Our Approach to Responsible Business
As part of our approach to being a responsible business, we believe that the consideration of environmental, social and governance (ESG) issues is a fundamental part of good business and investment practice.
It supports the alignment of interests and can help to create long-term sustainable value. We are committed to being a responsible investor, and we are signatories to the UN-supported Principles for Responsible Investment.
Our Responsible Investment Policy sets out our guidelines in relation to the consideration of ESG factors in the way we run our own operations, make new investments and manage our portfolio businesses. Its implementation is overseen by Terra Firma’s Sustainability Committee.
We expect our portfolio companies to treat their staff, customers and suppliers fairly. We encourage community engagement and we also ensure active management of the environmental impacts our businesses have.
It is essential that everyone understands our objectives, plans and results.
We are committed to providing our investors and other stakeholders with a high level of disclosure around our structure and operations and how we create long-term value in the businesses we invest in.
In 2007, following the recommendations made by Sir David Walker in his report ‘Disclosure and Transparency in Private Equity’, Terra Firma was one of the first private equity groups in the UK to publish an annual review of its business.
Our portfolio businesses share our approach to transparency, corporate social responsibility and environmental awareness. The majority publish annual reports in line with the Private Equity Reporting Group (PERG – formerly the Walker Guidelines Monitoring Group) guidelines, although this is not mandatory for non-UK businesses.
Annual PERG reports on industry compliance have consistently included Terra Firma’s businesses as examples of good disclosure. You can find their reports here.
In addition, Terra Firma has endorsed the Institutional Limited Partner Association (ILPA) Private Equity Principles, and is a signatory to the UN-supported Principles for Responsible Investment.
Our annual UN PRI report and assessment are available here.