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AMP Capital Investors

PRI reporting framework 2019

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Fundraising of infrastructure funds

INF 03. Fund placement documents and RI

03.1. Indicate if your most recent fund placement documents (private placement memorandums (PPMs) or similar) refer to responsible investment aspects of your organisation.

03.2. Indicate how your fund placement documents (PPMs or similar) refer to the following responsible investment aspects of your organisation:

03.3. Describe how your organisation refers to responsible investment for infrastructure funds in fund placement documents (PPMs or similar). [Optional]

As an early signatory to the Principles for Responsible Investment, AMP Capital has a sophisticated understanding of Environmental, Social and Governance (“ESG”) related risks and opportunities across a broad range of infrastructure sectors. We recognise that ESG issues can impact the long-term performance of our investment portfolios and consider them a core component of our mainstream investment process.

AMP Capital's commitment to responsible investment is governed by the overarching ESG and Responsible Investment Philosophy. Our approach to infrastructure investment is detailed in our 'Infrastructure ESG Policy Guidelines' which provides explicit protocols as to how ESG is embedded in decision making, asset management and reporting activities.

ESG issues are considered across the full scope of our investment process, from the identification of new opportunities to active management throughout the lifecycle of an asset.

When originating new investment opportunities, we apply both a qualitative and quantitative approach to identifying and assessing the risks, opportunities and potential impacts of ESG issues. ESG issues are considered in the very early stages of investment analysis and addressed throughout the investment approval process.

When considering key ESG issues likely to impact prospective infrastructure investments, we assess the physical location of the investment, environmental impacts and constraints, community and social implications, the dynamics of the sector or industry in which they operate and the business practices of related counterparties. Furthermore, we consider the scope of governance arrangements in place to protect the long-term interest of investors.

AMP Capital places a strong emphasis on the active asset management of its infrastructure assets. On-going consideration of asset-specific ESG issues aim to identify improvements to risk management practices and potential opportunities for improved investment profitability.

ESG principles are incorporated into asset management processes such as budgeting, counterparty engagement and development of strategic propositions. Where we hold large equity stakes, higher level of transparency and influence over investee companies (through board representation and direct access to senior management) enhances our ability to monitor and influence various aspects of ESG


INF 04. Formal commitments to RI

04.1. Indicate whether your organisation makes formal commitments in fund formation contracts, Limited Partnership Agreements (LPAs) or in side letters relating to responsible investment in infrastructure when requested by clients.

04.2. Additional information.

As responsible investment is a core component of our mainstream investment process, formal commitment to it is implicit in our fund formation contracts. Where investors request fund formation contracts or side letters to specifically mention implementation of ESG activities and initiatives, we would accommodate such requests.

Pre-Investment Approach

When originating new investment opportunities, we apply both a qualitative and quantitative approach in assessing the risks and opportunities and potential impact of ESG issues. ESG issues are considered in the very early stages of the investment analysis and addressed throughout the investment approval process.

Post-Investment Approach

AMP Capital places a strong emphasis on the active management of its infrastructure assets. Transparency and influence of ESG performance is typically achieved through board representation, CEO and senior management dialogue, strong relationships and contractual arrangements with third-party operators. Each infrastructure investment is assigned a dedicated AMP Capital Asset Manager, whose responsibilities include ESG monitoring and management.


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