Risk mitigation
When evaluating a potential investment, we consider sustainability factors to identify risks.
When evaluating a potential investment, we consider sustainability factors to identify risks.
We undertake a more holistic view of our investments in order to unlock opportunities for value creation.
Impact is an integral part of each business’ investment process, from selection to approval to funding.
We recognise that the impact of a deal can often exceed the lifespan of our investment. We work with our partners to identify opportunities that create lasting, durable changes.
We developed frameworks tailored to each investment strategy that embed sustainability considerations into the investment lifecycle. Our investment teams apply these frameworks on a day-to-day basis, enabling them to recognize and mitigate underlying risks and identify value creation opportunities.
The Private Equity framework focuses on KPIs in accordance with the EDCI for its portfolio businesses:
Our Real Assets strategy focuses on three key aspects – buildings, people and our ecosystem. Within these areas,we are committed to making a meaningful impact on six priority areas:
The Credit & Markets strategy focuses on risk management and opportunities to engage counterparties to drive real world impact.
Private Debt
We use a proprietary Impact Scorecard to assess counterparties based on their sustainability practices and performance.
Public Markets
We regularly screen and rebalance our portfolio with the aim of limiting our exposure to sectors and issuers that are exposed to elevated environmental, social or governance risks.
AirPower is the largest independent industrial gases supplier in China by revenue, formed in July 2021 through the merger of Yingde Gases and Baosteel Gases, two PAG-controlled companies which PAG invested in 2017 and 2019, respectively.
Learn moreProject Piki is an award-winning sustainable office building in Auckland, recognized for its exceptional efficiency and climate-resilient design. It is also the first building in New Zealand to achieve Net Carbon Zero certification.
Learn moreAt PAG, corporate sustainability means creating a durable business based on shared values. We focus on key topics such as forging connections, giving back to our communities, and reducing our carbon footprint.
As a leading Asia Pacific investment firm, it is critical for us to have a deep understanding of our region’s mosaic of cultures and identities. A team that reflects the diversity of the communities in which we operate makes us better investors. We encourage this by maintaining an open and supportive workplace, enacting specific policies to encourage the development of our people, and creating an environment where everyone’s voice can be heard.
Our corporate social responsibility programme revolves around charitable activities, philanthropic donations and community involvement. We focus on three primary areas where PAG’s participation can have a direct and measurable impact on our local communities:
Our firm is committed to addressing carbon emissions and mitigating the impacts of climate change. At the corporate level, our carbon reduction and offset approach is based on two principles: reduce as far as practicable, and where we cannot, we will purchase offsets on a “2 for 1” basis – for example, two tons of carbon credits will be purchased for every ton of carbon emitted.
Energy Attribute Certificates or Carbon offsets projects such as solar, wind, afforestation and fire abatement projects
We made a strategic decision to pursue LEED certification for our office spaces. LEED is the world’s most widely used green building rating system, and achieving a high rating would demonstrate commitment to lower carbon footprint and other environmental excellence. Our Hong Kong and Shanghai offices were awarded LEED Platinum and Gold certifications respectively.
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 General Partner participant and on the Steering Committee of the ESG Data Convergence Initiative. This initiative aims to standardise a set of sustainability metrics for comparative reporting in the private market.
