Governance

The company is managed by committees at the strategic and investment levels.

Compliance

Seven2 is a portfolio management company regulated by the Autorité des Marchés Financiers (AMF), France financial regulatory authority. The firm manages regulated funds (Fonds Professionnels de Capital Investissement – FPCI) and complies with the EU’s Alternative Investment Fund Managers Directive (AIFMD). Seven2 is also a member of France Invest (ex-AFIC), the French private equity investors association.

Transparency

The company continuously provides detailed reporting to its investors on the performance of investment funds and portfolio companies.

A voluntary ESG approach

Seven2 decided, in 2011, to embrace a comprehensive environmental, social, and governance (ESG) strategy and joined the PRI, the world’s leading proponent of responsible investment.

ESG Team

Seven2 decided to allocate dedicated resources: a partner and an ESG Director to coordinate the ESG policy. For each company, Seven2’s ESG team provides concrete support to implement and follow through its tailor-made action plan.

Each year since 2017, Seven2 was assessed by the PRI A+ in “Strategy & Governance” and A in “private equity”.

A contribution at every stage of the investment process

Prior to an acquisition, we:

  • conduct ESG due diligence;
  • integrate ESG principles into offers and shareholder agreements.

During the holding period, we:

  • define a specific roadmap with management;
  • encourage the appointment of a company project leader;
  • support implementation of the action plan;
  • follow through the implementation and results via appropriate governance.

At exit, we:

  • provide ESG vendor due diligence.

Initiatives ESG

  • In 2018, Seven2 contributed in to the ESG Guide, published by France Invest assisted by PWC.
  • In 2016, Seven2 completed two pilot projects to measure ESG contribution to value creation. Both pilots confirmed a positive impact and encourage to extend the initiative to other portfolio companies.
  • In 2015, Seven2 launched Initiative Carbone 2020 with four other private equity firms. This initiative is the first private equity commitment to manage and reduce greenhouse gas emissions in portfolio companies and comprises 22 signatories to date.
  • Seven2 contributes also to PRI guide “Integrating ESG in private equity” with a dedicated Seven2 case study.
  • In 2020, Seven2 implemented its new intuitive and efficient digital platform “Reporting 21” to collect, analyze and increase the speed and efficiency of reporting ESG data across all of its portfolio companies. The resulting output is a precise, comprehensive and impactful ESG report that takes into the account the specific characteristics of each investment company and reinforces Seven2’s position as a leader in management of ESG.
  • Seven2 is an active member of France Invest’s ESG commission.

No consideration of principal adverse impacts of investment decisions on sustainability factors at this time

Although Seven2 SAS considers environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters (“Sustainability Factors”) as part of its investment processes, at this juncture Partners SAS has opted against affirmatively stating that it considers principal adverse impacts on such Sustainability Factors as prescribed in the requirements of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (“SFDR“), primarily because the regulatory technical standards supplementing SFDR, which will set out the content, methodology and information required in the principal adverse sustainability impact statement, remain in draft form and have not been fully clarified. As such, Seven2 SAS believes the most prudent course of action is to await the detailed and clear regulatory guidance at which point Seven2 SAS expects to re-assess whether the requirements of SFDR, as it relates to the consideration of adverse impacts of investment decisions on Sustainability Factors, is appropriate for Seven2 SAS and achievable to be appropriately implemented.

Remuneration policies

Seven2 SAS remuneration policies are designed to promote sound and effective risk management and not to encourage risk-taking, including sustainability risks, which is inconsistent with the risk profiles of the investment funds managed by Seven2 SAS.