We are committed to building long-term partnerships with our clients (institutions, family offices, wealth managers and high net worth individuals) to help them achieve their financial goals. We aim to deliver strong financial returns, aligning ourselves with our clients as much as possible.
Environment, Social and Governance ("ESG") considerations are an important part of our investment process and we are continuously integrating this into our firm’s values, missions and processes. ESG is increasingly discussed at Board and Investment Committee meetings and it is an ongoing priority to embed these firmly within Par’s investment processes, corporate framework and culture.
Par Equity's values are driven by:
- Quality Delivering innovative investment opportunities and high-quality investor servicing, whilst providing exceptional support to our portfolio companies in the form of fundraising, corporate governance, strategy and encouraging Board level responsibility for sustainability issues.
- Collaboration Building an open and collaborative culture whilst maintaining the highest ethical standards. Working together is at the heart of what we do with our investors, our portfolio companies and within the Par Equity team itself. We encourage responsible marketing, suitable products and sustainability within the supply chain.
- Entrepreneurialism Fostering an innovative, dynamic working environment, ensuring continuous improvement in our business and supporting talent to flourish, whilst managing firm resources efficiently and encouraging local community impact, development and investment.
We believe our commitment to integrating sustainable investment practices across our strategies has a clear fit with making an active contribution to the United Nations’ sustainability agenda over the long term, working with our clients and portfolio companies to ensure this commitment is met.
We define sustainable investment as investment that proactively manages a full range of risks and seeks to make a positive social, economic or environmental impact whilst delivering strong financial returns.
Our investment team increasingly considers, evaluates and documents ESG as part of our due diligence when investing into early stage companies and managing them over the long term. The Investment Committee oversees this process and is responsible for continuing to evolve and refine our approach to ESG.
Par Equity employs different strategies depending on the type of investment and the type of client for which it is being managed. Our strategies are detailed in offer documents and other client publications, and where relevant, throughout our website. Further information is available upon request, but the following commentary relates specifically to our core activity of venture capital investment.
We are sector agnostic, focusing on opportunities whereby technology can be a disruptive force and we are aware of our social responsibilities as backers of the next generation of businesses. Our investment strategy integrates ESG considerations, reflecting an understanding of our investors’ ambitions for a better world and their requirement for excellent investment performance. As such, we will not invest in companies operating in “sin” industries such as armaments or weapons technology, alcohol, tobacco and gambling, and we will give a higher weighting to companies which benefit our broader society.
Given the stage at which we invest, we do not expect our portfolio companies to have a fully- developed ESG strategy in place on day 1. Instead, we look for good corporate behaviours and over the life of our investment we expect this to mature into comprehensive ESG actions and reporting procedures. At a high level, we like to see our portfolio companies progress towards the following:
- Implementing responsible waste management, particularly the handling of harmful waste, if applicable
- Building out an environmentally friendly supply chain where commercially practicable
- Limiting the pollution of greenhouse gases, wherever possible
- Managing and using resources efficiently, such as energy, land, water and raw materials.
- Creating a working environment which is undoubtedly equal in its rights and opportunities for all members of staff and prospective employees
- Ensuring, at all times, strict adherence to law and regulation regarding employee working conditions such as fair wages, working hours and the health and safety of the employees
- Working with suppliers to ensure they are following similar standards expected of good corporate citizens and in particular, working with suppliers to eliminate all forms of compulsory labour, child labour and employment discrimination
- Engaging with the local community to make postive change in the lives of others and promote business as a force for good.
- Building an environment of trust and transparency across all aspects of the business
- Fighting against corruption in all its forms, working to the highest ethical standards
- Reducing board entrenchment, wherever possible, ensuring appointments are well considered and in the best interests of the company and its own ESG policies.
In line with COBS 2.2.3R of the FCA's Handbook, Par Fund Management Limited ("PFML") is a regulated firm and is required to make a statement in relation to the nature of our commitment to the UK Financial Reporting Council’s Stewardship Code ("the Code"), published in July 2010, and updated in September 2012. PFML is not required to be a signatory to the 'the Code', but it does take the requirements of the Code into consideration when managing investments on behalf of its clients.