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CONQUEST

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Conquest firmly believes that the integration of ESG topics is particularly suitable in the case of investments in infrastructure projects, whose investment horizon is long and which, by their nature, should generate positive spillovers on the social and economic development of local communities. For us, the prerequisite to infrastructure projects, what is more in the field of renewable energy generation technologies, stipulates meeting strict environmental and social criteria and objectives.

Conquest is committed to meet its duty as a responsible investor focused on the development of renewable power and sustainable infrastructure. We consider ESG integration as a comprehensive way to identify risks and opportunities that would not otherwise be captured by fundamental and financial analyses. In the best interest of our clients, carrying out due diligence work on material ESG topics helps maximize the risk-adjusted returns and the value of our owned and managed assets. This approach is followed all along the investment cycle, from the pre-investment to the ownership and finally the exit phase, of our past, current and prospective assets. Furthermore, Conquest invests in neither assets that do not contribute to climate risks mitigation or adaptation, nor that are of controversial nature (eg. weapons, gambling, fossil fuel generation).

 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Through our Responsible Investment Charter, we commit to fulfil our duty as an investment management firm and affirm our conviction that factoring ESG topics into conventional investment approaches leads to more informed decisions, while contributing to a more sustainable economy and society. For us, the rationale behind the integration of ESG topics, in the context of renewable power infrastructure assets such as solar and onshore wind farms, is the conciliation of financial performance and non-financial performance. Our responsible investment charter, thus, identifies key environmental, social, and governance risks and opportunities that are specific to investments in the renewable power infrastructures. Furthermore, as a responsible investor, Conquest will neither invest in assets that do not contribute to  climate risks mitigation or adaptation, nor that are of controversial nature (e.g. weapons, gambling and fossil fuel generation).

These ESG risks and opportunities are analyzed and managed through concrete measures in every phase, from pre-investment, to ownership, to exit, of our past, current, and prospective assets, with a clear governance structure. In the best interest of our clients, carrying out due diligence work on material ESG topics helps maximize the risk-adjusted returns and the value of our owned and managed assets. 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. If the project is validated, an ESG roadmap is elaborated for regular monitoring of the project's ESG externalities during the ownership phase. Through the ESG roadmap, we actively engage and strive to build constructive working relationships with all the stakeholders of the project. The ESG and impact performance of our portfolio are disclosed and communicated to investors in an annual ESG report. Finally, during the exit phase, Conquest includes a note on ESG in the vendor information memorandum. Depending on the context of the transaction process, the preparation of a vendor ESG due diligence may also be conducted.

We are committed to allocating adequate and sizeable resources to deploy our Responsible Investment Charter in an effective way, including by developing our human capital through training effort of our staff on ESG topics, increasing our accountability towards our clients through effective and transparent reporting practices, engaging with and provide continuous support to portfolio assets, working with external experts during various phases of the investment cycle.

Finally, we constantly strive to improve by inspiring ourselves from market best practices, on-field experience, and internationally recognized standards, and commit to regularly review our Responsible Investment Charter in order to stay ahead of the trends and be proactive in our ESG integration approach.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk

01.6 CC. Indicate whether your organisation has identified transition and physical climate-related risks and opportunities and factored this into the investment strategies and products, within the organisation’s investment time horizon.

Describe the identified transition and physical climate-related risks and opportunities and how they have been factored into the investment strategies/products.

As an alternative asset manager specializing in the renewable energy sector, we believe that our investments bring additional contribution to accelerating the energy transition and curbing GHG emissions in the energy sector, which is still the most emission-intensive sector today. Furthermore, our assets’ operations generate low CO2 emissions and polluting substances in the air, soil and water, and are managed to limit visual, noise and biodiversity impacts, as well as to optimize consumption of sustainable resources. 

On the other hand, with 100% current assets in infrastructure, our investments are susceptible to very specific climate-related and environmental risks, including but not limited to:

-risks of non-compliance with applicable environmental 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); and
-potential adverse consequences on the assets’ surroundings, notably on plant and terrestrial biodiversity. 

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

Describe the associated timescales linked to these risks and opportunities.

We manage the ESG risks in general and more specifically climate-related risks and opportunities of our investments through a rigorous ESG analysis, monitoring, and active ownership measures throughout the investment life cycle. Thus, the identified risks and opportunities, and their associated time horizons, are specific to each investment project. Furthermore, our ESG due diligence for each potential investment opportunity also assesses the probability of occurence of any given risk within the projected timescale of the investment.

01.8 CC. Indicate whether the organisation publicly supports the TCFD?

Explain the rationale

We currently have not yet publicly endorsed the TCFD.

01.9 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe

We systematically carry out rigorous and thorough technical due diligence of material ESG risks and opportunities, include those related to climate change, of all potential investment projects. Material ESG and climate-related risks and opportunities are also integral to the agenda of the investment committee, who has the final say as to whether the investment case is made. If the project is approved, we closely monitor these material risks and opportunities through an ESG roadmap and regular engagements with all stakeholders of the project, as well as track the ESG and climate-related impacts of our portfolio via specific KPIs, which are disclosed to investors in an annual ESG report.

1.10 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

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02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

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02.3. Additional information [Optional].

Our approach to ESG integration set out in our Responsible Investment Charter is specific to infrastructure investment. The RI Charter provides our definition and approach to responsible investment and ESG incorporation (including climate change considerations) as part of our fiduciary duties, our exclusion policy, our reporting procedure, and our active ownership approach - how we engage with stakeholders during the portfolio management stage.

Our proprietary ESG check-list, an example of which is provided in our RI Charter, formulates targeted environmental, social and governance guidelines for our investments and serves as framework for a detailed preliminary assessment of the material ESG risks and opportunities associated with any potential investment project as well as for the asset-specific ESG roadmap that is used to monitor the ESG externalities of all of our assets. The ESG check-list is further supplemented with a rigorous ESG technical due diligence that includes a criticality scale ranking the findings based on their probability of occurrence and associated consequences.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Conquest has a policy on managing conflicts of interest during the investment stage.

Furthermore, Conquest’s projects are set up to comply with local and national applicable laws to avoid fines, penalties and the loss of their license-to-operate. In particular, we endeavor to ensure that relationships with competent authorities and commercial partners are carried out in respect of business ethics rules, such as fair competition, prevention of conflicts of interests, zero-tolerance with regards to corruption and bribery practices.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

In the first instance, the rigorous and comprehensive preliminary assessment and ESG technical due diligence of all of our investment opportunities allow us to minimize exposure to ESG risk and/or controversies. Then, for each of our invested project, an asset-specific ESG roadmap, with a clear timeline of objectives, is constructed, based on the material risks and opportunities identified during the preliminary assessment and the ESG technical due diligence. We follow up regularly on the implementation of the ESG roadmap through periodical ESG portfolio reviews in order to monitor and manage in a timely manner the ESG externalities of our invested projects. Through the ESG roadmap, we actively engage and strive to build constructive working relationships with all the stakeholders of the project. Furthermore, the ESG and impact performance, including any information related to ESG incidents, of our portfolio are disclosed and communicated to investors in an annual ESG report.


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