Quinbrook’s fund placement documents contain the following references:
Quinbrook is accountable for its actions in relation to environmental, social and governance ("ESG") initiatives and approach. ESG considerations are factored into each stage of the investment approval process. This analysis will typically reveal and highlight the ramifications of a new project investment opportunity in relation to issues such as environmental and social impacts, job creation, human relations in the workplace and wider community, ‘best practice’ governance approaches, and operational health and safety. Further, Quinbrook's policy and practice is to quantify as much as practicable, the cumulative ESG benefits of each invested portfolio on an ongoing basis and report that to investors to assist them to track and report the direct positive impacts resulting from the investment of their capital.
ESG Reporting and Analysis
As a signatory of the United Nations Principles for Responsible Investment ("PRI"), Quinbrook is accountable for its actions in relation to ESG risks and benefits when making new investments. Further, Quinbrook is directly accountable to investors, undertaking to assess and quantify the cumulative ESG benefits of each invested portfolio and reporting on these to investors on a regular basis. Each investment opportunity evaluated will be scrutinised from an ESG perspective, with certain ‘best practices’ integrated into Quinbrook's investment process which are consistent with the ESG guidelines of the PRI. Quinbrook believes that assessing and monitoring ESG criteria is a key element of robust investment practice and comprehensive risk analysis and should serve to improve the longevity of Quinbrook’s invested assets, their resilience to risk and their long-term value to investors.
ESG and Due Diligence
When evaluating investment opportunities, Quinbrook will seek to identify and quantify the ESG related risks through examination of factors such as environmental impacts and benefits, including but not limited to: emissions, water, hazardous waste, recycling and land remediation issues. Further, the investment team will interrogate governance and transparency issues where relevant (such as probity and related party dealings) before advancing to the final stages of Investment Committee approval. A full evaluation of the social impacts of an investment will also be conducted as part of the Quinbrook investment process, highlighting important social aspects such as job creation and community benefits from the construction of new energy infrastructure assets.
ESG and Asset Management
Quinbrook's 'Responsible Procurement Policy' aims to ensure that ESG issues related to the purchase of major equipment and services are investigated with supply chain partners. Furthermore, Quinbrook is in the process of establishing new 'best practice' policies in the selection of contractors by screening their performance in areas such as health and work safety practices and environmental compliance. Quinbrook recognises that for these policies to be properly integrated, effective governance structures must be implemented at the deal structuring stage to ensure Quinbrook's requirements in relation to accountability, appropriate controls and transparency are satisfied.
Quinbrook imposes regular reporting obligations on underlying portfolio companies to enable progress and developments on ESG issues to be monitored and to ensure that ESG risk factors will be both preempted and identified. As a newly invested company transitions into its operational phase under Quinbrook’s management, any existing ESG policies they have in place will be reviewed and risk assessments will be undertaken as necessary. New policies consistent with Quinbrook’s ESG policies will be implemented if they have no current ESG policies at all or existing policies can be improved by a fuller integration with Quinbrook’s approach. In addition, Quinbrook will track key changes in law, policy and regulation that may be relevant to the underlying portfolio assets. Integrating the findings of this ongoing monitoring into the overall asset management process will enable Quinbrook to balance financial, social and environmental factors into its ongoing asset management practices.