Measuring avoided impacts
As a long-term investor, Eurazeo seeks to value the impact of its actions on social and environmental issues in order to demonstrate that businesses can use CSR policies to leverage their performance and value creation. Eurazeo has accordingly decided to establish a methodology for assessing avoided impacts and determining the financial effects in partnership with a specialized firm.
Nine investments participated in the first two evaluations; a further three joined the initiative in 2017: 12 companies are therefore included in the study of avoided impacts in 2017: AccorHotels (divested in 2018), Asmodee, Elis, Fintrax, Foncia (divested in 2016) and Novacap for Eurazeo Capital, and Groupe Colisée (divested in 2017), Dessange International, Groupe Flash, Léon de Bruxelles, Péters Surgical and Vignal Lighting Group for Eurazeo PME.
Eurazeo’s goal is to gradually extend this analysis to all of its portfolio companies, and to conduct year-on-year performance monitoring.
Over the last seven years, CSR programs implemented by the investments reviewed served to avoid more than €214 million in expenditure, with direct savings totaling nearly €78 million. The investments also avoided the equivalent of 880,000 metric tons of CO2 equivalent, more than 7 million cubic meters of water, nearly 2,200 GWh of energy and 436,000 hours of absence.
Zoom on indirects impacts
Eurazeo also wished to identify specific efforts driven by the companies under review through innovative projects. These initiatives enable the creation of further environmental and economic benefits, outside the scope of the Company itself.
- As part of the Plant for the Planet program, hotel guests of the AccorHotels group are encouraged to reuse their towels when staying more than one night. Plant for the Planet is a unique program in the hotel industry, based on the joint involvement of customers and hotel staff. Half of the money saved on laundry is donated to reforestation projects. In 2014, AccorHotels conducted an impact assessment of the Plant for the Planet program since its launch in 2009. It showed that the projects implemented to date will, over a reference period of 100 years, allow the sequestering of 450,000 metric tons of CO2 equivalent.
- The realization by Foncia of maintenance work aimed at improving the energy performance of buildings resulted in over 210,000 households enjoying total annual savings in excess of €26 million, i.e. over €110 million in four years, by avoiding the consumption of 1,341 GWh of energy. In 2015, Foncia’s efforts to negotiate the price of gas for its customers compounded this performance, bringing a further total saving of €10 million – cutting €177 off the annual energy bill of the 58,000 homes concerned.