Perwyn Responsible Investment Policy
Perwyn’s mission is to partner with exceptional companies to achieve ambitious goals. Through deep strategic partnerships, we aim to unlock each company’s full potential and drive sustainable long-term growth.
We believe that robust sustainability practices create value for all stakeholders. Therefore, we are committed to integrating environmental, social, and governance (ESG) factors into our investment processes and ownership practices.
In alignment with this commitment, Perwyn has adopted the Responsible Investment policy.
Policy Governance Arrangements
This policy applies to all Perwyn’s current and potential investments. The Responsible Investment (RI) policy is owned by Perwyn’s Founder and Managing Partner, Andrew Wynn, with the support of the partner group, who are responsible for overseeing its implementation.
The effectiveness of the RI implementation is monitored annually, focusing on review of compliance, identifying areas for improvement, and ensuring that the policy remains aligned with best practices and evolving ESG standards.
Perwyn’s RI policy is effective from 2024 (replacing previous ESG guidelines) and will be reviewed and amended as necessary to reflect any changes in our internal approach and in the broader ESG landscape.
Our Principles
Perwyn’s RI commitments are based on the following principles:
- Promotion and Protection of Human Rights: Upholding the principles set out in the Universal Declaration of Human Rights (UDHR).
- Respect for International Standards: Adhering to internationally proclaimed principles such as the ten principles of the UN Global Compact Initiative and the OECD Guidelines for Multinational Enterprises.
- Incorporation of Responsible Investment Principles: Integrating principles outlined by the UN Principles of Responsible Investment (UN PRI) and other relevant industry organisations.
- Commitment to Diversity, Equity, and Inclusion (DEI): Ensuring equal opportunities and striving for equal outcomes for all individuals.
- Adherence to Good Governance Practices: Promoting robust governance frameworks within our investments.
ESG Priorities
Based on Perwyn’s investment strategy, examples of material ESG considerations include:
Environment:
- Climate impact and carbon emissions
- Energy efficiency, pollution and waste management
- Impact on biodiversity
- Sustainable production and supply chain management
Social:
- Diversity, equity and inclusion
- Employee wellbeing and engagement
- Product / service quality and safety
- Fair and ethical treatment
Governance:
- Board composition, including separate committees
- Management strategy with regards to social and environmental metrics
- Cybersecurity and data privacy
- Ethical conduct, anti-bribery and anti-corruption measures
These topics are examples of factors that could be material to our investments, assessed based on their likelihood and impact on financial, reputational, and regulatory aspects for the business and stakeholders.
Our Commitment
- Integration of ESG: Embed ESG considerations into all stages of the investment cycle, from initial screening and due diligence to active ownership.
- Governance and Oversight: Encourage portfolio companies to implement governance structures that provide appropriate oversight and transparency on sustainability matters.
- Training and Support: Provide ESG training and support to Perwyn employees to ensure adherence to RI policy.
- Transparency and Reporting: Maintain transparency in our ESG integration efforts, including annual reporting to the UN PRI.
Our Approach
We seek to ensure that ESG factors are integrated into every step of the investment process.
Initial Screening
When evaluating potential new investments, Perwyn assesses target companies to identify ESG-related risks and opportunities. An initial screening exercise is conducted to determine if any businesses require a deeper ESG analysis. This screening evaluates sectors and geographies that may carry higher ESG risks.
ESG materiality is assessed using industry standards such as the Sustainability Accounting Standards Board (SASB). If an investment does not align with the principles set out in this policy, Perwyn will not pursue the opportunity.
Perwyn will not invest in companies which are known to be in breach of legal, environmental or other legislative requirements, avoiding any direct investments in the following sectors and areas:
- Fossil fuels
- Alcohol and tobacco
- Armaments & firearms / controversial weapons
- Companies involved in human rights abuses
- Companies involved in environmental degradation
Pre-investment
ESG-related due diligence is conducted by Perwyn’s investment team, supported by external advisors as needed. The due diligence aims to identify material ESG topics and potential red flags. Screening questions include key areas that help identify any potential ESG risks including:
- Environmental concerns (with specific questions relating to formal policies and tracking of energy consumption)
- Social concerns (supply chain, diversity, HR and safety related issues)
- Corporate governance (are adequate policies in place, board composition / independence and any ethical concerns)
The investment team assigns a rating for each ESG category (E, S, and G) and presents these ratings in the Investment Committee paper. Additionally, the team includes identified ESG risks and opportunities in the investment memo and supporting documents. Depending on the findings, the investment committee may request further assessment or specific corrective actions as part of 100-day plan and to be integrated into the post-investment value creation plan.
Sanctions, anti-money laundering, and background checks on the potential investment’s top management and key personnel are conducted with the support of an external advisor (e.g. Amiqus).
Monitoring / Active Ownership
Perwyn has a partnership approach to investing alongside management teams, taking on an active role in our businesses. This includes working to develop a clear strategy for each business, ensuring the right management team and Board is in place. As an active investor, we believe in continuous improvement and commitment to working with portfolio companies to enhance their ESG performance and disclosure practices during the ownership period.
ESG forms a core part of the 100-day value creation plan, with measurable actions for improvement. Perwyn monitors each portfolio company’s progress through an ESG questionnaire with changes in key ESG KPIs being reviewed annually to determine progress. Ongoing engagement with the portfolio companies is an integral part of the post investment ESG strategy to facilitate further improvements. This engagement occurs both at the board level and through ad-hoc interactions.
