Paine Schwartz Partners acknowledges the key principles and requirements of the UN-backed Principles for Responsible Investment (PRI), becoming a signatory in 2019, and seeks to align its systems and processes with this and with the American Investment Council's Guidelines for Responsible Investing.
Within its own operations, Paine Schwartz Partners seeks to maximize ESG benefits and minimize any adverse ESG impacts. The Firm has established strong governance structures that provide appropriate levels of oversight in the areas of audit, risk management, and potential conflicts of interest, and maintains policies that prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, and similar laws in other countries.
Paine Schwartz Partners uses peer benchmarking, industry standards such as the Sustainability Accounting Standards Board (SASB), and expert third party judgement to identify material ESG focus areas for its portfolio companies. Over the years, the Firm has evaluated several such areas, including greenhouse gas (GHG) emissions, energy use, water, waste, fair labor practices, and others. In an effort to help its portfolio companies better understand their ESG performance, Paine Schwartz Partners also helps its companies quantify specific environmental metrics such as GHG emissions, water use, energy consumption, and waste, while helping them understand social performance in areas such as diversity and inclusion.
Climate change is an emerging area of risk and opportunity for the Firm's investments given its focus on the food and agribusiness sector. Climate change presents both physical risks to assets as well as economic risks as the world transitions to a lower carbon economy. The Firm will continue to invest in innovative and environmentally-conscious businesses across the agricultural value chain that not only produce sustainable products, but also help deliver on solutions to address the global climate challenge.