Our Sustainable Improvement Strategy
Growing the right way
The Melrose “Buy, Improve, Sell” model necessarily means that we inherit businesses that are underperforming in a number of different areas, including from a sustainability perspective.
The manufacturing businesses that we acquire often operate in the industries that are some of the most difficult to decarbonise. By the very nature of our model, we provide the focus and investment that our businesses need to deliver significant financial returns and sustainability improvements; and our Group sustainability performance and ratings will fluctuate during our investment cycle as we acquire new businesses in need of improvement, and sell businesses that we have improved.
Implementing Melrose Sustainability principles – our decentralised approach
We encourage, support and invest in our businesses to implement the following Melrose Sustainability principles and contribute to a sustainable future for the benefit of our stakeholders, as further detailed in our Sustainability report:
- Respect and protect the environment.
- Promote diversity and prioritise and nurture the wellbeing and skills development of employees and the communities that they are part of.
- Exercise robust governance, risk management and compliance.
- Purposefully engage with key stakeholders to better understand and deliver on their expectations.
We implement secure pension scheme funding, operational and financial best practice, and lead in promoting diversity. We invest in our businesses to bolster their research and development capabilities, to enable them to make products more sustainable and safer, with a focus on helping our business’ customers and their wider industries to support the transition to a net zero carbon economy by 2050.
We encourage our businesses to champion the interests, safety and skills development of their employees.
We instil strong ethical values supported by high governance standards, through our Melrose Code of Ethics and Group policies, together with training and internal controls, which are supported by renewed management and governance structures.
We work with our businesses to set meaningful sustainability targets, alongside financial metrics, and we provide the investment to achieve them. We set a positive example for our businesses and provide them with a platform to share Group best practices and accelerate the pace of change within their organisations, whilst influencing positive change within our other businesses.
Sustained, positive Sustainability performance
The success of our “Buy, Improve, Sell” model relies on building better businesses that are positioned to prosper over the longer term. The Sustainability improvements that we promote and encourage among our businesses benefit from our long-term view, and are underpinned by our focus on conducting business with the highest standards of integrity, honesty, and transparency.
By implementing a stronger culture of operational and financial improvement, we rebuild our businesses’ resources and capabilities, and enable them to pursue commercially attuned Sustainability improvement initiatives.