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PA Capital ESG Policy

January 2021

  1. Introduction

PA Capital LLC (“PA” or the “Firm”) believes that environmental, social and governance (“ESG”) issues can have a significant impact on investment performance. Thus, PA has adopted this ESG Policy (the “Policy”) to declare PA’s approach to integrating the consideration of material ESG risks and value creation opportunities into investments made by the Firm. PA has committed to considering material ESG factors in the course of its due diligence, its investment decisions, and investment monitoring, to the extent reasonably practicable under the circumstances. PA believes that the consideration of ESG factors is consistent with our Firm’s focus on mistake avoidance and favoring business builders, as well as seeking to identify risks and value drivers. PA believes that its ESG and ODD programs are important differentiators in its due diligence process and position the Firm as a leader amongst its peers.

  1. The United Nations supported Principles for Responsible Investment (“UN PRI”)

As a demonstration of its commitment to ESG, PA became a signatory to the UN PRI in 2014. Where consistent with our fiduciary responsibilities, PA has affirmed the following six aspirational principles based on the UN PRI’s framework:

  • Principle 1: PA will incorporate ESG issues into investment analysis and decision-making processes.
  • Principle 2: PA will be active owners and incorporate ESG issues into our ownership policies and practices.
  • Principle 3: PA will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • Principle 4: PA will promote acceptance and implementation of the Principles within the investment industry.
  • Principle 5: PA will work together to enhance our effectiveness in implementing the Principles.
  • Principle 6: PA will report on our activities and progress towards implementing the Principles each year.

As a UN PRI Signatory, PA publicly reports on the Firm’s investment activity through the UN PRI's Reporting Framework. The Reporting Framework contains several individual modules which address among other items, PA's history, investment strategy, policies and procedures, corporate governance and human resource practices, and steps PA takes to encourage responsible investment.

  1. ESG Committee

PA has formed an ESG Committee, which includes senior leaders of the Firm, to guide and assist in the implementation of this Policy. The ESG Committee has implemented proprietary ESG procedures that it believes meet or exceed industry best practices. The ESG Committee meets periodically to monitor and enhance the Firm’s ESG efforts, as well as to review this Policy to ensure its adequacy, effectiveness, and consistency with applicable regulations, guidance, and mandates.

Note: Please see https://pacapital.com/esg for more information. Additional disclosures regarding ESG can be found here.