
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 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
Governance
- 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:
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
Exit
- ESG integrated into vendor documentation
- Demonstrate long-term value creation
Reports and Ratings
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