In INF 05 there is a description of the InfraRed processes and principles that ensure that the investees, other stakeholders and delivery partners are required to meet key Responsible Investment and ESG benchmarks before InfraRed will select them where it is a primary "greenfield" investment or invest in the asset if the transaction is in the secondary market. ESG matters are a key selection benchmark that must be considered if the investment is to proceed. Consequently InfraRed has partner organisations that share its objectives allowing effective collaborative working on such issues.
InfraRed has two major ways to engage with ESG matters on its assets. Firstly, the Management Service Provider appointed to manage the assets on a day to day basis will have ESG service delivery obligations in its appointment that will require it to engage with the operators, subcontractors and clients on a regular basis. They will be obliged to report to the SPC's Board on ESG issues as part of the routine management reports. Secondly the InfraRed individual Asset Manager, who will be a member of that SPC Board, will raise relevant ESG issues at the regular Board meetings including the provision of feedback from across the InfraRed portfolio sharing best practice and other useful information. InfraRed's policy is to have one of the Board of directors appointed to take specific ESG responsibility. On many projects there will be periodic liaison meetings between the SPCs Board and the Board of directors of the SPC's client and ESG issues are routinely raised at this level to assist the project teams in their daily management level ESG efforts.
InfraRed has produced a comprehensive guidance document "ESG Best Practice Guidance for SPV Managers (Infrastructure Projects)" that it developed in consultation with its Asset Management Team members and Management Service Providers, This includes examples of ESG initiatives and best practice together with an overview of responsibilities and InfraRed's objectives.
In 2016 InfraRed started organising annual half day workshops with many of its management service provider teams focused on improving their approach to Responsible Investment. In 2018 the focussed switched to more in depth and routine discussions with the leading management service provider teams to develop their specific performance in relation to the management of the projects that they managed, and this more focussed and regular approach has led to further improvements in the approach to Responsible Investment performance.