Responsibility

A key objective of Terra Firma is building a sustainable investment portfolio and being a leading value-adding, environmentally and socially conscious organisation. At Terra Firma we believe in making a positive change, but we also believe that responsible investment is no longer viewed as a ‘nice to have,’ but rather, has become a critical element in gaining market share, raising capital and engaging employees. Through our investment decisions and investment management, we aim to deliver strong returns while adhering to best practices.

Throughout our diverse portfolio, we believe in taking a collaborative approach to ESG which enables each business to establish where it sits in the ESG space and what positive impact it is able to have.

As an investment manager, our broad ESG mission is:

ENVIRONMENTAL: We aim to promote the reduction of carbon emissions and limit environmental damage through the adoption of sustainable practices

SOCIAL: We promote the ideals of equal opportunity and diverse representation within each business and support a positive social agenda focusing on the communities in which we invest

GOVERNANCE: We drive transparency, accountability and sustainable business practices with all our stakeholders including employees, customers, suppliers, investors and our community

Our Portfolio’s Commitment

Each of our portfolio businesses controls very different assets and have very different operations. They therefore adopt strategic ESG goals that are most relevant and impactful to the sectors that they operate in, while also always pointing back to Terra Firma’s ESG mission.

Our portfolio companies have reported progressive action on significant ESG matters. A few notable examples from the past year:

• Annington Homes: One of the largest private owners of residential property in the UK, the business focuses on a mission of refurbishing, repurposing, and reviving communities. ESG efforts have included establishing a significant construction material recycling programme, recycling over 95% of construction waste. It has also partnered with specialist organisations that provide support to military service families. To help those organisations sustain themselves and be effective through the pandemic, Annington provided various forms of support to 9 key charities and advised on their digital operations
• Consolidated Pastoral Company (CPC): The largest privately owned beef producer in Australia. CPC is leading the way on gender equity in the Australian pastoral sector, with a 45% female workforce. CPC is also exploring opportunities for a land business that can be used for green energy production and carbon capture
• Food Folk: The master franchisee for McDonald’s Nordic operation, with over 400 restaurants, is the leading quick service restaurant business across Scandinavia. Food Folk is also a leading employer in the Nordics for immigrants, as well as accelerating the move away from fossil fuels by installing electric vehicle charging stations at many of its stores across the region
• Hand Picked Hotels: A collection of 19 country house hotels across the UK and the Channel Islands. The hotel group is moving towards sustainable procurement, going local where possible on food products, reducing the presence of palm oil, parabens and SLS components in its toiletries, and actively supporting local environmental initiatives

As we look at new deals, we will continue to seek ESG opportunities for value creation and to mitigate ESG risks while investing.

We aim to be thought leaders in the ESG space and to be influential within the private markets sector. Terra Firma continues to engage with an array of advisors and experts to develop more effective methods, and we are continuously re-imagining how some of our businesses can work in the future.