2021 portfolio ESG review
Our ESG assessment, which is based on our Sustainable Business framework, is a collaborative process starting with an initial introduction session followed by a selfassessment, discussion and review of status. The ESG assessment is led by Hg’s ESG team, who work together with key individuals, such as the Chief Human Resource officers and Chief Compliance officers from the portfolio companies. Each portfolio company responds to 170 questions, of which 98 are scored. Once completed each business gets a score from 0-10 to benchmark their performance across the Hg portfolio and an output report which forms the basis of their ESG improvement plans. The final report, which includes a scorecard and an overview of status and agreed actions, is shared with the company’s CEO and the Board.
The assessment is re-conducted at least annually to ensure improvements are being made year on year. Hg supports portfolio companies to progress on their ESG improvements plans by sharing toolkits, templates and providing general support though our ESG team and forums. As an example, IRIS has elevated an ESG score of 6.5 in 2018 to 9.5 in 2021.
itm8, a company founded in 2003, which provides services that allow SMEs to move their IT infrastructure and operations into the Cloud, as well as providing end-user support and consulting, has improved its ESG score from 6.6 to 9.1, with very high levels of employee satisfaction.
Minimum requirements met
ESG results overview
In 2021/22 we assessed 13 new portfolio companies for the first time and re-assessed 30 companies. Despite 2021 being the toughest ESG assessment that we have taken our businesses through, they have all improved by implementing actions in the past year. Some of the companies have a lower score based on previous year, reflecting our updated assessment criteria and scoring methodology, with over 20 new questions.
