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Gresham House plc

PRI reporting framework 2020

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Post-investment (monitoring and active ownership)

Overview

INF 11. ESG issues in post-investment activities

11.1. Indicate whether your organisation and/or operators consider ESG issues in post-investment activities relating to your infrastructure assets.

11.2. Indicate how your organisation, and/or operators, considers ESG issues in the following post-investment activities relating to your infrastructure assets.

11.3. Describe how your organisation, and/or operators, considers ESG issues in post-investment activities related to your infrastructure investments. [Optional]

Our deal assessment processes move seamlessly into our stewardship phase, particularly where manageable material ESG issues could not be resolved within the pre-deal phase.

During the construction phase, the focus is on the Construction, Design and Management (CDM) obligations and reporting. In line with our Corporate Governance best practices, we ensure regular Board meetings are held on a monthly basis. The Board pack includes monthly reporting requirements, and Health and Safety is always considered as a paramount matter at every Board meeting, often chaired by an Independent Non-Executive director.

As Gresham House staff act as Directors, we share the responsibility in steering businesses towards improved ESG performance where we believe this is material. Management companies are typically small and we have a close working relationship with them to establish shared goals from the inception of the enterprise.

We are predominately major or sole stakeholder in a business and therefore have ability to exert control in relation to post-investment activities


Infrastructure Monitoring and Operations

INF 12. Proportion of assets with ESG performance targets

12.1. Indicate the proportion of infrastructure assets for which your organisation and/or operators included ESG performance in investment monitoring during the reporting year.

 (in terms of number of infrastructure assets)

12.2. Indicate ESG issues for which your organisation, and/or operators, typically sets and monitors targets (KPIs or similar) and provide examples per issue.

List up to three example targets per issue

          Water usage/ saved
        
          Energy generated from renewable sources
        
          Energy stored / displacement of non-renewable power (MWH)
        

List up to three example targets per issue

          Affordable Homes Built
        
          Staff Retention
        
          Local Community Impact
        

List up to three example targets per issue

          Health and Safety
        
          Breaches of agreed terms/ failure to escalate
        
          Reporting
        

12.3. Additional information. [Optional]

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.


INF 13. Proportion of portfolio companies with ESG/sustainability policy

13.1. Indicate whether you track the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

13.2. Indicate the proportion of your infrastructure investees that have an ESG/sustainability-related policy (or similar guidelines).

(in terms of number of infrastructure investees)

13.3. Describe how your organisation, and/or your operators, contribute to the infrastructure investees’ management of ESG issues. [Optional]

The underlying objective of any business invested in is to deliver some form of positive economic, and social or environmental benefit for society and this is often cited in their overall business mission. Given most of our management teams are very small, and their concepts in infancy, they do not always have a defined approach to ESG issues (e.g. policies or systems) at the initial time of investment  - but see below.

As a majority investor we would seek to get the businesses operating to our standards within an appropriate timescale, with Gresham House directors taking forward programmes and processes to ensure that material ESG issues are managed appropriately through the lifecycle of the asset.

This may include but is not limited to:

  • Appointment of Gresham House staff to prospect company Board positions
  • Selecting and assigning Independent Non-Executive Directors
  • Implementation of ESG policies and regular monitoring at Board meetings

INF 14. Type and frequency of reports received from investees (Private)


Infrastructure Maintenance

INF 15. Proportion of maintenance projects where ESG issues were considered

15.1. Indicate the proportion of active infrastructure maintenance projects where ESG issues have been considered.

(in terms of number of active maintenance projects)

15.2. Describe your approach to ESG considerations for infrastructure maintenance projects. [Optional]

Maintenance activity aimed at improved operational performance: Upgrading emission suppression equipment (emissions reduction) for GH Bio Power.

GH Bio Power is a UK based company that recovers used cooking oil into an environmentally friendly bioliquid which is used to generate carbon neutral electricity for UK homes and businesses. We looked to upgrade the suppression equipment in order to meet regulatory environmental requirements and thus future proof against incoming regulation. 


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