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:
We will incorporate ESG issues into investment analysis and decision-making processes.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
