Enhesa: Defining and responding to sustainability commitments within the regulatory market

Enhesa is a leading provider of regulatory content and sustainability intelligence solutions for global corporations with extensive geographic coverage, largely servicing industrial, electric & electronic machinery, chemicals, and transport manufacturing companies. 

Enhesa‘s offering allows customers to better understand legal obligations, prepare for upcoming regulatory changes to mitigate risk, maintain legal registers, ensure standardized Environmental, Health & Safety (“EHS”) reporting globally, and provide evidence for EHS compliance.

Investment rationale

Global addressable market size: Sizeable global market opportunity, with Enhesa‘s core verticals experiencing growth due to various tailwinds (e.g. increasing investments in clean energy production and tech for manufacturing).

Competitive positioning: Differentiated data asset for compliance as a result of its wide breadth of global coverage, high-quality content, and integrations with major EHS software platforms.

Highlights in 2023

Defining a sustainability strategy

As a leading provider of regulatory content and sustainability intelligence solutions, having a well-articulated ESG strategy is core to Enhesa‘s business. In 2023, Enhesa defined its sustainability strategy in collaboration with Bregal Sagemount and Enhesa‘s majority investor, CGE, outlining its strategic priorities, ESG roadmap, and governance structure to be implemented by an executive-level Committee and full-time sustainability lead.

Sustainable product development

Responding to a changing regulatory landscape and increasing requirements for sustainability disclosures, Enhesa developed a new sustainability and ESG intelligence offering, which is set to be launched this year, to support clients in navigating an increasingly complex regulatory environment. Enhesa‘s product helps clients with efficient tracking, compliance management, and future trend monitoring for effective disclosures.

Climate change

In 2023, Enhesa received approval for its science-based target to reduce absolute Scope 1 & 2 emissions by 42% by 2030.

The company reduced operational emissions in line with its target via the direct procurement of renewable electricity for several of its global offices, achieving a 15% decrease YoY.

Going forward, Enhesa plans to address reductions by procuring green electricity, performing energy audits and engaging with landlords to identify the areas of improvement for energy savings and efficiency.

Sustainability-linked financing

With its strong alignment to sustainability and accountability structures in place, Enhesa seized an opportunity to receive an ESG-linked credit facility with preferential terms from an external lender. The potential savings on interest payments are dependent on performance against KPIs linked to select relevant themes, such as annual reductions in direct emissions, senior management diversity, and employee training hours.