How the Siparex fund is turning climate challenges into a driver of systemic value creation
Through its Sustainability Value Creation (SVC) approach, Siparex goes beyond mere regulatory compliance to embed sustainability at the heart of its funds’ financial performance. Antoine Joint, Sustainability Operating Partner at Siparex Group, explains how the group is transforming climate challenges into drivers of operational value creation, drawing on close, on-the-ground dialogue with companies. An interview on the transformation of private equity, where the adaptability and resilience of business models are becoming the new pillars of long-term value.
Could you tell us about the SVC (Sustainability Value Creation) approach developed by Siparex? What are your key examples of achievements to date, and how does the partnership with Blunomy fit into this approach?
“Our Sustainability Value Creation (SVC) approach is based on a simple conviction: sustainability issues must not be treated solely as a matter of compliance or risk mitigation. They must be integrated into the value creation strategy, directly linked to the business model, operational performance and the company’s resilience. This resolutely business-oriented approach is more in line with the current expectations of investors and executives. It enables us to move beyond a largely declarative or regulatory view of ESG, and to demonstrate in concrete terms how sustainability issues can support growth, safeguard performance and enhance long-term value.
In practical terms, our approach is based on two complementary levels. The first involves consolidating CSR fundamentals, covering in particular climate and environmental issues, as well as social matters, governance, health and safety at work, responsible procurement, and so on. These elements form the essential foundation of a robust sustainability approach. The second stage involves identifying levers that are directly linked to the business. These may include developing a product or service offering, entering new markets, reducing costs, securing supplies, enhancing the company’s appeal or strengthening its ability to adapt. We then seek to link these actions to operational and financial indicators, in order to measure their contribution to performance in concrete terms.
Several examples from our portfolio illustrate this approach:
- At Sodikart, the development of electric karts – which have a lower carbon footprint than petrol-powered karts – is a key driver of innovation and growth. It opens up new applications and new markets. The challenge, therefore, is to track not only sales volumes but also the turnover and profit margin associated with this new product range, in order to directly measure its contribution to value creation.
- At Jacky Perrenot, reducing the accident rate is first and foremost a key priority for staff. It also acts as a driver of performance for the company. A reduction in the number and severity of accidents helps to cut costs associated with sick leave, insurance, equipment repairs and operational disruption. The health and safety policy thus contributes directly to the company’s economic performance.
- CARSO, for its part, illustrates how regulatory changes can give rise to a new development opportunity. The introduction of new European requirements concerning the monitoring of PFAS in drinking water has accelerated demand for this type of analysis. CARSO has therefore expanded this business by drawing on its analytical expertise, with 44,000 samples analysed for PFAS in 2025, compared with 1,000 in 2024. This example shows how a regulatory constraint can become a driver of growth and the development of a new offering, whilst addressing a significant public health issue.
We partner with Blunomy when the issues at hand require a more in-depth sectoral or strategic analysis. This is particularly useful during the due diligence phase or when the potential for transformation is complex. Blunomy helps us link sustainability issues to market dynamics, operations and financial performance, so that we can identify value creation levers from the moment we take a stake in the company and translate them into concrete action plans.”
What are your LP investors’ current expectations regarding ESG issues, and how do you anticipate these requirements will evolve in the future?
“Historically, discussions with LPs have often centred on risk management, compliance and ESG reporting. These topics remain essential, but they are no longer sufficient. Investors are now increasingly receptive to a business-oriented approach that demonstrates how sustainability can contribute to performance, resilience and value creation. They want to understand what actions are being taken, what results they are producing and how they fit into the business model of the portfolio companies.
We are also seeing the emergence of new cross-cutting themes, such as sovereignty, adaptation to climate change and water resource management. In future, investors will likely expect funds to be able to quantify more precisely the contribution of their sustainability actions to financial performance and the value of their portfolio holdings.”
Among the sustainability issues that have become increasingly pressing, addressing climate risks is gradually emerging as a priority for businesses. Companies must now better assess their financial impacts and begin to consider the development of adaptation plans. Siparex is increasingly incorporating this issue into its discussions with its portfolio companies. Against this backdrop, France Invest’s Sustainability Commission launched a working group on climate change adaptation, to which Antoine Joint and Blunomy contributed. The aim of this working group was to develop a methodological framework and a practical toolkit to help fund managers understand both the risks and opportunities associated with climate change adaptation.
On that note, what do you think are the limitations of current conventional analytical tools? And how does the financial quantification framework developed by Blunomy benefit your business?
“We use solutions such as Altitude to assess the theoretical exposure of our assets to various climate hazards. These tools are very useful for mapping physical risks associated with site locations, such as flooding, heatwaves or water stress.
Their limitation is that they are, by necessity, generic. They do not take into account a factory’s internal operational processes, the company’s critical dependencies or the thresholds beyond which a climate-related hazard actually disrupts operations. A system may indicate that a site is exposed to extreme heat, but it will not say whether the production process will malfunction once that extreme heat is reached, nor what the consequences will be for production, customers and turnover.
The value of the method developed by Blunomy, particularly within the framework of France Invest’s Climate and Adaptation working group, lies precisely in establishing a link between climate assessment, operational reality and financial performance. It provides us with a framework for engaging with operational teams and asking the right questions: what are the critical processes? What are the operational thresholds for equipment? Will supplies remain available in the event of an extreme weather event? What would be the impacts on production, costs, investments or turnover?
Blunomy therefore complements the physical assessment. The framework enables risks to be prioritised, their financial consequences to be quantified and the most appropriate adaptation measures to be identified. It thus transforms a theoretical climate risk into an operational roadmap, prioritised and linked to investment decisions. It serves as a tool for analysis, dialogue and decision-making support for investment teams.”
In your view, what will a fund and a company that have fully integrated sustainability considerations into their business model look like in 3 to 5 years’ time?
“In three to five years’ time, it will be 2030 – a symbolic milestone by which many of the commitments made by businesses will need to have delivered tangible results. For businesses, I hope that CSR will no longer be treated as a separate initiative, driven by a dedicated team or a separate action plan. It must be integrated into the company’s day-to-day decision-making: investments, procurement, product design, operations, human resources and customer relations.
The central theme will be the compatibility of the business model with a low-carbon world, one subject to growing pressure on resources and exposed to the effects of climate change. The question will no longer be simply: ‘How can I reduce my impact?’, but also: ‘Do my product, my service and my value chain still have a place in a world that is +2°C or +3°C warmer?
Funds will need to be able to translate sustainability challenges into concrete decisions and measurable results. A fund’s strength will lie in demonstrating, on a case-by-case basis, that sustainability and profitability are not mutually exclusive, but can reinforce one another.”
“The real issue is no longer simply about reducing one’s environmental impact, but about ensuring the survival of one’s business model in a world that is 2°C or 3°C warmer”— Antoine Joint, Sustainability Operating Partner, Siparex Group.
