Responsible Investment Approach
Integrating ESG into our responsible investment approach
As an investor in the development and management of real assets, we have signed up to the UNPRI where we join like-minded investors in a commitment to integrating the principles of ESG into decision-making and business process and reporting against the UNPRI framework.
We advocate an investment process supported by transparent ESG monitoring. We analyse ESG issues throughout the investment process from screening, due diligence, financial close, active asset management and monitoring through to divestment. ESG metrics are monitored and audited in accordance with project permits and licences, with quarterly reporting to monitor progress, identify good practices and suggest improvement actions.
Our exclusion list ensures we do not make investments which are not compatible with our purpose and our values. This includes:
- production, use of products, or activities which are deemed illegal under applicable laws or banned through global conventions and agreements e.g. slavery, human trafficking, forced labour and child labour;
- projects where the partners or projects are on a sanctions list; and
- projects that do not meet minimum governance thresholds.
Our ESG screening checklist is used to help identify if there are any material ESG issues associated with the project pre-investment. The checklist identifies potential ESG risk including environmental concerns and impact, social impact (e.g. community, human resources and health and safety-related issues) and governance concerns.
- ESG due diligence findings included in all investment proposals to be reviewed by the Investment Committee.
- Climate risk screening.
- Third-party diligence where significant risk is identified.
Active Asset Management
The asset management teams seek to engage with key stakeholders to ensure the delivery of high levels of corporate responsibility. Where appropriate we will exercise our influence at the board level of a project company to engage with key stakeholders on strategy, risk, performance and governance matters.
ESG metrics are monitored at the construction and operational phases of projects and following the change in our management committee structure will be monitored by the Portfolio Review and Valuations Committee.
We hold board membership on a significant number of our projects and consider issues raised with project boards.
- Preparation for exit and visibility of long-term risk mitigation and monitoring for potential buyers.
- Sell-side ESG due diligence prior to exit.
Alongside our own ESG diligence and metrics, we engage with our project partners to ensure that we are receiving the additional data required to meet our portfolio ambitions.
Accountability for our impact across our supply chain is a key focus area, we continue to review our procurement process to assess the effectiveness of environmental and social considerations with regular engagement with stakeholders throughout the investment process, as well as to understand the implications for value generation in the secondary market. We also look to offer our expertise in mobilising green, social and sustainable financial instruments in our investments.
Sustainable infrastructure: fundamental benefits to society
Our alignment to the United Nations Sustainable Development Goals
We recognise the role of sustainable infrastructure as central to the delivery of the UN Sustainable Development Goals (‘SDGs’). For much of our work, the link to the SDGs has been key to discussions on how to deliver shared value and unlock socio-economic development whilst considering our impact on the environment and ecosystem.
In alignment with our purpose to foster sustainable growth and improve the lives of communities around the world, we continue to work to enhance our alignment with the achievement of the SDGs. We have identified five priority SDGs which our investments most directly contribute to and our case studies provide more insight into how our project companies contribute at the asset level.