PAG’s fiduciary duty to our investors, stakeholders and beneficiaries is of critical importance to us. We take seriously our obligation to act in their best interests to generate returns, manage risks, and protect capital. ESG issues are an important part of the investment management process.
PAG’s commitment to socially responsible and environmentally sound investment management is guided by the following principles:
ESG factors are an essential consideration when evaluating and managing investment risk.
ESG risks and opportunities are assessed as integral parts of a structured and disciplined investment process.
PAG recognizes that each investment is unique in terms of specific asset class, time horizon, and degree of control, and can and will require its own appropriate, practical approach to ESG issues.
Our goal is to work with our investees to manage ESG risks and realize ESG opportunities throughout the investment cycle and beyond to ensure lasting change.
We are committed to sharing ESG processes and information with investee companies, investors, and other stakeholders, and providing ESG training to all PAG employees.
We encourage dialogue with our investors, investees and industry groups to drive the improvement of ESG outcomes in ways that are consistent with our stakeholders’ objectives.
We adhere to the highest standards of professional conduct.
Each PAG investment undergoes a rigorous due diligence process and is supported by a thorough business plan and strategy. Identifying and mitigating ESG issues is an integral part of this effort. Common ESG diligence workstreams include environmental impact assessments, compliance and control policy reviews, human capital policy and practice assessments, and ESG improvement plan creation. PAG endeavors to avoid material environmental, social or governance risk in its investments.
Each of PAG’s three investment strategies – Private Equity, Real Assets, and Credit & Markets – has developed specific procedures and tools to implement this policy. Across the group, PAG has established an ESG Minimum Assessment Protocol to ensure a robust base level of ESG risk assessment. This protocol applies across all investments made by every Strategy and is enforced by each Strategy’s Investment Review Committee (IRC).1
1 In PAG’s Real Assets strategy, this entity is referred to as the Investment Committee (“IC”).
PAG became a signatory to the United Nations-supported Principles of Responsible Investment (PRI) in 2021. We are actively participating in PRI benchmarking and are evaluating opportunities to apply PRI principles in the course of our investment process.
PAG Real Assets is a participant in GRESB, the global ESG benchmark for real assets, committed to assessing and enhancing environmental, social and governance standards across its portfolio of properties.
In addition, PAG prepares reports on ESG activities undertaken by our portfolio companies for our limited partners.
