Investing Responsibly
The Permira Credit funds have been delivering value to investors for more than 10 years. A focus on Environmental, Social and Governance ("ESG") considerations is an important part of building lasting value in the Permira Credit funds’ portfolio companies.
Environment, social and governance (“ESG”) and sustainability risks are considered as part of the standard investment and risk analysis for direct lending investments to deliver value for investors.
Integrating ESG in the investment lifecycle
1. Asset selection and origination
- ESG negative screening of potential investments
- Understanding ESG profile to identify areas for further due diligence (as relevant)
*In terms of negative screening potential investments are considered on a case-by-case basis as part of the pre-investment due diligence process, where consideration is given to ESG and sustainability risks. There may be instances where Permira Credit would not invest in certain sectors/sub-sectors due to sustainability risks potentially impacting the value of an investment.
2. Due diligence and deal execution
- Potentially material ESG risks considered for direct lending investments as part of standard investment analysis
- Investment professionals access public information, reputation risk reviews, relevant documents, and the sponsor or company management as appropriate and depending on the risk profile of the business
- Key ESG risks presented to the Investment Committee and General Partner
3. Post-investment
- Ongoing monitoring of material ESG risks identified pre-investment (as relevant) and emerging post-investment
- Engage with selected portfolio companies on managing and improving ESG, particularly where the Permira Credit funds have a board seat or board observer seat, as we believe portfolio companies that effectively manage ESG risk optimise financial performance in the long term
- Reporting material incidents or developments to investors
ESG Report 2020: Strong Foundations To Build Lasting Value
In a changing world, we believe it will be the forward-thinking, responsible businesses that do well. Integrating ESG considerations is fundamental to building businesses that will compete long into the future. Click here to download our 2020 ESG Report to learn more about ESG at Permira.
Industry Engagement
Principles for Responsible Investment (PRI)
Permira Credit has been a signatory to the UN-supported Principles for Responsible Investment (“PRI”) since 2017 and reports annually on its progress in integrating ESG in its investment processes.
Industry Associations
Adinah Shackleton is Head of Environment, Social and Governance (ESG) and is responsible for overseeing and further developing Permira and Permira Credit’s ESG activities. She was previously the Chair of the BVCA’s Responsible Investment Advisory Group and is currently a member of this group. She is also a member of Invest Europe’s Responsible Investment Roundtable (Affiliate Network).
CarbonNeutral® Company
Permira and Permira Credit has been a CarbonNeutral® Company since 2018. Working with Natural Capital Partners, experts on carbon neutrality and climate finance, we calculate the firm’s annual carbon footprint from our operations and business travel. We are working to reduce our carbon footprint and any remaining emissions are offset annually with certified carbon credits. The carbon footprint and offset process is undertaken using the rigorous CarbonNeutral® Protocol, a leading framework for carbon neutrality.
Initiative Climat International (iCI)
Permira is a founding signatory of the UK iCI alongside a number of other firms. We recognise that climate change will have adverse effects on the global economy, which presents both risks and opportunities for investments. We are committed to developing our approach to integrating climate change in our investment processes and actively engaging with portfolio companies.