Highlights and Case studies

Defining key ESG topics for tech in 2020/21

As we developed our Sustainable Business framework, we had many discussions with our key stakeholders to define the most important ESG factors for software and service companies. After extensive benchmarking, we ended up with a long-list of over 150 ESG metrics, which are all covered in our Sustainable Business framework and assessment.

Rather than covering all 150 metrics in depth, there are a few topics we want to highlight and bring to life with some case studies. These are selected based on what is most material for software businesses, as well as key ESG trends and activities in 2020/21:

Cybersecurity

Description

Cybersecurity continues to be one of the top 10 risks as defined by the WEF. It is vital for all companies in general and software companies in particular to manage and mitigate the risks associated with cyber threats and hackers.

Key aspects in tech

  • Risk related to cyber attacks
  • Protecting your company’s and their customers’ data

Importance to Hg and our portfolio

A cyber-attack can be detrimental for a business, its employees, its customers and reputation. We want our businesses to be as secure as possible and be prepared for the challenges that come with being a big tech player.

Talent

Description

Talent is key for any organisation. The right leadership and talent will help set the business up for success.

Key aspects in tech

  • Access to talent
  • Diversity
  • Employee engagement

Importance to Hg and our portfolio

Finding and keeping the right talent within our portfolio companies is key to their success. Competition is tough for the best and brightest minds.

Collaboration

Description

By collaborating we can solve problems more quickly, we can harness the best out of several worlds. We can learn from each other so we are not "reinventing the wheel" – this makes us more efficient. Most importantly, collaboration brings people together!

Key aspects in tech

  • Solving problems quicker
  • Leveraging best practice
  • Connection

Importance to Hg and our portfolio

Harnessing the power of the portfolio! With our very targeted investment approach, focusing on software and services, we can easily share and benefit from best practices across the portfolio.

Climate change

Description

Climate change is one of the biggest challenges we face globally today. WEF defines ‘extreme weather’ and ‘climate action failure’ as the two top risks by likelihood, making climate change a key issue which is at the front of most investors' minds.

Key aspects in tech

  • Data centres
  • Carbon footprints
  • Climate change related risks
  • Regulatory compliance

Importance to Hg and our portfolio

Hg recognises the risk of climate change to our livelihood and the economy. We want to do our part in limiting global climate change within our own firm and within our portfolio.

Covid-19 response and support

Description

When the pandemic hit in early 2020 many businesses had to drastically change their ways of working. The economy and society were, and still are, suffering. It has never been more important for businesses to support their employees and contribute positively to societal causes.

Key aspects in tech

  • Employees
  • Society
  • Technology as an enabler in all businesses

Importance to Hg and our portfolio

As Hg and our portfolio adapted to the ‘new world’, we saw many opportunities to connect across the Hg family and support each other. Some of our businesses were also able to support their customers – it was particularly encouraging to see some of our portfolio operating in the healthcare space who were able to support the health care system through tech-enabled optimisation.

Additional highlights from the year

Description

In addition to the above five areas, there are a few accomplishments that we would like to highlight for 2020/21.

These include our recent investment in Benevity and some updates from Visma, along with our new ESGD linked financing.