021 and thereafter. We will
proactively take steps to measure and work towards
further enhancing employee and patient
satisfaction.”
Christian Neumann
CFO, ZNS# 19
3 Locations in Germany
1 location
Lower Saxony
2 locations
Bavaria
Initial Net Carbon Gender-based Net Value to
Investment Made Footprint Salary Ratio Society 2020
n.t.*
June
2020 n.t.* €2.4m
physio-holding.de *
n.t. stands for not tracked yet.# 20
Physio Holding is a German network of physiotherapy practices.
Physio Holding (PH) is a group of physiotherapy practices (PTPs) offering integrated procedures from first contact, often in form
of physiotherapy or rehabilitation, to long-term medical fitness for continued therapy success.
Musculoskeletal disorders and injuries are among the on outpatient procedures. Lower Saxony is among the
Revenue by service most common medical problems in Germany. states which have the lowest density of physiotherapists in
They lead to chronic pain, physical impairment, worsened Germany. This PTP offers affordable services and derives a
2%
3% quality of life and incapacity to work. They can impose a significant proportion of its revenues from statutory insur-
4% high cost for treatment and forced early retirement in some ance. The remaining two PTPs, in Bavaria, are focused on
cases.1 Lower back pain alone, with a lifetime prevalence clients insured by private health insurance and/or premium
Physiotherapy
Rehabilitation
rate of more than 80%, is one of the largest causes of dis- services for sports celebrities.
Medical Fitness ability in Germany and costs more than €50bn per year.2
Other Physiotherapy can be a cost-effective alternative to surgery All PTPs operate high-quality facilities.
92% to treat musculoskeletal disorders. For example, a 2018 All PTPs meet high standards of quality as a norm. There is
randomised control trial in the Netherlands revealed that a high proportion of therapists with advanced qualifica-
the social costs of those undergoing physiotherapy was tions and certifications. The PTPs operate largely autono-
€3,935 as compared to €5,991 for those who underwent mously under their own established brands while the group
Revenue by payer knee surgery.3 provides them with a platform to exchange experiences
and best practices, and offers support with certifications,
PH is pursuing a buy & build strategy to build a network staff, invoicing and accounting.
of PTPs across different parts of Germany.
At present, the group comprises three PTPs: two in Bavaria GENUI is working with PH to implement ESG initiatives
37%
and one in Lower Saxony. While physiotherapy is the main- across all PTPs.
Statutory Insurance
stay of these PTPs, other services and therapeutic proce- One of the most important priorities in 2020 was to upgrade
Private Insurance & dures as are also offered. the governance systems of the different PTPs and bring
63%
other them at par with each other, something that will continue to
One of the PTPs caters to a relatively underserved region. be driven forward in 2021. A full scope ESG assessment,
The PTP in Lower Saxony is located in a small city and focuses once PH reaches a critical size, is also planned in 2021.# 21
PH’s impact is linked to health benefits of physiotherapy.
We conducted a mapping of PH’s impact along IMP’s impact dimensions and GIIN’s IRIS+ framework. This is complemented
by an estimation of its 2020 value to society based on studies on the benefits of physiotherapy.
Dimension Assessment Description Net Value to Society 2020
PH contributes to good health and well-being (SDG 3). Timely and
WHAT quality physiotherapy can prevent expensive invasive procedures,
medication, long-term disability and productivity losses.
Important negative Important positive
€2.4m
The PTP in Lower Saxony is located in a relatively underserved region
WHO and caters primarily to publicly insured patients. The remaining two
PTPs focus on privately insured patients.
Well-served Underserved
In 2020, the PTPs treated approx. 5,000 patients of which nearly 35% Key assumptions:
were publicly insured. Accounting only for GENUI’s holding period To calculate the net value to society of PH's physiotherapy treatments
HOW MUCH
and its ownership share, PH generated a net social value of €2.4m in in 2020, we reviewed available academic evidence on the societal
For few For many 2020. benefits of physiotherapy which revealed that for every Euro spent on
treatment, between 2.4 and 4.0 Euros are generated in value to
society (e.g. due to more productivity).1,2,3
The network built by PH is intended to enable best practice sharing
CONTRIBUTION across PTPs, which may contribute to some efficiency gains and Using PH’s revenues in 2020 as an approximation for the total costs of
higher quality of care leading to better treatment outcomes. physiotherapy treatment, we estimated the gross value to society for
Worse Better a two year period following treatment (in line with the duration of
impact demonstrated by the studies).
Evidence risk: No primary data from PTPs is available to verify the
number of patients and effectiveness of the treatment. We then adjusted the gross value to society to only consider a) the
RISK months in 2020 after GENUI’s investment and b) GENUI’s share in PH.
Drop-off risk: Relapse of musculoskeletal conditions might negate the
impact of physiotherapy. Finally, the costs of treatment for deducted to arrive at the net value
Low risk High risk
to society of €2.4m.# 22
Several ESG measures will be implemented across the group in 2021.
Due to the recent nature of the investment and the small scale of the individual practices initially acquired, ESG measures will
be implemented starting in 2021.
Environmental Social Governance
Material Issue* Select KPIs 2020 Material Issue Select KPIs 2020 Material Issue Select KPIs 2020
Scope 1 n.t.**
Female staff 52% ESG internal coordinator No
ESG management
CO2 emissions Scope 2 n.t. Gender diversity Female management 0% ESG C-level manager No
Scope 3 n.t. Gender-based salary ratio n.t. Cyber security policy No
IT measures
Carbon footprint Footprint after compensation n.t. Family-friendly Part-time employees 42% External IT tests No
Green energy Share of renewable energy n.t. workplace Employees with flexible working hours n.t. GENUI code of
Implementation status 0%
conduct
Employee
Employees leaving n.t.
satisfaction
2021 Goals
PH is a low energy intensive business, still efforts will be made PH will upgrade its IT systems to facilitate the integration of PH will enact additional governance policies and GENUI code
to track and reduce its carbon footprint (e.g. by using functions across PTPs. of conduct in full in 2021.
renewable energy). It will set up a training academy for staff’s skill development ESG staff will be appointed.
A full scope ESG assessment will be carried out once PH and sharing of best practices across the board.
reaches a critical size of operations.
*
PH has no negative impact on other areas for which KPIs are tracked. These include impact on bio-diversity sensitive areas, water emissions, soil emissions, hazardous waste and hazardous waste spills.
**
n.t. stands for not tracked yet.# 23
“Thanks to GENUI we maintain a clear focus
on the sustainability of our business. We are
working to streamline the operations of our
different practices by sharing best practices
and centralising administration. This enables
us to free up time for patient treatments and,
thus, improve the quality of care that we
offer. What is more, GENUI is helping us
establish robust governance systems and
processes across the board.”
Holger Herrmann
CEO, Physio Holding# 24
5 Locations globally
2 locations
1 location Germany
Netherlands
1 location
Spain
1 location
India
Initial Net Carbon Gender-based
Investment Made Footprint Salary Ratio
1.0
December
2019 0
mindcurv.com# 25
Mindcurv is a global tech company working with digital businesses.
Mindcurv designs and implements scalable digital platforms, managed services and cloud infrastructures for B2B and B2C clients.
Mindcurv was the first investment by GENUI II. Mindcurv continues to foster workforce diversity and
Revenue (by client group) It is a multinational technology company which offers holis- employee satisfaction.
tic services for digital businesses. Its core competences Across its five locations (headquartered in Germany), it# 26
Since our investment, Mindcurv made significant leaps on ESG issues.
In 2020, Mindcurv formally joined the Carbon Neutral Now initiative. It upgraded its governance systems and appointed an
ESG-dedicated senior level staff. It also worked on increasing female management and retained its equal pay status.
Environmental Social Governance
Material Issue* Select KPIs 2019 2020 Material Issue Select KPIs 2019 2020 Material Issue Select KPIs 2019 2020
Scope 1 107,613 130,616 Female staff 23% 23% ESG internal coordinator Yes Yes
ESG management
CO2 emissions Scope 2 94,736 80,018 Gender diversity Female management 15% 18% ESG C-level manager No Yes
Scope 3 1,395,493 1,816,964 Gender-based salary ratio 1.1 1.0 Cyber security policy Yes Yes
IT measures
Footprint after Part-time employees 2% 2% External IT tests No No
Carbon footprint 0 0 Family-friendly
compensation
workplace Employees with flexible GENUI code of
80% 80% Implementation status 0% 55%
Share of renewable working hours conduct
Green energy 63% 69%
energy
Employee
Employees leaving 11% 11%
satisfaction
2021 Goals
Having achieved carbon neutrality, Mindcurv will continue to Mindcurv will also make efforts to implement further employee Mindcurv has already implemented several policies included in
maintain the status in 2021. satisfaction measures such as a 360° employee feedback GENUI’s code of conduct. It will continue the implementation of
process. the remaining policies. Trainings on these policies will also be
carried out in 2021.
*
Mindcurv has no negative impact on other areas for which KPIs are tracked. These include impact on bio-diversity sensitive areas, water emissions, soil emissions, hazardous waste and hazardous waste spills.# 27
“Contributing towards a climate neutral
world is very important for us. We worked
with GENUI to reduce our carbon footprint to
zero and joined the Climate Neutral Now
initiative in 2020. We are also working to
strengthen Mindcurv’s governance systems
and policies in line with global best practices
and to make Mindcurv a workplace of choice.
We talk about Revolutionising businesses,
and we think it starts with us.”
Markus Tillmann
Executive Vice President, Mindcurv# 28
Contents.
I. Introduction # 04
II. Portfolio companies # 11
III. Management company # 29
IV. Appendix # 37# 29
We systematically track ESG performance at the GENUI company level.
Since GENUI II’s launch in 2019, we have been monitoring and improving our ESG performance. In 2020, we joined the Climate
Neutral Now initiative and are committed to achieving higher female representation in our operations.
Environmental Social Governance
Material Issue* Select KPIs 2019 2020 Material Issue Select KPIs 2019 2020 Material Issue Select KPIs 2019 2020
Scope 1 2,845 1,419 Female staff 27% 23% ESG management ESG internal coordinator Yes Yes
CO2 emissions Scope 2 6,461 5,290 Gender diversity Female management 20% 20% ESG C-level manager Yes Yes
Scope 3 46,394 23,685 Gender-based salary ratio n.m. **
n.m. Cyber security policy Yes Yes
IT measures
Footprint after Part-time employees 0% 15% External IT tests No Annually
Carbon footprint 0 0 Family-friendly
compensation
workplace Employees with flexible GENUI code of
80% 80% Implementation status 100% 100%
Share of renewable working hours conduct
Green energy 50.5% 100%
energy
Employee
Employees leaving 9% 0%
satisfaction
2021 Goals
As a climate-responsible investor, we will continue to maintain In 2021, our key objective is to enhance female representation in We continuously advance our governance procedures and will
our carbon footprint at zero. our own operations. keep doing so in 2021.
*
GENUI has no negative impact on other areas for which KPIs are tracked. These include impact on bio-diversity sensitive areas, water emissions, soil emissions, hazardous waste and hazardous waste spills.
**
n.m. stands for not meaningful.# 30
“At GENUI we do our best to practice what
we preach. We monitor our own ESG
performance and take measure to
continuously adjust to risk and opportunities
that we discover. It not only helps us to
become sustainable in our operations but
also to demonstrate to and support our
portfolio companies in their own ESG
objectives.”
Katharina Thorn
ESG Coordinator, GENUI# 31
We offset all our unavoidable carbon emissions and are carbon neutral.
For 2020, GENUI’s CO2 offset donation was given to a UNFCC-certified improved cookstove project run by Ripple Africa in Malawi.
We have taken several steps to reduce sustainable materials. They consume less
Relevant our carbon footprint. firewood, produce less smoke and reduce
SDG* We have been carbon neutral since 2019. the risk of burns and hazards compared to
However, during the course of operations, the three-stone stoves typically used. In
SDG 13 certain emissions are unavoidable. In 2020, 2020, Ripple Africa built 47,000 cook-
we had total scope 1, 2 and 3 carbon stoves reaching approximately 286,000
emissions of 30,394 kg. This represents a people.1
decline of nearly 45% as compared to our
2019 emissions. The biggest factors Ripple Africa has a significant gender
contributing to this decline were a component in line with our commitment
reduction in business travel due to the to gender equality.
COVID-19 pandemic as well as a switch to The direct beneficiaries of Ripple Africa’s
more climate-friendly modes of travel by stoves are women who are largely respon-
our employees. The share of air travel sible for overseeing household activities,
(by distance traveled) reduced from 77% in including cooking, cleaning, childcare,
2019 to 53% in 2020. fuel-wood collection, and managing family
finances. These stoves save them time
In order to offset our 2020 emissions, we taken for firewood collection and reduce
supported an improved cookstove pro- their exposure to health hazards.
ject run by Ripple Africa in Nkhata Bay
District, Malawi.
Ripple Africa’s cookstoves, called Changu
*
We have only included the climate aspect of improved cookstoves. They usually have multi-dimensional impacts,
particularly with respect to SDG 7 – affordable and clean energy. The UN links the impact of clean cookstoves also
Changu Moto, are inexpensive, fuel-efficient
to SDGs 1, 2, 3, 4, 5, 8, 11, and 15. and produced with locally available and# 32
We have taken concrete steps towards strategic philanthropy.
With the Entrepreneurs' Social Impact Partnership* we bring together an experienced management team, exceptional
entrepreneurs and an innovative investment model to promote opportunities for children and youth.
Socially cohesive societies are a foundation The Partnership will operate independently
GENUI Entrepreneurs GENUI Investors Investment Team for stable economic and political systems. and actively engage social sector experts.
We consider it to be a core element of The partnership will have its own manage-
Investment Waiver for fund investment Fee & carry waiver good entrepreneurship and long-term value ment team and a board comprising of en-
creation to have a society that enables trepreneurs and partners from the involved
those who are willing and driven to thrive investment firms. It will also engage topical
– no matter what background they come experts from the fields of health, education
Entrepreneurs' Social Impact Partnership from. In our view, fostering fair opportuni- and social inclusion to develop and imple-
ties for children and youth is one of the key ment approved impact measures.
Board Management Team Topical Experts factors for promoting social cohesion.
The partnership was formally incorporated
Entrepreneurs' Social Impact Partnership in April 2021 and will become operational
Financial and Investment will support impact-oriented non-profit or- in the summer 2021.
non-financial support ganisations.
It will use its entire capital gains to improve
Returns on opportunities of children and youth in the
investment
areas of health, education and social inclu-
sion. Structured as a limited partnership, it
Non-profit organisations will leverage the financial contributions
GENUI and other
promoting fair opportunities for from GENUI’s network of entrepreneurs
investment firms
children and youth and invest into GENUI and other leading
investment firms.
*
The official German name of the foundation is Unternehmer Stiftung für Chancengerechtigkeit (USC) gGmbH# 33
“At the Entrepreneurs' Social Impact
Partnership, we plan to identify and support
high impact organisations with the potential
to scale and facilitate structural change. We
will contribute financial as well a non-financial
resources to organisations that enhance
opportunities for children and youth – the
key stakeholders of the future.”
Michaela Wintrich
Managing Director, Entrepreneurs'
Social Impact Partnership# 34
We take a strategic approach to reducing climate-related risks.
In 2020, GENUI became a signatory of TCFD and is among the less than 5% of signatories who take a strategic approach:
We have an organisation-wide climate strategy, fully disclose climate risks and consider risks beyond our holding period.
Governance Strategy
At the GENUI company level, a Managing Director and a dedicated ESG We assess climate-related risks and opportunities concerning our individual
Coordinator are overall responsible for managing and assessing climate-related investments over varying time horizons. We take into account different climate
risks and opportunities. Along with ERM, an independent ESG consulting firm, scenarios (including physical and transition risks) and work with our investments
they work with the investment committee which is responsible for climate- to guide them towards carbon neutrality. GENUI as a company has been
related matters concerning portfolio companies. certified as carbon neutral since 2019.
Core pillars for
disclosures
Risk Management Metrics and Targets
The risk management process is included in our Sustainable Investing We regularly track our own and our portfolio companies’ scope 1, 2 and 3
Framework and code of conduct, the core of our operations. With ERM’s emissions, the share of renewable energy consumption and the impact on
support, we carry out sector- and geography-specific risk assessment of our various environmental factors and publish them in our Annual ESG Report. Any
investments. The responsible Managing Director and ESG Coordinator monitor unavoidable emissions are compensated for by supporting certified offset
the performance and implementation of ESG initiatives on an ongoing basis. programs. The carbon neutral status of GENUI as a company is verified by the
UNFCC on a regular basis.# 35
Outlook.
We will continue to drive Good Entrepreneurship in 2021 and beyond.
We hope that we can make a contribution, We will keep seeking for opportunities to
however small, to safeguarding the health work with and support those who share Continue ESG
of our ecology, society and economy our values of Good Entrepreneurship: implementation at Operationalise
GENUI Entrepreneurs’ Social
by accelerating the transition to carbon
Impact Partnership
neutrality and by providing more equal Appreciate others – enjoy working
opportunities. together, with respect
Win female
Act with passion – be curious, pursue talent
with excellence and create enthusiasm
2022
Do the right things right – develop 2021
socially relevant companies, create Seek new
sustainable values and consider all investment
opportunities
stakeholders
Drive ESG in
Ensure accountability – implement portfolio
companies
professional governance and take
calculated risks with own resources and
reputation
Be fast – let common sense and
pragmatism prevail# 36
Contents.
I. Introduction # 04
II. Portfolio companies # 11
III. Management company # 29
IV. Appendix # 37# 37
We are serious about monitoring and managing ESG KPIs.
At GENUI, we annually identify ESG initiatives to be implemented at the GENUI company level and by portfolio
companies. The GENUI ESG KPI Tool helps us monitor their progress as well as our overall ESG performance.
GENUI ESG KPI Tool
Environmental Social Governance
Material Issue Select KPIs Unit Material Issue Select KPIs Unit Material Issue Select KPIs Unit
Scope 1 kg CO2 Female staff % staff ESG C-level manager Yes / No
ESG
Scope 2 kg CO2 Female management % mgmt. ESG internal coordinator Yes / No
CO2 emissions* Gender diversity Management#
Scope 3 kg CO2 Male-female Other officers Yes / No
Gender pay-gap ratio
salary ratio
Footprint after compensation kg CO2 Cyber security policy Yes / No
Part-time employees % staff
Green energy Share of renewable energy** % Family-friendly IT measures External IT tests Frequency
workplace Employees with flexible
Impact on bio-diversity % staff Cyber security insurance € million coverage
Others Yes / No working hours
sensitive areas Code of conduct
Satisfaction survey Score or % staff GENUI code of %
Water emissions Yes / No implementation status##
Employee Employees leaving % staff conduct and
Soil emissions Yes / No satisfaction policies Further compliance
Yes / No
360° feedback Yes / No policies@
None/ Limited /
Hazardous waste
Material Skill development Training and education Hours / staff
Hazardous waste spills Yes / No Customer Regular satisfaction surveys Yes / No
satisfaction NPS Score Score
*
Scope 1 emissions are direct emissions from company-owned and controlled resources such as car fleet and air conditioning in the case of our tracking. Scope 2 emissions are indirect emissions from the generation of purchased energy from a utility provider. Scope 3
emissions are indirect upstream and downstream emissions that occur in the value chain and not already included in scope 2. In our case these include elements such as employee business travel, employee commuting and cloud services.
**
Reflects the share in the energy mix of the country of operations and any additional renewable energy sourcing on top of that.
#
ESG management includes dedicated staff for data protection, compliance, information security, and health and safety.
##
The GENUI code of conduct consists of policies on non-discrimination, anti-bribery, corporate gifts, anti-money laundering, anti-trust, human rights, environmental sustainability, conflict of interest, diversity, equal opportunity, whistle-blower and grievance procedures.
@
Standard GENUI compliance policies include those on GDPR, health and safety and ESG incident reporting among others.# 38
Sources used.
Page Source
04 1
TCFD (2020). 2020 Status Report.
12 1
Impact Management Project (n.d.). Impact Management Norms. Available at impactmanagementproject.com/impact-management/impact-management-norms. Accessed on 6th May 2021.
15 1
12-month prevalence, Jacobi et al. (2016). Epidemiologische Prävalenzen in der erwachsenen Allgemeinbevölkerung.
2
DGPPN (2020). Basisdaten – Psychische Erkrankungen.
3
Mack, S et al. (2014). Self-reported utilization of mental health services in the adult German population–evidence for unmet needs? Results of the DEGS1-Mental Health Module (DEGS1-MH). Int J Methods Psychiatr
Res.
4
GENUI Analysis
16 1
GENUI Analysis
2
Landesbetrieb IT.NRW (2020). Wieviel Vielfalt steckt in Nordrhein-Westfalen? – Migration. Available at it.nrw/wieviel-vielfalt-steckt-nordrhein-westfalen-migration-99658. Accessed on 6th May 2021.
3
Wittmann, W.W., Lutz, W., Steffanowski, A., Kriz, D., Glahn, E.M., Völkle, M.C., Böhnke, J.R., Köck, K., Bittermann, A. & Ruprecht, T. (2011). Qualitätsmonitoring in der ambulanten Psychotherapie: Modellprojekt der
Techniker Krankenkasse - Abschlussbericht. Hamburg: Techniker Krankenkasse.
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5
Cuijpers, Pim & Chisholm, Dr & Sweeny, Kim & Sheehan, Peter & Rasmussen, Bruce & Smit, Filip & Saxena, Shekhar. (2016). Scaling-up treatment of depression and anxiety: A global return on investment analysis.
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Margraf J. (2009). Kosten und Nutzen der Psychotherapie - Eine kritische Literaturauswertung. Springer.
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Robert Koch Institute (n.d.). Musculoskeletal Diseases. Available at rki.de/EN/Content/Health_Monitoring/Main_Topics/Chronic_Disease/Musculoskeletal_System/musculoskeletal_node.html. Accessed 06th May
2021.
2
Exact amount 48.96B as of 2009; Wenig CM, Schmidt CO, Kohlmann T, et al (2009). Costs of back pain in Germany. Eur J Pain;13:280–6.
3
physio.de (2020). Physiotherapie kosteneffizienter als Meniskus-Operationen. Available at physio.de/community/news/physiotherapie-kosteneffizienter-als-meniskus operationen/99/10164/1. Accessed on 11th May
2021.
21 1
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2
Walker A., Sibley F., Carter A., Hurley M. (2017). Social return on investment analysis of a physiotherapy-led service for managing osteoarthritis in primary care. The Lancet.
3
Lambeek L., Bosmans J., Royen B., Tulder M., Van Mechelen W., Anema J. (2010). Effect of integrated care for sick listed patients with chronic low back pain: economic evaluation alongside a randomized controlled
trial.; BMJ 2010;341:c6414.
25 1
Mindcurv analysis.
2
The Guardian (2020). Ten years on, why are there still so few women in tech? Available at theguardian.com/careers/2020/jan/02/ten-years-on-why-are-there-still-so-few-women-in-tech. Accessed on 6th May 2021.
31 1
Latest available figures. Ripple Africa (n.d.). 47,000 fuel-efficient cookstoves built and in use. Available at rippleafrica.org/project/fuel-efficient-cookstoves-in-malawi-Africa. Accessed on 27th April 2020.
Photos page 14, 19, 24, 31: iStockphoto# 39
Imprint & Disclaimer.
Published by Authored by Designed by
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Neuer Wall 80 Französische Straße 47 Kantstraße 8
D-20354 Hamburg D-10117 Berlin D-22089 Hamburg
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The report contains only a concise description of the activities of GENUI and is in all respects subject to revision and amendment. The report is not a
prospectus, nor an offer of interests or other securities nor an invitation to subscribe for interests or other securities. The report is compiled by GENUI
GmbH and Value for Good GmbH with the greatest possible diligence. GENUI GmbH and Value for Good GmbH do however not warrant or guarantee
the accuracy, completeness or fairness of this report and the information contained therein.
Hamburg, May 2021genui.de
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