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Foresight Group LLP

PRI reporting framework 2020

Export Public Responses

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Describe Foresight has developed a Sustainable Evaluation Criteria process to assess each potential infrastructure investment. This involves evaluating each asset against a set of pre-determined factors and comparing it to a ‘Minimum Threshold’, which varies dependent on asset class, and that we believe represents an acceptable ESG profile
Describe Foresight seeks to invest in infrastructure assets that contribute to meeting the Paris Climate Agreement. We follow guidance from the Task Force on Climate‐related Financial Disclosures and also conduct Environmental Impact Assessments on potential investments, with particular focus on the project’s long‐term climate resilience, such as flood risk

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]

ESG and sustainability underpins our long-term investment strategy to 'invest for a smarter future'. Within our Infrastructure division, our investments must meet our definition of 'Sustainable Infrastructure' in that they should be sustainable, low carbon and resilient in the face of climates change. The Private Equity division also has ESG as an integral part of its investment decision making, investing in companies that have a positive societal impact. 

Geographical location and sector diversity is a key consideration in Foresight's strategic planning. For example, when identifying renewable power plants, such as our AD facilities, nearness to feedstock suppliers in local areas and existing/potential competitors, is a fundamental factor. The plants and/or sites should be closely located to feedstock suppliers to both minimise transport emissions and support local businesses. Our Private Equity Funds have a regional strategy and invest in companies designed to deliver ESG benefits to the local and wider community.

Foresight has preferences towards investing in the UK and countries which have comprehensive regulatory frameworks which enforce strong governance and support good ESG practices. Foresight looks to geographies which also have governmental support that encourages the responsible investment required to promote a shift towards a 'greener' and more sustainable economy.

SG 13 CC.

SG 14. Long term investment risks and opportunity (Private)

SG 14 CC.

SG 15. Allocation of assets to environmental and social themed areas (Private)