Our Sustainability Strategy
Enhancing Risk Management and Value Creation
Warburg Pincus is committed to responsible investing and formalized a sustainability strategy in 2014. We believe the integration of material sustainability issues, alongside other financial and business levers, can provide a broader perspective for evaluating risks and opportunities for our potential investments. In addition, we believe the growing focus on sustainability among the customers, employees, and communities of our portfolio companies presents opportunity for value creation.
To support our deal teams and portfolio companies, we provide a set of robust internal policies and best practices, expertise, and senior-level oversight to set the overall strategy and help integrate sustainability into the investment lifecycle. We believe our commitment to responsible investing enables us to partner with organizations to help accelerate sustainability, and we strive to continually evolve our program as the attention to and scope of sustainability continues to develop.
Sustainability Lens on Investing
Warburg Pincus’ investment approach is presented for illustrative purposes only and may vary.
Sustainability Policy
As part of our sustainability strategy, our Sustainability Policy outlines our firm-wide approach to integrating sustainability in our business and investment activities and is reviewed on an annual basis.1
EXAMPLE AREAS OF FOCUS
E
- Climate risks and opportunities
- Use of natural resources and raw materials
- Pollution control, waste, and recycling
- Biodiversity impacts
S
- Human rights, including freedom of association, anti-discrimination and child or forced labor
- Workforce wellbeing, inclusion, employee health and safety, and employee engagement
- Quality and access to goods/services
G
- Corporate governance
- Management of legal and regulatory environment
- Corporate compliance
- Data security and privacy
- Supply chain management
Warburg Pincus’ Sustainability Policy (Unabridged)
Available to Investors Upon Request
Sustainability Committee
Warburg Pincus’ Sustainability Committee serves as a forum to advise on the firm’s strategic approach to sustainability issues, including supporting the Firm’s investment teams in the implementation of our sustainability strategy. The Committee of over 20 professionals is comprised of investing partners and principals representing the sectors and geographies in which we invest, as well as senior executives from key support functions. The Committee meets quarterly to assess sustainability activities at both the firm and portfolio level.
In addition, the firm has working groups that specifically focus on important sustainability issues, including reputational and policy risks, data, and broad-based employee ownership. These groups encourage employee participation and comprise a broader group of colleagues across our organization, who are actively involved in progressing our sustainability objectives.
Our Sustainability Committee by the Numbers 2
2 As of Q1 2024
Leadership & Oversight
Our commitment to and value of sustainability are present in everyday practices across our organization and are deeply interwoven throughout our network. The Sustainability Strategy Team, part of our Global Policy and Political Risk group, reports directly into our Executive Management Committee through Steven Glenn, our Chief Operating Officer and Chief Financial Officer. It is also one of six function areas that partner with our investment teams and portfolio companies to provide strategic support and operational excellence.
Richard L. “Jake” Siewert, Jr.
Managing Director,
Head of Global Public Policy and Political Risk
Leela Ramnath
Managing Director,
Global Head of Sustainability Strategy
The roles and responsibilities of the Sustainability Strategy Team at Warburg Pincus impact the following core functions:
Sustainability-related goals are aspirational and not guarantees or promises that all goals will be met.
Warburg Pincus’ investment approach is presented for illustrative purposes only and may vary. The development and implementation of sustainability strategy tools, policies, and processes to support portfolio companies is not a binding component of the investment process. Readers should refer to fund documentation and marketing materials for information on binding elements of the investment strategy and decision-making process.
There can be no assurance that the operations and/or processes of Warburg Pincus as described herein, including Warburg Pincus’ sustainability strategy or sustainability-related policies and procedures, will continue, and such operations, processes, policies, and procedures may change, even materially. The actual investment process used for any or all of Warburg Pincus’ investments may differ materially from the process described herein.
Sustainability considerations are only some of the many factors Warburg Pincus considers in making an investment, and there is no guarantee that Warburg Pincus will make investments in companies that create positive sustainability-related impact or that consideration of sustainability matters will enhance long-term value and financial returns for limited partners. To the extent Warburg Pincus engages with portfolio companies on sustainability-related practices and potential enhancements thereto, there is no guarantee that such engagements will improve the financial or sustainability performance of the investment. Actual results may differ materially from any forward-looking statements.