Responsibility

  • We endeavour to be a forward looking responsible owner

    We understand that our activities have an impact on the environment and on the people and communities where we and our portfolio companies operate. We believe that engaging with a broad set of investment criteria that includes environmental, social and governance ("ESG") considerations mitigates risk and helps to capture long-term value. Triton has made a public commitment to incorporate ESG principles in the way we behave by developing our ESG Policy.

    We endeavour to be a forward-looking, responsible owner and a partner to all the stakeholders with whom we work, including employees, customers, suppliers, management teams, board members, industrial advisers and society at large.

  • The Board of the Fund Manager is responsible for the implementation of the ESG programme. Graeme Ardus is the dedicated ESG professional responsible.

ESG Policy & Solutions

Our Responsible Investment Policy

At Triton, we always seek to grow and improve portfolio companies for long-term sustainability and for the benefit of multiple stakeholders. As such, we recognise the importance of environmental, social, governance (“ESG”) issues in protecting and creating value for our investors, portfolio companies, and the communities where our portfolio companies operate. We want to always act as a responsible steward of investors' capital and portfolio companies’ businesses, and believe the effective management of ESG issues is critical to this. Triton’s investment strategy is to Build Better Business through transformational change and ESG is a critical element of Triton’s toolkit for building them.  That is why we apply an ESG lens to every Triton investment.

Read our full Responsible Investment Policy here.

Our Remuneration Policy is consistent with our approach to the integration of sustainability risk and does not encourage excessive risk-taking with respect to sustainability risks.

Working with portfolio companies to find ESG solutions

We believe that taking environmental, social and governance (ESG) considerations into account is essential. Addressing ESG challenges and finding solutions with our portfolio companies leads to building better business in the communities where we and our portfolio companies operate. We also understand that focusing on ESG with our portfolio companies will protect and create value while positioning them for a better future.

We work in close partnership with our portfolio companies and support them through an ESG programme and an annual forum. This forum brings key functional leaders from our portfolio companies together to learn, share and find better solutions.

Learn more about some of the topics that we discussed at our 2018 event in ESG Forum video.

Sustainability-related disclosures

Principal Adverse Sustainability Impacts Statement

Triton1 considers the principal adverse impacts of its investment decisions on sustainability factors.

The Triton Responsible Investment Policy
Triton’s Responsible Investment Policy (“RI Policy”) sets out its approach to identifying and managing environmental, social and governance (“ESG”) factors in both investment and portfolio management processes. The RI Policy was first developed in 2012 and was last revised in 2021. The Head of ESG is responsible for the implementation of the RI Policy and the relevant fund manager has overall responsibility for the ESG Programme. Triton expects each portfolio company board to take full responsibility for implementing the ESG Programme in their business. Portfolio company boards designate responsibility for ESG agenda delivery to members of their management team, who are supported by the ESG Team.

Principal adverse impact assessment methodologies
As part of the investment decision-making process, all potential portfolio companies are reviewed for ESG risks and opportunities. The ESG Team apply their professional judgement to identify the principal adverse impact of every potential investment. This is supplemented by online screening to identify any adverse impact and negative media coverage. In addition, for Triton Mid-Market (“TMM”) and Triton Smaller Mid-Cap (“TSM”) funds, standalone ESG due diligence is conducted by third-party experts.

Triton rolled out formal ESG KPI reporting in 2016 to track how its activities impact the environment and the communities in which its portfolio companies operate. In 2020, these indicators were reviewed to align with Triton’s external and internal materiality assessment. This systematic annual reporting allows us to track improvements during Triton’s ownership and identify and prioritise the management of material ESG risks and opportunities.

Portfolio companies are encouraged to conduct an appropriate materiality assessment to determine the probability of occurrence and severity of each adverse impact. As of 2020, this process is supported by a third-party software analytics platform that analyses relevant information available from public sources. The material topics identified help portfolio companies to recognise ESG issues, risks and opportunities in their ESG Action Plan.

Data sources
Under our private equity strategies, we collect relevant information directly from our portfolio companies through our online KPI reporting platform.

As our credit strategy is focused on minority positions in companies we do not control, we base our analysis on material adverse impacts on relevant sectors and complement this with company-specific information.

Engagement policies
Triton believes that better businesses will play a crucial role in a sustainable world and ESG is a critical element of Triton’s toolkit for building them. Triton has a structured, active ownership process, which aligns the expertise of the Chair, the CEO, the Investment Captain, and other senior executives. The process provides operational support for portfolio companies’ strategy, corporate governance, capital structure and supports them in managing their social and environmental impact.

Our engagement with portfolio companies begins with a comprehensive onboarding process. In the first year of ownership, Triton works with all portfolio companies to assign responsibilities for ESG management and develop an ESG Action Plan. We also introduce mandatory improvements to the ESG control environment, including the requirement to implement a minimum set of group-wide ESG-related policies.

Triton’s onboarding process for a portfolio company is followed by a detailed ESG Programme. Triton sets annual portfolio-wide ESG focus areas to drive improvement across the portfolio based on current relevant topics. For example, in 2021, these areas centred around energy consumption, carbon emissions, circular economy, health and wellbeing, safety, supply chain management, loss prevention, data protection and cybersecurity. In addition, we support portfolio companies in identifying relevant UN Sustainable Development Goals and setting associated targets.

Progress against each portfolio company’s specific ESG Action Plan, and its ESG Programme more generally, is closely tracked and appropriate adjustments are made when required. For example, several changes were made in 2020 due to the impact of the COVID-19 pandemic.

In 2019, Triton initiated an ongoing programme to encourage portfolio companies to identify the financial value created and protected through ESG improvements.

Specific approaches to climate-related risks and opportunities
During 2019, Triton developed a portfolio energy transition strategy encouraging portfolio companies to improve their energy and resource efficiency by implementing measures such as switching to renewable energy sources.

Triton supported its portfolio companies to assess relevant climate-related risks and opportunities in line with guidance from the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (“TCFD”). Portfolio companies are now implementing management actions arising from these assessments.

Another important part of this approach is Triton’s active membership of Initiative Climat International (“iCI”), a collective commitment to understand and reduce carbon emissions of private equity-backed companies and secure sustainable investment performance.

Most of our portfolio companies have now put in place an environmental programme and climate change will remain a key focus area. We are now focused on helping our businesses to identify opportunities to align with the EU Taxonomy for climate change mitigation and adaptation, whilst ensuring no harm is done to other environmental objectives.

[1] Triton Investment Management S.à r.l., Triton Investment Management Limited and any of their affiliates.

March 2021

ART 8 FUNDS DISCLOSURES

The description of the environmental or social characteristics of the funds we have self-certified as Article 8 funds can be found on the following section of our website.

The disclosures above are made in accordance with the Sustainability-Related Disclosures Regulation (2019/2088).

UN PRI

UN PRI

Triton is a signatory to the United Nations-backed Principles for Responsible Investment Initiative (UN PRI) since 2012. The UN PRI is a network of international investors working together to ensure that ESG issues are given appropriate consideration in the investment process.

As signatories we incorporate environmental, social and governance principles into our investment analysis, decision-making processes, ownership policies and practice.

Read our RI Transparency Reports:

UN PRI
LEVEL 20 SPONSORSHIP

A proud Level 20 Sponsor

We are delighted to be a Sponsor of Level 20, the not-for-profit organisation established to inspire women to join and succeed in the private equity industry.

Our firm supports Level 20’s mission to encourage greater female representation across the private equity industry with the goal of having 20% of senior positions in the industry held by women and with a particular focus on increasing the number of women in investment roles.

We support Level 20’s five key initiatives to achieve this mission: mentoring and development; networking and events; outreach; advocacy; and research. We encourage our employees irrespective of gender to be active members of Level 20 by contributing to Level 20-led research, discussion groups and outreach events and participating in the annual mentoring programme. Our firm’s engagement with these activities is led by our internal Level 20 Ambassador.

LEVEL 20 SPONSORSHIP
ESG Forum

Our Annual Forum to learn, share and find better solutions

We work in close partnership with our portfolio companies and support them through an ESG platform and an annual forum.

This forum brings key functional leaders from our portfolio companies together to learn, share and find better solutions.

Learn more about some of the topics that we discussed during our ESG forums in the below films:

ESG FORUM 2019

ESG FORUM 2018

ESG FORUM 2017

ESG FORUM 2016

ESG Forum
Responsible Investment Report

Our Responsible Investment Report

Environmental, social and governance (ESG) issues are core to Triton’s business and our approach to managing and improving performance. In this report, we outline how we aim to create value through responsible investing and ownership. We celebrate the progress that we have been able to achieve, address challenges and explore the future. The report summarises our ESG programme and how we integrate it into what we do, including details of our ESG materiality assessment, material Sustainable Development Goals (SDGs) and approach to managing climate-related risks and opportunities. It also contains baseline ESG performance data from 2019 against which we will measure progress going forward.

EXPLORE THE REPORT

Responsible Investment Report

Responsible Investment timeline

 
 
2020
2020
2020
2020
2019
2019
2018
2018
2018
2018
2017
2017
2017
2016
2015
2015
2014
2014
2014
2013
2012
2012
 
 
ESG webinar
ESG webinar series in lieu of ESG Forum: “Building back better”
Covid-19 Support
Supported PCs through Covid-19 pandemic
Material SDGs
Identified material SDGs and targets
Responsible Investment Report
Published first Responsible Investment Report
ESG Awards
Launched portfolio company annual ESG Awards
Sixth ESG Forum
6th
ESG Forum focused on ‘Capturing Value Creation’
ESG team
Grew ESG team with two new members
Bi-annual Reviews
Formalised portfolio company ESG bi-annual reviews
Fifth ESG Forum
5th
ESG Forum focused on ‘Enhancing Culture’
ESG reporting tool
Introduced online ESG reporting tool
Cyber risk
Addressing cyber risk
Fourth ESG Forum
4th
ESG Forum focused on ‘From Reactive to Proactive’
Diversity program
Introduced our diversity program
Third ESG Forum
3rd
ESG Forum focused on ‘Value Protection to Value Creation’
Online solutions
Online solutions and EED initiative
Second ESG Forum
2nd
Second ESG Forum focused on ‘Risk Management’
ESG Action Plan
ESG Ratings and Action Plan for all Triton PCs
First ESG Forum
1st
First ESG Forum focused on ‘Policy Implementation’
PC roll-out
ESG Programme roll-out to Triton Portfolio Companies
ESG Team
Triton appointed our dedicated ESG team
PRI signatory
Triton becomes a PRI signatory
Responsible Investment policy
Triton approved Responsible Investment policy