Through the integration of climate-related risks in our risk management, we work to manage and mitigate:
-risks of non-compliance with applicable environmental and climate-related legislations, which may lead to the loss of our license-to-operate and unbudgeted costs associated with fines;
-risks stemming from unanticipated changes in environmental regulations (transition climate risks);
-risks stemming from more frequent extreme weather events (physical climate risks);
-potential adverse consequences on the assets’ surroundings, notably on plant and terrestrial biodiversity.
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. Both the ESG check-list and technical due diligence include specific criteria related to climate change. If the project is validated, an ESG roadmap is elaborated for regular monitoring of the project's ESG externalities during the ownership phase. Throughout the project's operational phase, we actively engage and strive to build constructive working relationships with all the stakeholders of the project in order to manage the ESG and climate-related externalities of the project. The ESG and climate impact performance of our portfolio are disclosed and communicated to investors in an annual ESG report.