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First Sentier Investors (including First State Investments)

PRI reporting framework 2016

Export Public Responses

You are in Direct - Infrastructure » Post-investment (monitoring and active ownership) » Infrastructure monitoring and operations

Infrastructure monitoring and operations

INF 15. Proportion of assets with ESG performance targets

15.1. Indicate the proportion of infrastructure assets where your organisation, and/or operators, included ESG performance in investment monitoring during the reporting year.

 (in terms of number of infrastructure assets)

15.2. Indicate ESG issues for which your organisation, and/or operators, typically sets and monitors targets (KPIs or similar) and provide examples per issue.

List up to three example targets per issue

          Resource use and reuse
          Pollution and contamination
          Carbon targets (including embedded carbon)

List up to three example targets per issue

          Community engagement (e.g. complaints)
          Procurement targets (local procurement)
          Success of education programs

List up to three example targets per issue

          Performance incentives
          Board structure (diversity, independence)
          Reporting and transparency

15.3. Additional information. [Optional]

Typically, board meetings are held monthly or quarterly. Board includes scorecards with ESG components.

Industry standards in Europe and OECD countries tend to be fairly well developed. These are then monitored by the board and independent bodies or associations that certify or grant licences for the operation of the business. We aim for all of our portfolio companies to be industry leaders and to implement best practice standards and procedures into their operations.

Ongoing management of ESG issues, as with all risks and opportunities that go to value, are considered by our investment team on an ongoing basis. Where changes are required, this can involve action plans for exploiting an opportunity, remedial work to mitigate a risk, or ultimately a divestment if exit is considered the most valuable option.

INF 16. Proportion of portfolio companies with ESG/sustainability policy

16.1. Indicate if you track the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

16.2. Indicate the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

(in terms of number of infrastructure investees)

16.3. Describe how your organisation, and/or your operators, contribute to the infrastructure investees’ management of ESG issues. [Optional]

We are taking a very pro-active role in engaging in various activities to promote and contribute to development of ESG initiatives.

After each acquisition we design an individual asset management plan to aid and improve the businesses ESG standards within a given timeline. Apart from a good corporate governance structure and process, we seek to implement at our portfolio companies minimum standards, such as ISO 9001, ISO 14001, ISO 50001 and OHAS 18001 or similar accreditations.

Our primary method of contributing to our portfolio companies' ESG management is at Board level. Our nominee board directors will progress management to an ESG-focused approach. This is typically achieved through strategic direction, business case approvals, setting of Key Performance Indicators and Company Scorecards. The Board will also typically demand regular reporting against measurable metrics. Our team members are involved in various governance bodies at each portfolio company and push for ESG targets to be aligned with management scorecards and incentive KPIs.

The list below highlights a few key elements of how we manage ESG at a company level:


  • Board level committees and risk workshops
  • Reporting of ESG issues at every board meeting
  • Risk registers including safety, environment and carbon management

Environmental and Safety

  • Program to retain ISO 9001, 14001, 50001, 55001 and OHSAS 18001 and other sector relevant accreditations
  • Dedicated safety managers to implement and share best practice
  • All safety issues are escalated to boards on the same day as the incident occurs and reviewed at the highest level

Scorecard and reporting

  • Executive and company scorecard aligned to achievement of safety, environment and customer targets
  • Reporting and monitoring of operating statistics including safety and environmental impacts

In addition, and were appropriate, regular workshops between the management teams of different portfolio businesses are organised in order to share new ideas and best management practices.

For example, a sustainable tree cutting program implemented in our UK electricity distribution business was successfully transferred to our electricity distribution business in Finland.

16.4. Additional information. [Optional]

INF 17. Type and frequency of reports received from investees

17.1. Indicate the type and frequency of reports you request and/or receive from infrastructure investees covering ESG issues.

Type of Reporting

Typical reporting frequency

Typical reporting frequency

17.2. Additional information.

By having board representation on the portfolio companies we invest in we receive board information that contains significant ESG information, including performance data for ESG targets. This is typically part of the normal Board reporting cycle, which is usually monthly or quarterly.

For example, companies report on energy and water use, embodied carbon reduction performance, safety performance, pollution and other environment compliance outcomes, customer satisfaction data, service level statistics and other targets as set by the board. We usually receive monthly and quarterly reports including performance data and ESG information.

Annual reporting documentation from a majority of our companies also provides summary outcomes of ESG performance available for a broader stakeholder audience. Most of our portfolio companies for example produce some kind of sustainability or ESG report in addition to the required financial reports,

As part of our governance approach we usually establish an Environmental, Health& Safety committee as a subcommittee to the supervisory board which specifically focuses on the review and assessment of ESG issues in the respective company. These committees meet on a regular basis to discuss particular topics in a more detailed way.

To determine the format of ESG reporting we frequently refer to guidelines and recommendations given by IFC/ World Bank with respect to the relevant sectors, but also to those required by national or international associations which issue certifications and accreditations.