Once likely material issues are identified in our sector materiality maps we also wanted to facilitate for our portfolio companies to take the next steps in their journey - at their own pace. And this last sentence is key. We don’t believe in a one-size-fits-all journey for our companies. We know that each company is different and wouldn’t suggest a set process for talent, financing or any other topics so we won’t do so for ESG either. What we can do is however to use our position to inform and facilitate for the companies to take their own next steps, at their own pace.
As part of our DD process and linked to the materiality maps are therefore our ESG maturity assessment. This tool assesses the company's maturity through questions in each of the key areas defined in the materiality map. For each material issue, questions are asked on key initiatives that the company could implement, such as having formalised a policy on the topic with targets, training employees, implementing mitigation measures, monitoring key performance indicators and improving them, etc.
Based on the answers to this questionnaire, the portfolio company is given a maturity level among the following:
Facilitating portfolio learning
The maturity assessments aren’t only a way for us to facilitate for companies to take the next steps but also an important piece of enabling greater portfolio learning. Our portfolio overview, based on companies’ materiality maps and maturity also allows us to connect companies to others in the portfolio that have progressed on the journey and can share their progress with others.
Sustainability roadmaps
As a final step, each company also has access to an improvement plan based on the materiality map and maturity assessment. Resources are available on the Apiday platform to help implement these initiatives, such as policy templates to help formalise policies and provide examples of best practices, a carbon footprint calculator, or guidelines for monitoring impact on key sustainability issues.
Portfolio companies can use Apiday as a tasks manager tool, assigning tasks to colleagues and setting deadlines to ensure proper ownership of the roadmap.
This also reflects our sustainability improvement as a continuous process so each time a new action is being implemented, the maturity of the company will be automatically updated, thus encouraging it to continue its journey.