Ashmore’s alternatives theme covers a diverse range of real assets in private equity, healthcare, infrastructure, special situations, distressed debt, and real estate opportunities. As such, the approach to ESG integration is tailored to the context of each market. Ashmore considers relevant ESG issues as part of its due diligence process on prospective investments.
Ashmore’s approach is designed to provide superior risk-adjusted returns by mitigating potential risks and increasing asset value. Wherever possible, Ashmore uses proprietary ESG assessment frameworks, which align to internationally accepted standards, including the PRI and the International Finance Corporation (IFC) Performance Standards. Furthermore, Ashmore’s investment teams seek to ensure that its frameworks comply with local regulations and standards.
In general terms the due diligence process includes: identifying the risk category of the proposed investment, analysing specific potential material risks and impacts in ESG areas, documenting best practices within the proposed development, and evidencing the capacity to implement the required risk mitigation measures considered relevant for portfolio investment. The process concludes with the selection of ESG investment terms, which once agreed, are written into the investment covenants.
Across all alternatives investments, Ashmore seeks to engage those stakeholders affected by investment decisions as early on in the project as feasibly possible. This approach enables investment teams to deliver the most appropriate impact, while maintaining Ashmore’s commitment to attain superior risk-adjusted returns.