ESG issues are considered for materiality and relevance during due diligence. A comprehensive ESG checklist is used for initial screening of environmental, governance and social risk factors, including labour supply chains, health and safety and climate change. Cbus has also expanded the checklist to map a select number of Sustainable Development Goals where Cbus can potentially monitor impact. Key findings from this process are summarised in the investment papers for consideration.
In a recent example of a potential acquisition, it was found that flooding from sea level rise would have an immaterial impact on the asset which could be mitigated by the construction of sea walls.