esg-3

Interview with
Christine Anglade Pirzadeh and David Darmon

Published : 30.04.2021
#Interview

What are the components of Wendel’s ESG (Environment, Social, Governance) strategy?

Christine Anglade Pirzadeh:​ The Group’s ESG strategy is the result of a wide-ranging collaborative effort. We have defined a roadmap for 2023, articulated around four priorities. The first priority covers equality between men and women and will extend in the long term to diversity in the larger sense. The second priority is clearly climate change, which affects us all. The third priority is, in some sense, inherited from Wendel’s industrial past: preserving the health and safety of the Group’s employees. We have extended this requirement to the health and safety of consumers. The Covid-19 pandemic has reminded us that health is an absolute priority. Finally, the fourth priority is eco-design, or ESG performance, i.e. thinking about the value ESG can add to products and services before they are created. This is what innovation is all about. Starting in May 2020, Bureau Veritas’s Restart audit, for example, was a pro-active response to the worldwide health crisis, helping companies, schools, government offices, etc. resume post-lockdown activities under optimal conditions.

David Darmon : In eco-design, for example, Constantia Flexibles has been working for several years to make its products 100%-recyclable, thanks to the development of EcoLam, a range of new single-layer, environment-friendly polymers*. This means you have to maintain a constant, focused dialog with customers to keep abreast of their needs, which in turn requires you to adapt production facilities and make significant investments. Wendel has always encouraged its companies to invest in research and development.

How do you support the companies you control in their ESG efforts?

D.D.: Our role as lead shareholder is to inspire and then to provide the spark on ESG topics, but not to step into their shoes. We make sure that our companies are not exclusively focused on value creation, even if creating value remains paramount. We want them to integrate ESG topics, which in turn also create value. When we are sure that ESG awareness has been integrated into the corporate culture, our role is to dialog with company executives to create the most relevant performance indicators for tracking progress. I should add that we take a pragmatic approach to ESG; it must be useful to the company and its employees.

C.A.P.: For example, when we acquired Constantia Flexibles, the accident rate was too high. So we made the variable portion of the CEO’s compensation partly dependent on a reduction in this rate. Real improvement followed: in 2020, the accident rate declined by 78% compared with 2015, the year in which Wendel became a shareholder. Regular progress in ESG is also possible. Stahl is a perfect example. A pioneer in environmental issues, Stahl is constantly improving. Its CO2 emissions declined by 25% between 2015 and 2019, compared to the initial target of -10%! These results earned Stahl a silver medal from EcoVadis, the independent ESG evaluation platform. EcoVadis also awarded a gold medal to Constantia Flexibles in its business sector for that company’s efforts over the last three years. Education has been our preferred method for getting the management of all our companies to sign on to ESG issues. ESG concepts are now firmly anchored in the strategy of each and every company. Wendel does not just provide direction, but also offers companies the resources with which to do it, with access to a reporting platform and to ESG experts.

D.D.: We have created ESG performance indicators for each company, articulated around the four priorities, and the company’s board of directors tracks progress on a regular basis. We help ensure that ESG practices cascade down to all levels in the company. For the executives of these companies, it is very motivating to see indicators implemented and then to observe the transformation.

C.A.P.: In 2020, we made a commitment to create an ESG roadmap for each company. The objective of these roadmaps is to integrate ESG issues into the strategy and specific challenges each company faces. You absolutely must do this if you want ESG to make a real contribution to overall corporate performance. It’s a good example of what Wendel can contribute as a responsible investor.

Wendel feels it must be exemplary. Can you give some examples?

C.A.P.: Wendel has committed to evaluating its carbon footprint every year. Not so much because we think our activities have a big impact on climate change – we are a small company – but on principle. We think we should take the medicine we ask others to take. Concerning equality between men and women, the proportion of women on our Supervisory Board is now 45%. This exceeds the objective of 40% recommended by the Afep-Medef code since 2016 and required by law since 2017. Concerning executive functions, we know we can do better. For this reason, we were among the first to sign the charter developed by France Invest** (French Association of Investors for Growth), which aims to achieve gender parity among French private equity firms and in the companies they support. Our target is for 30% of Wendel’s representatives on the boards of directors of our companies to be women by 2023. Internally, our efforts have already translated into tangible results. As of April 30, 2021, 28.6% of the members of our Investment Committee were women. As such, we have already exceeded France Invest’s 2030 target of 25%.

Specifically, has your ESG strategy changed your investment process? Has there been an impact on the way you evaluate investment opportunities?

D.D.: For one thing, we have compiled a list of sectors that we have excluded from our investment universe. That’s the first filter. Secondly, for all other sectors, we carry out in-depth ESG due diligence. If the score is too negative, we won’t invest. It is not our intention to support activities that in our view will disappear over time, because they go against today’s underlying trends. Crisis Prevention Institute, our most recent acquisition in the United States, is a positive ESG impact company. With its training programs for managing violent situations, CPI is helping to change the lives of thousands of families and institutions.

How does Wendel plan to strengthen its ESG strategy?

C.A.P.: On the climate priority, we have made a commitment to audit our companies’ climate risk. This assessment will enable each company to adjust its ESG roadmap, based on results, so as to improve its impact. More generally, we aim to be among the companies with the highest non-financial ratings. Accordingly, we are very proud to have been selected to join the Dow Jones Sustainability Europe and World indices (DJSI), which recognize the Group’s performance in terms of ESG. The Wendel Group obtained a rating of 71/100 on all of its ESG activities, compared with an average for its sector of 30/100. Today, Wendel is the only French company in the diversified financials sector that is present in the DJSI Europe and World indices. We are very pleased with the performance of Bureau Veritas too, which is also in the 2020 DJSI Europe and World indices, and which boasts a no. 1 ranking in the professional services sector***.

In December 2020, the first time we were included, Wendel achieved a CDP (carbon disclosure project) climate rating of B. This rating confirms our active approach to climate change, which we take into account in our business activity.

It’s a long-term effort, because the non-financial ratings ecosystem is sometimes far removed from our business sectors. These distinctions reinforce our determination to go further, with the guiding principle of creating value for all of our stakeholders.

The Dow Jones Sustainability Indices (DJSI)

Launched in 1999, the DJSI includes the best-performing companies in terms of sustainable development, based on an analysis of nearly 3,500 listed companies worldwide. Every year, these companies are evaluated via a corporate sustainability assessment (CSA) questionnaire. Based on industry-specific criteria, the highest-performing 10% in terms of sustainability are then integrated into the Dow Jones Sustainability Index. Of the 162 companies evaluated this year in the diversified financials sector, which includes Wendel, only 17 have been included in the DJSI World index.

Did you know?

Every year, CDP presents a ranking of more than 8,000 companies evaluated worldwide. This UK-based NGO specializes in collecting published data on the measures companies implement to combat climate change.

For more information, please visit the ESG page

 

* Compound whose molecules are formed from the concatenation of a large number of smaller molecules and/or atoms. Plastics, glues, paints and resins are all polymers, for example.
** Wendel signed France Invest’s gender parity charter in March 2020.
*** Bureau Veritas was ranked as the leader in the professional services sector, among 33 other companies. Bureau Veritas achieved a score of 84 / 100, compared with a sector average of 35 / 100.

Credit: Antoine Doyen.

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN

This announcement does not, and shall not, in any circumstances constitute a public offering, nor an offer to sell or to subscribe, nor a solicitation to offer to purchase or to subscribe securities in any jurisdiction. I therefore certify that:

  • I am a resident of a country or jurisdiction where I am qualified or authorized to have access to the information and documents presented on this site;
  • I am not a resident of or physically present in the United States of America, Canada, Australia or Japan;
  • I have read and understand, and agree to comply with, the terms and conditions described above and that I am eligible to access the press release in accordance with such terms and conditions.
  • I have read and understand the foregoing, and hereby make the certifications above and agree to comply with all of the above restrictions:
Yes, I certify the foregoing
No, I don’t certify the foregoing

Disclaimer

Access to the information available in the following pages may be restricted in certain countries by applicable laws and regulations. Persons who are physically located in those jurisdictions and who would like to access the information available in the following pages must inform themselves about and observe such restrictions.

France

In France, the information available in the following pages may be freely accessed by French residents who are physically located in France.

European Economic Area

With respect to each Member State of the European Economic Area other than France (the “Relevant Member State”), the information available in the following pages is directed only at qualified investors as defined in Article 2 (e) of the Regulation (EU) 2017/1129 of the European Parliament and the Council of June 14, 2017, as amended (the “Prospectus Regulation”).
These restrictions with respect to any Relevant Member State apply in addition to any other restrictions which may be applicable in the Relevant Member State.
No action has been undertaken or will be undertaken to make available bonds issued by Wendel to any retail investor in the European Economic Area. Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling bonds issued by Wendel or otherwise making them available to retail investors in the European Economic Area has been prepared and therefore offering or selling the bonds referred to in the following pages or otherwise making them available to any retail investor in the European Economic Area may be unlawful under the PRIIPs Regulation.

United Kingdom

In the United Kingdom, the information available in the following pages is directed only at qualified investors as defined in Article 2 (e) of Regulation (EU) 2017/1129 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018.
No action has been undertaken or will be undertaken to make available bonds issued by Wendel to any retail investor in the United Kingdom. Consequently, no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic laws by virtue of the European Union (Withdrawal) Act 2018 (the “UK PRIIPs Regulation”) for offering or selling bonds issued by Wendel or otherwise making them available to retail investors in the United Kingdom has been prepared and therefore offering or selling the securities referred to in the following pages or otherwise making them available to any retail investor in the United Kingdom may be unlawful under the UK PRIIPs Regulation.
The information available in the following pages is directed only at persons who (i) are outside the United Kingdom, (ii) are “investment professionals” falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), (iii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Order or (iv) are other persons to whom an invitation or inducement to engage in investment activity (within the meaning of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons in (i), (ii), (iii) and (iv) together being referred to as “Relevant Persons”). Any investment or investment activity to which this website and the information contained herein relates is available only to Relevant Persons in the United Kingdom and will be engaged in only with such persons. Any person who is not a Relevant Person should not act or rely on the information contained in this website.
The information available in the following pages is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which the information available in the following pages relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

United States

The information available in the following pages does not constitute an offer to sell, nor a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to therein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements of the Securities Act. Wendel does not intend to register any portion of the proposed offering in the United States or to conduct a public offering in the United States.

Australia, Canada, Japan and South Africa

The information available in the following pages may not be accessed by persons located in Australia, Canada, Japan or South Africa.

Other Countries

All persons residing outside of France and outside of the European Economic Area, United States, Australia, Canada, Japan or South Africa who wish to access the documents contained on this website should first ensure that they are not subject to local laws or regulations that prohibit or restrict their right to access this website, or require registration or approval for any acquisition of securities by them. No such registration or approval has been obtained in France or outside France. Wendel assumes no responsibility if there is a violation of applicable law and regulations by any person.
By accessing to the information available in the following pages, you confirm that you are in compliance, and agree to comply, with the restrictions described above.

I confirm
I do not confirm

IMPORTANT INFORMATION

Access to the information and documents on this portion of the website is restricted for regulatory reasons.

You are requested to review the following information and make the following confirmation each time you seek to access this restricted information. Your confirmation must be true and accurate.

Please enter your country of residence :

Next

IMPORTANT INFORMATION

The materials contained herein are not for general release, publication or distribution, directly or indirectly, in whole or in part, in or into the United States of America, Australia, Japan, Canada or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction. Access to the information and documents on this portion of the website is restricted for regulatory reasons. You are requested to review the following information and make the following confirmation each time you seek to access this restricted information. Your confirmation must be true and accurate.

The information contained in this section of the website of Wendel (the “Seller”) (a) is only intended for, and may only be accessed by, or distributed or disseminated, directly or indirectly, in whole or in part, to persons resident and physically present outside the United States of America (including its territories and possessions, any state of the United States and the District of Columbia, the “United States”), Australia, Canada, or Japan, and resident and physically present in a jurisdiction where to do so will not constitute a violation of the local securities laws or regulations of such jurisdiction, and (b) does not constitute an offer to sell or the solicitation of an offer to buy or acquire any securities of the Bureau Veritas (the “Company”) in the United States, Australia, Canada, Japan, or any other jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction.

The securities of the Company referred to in this section of the website (the “Securities”) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state of the United States for offer or sale as part of their distribution and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Securities have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan, or any other jurisdiction in which it would be unlawful or would require registration or other measures, and therefore may not be offered or sold to or for the account or benefit of any person having a registered address in, or located or resident in, Australia, Canada, Japan or any other jurisdiction in which it would be unlawful or would require registration or other measures.

Access to the information contained on this portion of the website may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access such information and documents. All persons who wish to have access to the documents contained in this section of the Seller’s website should first ensure that they are not subject to local laws or regulations that prohibit or restrict their right to access this section of the website, or require registration or approval for any acquisition of securities by them. No such registration or approval has been or will be obtained. The Seller assumes no responsibility if there is a violation of applicable law and regulations by any person.

If you are not permitted to view materials on this webpage or are in any doubt as to whether you are permitted to view these materials, please exit this webpage.

I therefore certify that:

  1. I am resident and physically present in a country outside the United States, Australia, Canada and Japan;
  2. I am authorized to access the information and documents contained on this portion of the website without being subject to any legal restriction and without any further action required by the Seller;
  3. I will not transmit or otherwise send any information contained in this website to publications with a general circulation in the United States; and
  4. I have read, understand and agree to comply with all of the restrictions set forth above.
I confirm
I cannot confirm

DISCLAIMER – IMPORTANT

Due to applicable legal restrictions, the information contained in this section of the website is restricted and is not for release, publication or distribution, directly or indirectly, in whole or in part, in or into the United States of America, Australia, Canada or Japan, or any other jurisdiction in which such release, publication or distribution would be unlawful. We apologize for any inconvenience this may cause.

Return to the homepage