How Greenscope helped Naxicap on different aspects of the ESG strategy

Estimation of the carbon footprint of portfolio companies

• Greenscope estimated the carbon footprint of about fifty of Naxicap’s portfolio companies through a dedicated questionnaire, in order to meet its transparency objectives, raise awareness among its portfolio companies, and encourage them to carry out their own carbon footprint assessments.
• With the support of its ESG analysts, Greenscope provided its turnkey tool to:
• Assess and monitor the carbon footprint of funds and portfolio companies year over year
• Identify decarbonization levers per portfolio company
• Communicate through carbon summary sheets.
• Greenscope designed the questionnaires, automated data collection and analysis, and delivered carbon profiles and consolidated dashboards, enabling monitoring, comparison, and target-setting.
• Naxicap now has a clear view of its emissions and levers for action to improve its environmental impact.

Definition of an ESG scoring system

• Greenscope also defined an ESG scoring system across the entire Naxicap portfolio.
• The scoring enabled benchmarking between portfolio companies, strategic ESG steering of the portfolio, monitoring of performance improvements, and ensured reporting to investors.
• The scores are delivered in the platform via dynamic dashboards and summary sheets that can be shared with portfolio companies.

• French private equity fund specialized in small and medium-sized enterprises
• Finance
• 100-150 employees
• Greenscope’s missions: carbon footprint estimation and definition of an ESG scoring system

Naxicap Partners is a French private equity player, carrying out LBO and growth capital operations in France, Benelux, Germany, and Spain in various sectors such as healthcare, agriculture, and real estate.

The carbon footprint assessment by Greenscope takes place within the regulatory context of SFDR, which requires asset managers to report on the non-financial performance of their portfolio companies, notably on their greenhouse gas emissions and reduction strategies.

Several challenges had to be addressed to assess the carbon footprint:

• Identify all activities contributing to the carbon footprint
• Collect and analyze data effectively (check data consistency, etc.)
• Associate impact factors with activity data to automate results
• Integrate historical data for accurate comparison and trend analysis.

Greenscope was thus mandated to:

• Carry out the carbon assessment for the 50 companies in Naxicap’s portfolio
• Create dashboards, presenting scope 1, 2, 3 and detailed emission sources
• Interpret the results and evolution of the carbon footprint compared to historical data
• Provide relevant analyses for each portfolio company in order to improve Naxicap’s overall environmental impact.

Naxicap also wanted to evaluate and compare the ESG performance of its portfolio companies. With this objective, Greenscope supported Naxicap in defining an ESG scoring system.

This scoring system was co-built between Naxicap’s ESG teams and Greenscope. Naxicap had its own scoring grids and indicators, which Greenscope then digitized and integrated into the platform. Some adjustments – notably the evolution of scoring grids – were made after the first results observed in the platform.

The integration of the scoring is continuous, as year-over-year changes in scoring are taken into account by the platform without disruption.

Greenscope was chosen for the flexibility of its platform, its user-friendliness, and its ability to support the company on its ESG issues, with the right level of service and expertise.

The carbon footprint estimation mission was carried out in 3 stages.

The mission began with the identification of the scope of emitting activities and the digitization of customized carbon questionnaires adapted to the data available from each company.

We then collected Scope 1, 2, and 3 data from portfolio companies covering more than 10 sectors (healthcare, cosmetics, food, real estate, etc.), with continuous support from our ESG experts to ensure the quality of responses.

Greenscope analyzed this data via its platform, checked for consistency, then produced visual carbon sheets and consolidated everything into dashboards.

The results are:

• A carbon assessment for the 50 portfolio companies
• Customized dashboards, visual carbon profiles, and PowerPoint restitution sheets, with details of emissions by scope and emission source
• Analyses on how to improve environmental performance tailored to the context of each portfolio company.

Concerning the scoring, the main benefits were:

• Time savings on score calculation and automatic updating.
• Traceability and auditability of calculation rules, facilitating exchanges with portfolio companies or auditors
• The ability to export Excel files to perform additional analyses outside the platform.