PAI Partners Secures SBTi Validation for Climate Goals

PAI Partners has achieved approval from the Science Based Targets initiative (SBTi) for its aggressive firmwide decarbonization targets, a major milestone in its long history of commitment to sustainability. The firm, a prominent private equity investor, aims to align 42% of its invested capital with science-based targets by 2029, with the ultimate goal of reaching full alignment by 2040. This recognition strengthens PAI’s position as a leader in responsible investment, ensuring that its portfolio companies contribute to global climate goals while maintaining financial resilience in a rapidly evolving economic landscape.

The SBTi certification ensures that the emissions reduction strategy of PAI is aligned with the Paris Agreement's target of keeping global warming at 1.5°C over pre-industrial levels. The commitment is not only at the General Partner (GP) level but also at the portfolio level, reflecting the firm's integrated approach to sustainability. With the inclusion of environmental, social, and governance (ESG) principles in every stage of investment, PAI seeks to minimize not just its carbon footprint but also bring genuine change to its portfolio.

Esohe Denise Odaro, PAI's Head of ESG & Sustainability, highlighted the importance of this endorsement, saying, "SBTi certification of PAI's decarbonization targets is a welcome endorsement of the efforts we have made over many years. Decarbonization and sustainability have been core to the firm's investment approach for many years, and this endorsement underscores our continued commitment to making a lasting impact in our portfolio.". It's yet another way we ensure the businesses we invest in are robust, sustainable, and fit for the future."

PAI's decarbonization plan is integrated in its business model. The company monitors more than 130 ESG KPIs, some of which coincide with the United Nations Sustainable Development Goals (SDGs). Its wide-ranging ESG monitoring allows PAI to keep an eye on sustainability performance, track progress, and maintain accountability. The company gathers Scope 1, 2, and 3 greenhouse gas emissions data from its entire portfolio of companies every year, giving it a deep picture of its carbon footprint. PAI also created an in-house monitoring tool to track alignment with science-based targets to guarantee that its investments continue on course towards climate goals.

In support of the transition to a low-carbon economy, PAI proactively discusses decarbonization targets with its portfolio companies. Continuous engagement with business executives and sustainability teams ensures that environmental goals are incorporated into corporate plans. Hands-on support is supplemented by knowledge sharing efforts, wherein PAI organizes events and works with industry associations to promote ESG standards throughout the private equity industry. Through creating a culture of perpetual learning and innovation, the firm facilitates its portfolio businesses to learn from best practices in sustainability and reduction of emissions.

PAI’s commitment to sustainability is not limited to emissions tracking and target setting. The firm integrates ESG considerations from the origination stage to the exit phase of investments. ESG due diligence is a critical component of PAI’s investment process, ensuring that sustainability risks and opportunities are assessed before capital is deployed. Once an investment is made, PAI works closely with portfolio companies to develop tailored sustainability plans that align with both business objectives and global climate goals. This approach positions PAI’s portfolio for long-term value creation, demonstrating that responsible investment can drive financial success while benefiting the environment.

Along with its own internal activities, PAI also works in cooperation with outside stakeholders to support industry-wide ESG progress. Through interaction with industry associations, sustainability organizations, and regulatory authorities, the company adds to the overall discussion about responsible investment. By working cooperatively, best practices and policy that facilitate movement towards a sustainable economy are informed.

The strategy of the firm takes account of increased investor, regulatory, and consumer demand for sustainable investment solutions. As awareness and international concern for climate change and business sustainability accelerate, firms not embedded with ESG considerations can lose financial as well as reputation benefits. Proactive management of PAI confirms its portfolio businesses well-equipped in adapting to emerging market expectations as well as new rules.

Through its commitment to SBTi full alignment by 2040, PAI sets a high benchmark for private equity houses seeking to integrate sustainability into their investment strategies. The company's holistic approach—covering emissions reduction, ESG integration, industry collaboration, and value creation driven by sustainability—proves that responsible investing and robust financial returns can complement each other. As PAI continues to implement its decarbonization strategy, it reaffirms its position as a sustainable private equity leader in positioning the industry for a more sustainable and resilient future.