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Glennmont Partners

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 all countries in which we invest robust environmental regulations exist. Prior to making an investment, Glennmont commissions third party environmental due diligence reports on the state of the asset in question. These surveys while focused on the physical asset itself, also take into account the environment surrounding the asset, and the possible impact of said asset. All investments are subject to an environmental impact assessment. At the same stage, provisions for community engagement, and for the management of health and safety will be assessed by the deal team, with external support if necessary. Governance and propriety issues are assessed and reviewed as part of the investment appraisal and presented to the Investment Committee. The majority of ESG data that Glennmont assesses, during the acquisition process, is the documentation in any project dataroom. Typically Glennmont's legal and technical advisers would produce vendor due diligence on the basis of this documentation that would highlight any ESG risks to the relevant deal team. The deal team, if the information is material, will highlight it in turn to the Investment Committee. ESG risks might include, for instance, specific curtailment requirements for wind turbines due to shadow flicker or noise emissions, which would be reflected into the financial model of the project.

An example of how this works in practice can be illustrated with an investment Glennmont made in 2018 into an onshore wind farm in France. As part of the investment process, various environmental mitigations were carried out/required to reduce risk:
- A pre-construction acoustic study was undertaken to assess the potential impact on neighbouring communities
- A post-construction acoustic study will be undertaken within one year after commissioning to validate the impact
- The distance between the wind farm and the neighbouring communities was assessed as part of risk identification
- Specific measures were adopted to protect local bird species “Guepier d'Europe”
- Avi fauna studies will be performed at regular interval post commissioning to monitor the impact of the wind farm on local bird and bat population

INF 06. ESG advice and research when selecting investments (Private)

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

          Noise impact on local communities of wind turbines
          Wind turbine impact on bird population
          Wind turbine impact on bat population

List up to three typical examples of social issues

          Jobs created over the project's life
          Community funding initiatives required at the project
          Possible health and safety issues

List up to three typical examples of governance issues

          Compliance checks
          Appropriate project governance structure

07.2. Additional information. [Optional]

Governance aspects are less relevant for Glennmont as the firm tends to acquire assets without employees - they are simply clean energy generation assets.

INF 08. Types of ESG information considered in investment selection (Private)

INF 09. ESG issues impact in selection process (Private)