Making a positive impact on society and the environment is at the centre of the firm’s culture and values. Sustainability and impact are not only core to the Fund’s investment strategy but are embedded in the broader GPC platform through the pillars of impact, citizenship, and stakeholder engagement. The firm has executed active programs of thought leadership on the topic of sustainability and other global challenges, publishing research and engaging in active outreach to policy makers and financiers to promote cooperation and action. The firm also continues to be an active participant in multiple organisations and initiatives to promote sustainability and inclusion, including contributing to the UN- initiated Capital as a Force for Good initiative.
The firm seeks to institutionalise its culture and values throughout its platform, in keeping with its core objective to be a force for good in the world. The past few years have brought into sharp focus the urgency of addressing global sustainability challenges, with first the global pandemic, and now the war in Ukraine exacerbating various regional and international, socioeconomic, and demographic fault-lines, which have highlighted persistent inequality within and across countries and the need for greater inclusion. These events and trends have had a significant impact not only the Fund’s investment strategy, impacting its investment themes, areas of focus in diligence and portfolio management priorities, but also on the firm’s broader platform, including its operations, its outreach and its governance.
GPC has proactively pursued initiatives across research and thought leadership, participation in initiative and organisations promoting sustainability, stakeholder outreach and advocacy, and employee engagement, including:
- Thought Leadership and publishing research on key topics like the energy transition, financial inclusion, sustainable finance, the digital transformation, the global pandemic and governance and democracy
- Participating in the Capital as a Force for Good initiative, contributing to the ‘Capital as Force for Good’ report and engaging large global financial institutions and technology companies on funding sustainability
- Engaging with various stakeholders through conferences and events, participating in and hosting discussions and sessions engaging finance industry and thought leaders on issues related to driving sustainable development and inclusion, including at the UN World Investment Forum
- Caring for the firm’s employees and mitigating the financial and health risks created by the pandemic, including a vaccination drive and emergency loan program for the firm’s staff in India.
- Managing firm and portfolio wide environmental and social risk, implementing and monitoring environmental and social action plans across each of the Fund’s portfolio companies with standardised reporting.
- Promoting, developing and rewarding a values-based approach and culture with the 15th annual review round based on a rigorous, safe and constructive yet tough approach to capturing and providing feedback to help its people unlock their potential.
GPC is strongly committed to responsible investing by making investments in companies which are sustainable from an environmental and social perspective and create a positive developmental impact in the firm’s target regions. Accordingly, the Fund will:
- Not consider any potential investments where the target company’s business activities include any activities on the Fund’s Excluded Activity List
- Evaluate the impact potential and environmental and social risks associated with a potential investee company’s operations and supply chain as an integral part of the investment screening, due diligence and decision-making process
- Endeavour to improve the impact delivered by our portfolio companies and improve their operations and activities for long-term sustainable growth
- Evaluate and manage environmental and social impact when developing any policy, system, service or major initiative.
- Review and ensure client/investee companies and projects manage environmental and socail risks in their operations in compliance with the Fund’s criteria and seek opportunities to maximize sustainable outcomes. The fund’s criteria includes:
- Host Country environmental and social laws, regulations and relevant requirements;
- IFC Performance Standards; and
- IFC Environmental, Health and Safety (EHS) Guidelines
- Monitor and evaluate the impact, environmental and social performance of clients/investees, and regularly report on the overall impact, environmental and social performance of the Fund and individual clients/investees to Fund’s investors.
GPC looks to create a direct development impact through its investments by supporting portfolio companies in declaring, making, measuring and communicating their impact. As a result:
- The firm introduced an ESG Policy in 2016 and has worked closely with leading global development finance institutions and external experts to develop a strong internal systems and procedures to mitigate environmental and social risks and capture value-addition opportunities on a systematic basis within all of its portfolio companies
- The firm closely evaluates and monitors environmental and social risks and development impact delivered by its portfolio companies and looks to continuously improve their performance by integrating environmental and social initiatives as part of core portfolio management plans to mitigate risks and capture opportunities
As a result of these initiatives, GPC has been able to bring its investee companies in line with global best practices for ESG practices becoming standard bearers for others in their industries while delivering a significant development impact in India and beyond
Impact by Our Invested Businesses
US$800mworth of energy savings
5msmall businesses digitised
1.2mindividuals financially empowered
2,000affordable medicines distributed among 40 countries
Enzen uses innovative low-carbon technologies and solution to help companies increase energy efficiency by reducing their energy costs and emissions
Impact Delivered: US$800m worth of energy savings
Torrent Power is India’s leading power generator and distributor and operates renewable energy plants (wind and solar) across eight locations. The company has the lowest transmission & distribution (T&D) losses in the country due to their in-built efficiency enhancing design features
Impact Delivered: 611 MW of renewable energy operational capacity, T&D loss of 4.98% on licensed distribution of 2,500 MW
Torrent Pharma is one of India’s leading pharma companies, which utilizes robust manufacturing technologies and manufacturing facilities to distribute quality medicines globally at affordable prices
Impact Delivered: 2,000+ product registrations across 40 countries
Edelweiss Group is one of India's leading diversified financial services conglomerates that provides underserved customers access to finance, enabling them to create assets, generate wealth and protect incomes
Impact Delivered: Advanced financial inclusion for 1.2m individuals
Azure leverages its technology platform to help digitise small businesses by onboarding them onto leading global digital platforms at a large scale
Impact Delivered: 5m small businesses digitised
GPC seeks to leverage its thematic research platform to advocate for and influence government policies in India and globally which promote the ideas of Peace, Prosperity and Freedom. The firm regularly produces policy research across a range of topics which address key challenges facing India as it seeks to develop rapidly and sustainably, and establish strong, peaceful links with the rest of the world. A selection of these is provided below
The Need for Conscious Capitalism
A brief discussion with Michael Gelb, best-selling author, about what businesses and investors can and should do to make capitalism more conscious and creative
Addressing India’s Literacy Challenge
A brief discussion with Sourav Banerjee, India Country Director for Room to Read, a global non-profit organisation whose mission is to tackle childhood illiteracy
Plant for the Planet
Greater Pacific Capital talks to 15 year old Felix Finkbeiner who at the age of nine developed the idea of Plant-for-the-Planet
Interpreting Gandhi’s Principles of Non-Violence for Today’s World
On October 2nd, India celebrated the 145th birth anniversary of the father of the country’s independence movement Mahatma Gandhi (or “Gandhiji” to Indians)
Grand Design and Society: Creating the Cities of Tomorrow
China and India, with their huge populations and rapid economic growth, are quickly gaining ground as world economic powers. In the 17th century, the combined GDP of these two countries was more than 50%
China’s Potential Green Future
China’s rapid growth over the last three decades has changed the face of the country’s economy and made it an economic superpower; it has become a middle-income country and the 2nd largest economy in the world. However, this has come at a significant cost to the environment as China’s growth model has remained focused
Transforming India’s Slums: A Critical Step in Creating the New India
One of India’s biggest challenges today is coping with the wave of urbanisation unleashed by economic liberalisation. An estimated 160 million people have moved to the cities in the last two decades, and another 230 million are projected to move there within the next 20 years.
Cleaning Up India Worth $250bn: The Moral and Economic Imperative of a Clean Environment
Cleaning up India is about more than cleaning up corruption. India’s economy has grown rapidly over the past two decades and appears to be set to continue to grow at a rate of at least 7-8% over the coming years.
Independent of whether permitted by local or international law, GPC does not invest in any businesses which:
- Provide goods and services that can harm human life such as weapons/munitions/armaments
- Provide products that can directly damage mental or physical well-being such as pornography, alcohol, tobacco or drugs
- Harms animals or keep them in inhumane conditions
- Violate international and national standards for human rights or treat their employees unfairly
- Violate environmental laws or have an irreparable harm on the environment or biodiversity
- Operate their businesses using corrupt business practices, or make improper payments to public officials or secure their returns from unethical practices
Note: In addition to the above, GPC will adhere to the ‘harmonised exclusion DFI list’ and will not invest in any activity that includes: (i) forced or child labour, (ii) activities or materials deemed illegal under local law or by international conventions/agreements, (iii) cross-border trade in waste or waste products, (iv) destruction of high conservation value areas; (v) radioactive materials and unbounded asbestos fibres, (vi) pornography and/or prostitution, (vii) racist and/or anti-democratic media and (viii) Any business with substantial part of business in alcoholic beverages, tobacco, weapons and munitions, or gambling/casinos