Since 2010, the decree implementing Article 225 of the Grenelle II law has introduced the obligation to publish a CSR reporting. An European Directive, implemented in France in 2017 by the decree implementing Ordinance 2017-1180, replaced the CSR Reporting of the Grenelle II law by the “DPEF” (French acronym for non-financial performance statement).
As a listed company, Eurazeo is required to provide consolidated CSR reporting, including all of its portfolio companies across 100% of its consolidated financial scope, in respect of fiscal 2015. Thus, all majority-owned portfolio companies participate in CSR reporting. The consolidated CSR data are also subject to consistency checks on consolidation. PwC, a Statutory Auditor appointed as an independent body by Eurazeo, reviews yearly the CSR information published in the Registration Document.
Eurazeo’s reporting is part of its overall CSR approach, which goes beyond regulatory obligations. With its set of indicators both quantitative and qualitative, the CSR reporting provides a global vision on portfolio performance and reveals the strengths and the axes of improvement in each company. A real tool for managing the progress, it enables monitoring key social, environmental, governance and supply-chain indicators, and provides executives a holistic view – a support to decide which progress plans to develop.
Methodology of Measuring avoided impacts
Eurazeo aimed 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.
A methodology for assessing avoided impacts and determining the financial effects was established in partnership with a specialized firm. Eurazeo wants to make this methodology available to all professionals in the investment field.
The calculations were carried out over a period extending from the year of Eurazeo’s investment until 2015 included. The indicators subject to impact calculations were defined in accordance with the existence of progress approach within the company, materiality, availability and data quality criteria for the relevant years.
Whenever possible, calculations were based on operational indicators (e.g. kWh per kg of laundry washed for Elis, liters per night for AccorHotels, or a ratio to the number of meals served for Leon de Bruxelles). In the absence of an operational indicator, the calculations were based on revenue. For each company, a reference year was determined, allowing the trend for each indicator (improvement or deterioration) to be measured. Progress was measured and aggregated each year in relation to the reference year.