Permira

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Permira procures 100% direct clean electricity for 7 of 15 offices (covering 54% of total office space) and uses Energy Attribute Certificates (EACs) for 8 of 15 offices (covering 46% of office space). This drove a 76% reduction in scope 1 and 2 emissions since 2022, exceeding the SBTi 70% by 2030 commitment ahead of schedule. Across the portfolio, 39% average renewable energy consumption and 50% of buyout PCs procure renewable electricity.

Permira seeks to further contribute to climate action by investing in certified carbon credits from projects that support carbon emissions avoidance and removals, complementing its validated near-term science-based target for direct operations and portfolio coverage target with 5-year and long-term milestones.

• RI Framework exclusions and sub-sector screening

  The Responsible Investing Framework supports investment teams in identifying sub-sectors or activities excluded from investment at the time of investment due to specific risks. It currently applies to P8, P9, PCS5, PCS6 and PSO1 funds and is intended to be applied in a phased approach to future funds.

• Near-term SBTi target for Permira's direct operations

  Permira has set an internal near-term science-based target for its direct operations, validated by SBTi in 2024. This covers Permira's own corporate footprint and is part of the firm's commitment to lead by example in operating its business responsibly.

• Office energy & clean electricity procurement

  Scope 1+2 emissions reduced 76% since 2022 (from 471 to 112 tCO2e market-based) primarily through procuring clean electricity directly and via EACs across 15 Permira offices, plus BREEAM/LEED certified buildings.

• Business travel reduction & sustainable travel policy

  Business travel represents 35% of Permira's scope 3 (excluding financed emissions) and rose to 11,439 tCO2e in 2024. Permira reinforced its 2023 Global Travel Policy and included sustainability criteria in selection of preferred hotels for global business travel.

• Purchased goods & services / sustainable procurement

  Purchased goods & services accounted for 61% of scope 3 (ex-financed) and grew 77% YoY to 19,658 tCO2e driven by business growth. Permira launched a Global Environmental Policy in 2024 setting internal objectives on sustainable office management and procurement.

• Business travel reduction

  Business travel accounts for 43% of total emissions (9,693 tCO2e in 2023, +22% YoY). Permira refreshed its Global Travel and Expenses Policy and Environmental Policy Statement in 2023/4 to minimise unnecessary travel and encourage alternatives such as electric/hybrid taxis, public transport (trains) and car sharing.

• Office energy efficiency in new leases / refurbishments

  Key measures for scope 1+2 include purchasing renewable/clean energy at Permira's offices and considering energy efficiency opportunities in new leases and office refurbishments. All sites are asset-light office spaces.

• Sustainable procurement / ESG supplier selection

  Purchased goods and services represent 50% of Permira's footprint (11,091 tCO2e). Permira includes ESG-related criteria in supplier selection (business travel, events, hotels, restaurants, consultancy), including carbon footprint data and commitments to validated Science-Based Targets where relevant.

• Portfolio company engagement and carbon footprinting webinars

  Permira engages portfolio companies on material climate risks/opportunities, including identifying material climate-related risks, considering carbon footprints, and engaging on target setting. The firm runs portfolio company webinars on key topics including carbon footprinting and margin ratchets.

• Sustainability-linked margin ratchets in Direct Lending and Strategic Opportunities

  Permira Credit offers and implements sustainability-related margin ratchets in loan documentation, where applicable, for Direct Lending and Permira Strategic Opportunities strategies. This pricing mechanism incentivises borrowers to meet sustainability KPIs.

• Portfolio coverage target for SBTi-validated portfolio companies

  Permira has a portfolio coverage target with 5-year and long-term milestones, requiring eligible portfolio companies to set SBTi-validated targets. Eligible companies include all listed equity investments and unlisted PE investments where Permira has a Board seat and funds hold ≥25% equity (companies held less than two years may be excluded). Baseline is 2022.

• Portfolio company SBT engagement (financed emissions)

  Permira's SBTi portfolio coverage target requires 100% of eligible PCs to set SBTi-validated targets by 2040 (35% by 2027). At end-2024, 18 PCs had validated or publicly-committed SBTs (vs 14 in 2023); 12% of invested capital covered by validated SBTi targets and 27% covered by SBTi target or commitment. Permira hosted 3 climate webinars on GHG accounting and SBTs, and has 2 Master Service Agreements with carbon accounting platforms.

• ESG margin ratchets in Direct Lending

  In Direct Lending (PCS funds), 26% of PCS5 PCs have implemented ESG margin ratchets, with 5 further ratchets executed in 2024 bringing total to 13. Margin ratchets are used to incentivise sustainability KPI performance including climate-related metrics.

• Climate transition investment thematic team

  Permira established a dedicated Climate investing team (9 investment professionals, 2 partner co-heads) focused on four themes: (a) energy transition, (b) circular economy, (c) resource efficiency and (d) grid modernisation and resilience. Dual focus on hard assets/projects and enablers (products, services, technology).

• Portfolio company SBT adoption (scope 3 cat 15)

  Permira's SBTi portfolio coverage target commits 35% of eligible PE/listed equity portfolio to set SBTi-validated targets by 2027 and 100% by 2040, measured by invested capital from a 2022 base of 6.6%. By end-2023, 13% of invested capital was covered by SBTi-validated targets with a further 13% formally committed. PE investment, monitoring and value creation teams engage directly with portfolio companies, tracked using an in-house tool.

• Valuing carbon in PE investment lifecycle

  Permira's Managing Partner co-led the SMI PE Taskforce Climate Working Group, publishing guidance on incorporating carbon into PE investment decisions. Permira integrates an approach focused on quantifying portfolio companies' potential exposure to regulated carbon pricing liabilities, performed pre-investment and in periodic portfolio reviews for buyout and growth strategies.

• ESG margin ratchets in Permira Credit direct lending

  As at 31 December 2023, Permira Credit's PCS5 fund had executed eight ESG margin ratchets in total. Climate is embedded within KPIs in different ways including external ESG ratings, GHG emissions reductions (e.g. energy efficiency, fleet efficiency) or submitting GHG targets to SBTi for validation.