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Paine Schwartz Partners

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. 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.

Paine Schwartz Partners (PSP) understands that as the global population grows and natural resources become scarcer through a combination of increased demand and changes in the climate, it is critical to focus on sustainable solutions to emerging risks, including access to sustainable sources of nutrition. The global food and agribusiness sector requires significant amounts of land, water, and human resources, which pose a unique set of challenges. However, these sectors also provide innovative solutions which support economic growth, secure food supplies, address adverse environmental impacts, promote human rights and fair labor standards, and provide both safe and healthy products to end consumers. PSP believes that real value lies in solutions that sit at the convergence of global productivity and addressing the most pressing sustainability challenges. The Firm actively seeks investment opportunities across the value chain that address these growing challenges. Furthermore, Paine Schwartz Partners believes that proactive day-to-day management of key ESG issues across its portfolio will help protect and enhance the value of its investments. PSP publishes a public annual sustainability report highlighting the Firm's approach to responsible investment and ESG performance of PSP's portfolio companies. This report is made available to key stakeholders, including existing and prospective investors.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

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.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

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02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

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02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Conflicts of interest are managed as part of PSP's Code of Ethics and flagged, if needed, during due diligence. The Chief Compliance Officer has ultimate responsibility for administering and implementing the Code of Ethics. It is the policy of the Firm that all employees of the Firm conduct the business affairs of the Firm in accordance with the highest principles of business ethics and in such manner that no conflict of interest, actual or potential, can be construed. All employees owe a fiduciary duty to the funds managed by the Firm.

The Investment Committee is comprised of the Firm's founders and senior Partners. This group of professionals helps identify potential conflicts and the ways in which they may be reduced or eliminated. If a conflict is identified, and depending on the nature of the conflict, such conflict and recommended course of action may be communicated to the Limited Partner Advisory Committee (LPAC) for consideration and approval. For the investment process, the Fund's LPAC has the ability to review and vote on certain provisions of partnership agreements (including conflicts of interest situations).

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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