With over ten years’ experience in driving positive change and creating value through ESG performance, we are continually seeking ways to evolve and challenge ourselves to keep building on the foundations we set in motion from our beginnings. We do this because it’s the right thing to do, but also because we know it makes businesses more valuable for all of our stakeholders.

This report features highlights and key insights from 2023, alongside the progress being made across our portfolio; how ESG links to value creation; and for the first time the social and economic contribution NorthEdge and our portfolio have made to the UK regions.

We also share our plans for the future to support our goals and encourage our portfolio, our peers and the wider community to focus on sustainable growth. Throughout the last 12 months, we have had many highlights and achievements, including:

• Publishing our first ESG materiality matrix to highlight how we prioritise ESG progress relative to risk, opportunity & stakeholder requirements.
• Commissioning business economist Mark Gregory to undertake an independent review of our economic and social impact, which shows that in 2023 the activities of NorthEdge and our portfolio generated £844m of Gross Value Added in the UK.
• Releasing our fourth TCFD report and publishing our first SFDR-aligned Principal Adverse Impact Report.
• Releasing our Net Zero Plan, providing a transparent view of our carbon footprint and our targets to help reduce our emissions over time.
• Being invited join the BVCA’s Responsible Investment Advisory Group, allowing us to use our voice to shape the future of ESG risks and opportunities in the Private Capital industry.
• Organising and participating in numerous events and activities throughout the year for organisations and charities including Yorkshire Children’s Charity, Smart Works, National Brain Appeal & Andy’s Man Club – seeing us raise and donate c.£130,000 in 2023.
• Being named as a top performer in the Orbis Advisory PE ESG Transparency Index and taking home awards from the Real Deals Private Equity Awards & Real Deals ESG Awards, alongside achieving our best ever PRI scores.

We’ve also seen continued efforts from our portfolio to as they work towards building better businesses. We saw the number of companies committing to net zero increase; the number of companies undertaking colleague engagement surveys increase; every company reporting against Scope 1, 2 & 3 carbon emissions for the first time; stability in gender diversity at a board level; and an improved board reporting profile for material ESG factors.

Click here to read the report.

Despite this progress, we’re not done. During 2024 we’re focussing on achieving 100% portfolio alignment with net zero⁽¹⁾; embedding third-party ESG DD into our investment process to improve our assessment of materiality, risk and opportunity; continuing to invest in the UK regions providing growth opportunities for businesses and founders; and ensuring NorthEdge continues to set the best example for our people and portfolio. We’re also committed to continuing to use our voice to shape the future of our industry as we all focus on building better businesses, together.

^{(1) For companies where we are lead investor. Companies invested in post 1 January 2023 have two years from the date of investment to achieve alignment}