Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.
Pantheon is a signatory of the Principles for Responsible Investment (“PRI”) and has used the following six principles as a framework to develop its ESG policy across all its investment activities.
- 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.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
We review our continued adherence to these principles on an annual basis through evaluating activities we have undertaken in each year and identifying ways in which we can enhance our ESG risk management.
Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]
Pantheon is driven by the conviction that addressing ESG issues is a crucial part of investment risk management; and effective mitigation of these issues can have a material impact on value creation in private equity, infrastructure and real asset investments. We believe that mitigating ESG risks strengthens downside protection for investment returns and enhances investor reputations, which can also lead to value creation. When considering a new primary fund commitment, Pantheon is committed to understanding the manager’s willingness to adhere to sound ESG practices. Those managers that understand the nature of ESG risks and seek to minimize them are favoured. Pantheon’s primary due diligence process seeks to identify how the manager assesses ESG risks in their own analysis and the measures they take to mitigate them before and after investment.