Pathway is committed to giving proper consideration to ESG issues when implementing changes to internal policies, practices, and processes, while maintaining its fiduciary duty to its clients/investors, and to generally following the principles below:
- Incorporating ESG issues into its investment analysis and decision-making processes.
- Requesting that general partners (GPs) incorporate ESG issues into their policies and procedures.
- Requesting that GPs provide appropriate disclosures regarding ESG issues in the partnerships and portfolio companies in which the Company’s clients invest.
- Promoting acceptance and implementation of the Principles within the private equity industry.
- Working with stakeholders to enhance the Company’s effectiveness in implementing the Principles.
- Reporting on the Company’s activities and progress toward implementing the Principles.
Pathway believes that the consideration of ESG issues is critical in evaluating the potential attractiveness of a GP. GPs with well-constructed ESG policies are more likely to have a sustainable investment strategy that increases the potential for the GP to have a long-term existence.
In evaluating a GP’s ESG policies, Pathway considers the GP's operational capabilities, transparency, and sustainability; the governance practices of a fund or portfolio company; and the industry focus and geographic operation; as well as other social or environmental impacts of a fund’s investments.