PAG invests in a socially responsible way to maximize returns for our investors while minimizing risks. We take an integrated, analytical approach to achieve positive impact on our investments and create sustainable, long-term value.
PAG’s commitment to socially responsible and environmentally sound investment management is guided by the following principles:
Sustainability factors are an essential consideration when evaluating and managing investment risk.
Risks and opportunities due to environmental, sustainability or governance factors 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 sustainability issues.
Our goal is to work with our investees to manage risks and realize opportunities throughout the investment cycle and beyond to ensure lasting change.
We are committed to sharing processes and information with investee companies, investors, and other stakeholders, and providing sustainability training to all PAG employees.
We encourage dialogue with our investors, investees and industry groups to drive the improvement of sustainability 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 sustainability issues is an integral part of this effort. Common due diligence workstreams include environmental impact assessments, compliance and control policy reviews, human capital policy and practice assessments, and sustainability 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 a Minimum Assessment Protocol to ensure a robust base level of sustainability 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 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 sustainability activities undertaken by our portfolio companies for our limited partners.
PAG Private Equity is a member of the steering committee of the ESG Data Convergence Initiative (EDCI), an industry partnership supported by the Institutional Limited Partners Association (ILPA). This initiative aims to standardize metrics to streamline the comparative reporting of sustainability data in the private market.
