Sustainability

Sustainability Ethos and Approach

The Board of PIP and Pantheon believe that a focus on sustainability risks and opportunities is an important tool for risk mitigation and can lead to value creation across the investment portfolio. Private equity manager and portfolio-company level sustainability-related risks and opportunities are addressed through screening and due diligence, in accordance with Pantheon’s Sustainability Policy.

The Directors of PIP have oversight of sustainability matters within PIP’s portfolio. Pantheon believes that the consideration of sustainability risk forms part of general risk management and effective mitigation of such risks strengthens downside protection and enhances a company’s reputation. In fact, it is Pantheon’s view that the implementation of sound sustainability practices can have a material impact on value creation in private equity.

As a result of Pantheon’s approach and with the full commitment of the Board, sustainability factors are incorporated into the entire investment process. This starts with the initial due diligence and assessment of the suitability of a fund/company for inclusion in PIP’S portfolio. But it does not stop there. There is also an extensive ongoing monitoring programme which comes into play after an investment has been made.

‘Embedding material sustainability considerations throughout Pantheon’s processes and procedures supports our wider objective to manage risks and create value for our clients, such as PIP.’

Eimear Palmer

Partner, Global Head of Sustainability and Chair of the Pantheon Sustainability Committee

An approach underpinned by the UN PRI

Pantheon was one of the first private equity signatories to the UN-backed Principles for Responsible Investing (PRI) in 2007. The PRI is the world’s leading proponent of responsible investing and is underpinned by six principles that signatories commit to uphold. These are:

01

We will incorporate ESG issues into investment analysis and decision-making processes.

02

We will be active owners and incorporate ESG issues into our ownership policies and practices.

03

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

04

We will promote acceptance and implementation of the Principles within the investment industry.

05

We will work together to enhance our effectiveness in implementing the Principles.

06

We will each report on our activities and progress towards implementing the Principles.

Taking an active role in sustainability initiatives

To promote the importance of sustainability within the private market investment arena, we aim to take an active role on various industry bodies:

Principles for Responsible Investment (“PRI”): Pantheon was one of the first private equity investors to sign up to the PRI  in 2007 and has used these principles as a framework to develop our sustainability policy across investment activities.

Invest Europe: Eimear Palmer, Partner and Global Head of Sustainability, is a member of the Invest Europe Responsible Investment Roundtable & active member of Invest Europe’s SFDR working group.

iCI: Pantheon sits on the global steering committee alongside peers and the PRI. Eimear Palmer founded the UK network, and we also launched the Asia Pacific Network. In addition, Eimear co-chairs the iCI Regulatory working group to develop tools & guides, respond to industry consultations, and support members and encourage best practices.

BVCA: Eimear is a member of the BVCA Responsible Investment Advisory Group and the BVCA regulatory working group.

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Our sustainability approach in action

Pantheon conducts an assessment of the sustainability risks and considerations of each investment opportunity – this assessment it tailored depending on the type of investment, for example, whether this is a direct company investment or an investment in a fund.

Due diligence findings are formally documented in investment recommendations and Pantheon flags any material sustainability concerns for consideration by Pantheon’s investment committees.