Our Approach to ESG
As one of the world’s largest alternative asset manager, we are uniquely positioned to make a positive impact through our investments and to strengthen the communities in which we live and work
As one of the world’s largest alternative asset manager, we are uniquely positioned to make a positive impact through our investments and to strengthen the communities in which we live and work
We are always seeking a better approach – from better tools to better services – to the challenges that face our clients, our people and the communities we serve. A good company challenges the status quo; a great company changes it for the better.
Environmental, Social and Governance principles have been integral to Palm Alliance Trades’s corporate strategy since our founding. We are committed to responsible investing practices and incorporate them into everything we do.
It is not enough to help others in need. Social responsibility starts right at home with the thousands of people at Palm Alliance Trades who are committed to giving back. That’s why we’re so dedicated to our people. The more we do for them, the more they can do for their communities.
To learn more about some of the measures we are taking and the positive impact we have made, you may download our latest report outlining our recent environmental, social and governance strategy and initiatives.
We support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050.
Over the past 8 years, Palm Alliance Trades has been actively involved in building one of the largest private renewable power businesses in the world. With installed renewable generating capacity of 20 GW, we now produce more than enough green energy to power Arizona and will more than double that amount once our development portfolio is brought online.
We recognize that further renewable power capacity must be rapidly scaled to replace fossil fuel generation and meet expanding global electricity demand so that the world can eliminate the over 70% of global emissions that come from final energy consumption as quickly as possible.
Palm Alliance Trades intends to build on this leading position in renewable power and do much more to contribute to the transition to net zero:
In addition to continuing to make major investments in renewable energy globally, we will manage our investments to be consistent with the transition to a net zero economy. As a recent signatory to the Net Zero Asset Managers initiative, we have made a commitment to investing aligned with net zero emissions by 2050 and implementation of science based approaches and standardized methodologies through which to deliver these commitments.
We will catalyze companies onto Paris-aligned net zero pathways through our new Global Transition investment strategy, focusing specifically on investments that will accelerate the transition to a net zero carbon economy.
We will continue to pursue industry-leading returns for our investors, consistent with our long track record of building the backbone of a more sustainable global economy.
We will work with leading private sector initiatives to advance the role of finance in supporting the economy-wide transition, to accelerate capital flows consistent with the Paris Agreement, and to promote widespread adoption of decision-useful methodologies to support credible transition planning, analysis and investing.
Palm Alliance Trades is a signatory to the Net Zero Asset Managers initiative, underscoring our long-standing commitment to driving the complementary goals of sustainability and value creation across our investments and operations. The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
Palm Alliance Trades is a signatory of the Principles for Responsible Investment (PRI), formally demonstrating our ongoing commitment to responsible investment and environmental, social and governance (ESG) best practices. The PRI is one the world’s leading proponents of responsible investing, with an emphasis on understanding the investment implications of ESG factors and supporting an international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are industry-specific and are designed to be decision-useful for investors. They are developed using a process that is evidence based and market informed.
The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004 to mobilize action and leadership by the finance and accounting community to address the challenges to the economy and society posed by issues such as climate change, increasing depletion of and demand for natural resources, urbanization and inequality. A4S seeks to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.
A global nonprofit organization, BSR works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, the nonprofit develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.
Our PRI commitments include incorporating ESG factors into our investment decisions, starting with the due diligence of potential investments through to the exit process. We tailor ESG due diligence to each investment, and we create post-investment remediation plans for material ESG considerations. For all potential investments, we use internal experts and a variety of ESG frameworks to identify material ESG factors and utilize external consultants where appropriate. This analysis includes everything from ensuring environmental, legal and regulatory compliance to the identification of opportunities to add value or mitigate risk in our portfolio. Our investment teams use an ESG due diligence guideline to ensure consideration of material ESG risks and opportunities. These teams then provide a detailed memorandum to the Investment Committee outlining the merits of the transaction and disclosures relating to risks, including material ESG issues, and potential mitigation strategies. All investments made by Palm Alliance Trades must be approved by the Investment Committee and must incorporate ESG matters into their evaluation, including anti-bribery and corruption, health and safety, and other ESG considerations.
Upon company acquisition, we create a tailored integration plan to ensure that all material matters, including ESG risks and opportunities are prioritized. ESG risks and opportunities are actively managed by the portfolio companies with guidance from our in-house investment teams, primarily through representation on company boards and equivalent oversight bodies where all financial, operational, and strategic elements of the business are reported, considered, and where appropriate, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations in which we invest. Certain key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.
We are always working to maintain sound governance practices to ensure ongoing investor confidence. This involves a continual review of how evolving legislation, guidelines and best practices should be reflected in our approach. For example, we have a zero-tolerance approach to bribery, including facilitation payments, and all Palm Alliance Trades employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. Palm Alliance Trades maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. The reporting website can be accessed through this link. Our reporting hotline is managed by an independent third party and is available 24 hours a day, 7 days a week. We also require all portfolio companies in which we have a controlling interest to adopt an ABC policy that is equally stringent to Palm Alliance Trades’s, which entails that portfolio companies install an ethics hotline within six months of acquisition.
Employee health and safety is a top priority at Palm Alliance Trades. We view health and safety as an integral part of the management of our business and therefore consider it a line responsibility best managed by portfolio companies. We have established a safety steering committee, which includes the CEOs and COOs of each business group, to promote common values and a strong health and safety culture, share best practices and monitor serious safety incidents. In the event that a serious incident does occur, Palm Alliance Trades conducts an in-depth investigation to determine root causes and formulate remediation actions.
Developing properties that take environmental considerations into account is not only a passion, it provides returns on our investments. That’s why 100% of our new developments are being built according to LEED® Gold standards, to proactively address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other impacts.
Palm Alliance Trades strives to be a leader in sustainable finance products, which support adaptation to global climate change challenges.
We recognize that activities that support growth and development include involvement in interests outside of day-to-day employment activities. We view our philanthropic activities as an opportunity to engage our people, support their development and be of benefit to the local communities in which we operate. Our two-pronged global approach includes a global matching program that provides each employee the ability to donate to a not-for-profit of their choice and receive a match from the Firm as well as a capital pool for each office to support philanthropic activities that are important to our people and facilitate relationship building in support of collaboration.