Foresight contributes to the Management of ESG issues within investee companies through two primary means:
Board representation. Foresight normally has an allocated seat on the board or in some cases has a carefully managed relationship with someone that is able to represent Foresight’s views in the decision making process. Such representation by Foresight is an essential part of being able to drive and effect change within an investee company, including maintaining a strong focus on ESG issues. Foresight ensures that it participates in all stipulated meetings and attempts to ensure that the Board acts as a cohesive unit. A track record of active asset ownership and management gives Foresight a high degree of credibility, which affords us considerable influence. We use this influence responsibly to focus the Board on its key roles, namely: setting the strategy for growth; creating value; ensuring consideration of ESG issues; managing risks; monitoring the business; safeguarding reputation. Foresight will always try and ensure that the Board has the correct composition, with a tailored mix of skills and experience to meet the needs of the company.
Active asset management. Foresight’s approach to active asset management ensures there is a member of the Foresight team with direct responsibility for the management of day-to-day operations at the asset level, enabled by 24/7 real-time monitoring of operational performance. As such, a key aspect of the portfolio management team’s responsibilities includes continuous monitoring of ESG issues, whilst simultaneously ensuring the investee company is exploiting opportunities to apply ESG focused practices that may lead to enhanced operational performance. Maintaining this approach across the broader infrastructure portfolio enables ESG best-practice and lessons identified to be shared easily between portfolio managers, enabling swifter implementation at the investee company level. This can range from adaptation of policies and management systems, to the application of new operational procedures.