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NextEnergy Capital

PRI reporting framework 2019

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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.

NextEnergy Capital views the adoption of ESG principles as a potent source of innovation and competitive advantage for its core business. In this sense, it continues to commit to generating economic value in a way that also produces value for society by addressing its challenges and safeguarding the transition to a low-carbon economy. 

In order to maximise value creation, the Company accounts for ESG metrics that relate to the value chain of its activities. By proactively taking an additional step to traditional investment in the photovoltaic solar industry, it aims to create higher standards of long-term value in the entire industry. 

Environmental

  • NEC focuses exclusively on generating electricity from 100% clean energy (solar PV) sources, thereby contributing to reducing greenhouse gas emissions and achieving global climate mitigation targets. It targets a reduction of CO2 emission of over 2 million tons per year.
  • NEC is committed to protecting the natural environment from activities arising from the construction and operation of its PV plants and actively works to enhance biodiversity.
  • NEC undertakes extensive due diligence to ensure that all its projects are in line with local environmental regulation and with international standards such as the IFC Performance Standards.

Social

  • NEC is currently in the process and will increasingly take part in financing the construction and operation of new solar plants, thereby contributing to additional job creation in the countries it targets.
  • NEC takes full account of health and safety impacts beyond the relevant local regulations and throughout all phases of the solar PV asset life.
  • Community engagement forms a key part of NEC’s ongoing asset management strategy; current NEC-managed funds have significantly contributed to the development of local communities. NextEnergy has launched an independent charitable foundation focused on alleviating poverty through the promotion of renewable energy. 

Governance

  • NEC recognises the importance of avoiding conflicts of interest and upholds high standards of corporate governance for its own entities and for the portfolio companies invested by NEC managed funds. 
  • NEC’s managed funds do not intend to invest in projects developed by NEC where NEC would make a development profit.
  • NEC conducts its dealings with local authorities in a transparent manner, adhering to the rule of law and procedures of each jurisdiction in which its assets operate.
  • NEC’s Advisory Board includes high profile professionals with energy, financial and environmental background and advises the management team in implementing and upholding best governance practices.
  • NEC has appointed a dedicated senior ESG manager who is responsible to review ESG information through the due diligence phase and to provide her views to the Investment Committee. The ESG manager is committed to developing its ESG policy to achieve and maintain best-practice. 

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

          Climate change, including water
        
          Energy Efficiency
        
          Biodiversity
        

List up to three typical examples of social issues

          Economic and political pressures
        
          Community relations
        
          Human rights
        

List up to three typical examples of governance issues

          Board composition
        
          Bribery and corruption
        
          Lobbying
        

07.2. Additional information. [Optional]


INF 08. Types of ESG information considered in investment selection (Not Completed)


INF 09. ESG issues impact in selection process (Not Completed)


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