Our ESG approach
Sparring Capital believes that value creation, which is the core mission of an equity investor, only makes sense if it is embedded in a responsible investment approach (ESG). Therefore, our investments are made with a view to creating long-term value, which includes environmental, social and governance (ESG) criteria.
We have organized ourselves to apply this ESG approach both within Sparring Capital and in the companies we support.
Sparring Capital has an Sustainability Officer who coordinates the management company’s actions and thinking on the subject and ensures the application of ESG principles at his level and the consistency of the approach within all the companies in the portfolio.
In addition, all members of the investment team at Sparring Capital investors are trained in ESG issues (entry training, bi-annual experience-sharing sessions on the main issues of portfolio companies) and are involved in the day-to-day implementation of the sustainability approach of Sparring Capital, with compliance integrated into the evaluation and compensation processes.
For each of our investments, we systematically conduct an ESG audit in order to identify possible areas of progress and positive impacts for the companies and their stakeholders. The implementation of the identified measures is regularly monitored and the results measured.
Sparring Capital signed the Principles for Responsible Investment (“PRI”) in early 2010. This UN-led initiative aims to encourage the adoption of ESG best practices by investment professionals.
Sparring is also a member of the Institute of Sustainable Finance as well as the International Climate Initiative supported by the PRI since 2021.
Sparring Capital has signed the Charter of Capital Investors as well as the Parity Charter of France Invest.
In 2022, Sparring Capital conducted its first carbon footprint assessment (scope 1, 2, 3) with the consulting firm Crowe – Sustainable Metrics. The company’s emissions were collected and processed based on data availability (physical flows or estimates). In 2021, Sparring Capital emitted 140 tCO2e, with an intensity of 10.8 tCO2e per FTE (Full-Time Equivalent). Scopes 1 and 2 represented 2% and 1% of the total, respectively. Based on these findings, Sparring Capital aims to identify the main reduction strategies for its emissions and implement them during the year 2023. This carbon assessment does not take into account the impact of investments held by Sparring Capital in 2021.