Our ESG approach 

Our ESG approach 

We believe that managing environmental, social and governance or sustainability risks and opportunities is an important part of creating, protecting and enhancing long-term value in the infrastructure investments that we manage on behalf of our investors.

Five Minimum Standards

We developed Five Minimum Standards that we engage on and aim to implement in all portfolio companies following Igneo’s investment in the business

Focus on actions

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

Improvements not exclusions

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

Proactive engagement

We work closely with each portfolio company to set goals and drive performance

Transparency

We monitor performance and report progress on a quarterly and annual basis

 

 

Five Minimum Standards

We aim to implement in all portfolio companies following Igneo’s investment in the business

Health and safety

  • Zero accident target
  • Standard reporting

Climate change

  • Emissions targets
  • Emissions reporting

Governance

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

Employee engagement

  • Employee engagement surveys
  • Apprenticeships or 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.

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

Net zero roadmap and interim emissions targets

Climate impact assessment integrated into business plan

Strong governance frameworks to manage climate risks and opportunities

Responsible investment is integrated throughout the investment process

Initial screening

  • Red flags report
  • Sustainability issues one of eight key criteria assessed

Due diligence

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

Investment decision

  • Due diligence conclusions presented to Investment Committee
  • Don’t proceed if material risks cannot be remedied

Asset management

  • Close engagement with every company
  • Aim to implement the Five Minimum Standards and Climate Action 1, 2, 3!
  • Drive performance on other material issues
  • Monitor progress and report regularly to investors

Sharing experience

  • Between portfolio companies
  • Between team members

Exit

  • Improved sustainability performance can be a key way to demonstrate long-term value

Reports and Ratings

2022 Global ESG Report

Responsible Investment Policy

First Sentier Investors is a signatory of:

Igneo (the direct infrastructure business) achieved 5 Stars in its 2023 PRI report, with a score of 100/100