Pareto Alternative Investments (PAI) recognizes the need integrate sustainability in its business and investment activities. Firstly, we have a responsibility towards society to combat climate change and to promote sound social and governance standards. Secondly, we have a responsibility towards our investors to factor sustainability risks and opportunities into our investments to generate competitive returns from our investment portfolios.
PAI adheres to the UN Global Compact and is a signatory to the United Nations principles for responsible investments (UNPRI). We are also a member of NORSIF and support the Task Force for Climate Related Disclosures (TCFD). Whilst not yet implemented into Norwegian Law, PAI adheres to Regulation (EU) 2917/2088 on Sustainability Related Disclosures in the Financial Services Sector (SFDR) and provides product related disclosures pursuant to the SFDR.
Our activities are governed by our Policy for Responsible Investments. Moreover, we have internal regulations regarding the implementation of ESG factors in our investment processes, remuneration policy, training policy, as well as instructions for its Board of Directors and the management regarding ESG matters.
If you want to know more about how PAI integrates sustainability and ESG related risks and opportunities in our activities, you can read our white-paper on how we seek to future-proof our investments and check out our Responsible Investment Policy below.
Example of how we work to improve the sustainability profile of our investments - Entro project:
PAI has teamed up with Entro, a Norwegian environmental and energy advisor, as part of a portfolio wide program within real estate to improve the environmental performance of its properties.
The project has two phases
- Establish water, waste, energy usage and energy mix of all properties. This phase is expected to be completed within H1’21 and requires the consent from all tenants to monitor and upload their energy usage to a common database for the portfolios, including the energy mix (e.g. electricity, biofuels, district heating and fossil fuel).
- Establish and implement a long term action plan in order to reduce energy usage, improve energy mix, water usage and waste volumes. A lot can be achieved by optimization of HVAC systems, replacement of technical equipment and other minor investments, while other efforts such as improved insulation, replacing windows, installation of efficient water faucets, heat pumps or rooftop solar panels may require meaningful investments. In general, we strive to create a win-win situation where the tenants get the benefit of reduced energy costs and improved building characteristics, while our funds benefit from improved properties and occupancy rates and, ultimately, higher values.
The program is long-term, where performance will be monitored on an ongoing basis and reported to investors quarterly. The main ambition is to reduce overall Co2 footprint for the portfolios and reduce the energy costs for our tenants. The reporting will also enable PAI to report on Co2 emissions from its investment portfolios and to enable it to classify its investments pursuant to the EU Taxonomy.