Non-Renewable Energy Policy:
Although the projects in the present industry are expected to bring economic and social benefits, the sector intrinsically involves different potentially complex and significant and diverse ESG risks and impacts, depending on the type of energy production-which are applicable to both the construction and operational phases (i.e. upstream, midstream, and downstream operations). Those inherent risks and impacts are likely to have material implications for long-term shareholder value, if transition to low carbon economy is not taken into account into the decision making process.
In this context, we integrate our existing corporate values, principles and policy commitment with reference to (i) quality of products; (ii) safety and reliability of operations; (iii) care for the environment and communities; (iv) engaging stakeholders; (v) respect for others and their rights; and (vi) innovative solutions.
Cordiant’s Engagement Strategy & The development of company-wide proactive compliance strategy
Cordiant is committed to participating in dialogue with borrowers on the effects of their activities—the impacts, benefits, risks and trade-offs, as well as corporate responsibility or environmental, social and governance (ESG). The team employs a stepwise process to addressing ESG matters inherent in this industry. This is a central element of due diligence, investment structuring and on-going ownership and monitoring.
Policy: Benefits of Renewable Energy Investments
Investing in low carbon energy transition assets is in itself a value added investment. For investors, it is a preferable alternative to fossil-fuel based energy production systems which are now categorised as “stranded assets”. As well, it reduces the impacts on the environment and on biodiversity, compared to traditional sources of energy.
Alignment with Best Practices & Sustainable Development Goals
As part of its Fiduciary Responsibility and Responsible Investment Approach, Cordiant ensures that its business strategy is consistent with, and contributes to, the development goals, as expressed in the SDGs and Paris Agreement on climate change. Investing in the clean and renewable energy sector thus allows Cordiant to be aligned with the sustainable development goals (SDGs), including;
- SDG 7: Affordable and clean energy
- SDG 9: Industry, Innovation & Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
The scaling-up of national climate action plans, also known as Nationally-Determined Contributions (NDCs), and which represents a key opportunity to address a wide range of issues, by addressing investment gaps in the clean energy sector. Accordingly, by applying its ESG risk management system and Responsible Investment Process to the clean energy sector, Cordiant is systematically maximizing positive impacts while minimizing negative impacts.
Scope & Applicability of the Clean Energy Policy and Due Diligence Process
Although renewable sources are more environmentally friendly compared to non-renewables, the exact type and intensity of environmental risks and impacts varies depending on the specific technology used, the geographic location, and a number of other factors. By understanding the current and potential environmental issues associated with each renewable energy source, we can takes steps to effectively avoid or minimize these impacts as they become a larger portion of our electric supply.