CSU: The plan for Sabre and the broader PEMS opportunity

Research evidence excerpt

CSU: The plan for Sabre and the broader PEMS opportunity

Constellation Software Inc.

Key sustainability questions

This section is intended to highlight key sustainability discussion points relevant to this company, as well as our views on the outlook. Both the

questions we highlight and our responses will evolve over time as the dialogue between management, analysts and investors continues to

advance. We welcome any feedback on the topics.

Our view

What are the most material Based on material issues cited by other software companies, we believe the

sustainability issues facing this most material sustainability issues facing Constellation include reducing energy

company? consumption, managing data security and customer privacy, and employee

engagement and D&I. From a governance perspective, Constellation has a Lead

Independent Director position. Seven of the 15 Board members are insiders of the

company.

Does the company integrate Sustainability does not appear to be a focus for Constellation. Given Constellation’s

sustainability considerations into its decentralized operating and management structure, we acknowledge that gathering

strategy? sustainability-related information would be challenging for the company. However,

other conglomerates with multiple segments have embraced sustainability in their

operations. Given Constellation’s multiple operating units, we think that the “head

office” could set the overall sustainability direction for the company and encourage

portfolio companies to collaborate and exchange sustainability best practices with

each other, as is already done for other topics. Constellation also benchmarks its

portfolio companies, so we believe that some sustainability benchmarking would be

feasible for Constellation.