Sustainability

As owners and operators of infrastructure assets which impact the lives of millions of people globally, we are committed to ensuring that our investments contribute positively to society, whether through promoting social development, improving quality of life or supporting decarbonisation, both now and for future generations.

InfraRed strives to generate positive environmental and social outcomes, through robust governance, to enhance lives through infrastructure and create better futures. 

Our Sustainability Policy seeks to articulate how we discharge our responsibilities as a steward of community assets to achieve these aims, and be more than a financial investor.

Investment process

It is part of the DNA of our business that a sustainability-led mindset is essential to delivering long-term success. This mindset has directed our assessment and management of the Environmental, Social and Governance (“ESG”) aspects of our business.

InfraRed maintains a comprehensive sustainability management system which integrates sustainability into each stage of the investment process – from the initial assessment of an investment opportunity and the ongoing management of our portfolio, through to divestment, hand back or decommissioning of an asset.

We take an active approach to long-term sustainable investment which is based on a foundation of robust ESG principles. We use environmental criteria to assess how effectively a company stewards the natural environment, assists with the transition to a low carbon economy and complies with relevant laws and regulations. Through a social set of standards, we evaluate the company’s approach to health & safety, labour standards and working conditions as well as the relationships it has with its stakeholders and surrounding communities. In terms of corporate governance, we look to ensure that our portfolio companies and partners adhere to the highest standards of corporate conduct. We undertake regular studies, inspections, surveys and risk assessment to ensure this remains the case at all times.

Our processes are reviewed and refreshed periodically as part of our commitment to continuous improvement.

Sustainable Reporting

InfraRed recognises the importance of regular and transparent reporting. Sustainability reporting promotes better risk management, operational efficiency and ensures that we are accountable to stakeholders. 

InfraRed is also a supporter of the Task Force on Climate-related Financial Disclosures (“TCFD”), confirming its commitment to acting on climate change through consistent climate-related financial disclosures.

HICL and TRIG, the listed investment companies that InfraRed manages, began voluntarily reporting against the TCFD recommendations in their Annual Reports in 2020, which can be accessed via their websites.

Disclosures in accordance with Regulation (EU) 2019/2088 Sustainable Finance Disclosure Regulation (the “SFDR”)

Where required under the SFDR, fund-specific disclosures will be made available:

in respect of private funds, in the data room and the investor portal for the relevant fund, as applicable; and in respect of listed funds, on the companies’ websites.

In relation to the transparency of the adverse impacts requirement of SFDR, InfraRed appreciates that the detailed underlying rules in this area merit a thorough evaluation, including to ascertain the availability of the data set expected to be required to report under the new requirements. The position will be kept under review as the underlying rules are finalised and embedded in market practice. ESG considerations continue to be integrated into InfraRed’s investment process as outlined in the Sustainability Policy.

 

Climate action

In July 2021 InfraRed joined the Net Zero Asset Managers initiative, a group of international asset managers representing many trillions of dollars of capital, who are committed to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°c.

By joining the initiative, InfraRed has committed to:

  1. achieve net-zero emissions for its portfolio by 2050 or sooner;
  2. set interim targets for 2030 for a proportion of its assets under management by July 2022, and Review these interim targets at least every five years.

These commitments follow InfraRed’s decision to become a certified CarbonNeutral® company effective from 1 January 2019 onwards and a TCFD supporter in 2020.

Werner von Guionneau, Chief Executive Officer of InfraRed Capital Partners, said:

“We are proud to join the Net Zero Asset Managers initiative. As a responsible asset manager, we firmly believe that it is in the best interests of our investors, clients and other stakeholders that InfraRed engages proactively to make a positive contribution to climate action.

This commitment fully aligns with our vision of creating a sustainable future.” 

Prioritised SDGs

We have aligned our sustainability programme with the United Nations (UN) Sustainable Development Goals (SDGs) framework. Whilst our investments positively contribute to many of the SDGs, we have identified six SDGs which particularly resonate with our business.

By delivering our vision, InfraRed uses its resources to:

Develop iconBuild iconGrow icon

Given our corporate values and passions, we choose to prioritise our charitable resources to:

Promote iconImprove iconContribute icon

https://www.un.org/sustainabledevelopment/sustainable-development-goals/

PRI

InfraRed has been a signatory to the Principles for Responsible Investment (PRI) since 2011. PRI provides a voluntary framework to help institutional investors incorporate ESG matters into investment analysis, decision-making and ownership practices.

InfraRed has been reporting our corporate and asset-level ESG activities to PRI since 2014. In the 2020 review relating to the 2019 assessment period, InfraRed achieved the highest possible rating of “A+” under the PRI scoring system for its strategy and governance. InfraRed has attained a rating of “A+” for its infrastructure business for six consecutive years, demonstrating our longstanding commitment to sustainable investment.

InfraRed’s 2020 PRI Responsible Investment Transparency Report and InfraRed’s 2020 Assessment Report by PRI are available in the downloads section.

CHARITABLE PRIORITIES & RESOURCES

The assets InfraRed manage play a vital role in creating and supporting sustainable communities and providing clean energy. We understand that our responsibilities extend beyond our investors to the communities we serve. At the cornerstone of InfraRed’s sustainability programme is our commitment to make a positive impact on the communities in which our assets operate with a long-term mindset. This is driven by the passion, energy and talents of our staff who take a genuine, hands-on role in promoting community engagement initiatives.

InfraRed’s Community Engagement Committee oversees our social impact activities and charitable initiatives in accordance with InfraRed’s three charitable priorities:

Good Health and Well-being (SDG 3): Promote initiatives which raise awareness of and provide support to those with mental health issues or enhance the well-being of individuals and the wider community;

Quality Education (SDG 4): Improve the educational and employment outcomes of disadvantaged young people to advance diversity and social mobility in communities; and

Climate Action (SDG 13): Act against adverse climate change to preserve the environment for current and future generations.

Our charitable resources include:

in the first instance volunteering our time and talents,

in the second instance leveraging our business relationships as a multiplier for achieving benefits,

and finally selectively providing financial support as an enabler and further multiplier of the charitable benefits derived from investing our time and leveraging our business relationships.

Community Engagement

 

COMMUNITY CHARITABLE FUND

InfraRed established the £1m InfraRed Charitable Foundation in 2020, which is an independent charity and with the aims of promoting social inclusion and the relief of sickness and preservation of health. The trustees (a mixture of our senior executives and individuals from wider industry) are responsible for the distribution of the Foundation's funds and engage with staff to identify good causes and to help maximise the charitable impact.

 

 

    Timeline

    Our story so far

    2021

    Innovative approach to linking sustainability performance with tangible financial outcomes exemplified through the negotiation of sustainability-linked loans across multiple InfraRed products

     

    2021

    Joins the Net Zero Asset Managers Initiative and makes net-zero pledge

    2020

    InfraRed becomes a certified CarbonNeutral® company effective from 1 January 2019.

    Certified Carbon Neutral Company logo

    2020

    InfraRed becomes an official TCFD Supporter company, confirming its commitment to acting on climate change through consistent climate-related financial disclosures.

    climate change

    2020

    InfraRed’s Infrastructure business achieves A+ rating from PRI for the sixth consecutive year, the highest possible score.

    PRI

    2020

    InfraRed established the InfraRed Charitable Foundation which has been funded with an amount of £1 million.

    2019

    InfraRed adopts the UN Sustainable Development Goals as a reporting framework.

    SDG goals

    2019

    TRIG, the listed renewables infrastructure fund managed by InfraRed, receives Guernsey Green Accreditation.

    Trig logo

    2014

    InfraRed introduces its annual infrastructure ESG survey, actively engaging with all investment companies to improve their ESG policies and initiatives.

    hands

    2011

    InfraRed becomes a signatory to the UN’s Principles for Responsible Investment (“PRI”).

    PRI

    2009

    InfraRed makes its first renewables investment.

    Windfarm

    2006

    HICL, which is managed by InfraRed, became the first infrastructure investment company to list on the main market of the London Stock Exchange in 2006, investing initially in social infrastructure.

    HICL logo
    SDGs

    Our prioritised SDGs

    UN Sustainable Development

    InfraRed supports all of the United Nations (UN) Sustainable Development Goals (SDGs). We focus our efforts on the goals which align with our ESG objectives, contributing through the investments we make and impacting the local communities around our assets.

    Our investments inherently directly contribute towards the following SDGs: SDG7 Affordable Clean Energy, SDG 9 Industry, Innovation and Infrastructure, and SDG 11 Sustainable Cities and Communities, however our ESG commitments have a much broader reach, and overall InfraRed actively contributes to many of the 17 SDGs, through specific initiatives undertaken by its portfolio companies or our own corporate initiatives.

    Given our corporate values and passions, we choose to prioritise our resources to make a positive contribution to the following SDGs: SDG 3 Good Health & Well-being, SDG 4 Quality Education and SDG 13 Climate Action. We do this by proactively engaging with our portfolio companies and using our influence to encourage them to make an impact against these SDGs.

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