Our Commitment
My belief is that we can halt and reverse some of the damage we have done to our planet, but it requires an extraordinary and coordinated global effort with the major economies picking up most of the cost.
We must focus on inspiring engagement and creating buy-in through pragmatic policies and initiatives, rather than alienating the sceptics and over-burdening communities.
— Guy Hands, founder of Terra Firma and cornerstone investor
Terra Firma is committed to building better businesses, not only in the way they operate but also in terms of making a genuine positive impact and acting as leaders in their respective industries.
We believe that businesses which have strong corporate governance and create positive environmental and social impact will unlock the most value in the long-term.
Responsible Investment Policy
Terra Firma has been a signatory of the Principles of Responsible Investment since 2011.
This policy outlines how ESG considerations are integrated into our due diligence approach to new investments, as well as the management of our existing portfolio.
Read more about our responsible investment position statements below.
1Climate
- We recognise the detrimental impact of climate change on our planet, as well as the financial, operational, legal and reputational risks associated with climate change.
- We believe that businesses should play their part in reducing and managing their impact.
- We are committed to achieving net zero greenhouse gas emissions across our investment activities and portfolio businesses by 2050. This includes direct emissions from Terra Firma and our portfolio business operations including purchased energy (Scope 1&2), and indirect emissions in our value chain (Scope 3).
2Diversity, Equity & Inclusion
- We believe that diverse and inclusive teams create better business outcomes and build stronger businesses.
- As such, we are committed to building a diverse workforce and cultivating an inclusive environment that values and respects all employees, regardless of their gender, background or experience; a culture in which our people feel safe, valued and empowered to share their ideas and perspectives. As part of this, at Terra Firma we are committed to tracking our progress on key measures relating to our culture through our annual externally hosted survey.
- Our current focus is on significantly increasing the number of women in leadership roles across Terra Firma and each of our portfolio businesses. As part of our recruitment practices, we create robust candidate lists with gender balance for all key roles, while we also focus on supporting, developing and advancing women in their careers across our businesses through mentorship programmes, training courses and building a culture of inclusivity.
- We are introducing internal measurement frameworks to understand baselines across Terra Firma and our portfolio businesses, with the aim of developing additional targets in future.
- We are an equal opportunities employer and all recruitment and promotion processes are based solely on merit.
3Corporate Standards
- We strictly adhere to the highest professional standards within Terra Firma and across our portfolio businesses.
- We are committed to acting ethically and with integrity across all of our activities, and as such, Terra Firma and all of our portfolio businesses are required to pay UK living wage, or the international equivalent, and working towards addressing modern slavery risks across all parts of the business and supply chain.
- We have robust processes and whistleblowing mechanisms to help our people raise concerns. Issues are always treated seriously and confidentially and our priority is on ensuring our people are supported, respected and able to perform at their best.
4Supply Chain & Operations
- We strive for the supply chains at Terra Firma and our portfolio businesses to be ethical and sustainable, creating positive benefits and minimising harm to people, society and the environment.
- Terra Firma will institute a Code of Conduct for Suppliers by the end of 2025, and require portfolio businesses to adapt and institute a similar approach by 2026 aligned with relevant industry standards, covering areas such as:
- Greenhouse gas reduction
- Biodiversity
- Waste management
- Sustainable packaging
- Raw material sourcing
- Ethical topics (e.g. modern slavery)
- We are committed to promoting spend on local businesses and on businesses owned by minority groups, starting by tracking current spend with the aim to setting targets in future.