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BBGI Global Infrastructure S.A.

PRI reporting framework 2020

You are in Direct - Infrastructure » Pre-Investment (Selection)

Pre-Investment (Selection)

INF 05. Incorporating ESG issues when selecting investments

05.1. Indicate if your organisation typically incorporates ESG issues when selecting infrastructure investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in infrastructure investment selection.

As part of any investment decision, ESG is integrated into the process from an early stage. The Business Development team, as well as the Management Board, closely consider potential alignment of any new investment to BBGI's prescribed ESG goals and commitment to responsible investment.

As detailed in the strategy and governance section of this report, BBGI's client base consists of governments or government backed projects, with elements of ESG invariably forming the key drivers in relation to many of its investments. BBGI's flexibility in terms of approach on ESG is therefore often set by the client bid terms. As part of BBGI's commitment to best practice referred to in its Prospectus, it will decline opportunities where it considers either insufficient consideration is given to ESG, or issues of poor ESG practice are discovered as part of its due diligence.

In many cases, BBGI's approach on investment in a particular project can be considered quite binary - either it considers there are sufficient ESG controls and commitments in place, or not. In cases where there are not, BBGI will determine whether such shortfalls can be overcome through development and implementation of suitable initiatives or controls prior to, at the point of, or following, investment and if not, will refuse to make an investment.

Some ESG risks may also be more easily mitigated than others, which will also have an impact on whether the BBGI decide to invest or not. As BBGI's main investment strategy foresees long-term ownership of assets with several decades-long lifespans, and often well after the end of any concession period, long-term impact weighs at least as heavily on decision making as short-term impact. Such risks can also have tangible impact on the portfolio and are therefore considered and determined upon as a matter of principle, on top of our aspirations of being a good corporate citizen.

The above detailed considerations are taken into account at all stages of the pre-investment process up to and including the investment decision itself.

INF 06. ESG advice and research when selecting investments (Private)

INF 07. Examples of ESG issues in investment selection process

07.1. Indicate which E, S and/or G issues are typically considered by your organisation in the investment selection process and list up to three typical examples per issue.

ESG issues

List up to three typical examples of environmental issues

          Energy, water and waste efficiency or other environmental measures that help to demonstrate, promote or educate users of the project
          Improvements to the assets which might enhance the physical environment within which the project operates, such as noise and light pollution
          Impact on biodiversity and adoption of procedures and working practices that promote a responsible approach to the environment generally

List up to three typical examples of social issues

          Health and safety records and accident rates
          Promoting the community interests of the project and the Project entity to the client, client staff, and other stakeholders and users of the project
          promotion and enhancement of the lives and well-being of client staff as well as other users of project facilities

List up to three typical examples of governance issues

          shareholder structure, including any co-investor arrangements and ESG at the co-investor
          anti money laundering and counter terrorist financing name screening checks are conducted on all third party stakeholders, co-investors etc
          existing and proposed board structure and composition as well as holding regular project entity board meetings

07.2. Additional information. [Optional]

INF 08. Types of ESG information considered in investment selection (Private)

INF 09. ESG issues impact in selection process (Private)