We have established a direct investment ESG Due Diligence framework. Depending on the type of asset we will identify and undertake due diligence on the material ESG factors. For example a toll road vs a gas pipeline - the focus will depend on the underlying asset.
The framework sets out key ESG risks to be considered and we request information to review to be able to undertake our ESG assessment.
Our team then prepare an ESG report detailing any risks or opportunities to be considered.
We consider whether the company has the following:
Environmental Management System
Regular Environmental impact audits undertaken
Environmental breaches of underlying asset/controversies
Toxic Emissions and waste management, including recycling
Physical Climate Risk
Supply chain risk from water scarcity, extreme weather events
Renewable energy targets
Biodiversity and Land Use
Labour management and Human Rights in the supply chain including Modern Slavery
Worker Safety in Supply Chain
Human Capital Development
Social Licence to operate/community engagement
Bribery & Corruption
CEO have had direct equity in business?
Code of conduct
We consider materiality based on the sector and industry of the underlying investment. Depending on the investment will determine material ESG issues.