Eurazeo : O+ Progress Report 2020

2020	Progress Report

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C O N T E N T S

O+: Our new ESG Strategy to Power
Better Growth............................................	11
Climate: reaching carbon net neutrality by
2040 at the latest.............................................	12
Inclusion: promoting a more inclusive
economy............................................................	18
Global Sustainability: progressing on all ESG
dimensions........................................................	22

Our Sustainability Approach	.............24
An early-on commitment to ESG.................	24
State of the art ESG accountability and
advocacy............................................................	26
Embedding ESG in the investment
process...............................................................	28
They drive ESG within the Eurazeo Group	....30

Our Achievements	..................................32
Investment Process.........................................	32
Portfolio impact overview...............................	34

Methodologies........................................	40
SDGs assessment.............................................	40
Carbon footprint and climate risk
assessments.....................................................	43
Non-financial reporting...................................	45

Cross-reference table

...........................46

Virginie Morgon,

CEO

				Progress Report	2020	2020	Progress Report

CEO STATEMENT

In 2020, we experienced a completely unprecedented crisis, considering its global reach and the impact it has had on people's well- being-physically, mentally, economically and socially.

This crisis has also called into question the geographical location of our business, the resilience of our economic structures and the value of sharing and solidarity.

I strongly believe that the financial community has to play a greater role in shaping the new world and that private equity will have an integral part to play.

Our capacity to finance and support global businesses that create jobs gives us both the means and the responsibility to act.

"Eurazeo is determined to turn its funding power into a catalyst for" transition.

Eurazeo has often been ahead of the curve in its industry in matters such as governance, inclusion and environmental efficiency. We are stepping up our action to contribute to Sustainable Development Goals with the launch of O+, based on two main commitments: achieving carbon net neutrality by 2040 and promoting a more inclusive society.

Eurazeo is determined to turn its funding power into a catalyst for transition. A transition to a more inclusive, equal and fairer society. A transition to an economy that is environmentally sustainable, respectful of the planet's limits and the Paris Accord. It is not only a social responsibility but also a fiduciary one, as we believe these choices will inevitably lead to stronger performance and more resilient investments.

That is the ambitious promise we are determined to honor. To do so, we need everyone to play their part. All employees throughout the Group have bought into this ambition, which is also supported across the board by our stakeholders, including Limited Partners, investors, invested companies and business partners. It is through these objectives that we face up to our corporate social responsibility, and we leverage our extensive influence to be part of the solution worldwide.

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				Progress Report	2020	2020	Progress Report

AT THE CORE OF EURAZEO: POWER BETTER GROWTH

To meet today's major challenges, businesses must embrace change, grow, innovate, expand worldwide and look beyond their core business. To support them, they need a robust, visionary, exemplary and engaged partner. Eurazeo is that partner. From startups to SMEs, mid-capsand international groups, we identify, finance and accelerate companies, as well as innovative entrepreneurs and emerging talents.

Eurazeo is a leading global investment group

Eurazeo has a diversified portfolio of around €26 billion in assets under management, including €18 billion managed on behalf of third parties, invested in some 450 companies. With our private equity, real estate and private debt expertise, we support companies of all sizes, helping them develop through the commitment and skills of our nearly 300 professionals, our in-depth sector knowledge, the privileged access we provide to global markets, and our identity as a responsible and sustainable investor.

Our institutional and family shareholder base, and in particular the long-standing support of the David-Weill and Decaux families, our solid financial position with no structural debt on the balance sheet, and our flexible investment horizon enable us to support companies over the long term.

To help our portfolio companies with their international expansion and to be as close as possible to our investment partners, we have offices in Paris, New York, Berlin, Frankfurt, London, Luxembourg, Madrid, São Paulo, Seoul, Shanghai and Singapore. The Group is listed on Euronext Paris.

~€26bn

OF AUM

8	450
AREAS OF	PORTFOLIO
EXPERTISE1	COMPANIES

10

COUNTRIES

300

EMPLOYEES

A leader in asset management for private markets, Eurazeo adopts bold investment strategies to identify and nurture tomorrow's champions and support their transformation.

Our business model, together with the diversification of our activities, geographies and investments, makes us a European leader with a global footprint. Eurazeo is recognized as one of the leading European players in Private Equity, which accounts for 76% of its business. With its two other asset classes, Private Debt (20%) and Real Assets (4%), the Group funds companies across the entire investment spectrum.

We target high-growth sectors

The growth of our portfolio is driven by a fully integrated organization. We focus on promising sectors such as technology, health care and financial services. Nearly half of the investments by our Private Equity teams are in technology companies: e-commerce, the internet of things, robotics, software development, and electronic payments. In the health care sector, we are accelerating our investments in biotechnology, diagnostics, devices, remote medicine, and clinical trials. Our teams are also closely monitoring other promising sectors, including financial services, asset management, education, and premium consumer goods.

Real Assets

Private Debt

4%

Private Equity

20%

76%

As of June 2021

1 Buyout, Acceleration, Venture, Private Funds Group, Direct Lending, Asset-based Finance, Real Estate, Infrastructure

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Progress Report

2020

ENGAGEMENTS

130

2020	Progress Report

O+: OUR NEW ESG STRATEGY TO POWER BETTER GROWTH

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110
100
90
80
70
60
50
40
30
Power Better Growth

Since 2004, we have repeatedly demonstrated our ability to combine corporate responsibility and strong company performance, earning us worldwide recognition. Today, we are the only investment company to be included in the five leading families of non-financial benchmark indices.

As a private equity pioneer that is fully committed to creating a sustainable future, Eurazeo has an ambitious approach to responsibility, aligned with the United Nations' Sustainable Development Goals (SDGs). We strive to combine economic growth with social progress, an environmental footprint reduced to the planet boundaries, balanced governance and value creation. To do so, Eurazeo provides its investments with the necessary time, resources and expertise.

In 2020, Eurazeo launched O+, a leading and impactful ESG strategy within the financial industry to this date. O+ takes ESG one step further to drive positive change in society through shared and sustainable prosperity. This 20-year action plan focuses on two flagship goals: reaching carbon net neutrality by 2040 and promoting a more inclusive economy. It also aims to boost progress on all ESG dimensions, as defined by the SDGs.

We are the first company in our industry to aim this high. We will embark every company in our portfolio on this path to decarbonization, and inclusion. These commitments demonstrate Eurazeo's values, history and identity.

2 flagship commitments

to drive positive change

in society

CLIMATE

Reach carbon net neutrality by 2040 at the latest

&

Promote a more inclusive economy

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10
01	02	03	EXPERTISES

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A PRINCIPLE OF ACTION TO PROGRESS ON ALL ESG DIMENSIONS

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