Partners Group has formalized its commitment to responsible investment as part of the firm’s purpose in its charter: “We create lasting positive impact. We manage assets with a long-term perspective to the benefit of individuals and societies worldwide. We aspire to be a role model in corporate responsibility and we continuously raise environmental, social and governance standards.” This commitment translates into a clear Responsible Investment Policy and established processes for integrating ESG factors throughout the investment cycle. Partners Group believes that its inherent corporate governance advantages as a private markets investor should be used to create and protect value on behalf of clients.
Specifically, for infrastructure investments, responsible investing is applied across all stages of the investment process in the following ways:
- Sourcing: Partners Group encourages the Private Infrastructure Investment team to find opportunities in renewable energy, communications, water and other sectors with a positive impact to society and the environment.
- Due diligence: Partners Group uses the firm's ESG Due Diligence assessment tool as a guide for the most material topics for any given asset. The tool includes 10 different infrastructure sub-industries, such as telecommunications, solar power generation, wind power generation, among others, and covers the entire ESG spectrum. In 2019, we updated this tool to identify climate-related risks and impacts.
- Post-investment: Once Partners Group takes ownership, relevant government entities tend to regulate the most material ESG factors for this asset class, including health & safety, the environmental impact of operations, and governance topics like bribery and corruption. Our ESG team works with our Private Infrastructure Asset Management (PrIAM) team and investments teams, as well as company management, to identify ESG projects than can create value or mitigate risk beyond regulatory requirements. We systematically collect data on a common set of ESG metrics annually from our infrastructure assets and report on these publicly through our ESG KPI dashboard, which is published in our annual Corporate Sustainability Report.
Moreover, it is part of our responsibility to monitor our full portfolio of investments for adverse ESG incidents. For our direct portfolio, we have an incident reporting process that our assets must apply in any medium or severe incident, in order to assure Partners Group's management team is timely informed and involved in the remediation process. In addition, Partners Group has developed an artificial intelligence-based tool to scan over 50,000 news sources globally on a daily basis for any items that could pose ESG investment or reputational risk to Partners Group and its clients. This gives us visibility into over 9,000 companies, enabling us to pinpoint areas of potentially unethical business activity.