Warburg Pincus is committed to responsible investing that encourages environmental sustainability, social responsibility, and effective corporate governance (ESG). The firm has a well-established ESG program, both internally and with portfolio companies. Warburg Pincus adheres to the Guidelines for Responsible Investment promulgated by the American Investment Council (formerly the Private Equity Growth Capital Council).
Warburg Pincus considers ESG issues in its firm operations, in reviewing investment opportunities, during due diligence, in the course of monitoring existing investments, and when serving on the boards of its portfolio companies. To enhance its expertise and resources in addressing ESG issues, the firm consults and collaborates with a number of outside organizations.
Warburg Pincus has created a “Green Council” to share best practices in ESG matters among its portfolio companies. Through this forum, and through its relationships with individual companies, the firm provides resources and guidance related to achieving a high standard of environmental stewardship. For example, Warburg Pincus works with its portfolio companies to promote the sustainable use of information technology assets – what the firm refers to as “Green IT.” Accordingly, Warburg Pincus has established and implemented a set of principles concerning the design, manufacture, use, and disposal of information technology equipment. Several of the firm’s portfolio companies also seek to reduce waste by implementing paper-saving printer policies, providing employees with reusable drinking containers, and enhancing infrastructure for recycling in their offices.
With regard to social responsibility, Warburg Pincus is fully committed to the well-being and safety of its employees and those of its portfolio companies. In addition, the Warburg Pincus Foundation supports a broad range of charitable activities and civic organizations that contribute to the welfare of the communities where the firm operates. Warburg Pincus is currently involved in two significant grants over a multi-year period to The Nature Conservancy to promote land and wildlife conservation. One grant, initiated in 2012, is a substantial contribution to protect 400,000 acres of Canadian wilderness in the North Fork of the Flathead River Watershed in British Columbia. The second grant, initiated in 2014 in conjunction with its portfolio company, Antero Resources, is a substantial contribution to the preservation of nearly 4,000 acres along a seven-mile stretch of the Cheat River in the Cheat Canyon Conservation Area in the State of West Virginia.
Warburg Pincus also places great emphasis on effective corporate governance. Through the service of members of the firm on boards of portfolio companies, Warburg Pincus encourages best practices in corporate governance and provides management teams with various resources toward that end.
Warburg Pincus believes that an effective ESG program helps the firm and its portfolio companies better manage risk, improve efficiency, cut costs, reduce environmental impacts, and build more valuable, competitive, and sustainable entities. Consistent with the values and culture that are part of the history of Warburg Pincus, the firm believes that responsible ESG practices contribute positively to its long-term investment returns.