Infracapital acquires and manages a wide range of essential infrastructure assets including both core and greenfield projects. By their nature these are long-term investments that have many stakeholders alongside investors, including captive consumers, communities and regulators, and we recognise the importance of taking into consideration all factors that influence performance when we invest.

We believe environmental, social and governance (ESG) factors can have a material impact on long-term investment outcomes and they are consequently a key component of our investment process. We seek to build, protect and enhance long-term value through sustainable growth in our investee companies and see ESG factors as value-enhancing levers in their own right.

We are committed to the full integration of ESG factors when we invest and we promote ESG practices across our investee companies.

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Our approach

Investment appraisal

We ensure we take a responsible approach to infrastructure investment by considering all ESG factors likely to affect a potential investment and, where possible, seeking mitigations to issues that arise from the review.

Integrated into our risk assessment of potential investments is a full risk questionnaire that we have developed to review potential investments for ESG factors. We use this to assess the relevant ESG factors with the aim of highlighting issues that may not have been uncovered during the normal course of due diligence.

If any material ESG issue is raised we may consult or involve specialist advisers such as environmental consultants or take legal advice to determine possible mitigations and consider whether the risk can be addressed or is unacceptable.

Our risk questionnaire covers a variety of topics to ensure we:

  • Act in an environmentally responsible manner
  • Take a sustainable approach to the use of resources
  • Avoid irresponsible disposal of hazardous waste
  • Respect human rights and do not exploit child labour
  • Avoid bribery or corruption in any of our dealings
  • Are non-discriminatory
  • Seek equality in our employment practices
  • Have management structures reflecting the need for transparency, accountability, and equality
  • Have action plans to address any potential ESG risks.

Active asset management:

We take an active approach to promoting ESG standards in all our investee companies. We take either significant minority or majority ownership stakes when we invest and we seek board representation to enable us to control or influence the responsible management of ESG issues.

We believe effective corporate stewardship and good governance are vital and we aim to instil strong corporate governance standards in our investee businesses. Constructive dialogue with management and frequent formal reporting of risks are central to our approach to support the long-term success of our projects and align the investee company’s strategy to our interests.

Social and environmental considerations are critical to the development of our investee companies and we are committed to improving factors such as working conditions, safety and sustainable management of resources. We work with management to develop and monitor relevant ESG key performance indicators (KPIs), including environmental action plans, staff development programmes and government structure reviews.

Our asset management team records ESG issues in regular review meetings as well as producing an annual report that reviews each asset based on comprehensive ESG criteria.