We have a clear vision of our role: to build value for our investors by building great businesses. That’s why our ESG efforts are so important. We believe ESG contributes to value creation just like our other operating initiatives do, and we structure our ESG engagement to support the ongoing work to build stronger, more resilient, more inclusive, and more valuable companies.
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CD&R Builds
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Building for the Long-Term
We build value for our investors by building great businesses.
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Inclusion & Diversity
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Diversity Is Valuable
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We believe that a diverse work environment leads to better decisions and better performance.
Our objective with each investment we make is to build great and sustainable businesses. This requires attracting and developing the best talent available, and our people’s diversity of background, experience, thought, ability, and outlook makes us who we are.
Our key priorities are to:
- increase diversity within our team;
- provide an inclusive work environment with equitable access to opportunities; and
- increase diversity within our portfolio company boards and management teams.
As a founding signatory of ILPA’s Diversity in Action initiative, we seek to motivate broad industry support for advancing DE&I in private capital.
Everything starts with a person and we believe in developing talent at all levels within the organization, encouraging entrepreneurial behavior and providing opportunities for career advancement.
DE&I at CD&R
Everything starts with a person and we believe in developing talent at all levels within the organization, encouraging entrepreneurial behavior and providing opportunities for career advancement.
If we have learned anything in our 4+ decades of investing across six economic cycles, it’s that investing in people pays dividends. Our efforts to promote processes, policies, and behaviors that provide growth opportunities for individuals within the organization cuts across the entire firm.
The CD&R Inclusion Committee pursues a mission to make all members of the Firm feel that they can bring their authentic selves to work and be given every opportunity to do their very best work and reach their highest potential. The committee, which includes CD&R employees representing a variety of experiences, seniority levels, and roles, meets regularly and reports directly to the CEO.
CD&R companies employ 250,000 people. That’s 250,000 opportunities to inflect performance in a positive direction.
DE&I in the Portfolio
CD&R companies employ 250,000 people. That’s 250,000 opportunities to inflect performance in a positive direction.
We are committed to strengthening the diversity, equity, and inclusion of the companies we own, and we are taking action to achieve this, starting with boards and management teams. These actions include:
- Seeking to establish boards that reflect the diverse communities our companies operate in and serve.
- Requiring a diverse slate of candidates in the recruitment of open board and/or management positions.
- Tracking diversity KPIs in ongoing monitoring processes.
- Sponsoring inclusive leadership sessions (CEO, CHRO and CFO) as part of CD&R’s Portfolio Leadership and Best Practices Forums.
- Supporting portfolio company initiatives, including diverse leadership programs, industry-wide conferences, the development of employee resource groups and more.
DE&I Partnerships
CD&R has established partnerships with a range of organizations to promote DE&I efforts at the Firm, in its portfolio companies, and throughout our community.
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CD&R's Global Footprint
$67billion Total enterprise value created at realized portfolio companies
34 Portfolio companies
225000 Portfolio company employees
$60billion Portfolio company revenues
~100million Pension beneficiaries with indirect exposure to CD&R funds
~500 Limited partners
All data as of December 2020
$67billion Total enterprise value created at realized portfolio companies
34 Portfolio companies
225000 Portfolio company employees
$60billion Portfolio company revenues
~100million Pension beneficiaries with indirect exposure to CD&R funds
~500 Limited partners
All data as of December 2020
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Environmental, Social, and Governance Policy
This Environmental, Social, and Governance Policy (this “Policy”) of Clayton, Dubilier & Rice (“CD&R” or the “Firm”) reflects the Firm’s recognition that there can be a strong, positive correlation between financial performance and corporate responsibility related to environmental, social, and governance (“ESG”) issues.
This policy is informed by the American Investment Council’s Guidelines for Responsible Investing, the U.N. Global Compact, and the U.N. Principles for Responsible Investment.
The Firm believes that strong businesses deliver value, not only to investors, customers, and suppliers, but also to employees and communities. In addition, the Firm believes that the observance of sound ESG strategies is essential for building strong brands and safeguarding reputation, which in turn are vital for long-term success.
CD&R is committed to ensuring that ESG issues are identified and dealt with appropriately in its business and to taking active steps to manage the impact of its activities as a fund adviser in all the countries in which it is active. The Firm also encourages its portfolio companies to take responsibility for the environmental and social impact of their business operations. In particular, CD&R shall:
- Consider social, ethical, and environmental issues affecting our portfolio companies, both (a) during the due diligence stage for target portfolio companies and (b) as part of our ongoing collaboration with management of existing portfolio companies;
- Seek to be accessible to, and engage with, a range of stakeholders on key issues and challenges relating to the social, environmental, and ethical issues addressed by this Policy;
- Work with management teams of portfolio companies to grow and improve their businesses, including addressing environmental, public health, safety, and social issues, with the goal of improving long-term sustainability and performance and minimizing adverse impacts arising from these areas;
- Seek to ensure that portfolio company managers are able to maintain appropriate levels of oversight in the areas of audit, risk management, and potential conflicts of interest;
- Remain committed to compliance with applicable national, state, and local labor laws in the countries in which our funds invest; support the payment of competitive wages and benefits to employees; provide a safe and healthy workplace in conformance with national and local laws; and, consistent with applicable laws, respect the rights of employees to decide whether or not to join a union and engage in collective bargaining;
- Maintain strict policies that prohibit bribery and other improper payments consistent with the U.S. Foreign Corrupt Practices Act, similar laws in other countries, and the OECD Anti-Bribery Convention;
- Respect the human rights of those affected by our funds’ investment activities and seek to confirm that their investments do not flow to companies that utilize child, forced, compulsory, or coerced labor; deprive individuals of their personal freedoms; engage in human trafficking; or maintain discriminatory practices;
- Provide timely information to limited partners and other stakeholders regarding actions taken to address environmental, social, and ethical issues outlined in this Policy and foster transparency in portfolio companies regarding these matters; and
- Encourage portfolio companies to advance the principles outlined in this Policy.
CD&R believes that the principles outlined in this Policy not only serve to align our portfolio companies with the broader objectives of society, but also help build better businesses and thus support the firm’s primary objective of generating superior investment returns.
