We believe that taking into consideration of sustainability aspects helps to drive long-term value creation for our clients, employees and the society at large. The long-term nature and ownership model of the private equity asset class essentially supports this approach.
MPEP is a signatory of the United Nations Principles for Responsible Investment (UNPRI).
MPEP has been considering sustainability risks (ESG), in particular sector-specific risks, in its investment decision taking already for many years. Each fund investment opportunity is evaluated from an ESG perspective. The resulting ESG evaluation is an integral part in our decision-making process and disclosed to the Investment Committee. ESG is accordingly integrated into our internal policies.
MPEP’s remuneration policy is consistent with the integration of sustainability risks. Incentives are not provided that are expected to remain unaffected by the negative impact of any sustainability risks on long-term performance.
MPEP funds are invested predominantly indirectly, i.e. through its target funds, in various portfolio companies around the world. Many of these portfolio companies are currently not subject to comparable transparency obligations as laid down in Regulation (EU) 2019/2088. This currently increases the difficulty in assessing the adverse impacts of investment decisions on the sustainability factors according to Article 4(1) of the Regulation (EU) 2019/2088. To this end, MPEP currently does not consider adverse impacts of investment decisions on sustainability factors within the meaning of the Article 4(1) of the Regulation (EU) 2019/2088.
* Disclosure in accordance with the Regulation (EU) 2019/2088