We seek to ensure that any material issues identified are addressed in an appropriate period of time, so set bespoke KPIs on this basis which will vary from project to project depending on the prospect infrastructure asset sub sector in consideration.
In addition, we have generic KPIs linking to the mandate of sustainable infrastructure investment including:
- Net carbon/energy impact (energy used versus energy generated - where relevant)
- Local community impact (employment, contribution to the circular economy)
- Staff impact (retention, H&S statistics etc)
Many of our assets will go through a development phase where we also include relevant KPIs for compliance monitoring (e.g. with planning conditions). We have the right to request any reasonable reports and information from the management team on our prospective investments. Therefore, although the process is replicable the details of the approach varies on an asset by asset basis. Carefully selected KPIs will usually be a reflection of the sector and geography, as well as the specific company itself.
This assessment work may be completed by an external party and is reported in board packs on a monthly basis as a minimum. We are currently trialling a new portfolio management software (EFRONT) to track these metrics on a monthly basis which will feed into our bespoke Infrastructure ESG tool. Those investee companies that do not meet the minimum reporting expectations moving forward or fail to show required improvements in sustainability related areas may be exited ahead of forecast if the issues raised are of material significance and appear insurmountable.