ESG aspects are part of the initial screening for investment opportunities and form part of the investment case. We also use negative screening with restrictions e.g. on coal-based capacity. ESG aspects and risks are further assessed after the investment opportunity has been identified and preliminary investment case has been formulated. In the event of ESG criteria are not met, the opportunity will be discontinued.
The scope of due diligence is determined on a case by case basis, but as part of all investment decisions, a formal ESG due diligence checklist is applied to ensure all potential aspects of ESG issues are covered.
Targets with positive ESG aspects (e.g. potential to lower GHG emissions) are prioritised in investment target selection.