Client testimonial : How does Raise address environmental issues?

In July, we met with Sophie de Fontenay, Managing Director overseeing corporate teams including ESG at Raise. As one of Altitude’s earliest clients, Raise has been integrating our solutions into its investment processes from the very beginning. Our insightful and engaging discussion shed light on how Raise teams leverage the Altitude platform to assess climate and biodiversity risks, strengthen their ESG due diligence, and actively support portfolio companies in defining and implementing adaptation plans.

“I am Sophie de Fontenay, I joined RAISE 6 years ago and I am Managing Director in charge of corporate teams including ESG.

RAISE is an innovative investment platform with a strong philanthropic and impact DNA. RAISE is a mission-driven company invested in Private Equity and Real Estate.

We have 4 main strategies in PE:

• Ventures

• Impact

• Mid cap

• Philanthropic fund

What are your main challenges when it comes to assessing climate risks?

We encounter 3 main challenges when assessing climate risk:

First, limited availability and consistency of climate data for small and mid-sized companies. These data are neither public nor standardized.

Then, evaluating climate risk and exposure over the full investment horizon.

And finally, translating climate risks into financial, operational, and strategic implications can be an issue.

How does Altitude help or support you in addressing these challenges?

We launched our collaboration with Altitude 4 years ago as beta testers of the program.

Since then, we have implemented a tailor-made biodiversity and climate solution which is fully integrated into our investment process.

Now we can model physical risks and evaluate transition risks to which our companies are exposed.

Moreover, we can consolidate and address issues at the portfolio level.

Can you share a concrete example or use case?

As a concrete example, we decided to grant direct access to the Altitude platform to one of our portfolio companies in the childcare sector, which is very engaged on climate and biodiversity topics.

This helped the company to assess site-level risks directly, notably extreme heat.

The insights generated helped define its internal priorities, engage management and investors in this adaptation journey, and manage a dedicated climate action plan.

How is Altitude strengthening your investment process? Are climate risks and opportunities integrated into your investment decisions?

Climate risks and opportunities are fully integrated into our investment decision process: from due diligence, decision-making, and holding period, to exit.

Altitude brings to our process a structured and science-based approach to identify and assess climate-related and biodiversity risks very early in the deal flow and investment process.

The insights generated by the tool are fully integrated into our ESG due diligence process.

These ESG assessments are summarized in a dedicated analysis grid, which is systematically included in the investment memos submitted to our Investment Committee, through a formal “ESG process letter.”

Can you share an example of a deal you chose not to pursue due to climate risks? Or one you proceeded with that included a mitigation plan?

It has already happened that Altitude identified medium or high climate risks.

Notably, a company in the shipyard industry with manufacturing plants located in coastal areas subject to flooding.

We worked with the company to define a risk mitigation strategy, including adaptation measures for the most exposed assets and improvements in their environmental monitoring practices. These actions were formalized in the post-investment action plan and are monitored during the holding period with our ESG team.”