DATA ANALYSIS TOOLS Historically, we have concentrated on granular work with individual companies. But our long-term monitoring programs have built up a database of 85,000 ESG KPIs covering almost 90% of Ardian’s assets under management. We have now implemented data analysis tools to help us extract value and insight from this huge store of information. As a result, we are gaining a better overall view of how our performance and contribution are evolving over time. Our macro-analysis is also helping us to link our work with portfolio companies to the UN’s Sustainable Development Goals, and to improve our reporting to LPs. This exercise shows, for example: • In 2019, 66% of portfolio companies that had “Sustainability not been owned for at least two years had pro- only makes companies fit-sharing schemes covering all employees, ver- better businesses, it also sus 56% at acquisition. addresses the concerns • 75% had at least one external board member and of investors, consumers overall a quarter of board members were external. and regulators, all of whomwant to see firms • We have evaluated the carbon footprint of all com-do the right thing.” panies in our Buyout, Expansion and Infrastructure — Philippe Poletti portfolios. Our data show that in the Expansion portfolio, for example, 62% of companies use at least some renewable energy compared with 30% at acquisition. • Our diversity data show that 30% of management positions in our portfolio companies are occupied by women. Data analysis gives us new ways to engage with portfolio companies, help them benchmark their performance and identify areas for improvement. But as well as encouraging them to become more sustainable, we are equipping them with the tools to make change happen. The key initiative here was the launch of our Sustainability Measurement methodology in July 2020, a powerful framework that assesses both ESG in internal operations and the company’s impact on stakeholders and society. This represents an important milestone in the development of Ardian’s investment approach that we intend to apply to all our direct investments. 16 STORIES OF IMPACT