Our ESG approach
We believe that managing environmental, social and governance 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 aim to implement in all portfolio companies following Igneo’s investment in the business
Health and safety
- Zero accident target
- Standard reporting
Diversity
- Clear diversity priorities
- Representation 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:
Responsible investment is integrated throughout the investment process
Initial screening
- Red flags report
- Environmental, social and governance 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 performance on environmental, social and governance issues can be a key way to demonstrate long-term value
Reports and Ratings
First Sentier Investors is a signatory of:
Igneo (the direct infrastructure business of the First Sentier Investors group) achieved 5 Stars in its 2023 PRI report, with a score of 100/1001. According to the PRI, 5 Stars indicates “leading practices within the responsible investment industry”2
1 Rating generated by PRI on 22/12/2023 following First Sentier’s self-reporting under the PRI Reporting Framework. Report can be accessed via the PRI’s data portal: or provided upon request. For more information on the PRI assessment process please visit the UNPRI website
2 UNPRI website article: How investors are assessed on their reporting
Part of the First Sentier Investors Group