Environmental, Social and Governance Policy
Park Square Capital, LLP and its affiliates(1) (“Park Square” or the “Firm”) recognises the importance of ESG issues, and is a signatory of the UN-supported Principles for Responsible Investment (PRI). Park Square has considered ESG factors in its decision making since inception. Given the limited upside and potentially significantly downside of credit investing, the focus of Park Square’s ESG analysis is on understanding downside risks.
Park Square believes ESG factors can potentially have a material impact on an issuer’s long-term financial performance as poorly managed ESG risks can lead to inefficiencies, operational disruption, litigation and reputational damage, which may ultimately impact an issuer’s ability to meet their financial responsibilities. Park Square supplements traditional financial analysis by reviewing ESG related management practices. In summary, Park Square believes well run businesses make better, lower risk, investments.
The Firm considers issues both as part of the detailed due diligence carried out before an investment, and as part of the ongoing monitoring of portfolio companies following an investment. Park Square will decline opportunities that it believes may provide an inappropriate exposure to ESG risks. Park Square believes that incorporating ESG issues into its business decisions is an important part of its investment strategy and helps develop the sustainable long-term value of its investments.
Where possible, and consistent with its fiduciary responsibilities to its investors, Park Square works with financial sponsors and portfolio companies to address ESG issues through the following policies outlined in the document below.
Park Square is committed to developing its ESG policy and integration in-line with internationally established guidelines and conventions for responsible investing, current industry best practices and is committed to engaging with peers in the industry and the PRI to promote ESG investing.
Please see here for Park Square ESG Policy
(1) includes Park Square Capital Luxembourg Management Services S.à r.l