ESG at Warburg Pincus
Warburg Pincus is committed to partnering with its portfolio companies and entrepreneurs to build valuable, sustainable companies for the long-term. One of the ways that the firm believes it remains a successful steward of its investors’ capital is by honoring Warburg Pincus’ fundamental commitment to growth-oriented investing. As the firm identifies these growth opportunities and the potential to create lasting value, environmental, social and governance (ESG) factors are generally forefront in the investment process and day-to-day operations.
Warburg Pincus develops its strategic approach to ESG related matters both internally and in partnership with its portfolio companies on an ongoing basis to adapt to the evolving scope of ESG issues and the investment landscape. The firm aims to adopt best practices in responsible investing and abides by Warburg Pincus’ internal ESG Policy, the Guidelines for Responsible Investment as developed by the American Investment Council, and the Principles for Responsible Investment.
Warburg Pincus seeks to consider these guidelines throughout the investment cycle, taking into account material ESG factors with respect to the nuances of each region, sector, and investment opportunity – whether in the initial stage of reviewing investment opportunities, due diligence, or in monitoring existing investments when serving on the boards of portfolio companies.
Warburg Pincus is a signatory to the Untied Nations-supported Principles for Responsible Investment (UNPRI). The UNPRI is recognized as the leading global network for investors who committed to integrating environment, social and governance (ESG) considerations in their investments practices and ownership policies. ESG continues to be important to us as we manage risks and identify investment opportunities, and is of growing importance to our portfolio companies, regulators, employees, and the broader market.
Through this process, Warburg Pincus and its portfolio companies have seen improvements in managing risk, achieving efficiencies and cost reductions, and identifying new market opportunities. This has allowed the firm and its portfolio companies to build more valuable, competitive, and sustainable entities while strengthening relationships with stakeholders.
Warburg Pincus’ ESG Committee, comprising of senior leaders across the firm, sets the strategy that guides this work. Warburg Pincus is focused on reducing the environmental footprint of its offices, ensuring the well-being and safety of its employees, and pursuing a diverse workplace while maintaining the highest standards with regard to corporate governance, legal, and compliance matters. Warburg Pincus partners with, supports, and advises strong management teams, placing great emphasis on who the firm invests in as much as what the firm invests in.
Warburg Pincus has invested in several companies that are addressing key ESG issues as part of their business strategy. The firm engages with companies both on a one-on-one basis as well as through its portfolio-wide programs, such as the Green Council and Green IT Practice. Warburg Pincus encourages portfolio companies to support their local communities through the firm’s annual Warburg Pincus Volunteer Month. Through the Warburg Pincus Foundation, the firm supports a broad range of charitable activities and civic organizations that contribute to the welfare of its local communities. Ensuring that the firm serves as a responsible member of the communities where it operates is of paramount importance to Warburg Pincus.