Our Responsibility

About Renatus Capital

Renatus was established in 2014 by Mark Flood and Brendan Traynor as a boutique, high-impact private equity firm, providing supportive equity capital to ambitious Irish and UK SMEs.

Renatus provides supportive equity capital to growing Irish and UK SMEs, and partners with ambitious management teams to help companies reach their full potential. It targets companies with sustainable earnings of €1m+. Typical solutions it provides funding for include succession planning, MBOs/MBIs, organic and acquisition growth funding as well as share sales.

To date, Renatus has backed ten exciting business:

Introduction and Scope

Renatus has adopted a commitment to responsible investment, with particular focus upon our Environmental, Social and Governance (“ESG”) processes.
Renatus will integrate ESG considerations across our business operations to the benefit of our stakeholders. This will apply to both how Renatus itself operates as a business as well as our investment approach. We believe that a progressive ESG investment approach will open up new opportunities, for example, energy efficiency businesses, that are likely to produce higher returns over the coming years. As of 1 May 2024, Renatus has become a signatory of the UN’s Principles for Responsible Investment (PRI) and will apply internationally recognised standards to responsible investments. The PRI is a globally recognised voluntary framework concerned with the incorporation of ESG considerations into the investment analysis, ownership and decision-making processes and as a signatory, we look to integrate the PRI’s Principles for Responsible Investment within our investment processes. To ensure that our ESG policy is embedded within all parts of the business, all Renatus staff have confirmed that they have read its contents. Best practice training sessions on ESG and sustainability-related issues will be provided for all staff to ensure that full consideration to these issues is given throughout the investment cycle and in their day-to-day activities.

Deal Appraisal / Due Diligence:

  • We will factor in ESG considerations in our initial screening of all new investment opportunities. In doing this, we will consider the target company’s business model and operating practices and review these through an ESG lens.
  • During detailed diligence, we will assess and measure the target company’s present approach and performance in ESG. We will give careful consideration to identified ESG issues and opportunities. Key topics of focus, among others, will be: diversity, labour standards, energy efficiency savings, recycling and use of natural resources and pollution control. 
  • We will avoid investments in the following areas: 
    • The production or trade in products or activities deemed illegal under applicable laws or banned through international convention. 
    • The supply or purchase of sanctioned products, goods or services to or from countries or regions covered by international sanction. 
    • The production of or trade in weapons, or technology which is subject to existing international prohibitions.
    • Tobacco. 
  • This work will be led by the Renatus investment team and overseen by Renatus’ founding partners. 

Investment Committee:

  • The Renatus Investment Committee will consider the findings of the ESG due diligence in its assessment of the investment decision.
  • Should there be any risks flagged at Investment Committee, then further diligence (internal and/or third party) will be undertaken and will need to pass final Investment Committee prior to any investment by Renatus.

 

Post-Investment / Portfolio Management: 

  • We consider strong ESG performance to be a value driver in its portfolio companies and believe that this will be enhanced over the next 4-5 years. 
  • Post-investment, we will actively engage with the management teams of its portfolio companies to address the key findings from the ESG diligence work and implement any recommended actions. 
  • We will consider incentive mechanisms to encourage management to bring about positive ESG changes within their organisations. 
  • We will also add ESG monitoring, and improvement action plans will be a permanent agenda item in all portfolio board meetings.

Exit: 

  • We believe that a proactive approach to ESG and demonstrable progress will be viewed favourably by prospective buyers as they recognise that companies which incorporate ESG considerations into their daily operations deliver sustainable growth and profitability as well as the broader benefits to the owner of the company.
  • We will incorporate ESG performance in the investment memorandum or dataroom for potential buyers.

Renatus Corporate Actions:

  • In addition to developing positive ESG changes within our portfolio of companies, we will also implement a strong focus on positive ESG decision-making and practices in our own business. This will be through engagement with our staff, Investment Committee and Limited Partners on our ESG policy and how we plan to implement it.
  • It will also be done through education of our staff to ensure they understand ESG and its place in how Renatus operates as a business and investor.
  • We will embed making a positive ESG impact into our core values and culture.

The UN-supported PRI

Renatus is proud to showcase our commitment to responsible investing by joining The UN-supported PRI. The PRI is the world’s leading proponent of responsible investment.

Last reviewed: April 2024

Next review date: April 2025

UN’s Principles for Responsible Investment

We commit to following the UN’s Principles for Responsible Investment and actions. These guiding principles will be carefully considered in each corporate and investment decision, with action always steered by our guiding values of promoting positive change for all our stakeholders. 

Principle 1

We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2

We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4

We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5

We will work together to enhance our effectiveness in implementing the Principles.

Principle 6

We will each report on our activities and progress towards implementing the Principles.

Indicative ESG KPIs to be Tracked

The below table sets out sample KPIs that we will seek to measure and track in portfolio businesses. The specific KPIs tracked for each portfolio business will be tailored to each business and we will seek to focus on 4-5 high impact KPIs. 

We recognise that this will require buy in from portfolio management teams and over our investment holding period will work with the portfolio management teams to educate them on the benefits of developing a progressive approach to ESG. In our target market of small to medium size SMEs we expect that this will take time to develop within the businesses, and while endeavouring to apply the KPI measurement and tracking from Day-1, it may take longer to have fully in place. 

Topic

KPIs

Environmental
  • Total energy consumption 
  • Energy intensity – energy consumed per unit of output
  • Greenhouse gas emissions (scope 1 and scope 2)
  • Water consumption
  • Total waste and waste splits between recycled and disposed
  • Single use plastic usage
  • Hazardous materials/environmental compliance
Social
  • Staff satisfaction – employee satisfaction surveys, etc.
  • Employment – net change in employees, staff turnover, absenteeism per employee, sick days per employee, average hourly pay, etc.
  • Health and safety – workplace injuries, sick days, etc
  • Staff Training – hours of employee training per person, etc.
  • Community engagement – volunteering days, value of donations made, number of projects supported
  • Suppliers – % Irish vs % foreign
  • Gender diversity – management and other workforce gender splits, gender pay scale assessment
Governance
  • Board of directors KPIS
    • % independents, gender splits, no. of meetings per annum, absentees per annum, age profiles
  • Effective tax rate
  • Board oversight on ESG improvement plans

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