This report shows public data only. Is this your organisation? If so, login here to view your full report.

CONQUEST

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.

In the pre-investment phase, we conduct a preliminary assessment of the project through a proprietary ESG check-list as well as a thorough ESG technical due diligence, whose results are then integrated in the agenda of the investment committee. The ESG due diligence includes site visits, interviews of stakeholders, requests for documentary evidence, and a review of publicly available sources of information. The findings, such as liabilities, remediation costs, post-acquisition action plans, risks of non-compliance, are presented in a 20-30 page long report, which includes an executive summary whereby a criticality scale ranks the findings based on their probability of occurrence and associated consequences. It serves as an important basis for discussion during the investment committee and during commercial negotiations, as well as for the ESG roadmap used to monitor ESG risks and opportunities during the operation phase.

Conquest’s investment committee has the final say to decide whether an investment case is validated. Findings drawn from the ESG check-list and/or the ESG technical due diligence are integrated in the investment memorandum. In some instances, the investment committee may decide to interrupt or stop the acquisition process.

In some cases, due to time limitation, ESG due diligence may be performed ex-post, within six months after the beginning of the ownership phase. In this case, the investment committee’s decision and commercial negotiations would therefore rest upon the findings of the preliminary assessment and ESG check-list.


INF 06. ESG advice and research when selecting investments

06.1. Indicate whether your organisation typically uses ESG advice and research sourced internally and/or externally when incorporating ESG issues into the infrastructure investment selection process.

          Investment Analysts
        
          The ESG technical due diligence assessment is performed by Conquest or an appointed external independent consultant.
        

06.2. Additional information. [Optional]


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

          CO2 emissions
        
          Water management
        
          Biodiversity
        

List up to three typical examples of social issues

          Occupational incidents
        
          Diversity and inclusion
        
          Absenteeism
        

List up to three typical examples of governance issues

          Representativeness of Board of Directors
        
          Conflict of interests
        
          Business ethics (code of conduct, whistle blowing, etc.)
        

07.2. Additional information. [Optional]


INF 08. Types of ESG information considered in investment selection

08.1. Indicate what type of ESG information your organisation typically considers during your infrastructure investment selection process.

          Relevant publicly available databases, monitoring reports and assessments, relevant permits and authorizations
        

08.2. Additional information.

For country-level benchmark, information published by the Sustainability Accounting Standard Board (SASB) and relevant local legislations is one of the inputs for our ESG due diligence. We also refer to the International Finance Corporation (IFC) Performance Standards during the due diligence - EHS Guidelines for Wind Energy, for instance, were used to select the material topics to be assessed.


INF 09. ESG issues impact in selection process

09.1. Indicate if ESG issues impacted your infrastructure investment selection processes during the reporting year.

          Asset vendors’ ESG credentials are verified during transaction early-stage and prior to full ESG due diligence, which may also be conducted shortly post-deal
        

09.2. Indicate how ESG issues impacted your infrastructure investment deal structuring processes during the reporting year.

09.3. Additional information.

In order to gain more in-depth knowledge of a contemplated project, an ESG technical due diligence assessment is performed by Conquest or an appointed external independent consultant. For reasons of time, this systematic assessment may be performed ex-post, within six months after the beginning of the ownership phase. In this case, the investment committee’s decision and commercial negotiations would therefore rest upon the findings of the preliminary assessment and ESG check-list.


Top