Our fund raising documents explicitly note our commitment to responsible investing. For example, including comments such as:
"…As long-term investors with substantial ownership in the companies we own, we focus on understanding the wider environment with which the investments operate in and on creating long-term, sustainable alpha. For example, as part of our internal assessment of environmental, social and governance ("ESG") risks and opportunities, we explored the impact of carbon regulation across all infrastructure sectors (including those we are not currently invested in).
The conclusions help us to deliver alpha through optimal portfolio construction (e.g. seek to increase exposure to sectors poised to benefit from carbon regulation and minimise exposure to those which may be risk-exposed). This 'top-down approach' dovetails with our active management expertise at the asset level."
Our fund raising documents also specifically note that we are a signatory to the United Nations Principles for Responsible Investment and seek to apply those principles in managing infrastructure businesses on a long term sustainable basis.
The documents also includes notes on our coverage of ESG risks and opportunities in:
- Our investment and market research;
- Our investment process, including the due diligence and investment appraisal for new investment opportunities, as well as in our active asset management for existing portfolio businesses.
- 'Risks relating to investment' section of the PPM documents.
Potential investors or interested parties will also have access to our annual ESG report, which describes in detail our approach to responsible investment and ESG issues. The material includes our ESG policies and commitment to ESG implementation in our business and our investments. The information provided also includes membership details of ESG related organisations such as ISCA, LTIIA and the UN PRI.
In the PPM for European Direct Infrastructure Fund II, our approach and commitment to ESG is explained to in various sections of the document.
Please also refer to INF 04.1 for an explanation about our ESG approach and coverage.