Our ESG approach

Our ESG approach

We have long understood that managing ESG risks and opportunities is essential to protecting and enhancing long-term value.

Great infrastructure businesses must have a foundation of excellent ESG management. A best-in-class health and safety culture, prudent management of environmental risks, diversity and inclusion, strong governance and high employee engagement are good for the company, its stakeholders and the environment.

Fundamentally, good ESG management reduces risk and improves long-term investment returns. This is at the heart of our approach.

Five Minimum Standards

We developed Five Minimum Standards for ESG performance that we aim to implement in all portfolio companies

Focus on actions

We seek to ensure portfolio companies not only “tick the box” on ESG but have the appropriate culture and mind-set to deliver tangible improvements

Improvements not exclusions

We can add value and reduce risks by improving ESG performance rather than through blanket exclusion policies

Proactive asset management

We work closely with portfolio company boards and management teams to drive ESG performance

Top-down and bottom-up

ESG requires strong leadership from the board and management but can ultimately only be successful if it forms an integral part of the company culture

Transparency & accountability

We report our progress on a quarterly and annual basis

Igneo's approach to ESG

Five Minimum Standards

We have developed Five Minimum Standards for ESG performance that we aim to implement in all portfolio companies.

Though our companies operate in different industries and jurisdictions, are of different sizes and are at various stages of development, we believe these core standards are universally relevant.

Each company then sets additional targets and action plans tailored to their company and the unique ESG challenges they face.

Five Minimum ESG Standards we seek to apply at all portfolio companies

Health and safety

  • Zero accident target
  • Standard reporting

Climate change

  • Emissions targets
  • Emissions reporting


  • Independent board representation
  • Risk management
  • Standards / certifications
  • Customer satisfaction surveys
  • Cyber security
  • Modern slavery risk assessment

Employee engagement

  • Employee engagement surveys
  • Apprenticeships and continuous professional development

Climate Action 1, 2, 3!

As long-term infrastructure investors, it is vital that we manage the risks and opportunities presented by climate change and the energy transition.

Our target is to achieve net zero emissions in our portfolio by 2050.

Three climate actions we aim for all portfolio companies to take:


Net zero roadmap and interim emissions targets

Risk assessment

Climate impact assessment integrated into business plan


Strong frameworks to manage climate risks and opportunities

ESG is integrated into each stage of the investment process

Initial screening

  • Red flags report
  • ESG one of eight key criteria assessed

Due diligence

  • In-depth analysis of ESG issues
  • Assessment of Five Minimum Standards, climate risks and other material ESG issues

Investment decision

  • Material ESG issues priced into bid
  • Don’t proceed if material risks cannot be remedied

Asset management

  • Implement Five Minimum Standards and Climate Action 1, 2, 3!
  • Drive performance on all ESG aspects
  • Regular reporting to investors

Sharing experience

  • Between portfolio companies
  • Between team members


  • ESG integrated into vendor documentation
  • Demonstrate long-term value creation

Reports and Ratings

2022 Global ESG Report

View ESG Statement

First Sentier Investors is a signatory of:

Igneo (the direct infrastructure business) achieved 5 Stars in its 2021 PRI report, with a score of 100/100