Sustainability

Palladio Partners is an asset management boutique focusing on illiquid investments that places responsible investing and long-term orientation at the core of its strategic positioning. We commit ourselves to invest responsibly by creating enduring value. Our focus is on investing in companies and projects fulfilling basic needs and providing long-term social and economic value. We thereby adopt a life cycle perspective. Long-term positive and potential negative outcomes are consistently considered in our daily activities, by considering also scenarios which are unlikely in the medium term. This naturally includes integrating Environmental, Social, and Governance (ESG) aspects into all investment and management decisions.

We serve institutional investors that are looking for long-term investments to provide a secure retirement for millions of beneficiaries. Given that our investment strategy relies on stable environmental conditions and political systems as well as social stability, we recognize the importance of ESG aspects. We believe that incorporating ESG considerations into our processes will allow us to generate additional value to our stakeholders, increase the resilience of our investments and provide better risk management.

Since the inception of the firm, Palladio Partners upholds a high standard of business integrity. As part of our holistic approach to responsibility, we also encourage our business partners to adhere to these values. Whether we invest in funds or directly in companies, we always seek transparency and disclosure on relevant ESG topics.

These principles apply equally to everything we do, to managing and advising both pooled funds and segregated mandates. 

Palladio Partners is a signatory of the UN Principles for Responsible Investment and an active member of associations aiming to enable long-term sustainable development of economies and countries, such as Initiative deutsche Infrastruktur and the Long-Term Infrastructure Investors Association. Furthermore, Palladio Partners supports the goals of the Paris Agreement to limit global warming.

ESG integration in the entire investment process

We incorporate ESG issues into the entire investment process from the definition of the investment strategy to asset management. Hereby we also implement individual client requirements, e.g. Guidelines for ethically sustainable investments of the Protestant Church in Germany. The most important ESG related steps of the investment process are:

Investment StrategyDue DiligenceAsset Management and MonitoringInvestment Decision
 
  • Inclusion of ESG topics in overall strategy and asset allocation guidelines
  • Compliance with relevant ESG policies and legal requirements
  • Involving investors and their ESG preferences
 
 
  • Identification and assessment of ESG risks and opportunities
  • Discuss ESG approach with investee’s management
  • Analysis of existing ESG documentation
  • ESG scoring
 
 
  • Continuous monitoring of ESG related KPIs and incidents
  • Encourage investees to actively manage ESG risks and opportunities
  • Internal and external reporting on ESG topics
 
 
  • Inclusion of ESG findings and ESG scoring in investment committee decision making process
 

At Palladio Partners, we have developed an in-house ESG scoring framework. The integration of ESG aspects varies by asset class and sector, and our ESG scoring framework is adapted to the specific requirements of each. It further varies by the type of investment: In direct investments we can influence ESG issues directly whereas in indirect investments we mostly rely on contractual provisions.


ESG Investment Policy