Portfolio companies & sustainability

Taking a leading position in responsible investment to increase a company’s operational efficiency. Embedding ESG management into private equity leads to an improvement in environmental impacts (responsible supply chains, renewable energy), employee relations (job creation, diversity, workforce satisfaction) and corporate governance (ethical conduct, employee shareholding).

How do we do it?

Before investment

All portfolio companies are screened and assessed against our ESG framework in areas such as energy use, emissions, governance structure and supply chain policies. This exposes risks that conventional investment analysis can overlook, and identifies opportunities for revenue growth presented by environmental or social trends.

During investment

Following ESG audits and company visits, recommendations are drawn up and a time-bound action plan put in place. A high proportion of portfolio companies have successfully incorporated ESG issues within their processes and shareholder reporting for a number of years, and many of them have already joined the UN Global Compact.

The PAI Sustainability Club

As a majority shareholder, we are in a position to influence many aspects of portfolio companies, and support initiatives that will benefit all stakeholders, such as sharing best practice and experience. This includes bi-annual Sustainability Club meetings that gather together ESG managers from all portfolio companies to discuss themes and present objectives that will ensure continuous improvement.

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