Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Incorporated a diversity and inclusion section into its due diligence questionnaire for all primary investments.
• Actively engages with GPs on ESG policy and issues on a continuous basis through its participation on the advisory boards and through the regular portfolio monitoring meetings held with managers.

Governance Achievements

• Welcomed Dame Sue Owen DCB and Mary Ann Sieghart as Directors.
• Increased the size of its loan facility from an initial commitment of £175m to £300m.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 on the global economy and underlying portfolio companies.
• Market factors such as interest rates, inflation and equity market performance.
• Insufficient liquid resources to meet outstanding commitments to private equity funds.
• Lack of suitable investment opportunities to meet strategic diversification objectives.

Mitigation Strategies

• Through PIP’s close relationships with its GPs, it obtained timely valuation indications, with a 71% coverage of the portfolio by value, on the potential impact of the COVID-19 pandemic on underlying portfolio companies.
• Investing alongside private equity managers with experience of navigating economic cycles, while achieving diversification by geography, stage, vintage and sector, help to mitigate the effect of public market movements on the Company’s performance.
• PIP has a mature portfolio that is naturally cash generative. In the event that cash balances and cash distributions are insufficient to cover capital calls, PIP has the ability to draw funds from a credit facility.
• Pantheon has put in place a dedicated investment management process designed to achieve the intended investment strategy agreed with the Board.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UNPRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• A+ awarded by UNPRI in 2020 for private equity

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Satlink's products support sustainable fishing and contribute to the health of marine ecosystems; reducing carbon footprint through better fuel efficiency in fishing vessels.

Social Achievements

• Pantheon named Diversity and Inclusion Leader of the Year (LP) at The Private Equity Awards 2022; £17.8m committed to the Apax Global Impact fund.

Governance Achievements

• 15 years of UN PRI membership; A+ awarded to Pantheon for private equity by the UN PRI in 2020; ESG assessment integrated into all PIP investments; annual ESG survey of private equity managers initiated.

Climate Goals & Targets

Environmental Challenges

• Global supply chain issues exacerbated by rising energy prices and raw material sourcing difficulties; rising inflation; uncertain economic outlook; fears of global recession; geopolitical tensions (including the war in Ukraine).

Mitigation Strategies

• Diversified portfolio to reduce specific timing, regional and sector risks; focus on high-quality assets and more resilient sectors; active management of portfolio to maximize growth and liquidity; monitoring of debt levels in underlying investee businesses; focus on asset-light companies with low or no debt; selective approach to assessing deals for investment; emphasis on non-cyclical companies with defensible business models and competitive advantages.

Supply Chain Management

Responsible Procurement

• Pantheon Exclusions Policy: avoids investments in certain sectors; ESG checklist; RepRisk company screening.

Climate-Related Risks & Opportunities

Transition Risks

• Changes in regulations that may adversely affect underlying portfolio investments.

Opportunities

• Investment opportunities arising as a result of the green transition and environmental priorities, with a particular focus on themes such as resource efficiency, the circular economy and the decarbonisation of industry.

Reporting Standards

Frameworks Used: UN PRI, TCFD

Sustainable Products & Innovation

• Satlink's smart buoy products

Awards & Recognition

• Diversity and Inclusion Leader of the Year (LP) at The Private Equity Awards 2022; United Nations Global Compact award for Satlink.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Diversity & Inclusion

Environmental Achievements

• Action achieved a 46% reduction in Scope 1 and 2 carbon emissions (from a 2021 baseline) while significantly growing its store and distribution network by procuring c.90% of electricity from renewable sources, disconnecting most stores from the gas supply, improving energy efficiency of stores, installing solar panels at seven out of thirteen distribution centres, switching to biodiesel for 150 Action trucks and piloting four new zero-emission e-trucks.
• Action delivered circularity improvements of +4.85% across all product categories and launched its first ever circular product in the form of plastic storage baskets.

Social Achievements

• Action sourced 100% sustainable cotton (private and white label products) and cocoa (private label products), and made significant progress towards its goal of achieving 100% sustainably sourced timber by 2024, with 95% of timber products certified as sustainable in 2023.
• Nutrition 101 processed more than 700 million pounds of food waste, converting the majority into livestock feed, compost, and fertilizer.

Governance Achievements

• PIP Board appointed Dame Susan Owen DCB as Sustainability Lead to monitor and review Pantheon’s sustainability integration approach and ensure Board discussion of sustainability and climate-related considerations.
• Pantheon formalized its TIES (Transparency, Integration, Engagement, and Solutions) framework and introduced Sustainability Scorecards for assessing and monitoring sustainability maturity across fund managers and investments.

Climate Goals & Targets

Environmental Challenges

• Data collection difficulties for small- and medium-sized businesses within the portfolio companies due to limited in-house sustainability expertise or systems.
• Limited availability of company-specific data for comprehensive climate scenario analysis in private markets.

Mitigation Strategies

• Pantheon supports efforts to standardize sustainability data collection and improve transparency through initiatives like the ESG Data Convergence Initiative (EDCI).
• Pantheon continues to develop and enhance its climate scenario analysis tool and will assess climate modelling tools as they develop.

Supply Chain Management

Responsible Procurement

• Action's focus on sourcing certified sustainable products (cotton, cocoa, timber).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investments in low-carbon economy and green transition

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Action's circular products

Awards & Recognition

• Ambienta's industry awards