Our Environmental, Social and Governance Approach

We are an investment firm with a clear understanding and appreciation of the next generation of consumers, and drive long-term sustainable results by doing the right things for our stakeholders.

ESG embedded in our ways of working

Within our investment philosophy we have a clear understanding and appreciation of the next generation of consumers, combined with a strong focus on Environmental, Social and Governance (‘ESG’) related matters. We have a fundamental belief that taking a sustainable value creation approach to business pays off for our consumers, our businesses, our capital partners, suppliers, and ourselves.

We have a formalized ESG strategy and a clear roadmap to continue to integrate ESG in our ways of working.

Material ESG topics

Within our ESG Strategy, we prioritised four ESG topics based on our materiality analysis. We approach these topics with tailored programs, both within our own organisation and in our approach to our investments.

While JAB’s investments are operating independently and are accountable to establish their own strategy and ESG agenda, we actively engage with our investments to embed ESG in their strategy and operations. Beyond the four key topics, investments are prioritizing additional ESG topics based on relevance for their respective businesses. We enable best practice sharing on all ESG topics via our unique ESG Collaboration Forum, which takes place every quarter.

We monitor ESG performance based on Key Performance Indicators (KPIs), which as of 2021 will be periodically measured and reported annually. For each of the four prioritised ESG topics we have defined various KPIs both at the level of JAB and our investments. In our 2021 annual report we will report for the first time on our ESG KPIs and the progress that we are making towards achieving our targets.

• Business ethics: Business Ethics is the fundamental cornerstone to the way JAB operates. We are a member of the UN Global Compact and include its Ten Principles into our strategies, policies and procedures. Strong management and accountability practices reinforce business ethics.

• Climate change & energy: We are committed to reducing greenhouse gas emissions (GHG) in line with achieving the goals of the Paris Agreement. The Science Based Targets initiative (SBTi) provides us with the framework to guide emissions reductions for ourselves and our investments. We follow and support the recommendations of the Task Force for Climaterelated Financial Disclosures (TCFD) to identify and manage climate risks and opportunities.

• Equality of opportunity, diversity & inclusion: We commit to identifying and eliminating systemic barriers along the entire employee life cycle to create a diverse and inclusive workplace in which our people can experience equality of opportunity. We commit to have an inclusive culture and a diverse team that delivers long-term sustainable results through better decision making. We strive to offer equal pay based on function level and geography and maintain a working environment conducive to high job satisfaction and low turnover rate. We actively engage in the G7 Business for Inclusive Growth (‘B4IG’) coalition to advance human rights throughout value chains, build inclusive workplaces and strengthen inclusion.

• ESG management & accountability: We follow the six Principles for Responsible Investment (PRI) and have a fit-for-purpose lean governance structure for sustainable value creation.

UN Sustainable Development Goals

JAB is a signatory to the UN Global Compact (UNGC), supports the Ten Principles of UNGC on human rights, labour, environment and anti-corruption and is committed to the UN Sustainable Development Goals (SDGs). The SDGs are the internationally recognized framework, adopted by all UN Member States in 2015, as part of the Agenda 2030 for Sustainable Development. It is clear that the SDGs directly and indirectly relate to the operations of any business, and it is for this reason we have aligned.

Our key ESG topics with the relevant SDGs. With our ESG approach both at JAB and the level of our Platform Investments, we contribute to several SDGs, including:

Governance

JAB is overseen by the two Managing Partners, Peter Harf and Olivier Goudet, supported by nine other partners and senior partners, and our Chief Financial Officer. The Firm’s governance principles are based on mutuality, trust and consensus. Management and decision-making are delegated to the managing partners and require unanimous consent. There is full alignment between JAB management and our shareholders, since the partners are also invested in JAB.

Our businesses are managed independently by their respective CEOs and leadership teams. The members of these leadership teams invest their own wealth into their businesses resulting in strong alignment of interests with those of JAB. Each of our companies has an independent Board of Directors, an Audit Committee and a Remuneration Committee on which JAB partners are represented.

Our Senior Advisors

JAB is partnering with two globally recognized senior advisors, Antonio Weiss and Bertrand Badré, who provide us with advice on various governance and strategy matters, which are within their respective areas of expertise including business development, mergers and acquisitions, and social and environmental matters. As JAB, we highly value independent advice as it provides us with a fresh perspective on where we stand, on our intentions and on our journey.

Antonio Weiss

Senior Advisor

Mr Weiss has advised JAB since its formation as a global investment firm in 2012. His work spans business strategy and public policy. He is a research fellow at Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. From 2014 to 2017, he served as Counselor to the Secretary of the U.S. Treasury, where he oversaw the domestic finance department. Prior to this, he held various leadership roles at Lazard over twenty years in the US and Europe, including as Global Head of Investment Banking from 2009 to 2014.

Bertrand Badré

Senior Advisor

Mr Badré is the founder and CEO of Blue like an Orange Sustainable Capital, an investment Company that manages investments for social and environmental impact to foster inclusive and sustainable growth and reduce risk. Mr Badré also serves as a guarantor to the ‘One Planet Lab’ initiative. Previously, he served as Managing Director and CFO of the World Bank Group, Group CFO of both Société Générale and Crédit Agricole, Partner at Lazard and was an advisor to previous French President Jacques Chirac’s diplomatic team.

Sustainability Reporting by Our Investments

Via the following links you can find formal reporting available for the majority of the platform investments in our portfolio and example initiatives that our investments who do not yet have a formal ESG report are particularly proud of.

Portfolio Company

Link

Visit Site View ESG Report

Visit Site Examples of Initiatives

Visit Site * View ESG Report

*Please note Panera website may not be available in certain countries in the world due to data security / GDPR issues

Visit Site Examples of Initiatives

Visit Site View ESG Report

Visit Site Examples of Initiatives

Risk Management

Risk management is an integral part of the governance structure. Our risk management approach is established to identify and analyse risks faced by JAB, to monitor risks and to implement remediation initiatives to ensure adherence to set limits, our Risk Management function is overseen by a JAB Partner who has extensive background on this subject. The risk management approach and our compliance policies are reviewed regularly to reflect changes in market conditions and the activities of JAB.

Our policies and programs

Our risk management contemplates a broad range of stakeholders, including fixed income investors, equity investors, and the communities in which we operate.

Risk management is an integral part of our business and is among others governed by a comprehensive set of policies and programs.

On financial risk management, our objective is to maintain a level of cash flow certainty that is acceptable to our stakeholders, including equity and fixed income investors, given a certain expected return.

In particular, we monitor closely topics related to:

Capital structure, financing and liquidity
Transactional risks
Foreign currency and balance sheet risk
Counterparty risk (cash, marketable securities and derivatives)
Environmental, Social, Governance and Reputation risks

In 2021, our risk management and other important company policies have been reviewed, updated or newly formulated and ESG has been more strongly integrated where applicable. The following policies are in place:

As presented below a tailored Compliance and Human Capital program are established to address a number of the policies presented above.

Towards our investments we developed a Responsible Investment policy & Stewardship policy and a Human rights policy to provide further guidance on ESG in our investment practices.

Our Responsible Investment & Stewardship policy describes our approach to how we formally incorporate ESG matters in our entire investment process.

JAB participates in G7 Business for Inclusive Growth coalition

As part of our ongoing commitment to ESG and sustainability we are excited to participate in the G7 Business for Inclusive Growth (‘B4IG’) coalition powered by the OECD and sponsored by French President Emmanuel Macron. The B4IG business coalition is a group of 40 leading international businesses that have committed to stepping up business action to advance human rights throughout their value chains, build inclusive workplaces and strengthen inclusion in their internal and external business ecosystems. In doing so, they will advance G7 government-led efforts to strengthen equality of opportunity, tackle regional disadvantages and fight gender discrimination.

This focus is also presented within our investment strategy. JAB recognises that this is a long-term challenge and we commit to putting our passion and energy into ensuring that JAB and our investments help to bring this to life over time, for the benefit of all. Underpinning our pledge is the view that such engagement is not just good corporate responsibility but rather the future of successful business. Business benefits from more inclusive growth models mthrough a more educated and engaged workforce; a larger middle-class of consumers with greater purchasing power; more stable operating environments; and a high level of trust from employees, consumers, customers and other stakeholders. JAB, Pret a Manger, Panera Bread and Keurig Dr Pepper are formal signatories to the Business Pledge.

Our Environmental, Social and Governance Approach

ESG embedded in our ways of working

Material ESG topics

UN Sustainable Development Goals

Governance

Our Senior Advisors

Antonio Weiss

Bertrand Badré

Sustainability Reporting by Our Investments

Portfolio Company

Link

Risk Management

Our policies and programs

JAB participates in G7 Business for Inclusive Growth coalition

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