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Our Environmental, Social and Governance Approach

We are an investment firm with a clear understanding and appreciation of the next generation of consumers, combined with a strong focus on ESG.

We are an investment firm with a clear understanding and appreciation of the next generation of consumers, combined with a strong focus on ESG. We have a fundamental belief that taking a sustainable approach to business pays off for our consumers, our businesses, our co-investors, our debt investors, and us.

We are committed to an investment philosophy of working collaboratively and serving as long-term stewards of the organisations and brands, and to build long-term sustainable businesses. We achieve this by incorporating ESG principles into our investment philosophy. We encourage our investments to embed sustainability activities in their policies and procedures, and we regularly evaluate our investments’ sustainability performance based on key performance indicators.

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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 into JAB.

Our businesses are managed independently by their respective CEOs and related 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 company 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.

JAB signed the UN Principles for Responsible Investment

In June 2020, we signed the UN Principles for Responsible Investments (PRI). Doing so, we embrace the PRI principles for incorporating ESG matters into our investment practice, investment policies, disclosures, reporting and responsibilities. Important requirements for a signatory to meet are the Responsible Investment (“RI”) policy, senior-level oversight over, and our professionals implementing, responsible investing. In order to provide the Company and our investments with an experienced sounding board on ESG-related issues and questions, we are proud to cooperate with Mr Bertrand Badré.

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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.

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Risk Management

Risk Management Policy

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

Risk management is an integral part of the Firm's governance structure. The Firm's risk management approach is established to identify and analyse risks faced by JAB Holding Company, to monitor risks and to implement remediation initiatives to ensure adherence to limits. The risk management approach is reviewed regularly to reflect changes in market conditions and the activities of JAB.

In practice, we monitor closely topics related to:

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

Principal Risks and Uncertainties

Our financial position is impacted by the performance of our investments, including the resulting impact on valuation. By having a controlling or anchor stake in our investments, and via representation on the Boards, we are able to oversee and influence the financial and operational performance of our portfolio companies, with the aim to achieve solid compounded investment returns.

The loss of key talent could have a negative impact on our operations. This risk is mitigated by investment and long-term equity opportunity of our leadership teams, and by promoting a culture of ownership and opportunity. In this way we continue to attract talented people with the mindset and skillsets to drive long-term value creation.

The impact of the COVID-19 pandemic remains unpredictable and, if significant, may have an adverse effect on our business, financial condition, results of operations and prospects. After taking initial measures to protect our employees, customers and businesses, COVID-19 provides an opportunity to accelerate business transformations. We believe COVID-19 accelerates trends, such as digitisation and channel-expansion, and we will continue to support our businesses to adapt to these trends and emerge out of the crisis even stronger.

From our investing and financing activities, we are exposed to a variety of risks including market risks, price risk, credit risk, liquidity risk, and cash flow risk. It is our objective to manage and mitigate these risks to acceptable levels. Market risk refers to the Firm's exposure to fluctuations in foreign exchange rates and interest rates. Foreign exchange risk on transactions is hedged through forward exchange contracts as necessary. The Firm is exposed to price risk as a result of its investments and subsidiaries. This exposure is not hedged as at 31 December 2020. We actively manage our exposure to interest rate fluctuations. When the Firm is exposed to such fluctuations on floating rate long-term debt the Firm enters, when thresholds have been exceeded, into interest swap agreements. Our exposure to credit risk mainly relates to cash and cash equivalents and is mitigated by transacting with counterparties with high credit ratings. Exposure to liquidity risk is limited, as sufficient liquidity is available in the form of cash, and under our credit facilities.

Within our risk management framework continued consideration is given to fraud risk. Our approach is to minimize fraud risks from the start, both internal and external, and to continuously monitor and update our procedures to detect and if applicable remediate from potential fraudulent events. As an example, our Code of Conduct outlines the norms, and responsibility of our team with the aim to reduce the likelihood of unethical actions and to protect JAB and its stakeholders.

As a long-term investor we are dedicated to having our businesses acting in accordance with the highest ethical and professional standards and together address Environmental, Social, Governance and Reputation risks. We are committed to an investment management philosophy of working with our businesses to address and monitor their material sustainability issues. JAB incorporates sustainability issues into decision-making and ownership practices across its majority owned portfolio of investments. In cases where we have limited ability to influence, we encourage companies to consider relevant activities covered in the Investment monitoring section of this policy.

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Contact Details

JAB Holding Company S.à.r.l.
4, Rue Jean Monnet
L-2180 Luxembourg
Grand Duchy of Luxembourg


(Bond Issuer)
JAB Holdings B.V.
Oosterdoksstraat 80
1011 DK Amsterdam
The Netherlands


If you have any comments about our website, you can either write to us at the address shown above or e-mail us at info@jabholco.com. However, due to the limited number of personnel in our corporate office, we are unable to provide a direct response.