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Access Capital Partners

PRI reporting framework 2019

You are in Direct - Infrastructure » Pre-Investment (Selection)

Pre-Investment (Selection)

INF 05. Incorporating ESG issues when selecting investments

05.1. Indicate if your organisation typically incorporates ESG issues when selecting infrastructure investments.

05.2. Describe your organisation's approach to incorporating ESG issues in infrastructure investment selection.

Access' ESG approach in infrastructure investment selection

For fund selection, Access' ESG due diligence articulates around the following points:

Pre- investment stage / Step 1: For each investment under due diligence, Access undertakes an Environmental, Social and Governance assessment with a view to identifying potential issues.

A SRI engagement questionnaire is sent to each fund manager under due diligence to find out whether and how ESG criteria are taken into consideration when investing in private companies or assets. Informal discussions with the fund management team are carried out during onsite visits to further assess the degree of recognition of ESG issues through the importance of non-financial criteria when analysing a potential acquisition, the existence of responsible investment policies (sector exclusions, audits, etc.), and the willingness to provide ESG related disclosure during the life of the fund / during the holding period of the asset for co-investments. Reviews include on-site visits, interviews with senior management and operational staff and examination of records, policies, handbooks on specific items (environmental policies, governance, health and security for employees, etc.). Whenever necessary, Access would commission ESG-related specialists to carry out independent reviews of ESG.

Further, in the legal documentation, Access seeks a written engagement from the underlying fund manager to use reasonable best efforts to incorporate ESG criteria in the management of its portfolio companies and to report annually on the ESG performance and progress in a portfolio company and to provide Access with an update if significant ESG issue arises in a portfolio asset.

​For co-investment selection, Access' ESG due diligence articulates around the following points:

Pre-investment

During the due diligence process, an analysis is carried out by Access to identify the ESG issues which are likely to have a material impact on the financial and operational performance of the target company. This analysis is based on Access’ in-house internal ESG materiality assessment framework.The investment team carries out the ESG due diligence by :

  • relying on the environmental, social and governance diligences carried out by the sponsor / partner manager: Access completes and reinforces these diligences when they are considered insufficient.
  • A dialogue can then be initiated with the majority investor / co-investor partner and / or the management team of the company.
  • assessing the level of ESG integration in the lead investor’s due diligence / documentation. Access also identifies, through a specific Access’ ESG checklist and discussions with the management team, the potential ESG issues borne by the target investment. Through the ESG’ assessment, the Investment team highlights the main ESG risks and opportunities, notably by considering climate change and sustainable development related issues. In the event of Access being an existing investor in a fund managed by the lead-sponsor (most of the cases), Access would have already analysed how ESG criteria are taken into consideration when the fund manager is investing in private companies.

Access Investment's teams are involved upstream in the due diligence phase of the majority investor, which enables them to optimize the sharing of information, and to point out issues or points requiring further study from the beginning. of the process.

The identification of risks requiring enhanced ESG vigilance during this phase revolve around a certain number of control points systematically reviewed.

A summary of the ESG analysis pre-investment stage is inserted in the due diligence documentation submitted to the Access Investment Committee.


INF 06. ESG advice and research when selecting investments (Private)


INF 07. Examples of ESG issues in investment selection process

07.1. Indicate which E, S and/or G issues are typically considered by your organisation in the investment selection process and list up to three typical examples per issue.

ESG issues

List up to three typical examples of environmental issues

          Environmental management system
        
          Formalized environmental actions
        
          Carbon footprint assessment
        

List up to three typical examples of social issues

          Headcount evolution / Staff turnaround
        
          Health, safety and training plan for employees and social impact
        
          Social litigations, redundancy plan
        

List up to three typical examples of governance issues

          Supervisory Board members and independence, governance structure and quality of supervision
        
          Internal procedures covering child labour and forced labour, bribery and money laundering
        
          Business ethics litigation
        

07.2. Additional information. [Optional]

Access has reviewed its ESG annual assessment questionnaire. General Partners and /or lead investors are requested to report on 30 KPIs. For its infrastructure activity, Access has set up an ESG questionnaire which includes a common core of general and a company-specific set of questions depending on the sector in which the asset operates.

The common core of general questions include 20 KPIs with regards to environmental, social, governance and supply chain issues. The company-specific questions covers the following sectos in which Access' infrastructure has investments: energy, renewable energy, social infrastructure, utilities, tranportation and communications. 


INF 08. Types of ESG information considered in investment selection (Private)


INF 09. ESG issues impact in selection process (Private)


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