Sustainability

InfraRed is a manager of the long-term infrastructure and real estate assets. Our global portfolio includes over 250 assets which support the provision of services which are essential to people’s everyday lives such as hospitals, schools, offices, retail, residential and public sector accommodation, transport infrastructure in the road and rail sectors, public utilities and the generation, storage and distribution of sustainability generated electricity.

The scale of InfraRed, in terms of the size and the number of our projects, puts us in a privileged position where our actions and conduct impacts a large number of people and the environment. With this comes an immense responsibility to act with care, consideration and integrity.

Our Sustainability Policy seeks to articulate how we discharge our responsibilities to create a positive impact beyond our commercial objectives.

Investment process

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, during the on-going management of our portfolio and through to divestment, hand back or decommissioning of an asset.

InfraRed takes 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 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 funds which InfraRed manages, voluntarily incorporate TCFD reporting in their Annual Reports 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:

  1. in respect of private funds, in the data room and the investor portal for the relevant fund, as applicable; and
  2. in respect of listed funds, on the fund’s website.

In relation to the transparency of adverse impacts requirement of SFDR, InfraRed appreciate 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. In the meantime, it is not possible for InfraRed to consider the adverse impacts of investment decisions on sustainability factors within the meaning of the SFDR. Nonetheless, ESG considerations continue to be integrated into InfraRed’s investment process as outlined in the Sustainability Policy.

Our carbon footprint

In accordance with our long-term commitment to sustainability, InfraRed seeks to lead by example by minimising the negative impact of our own corporate operations. To demonstrate our commitment to achieving this objective, InfraRed has become a certified CarbonNeutral® company effective from 1 January 2019.

In the 2019 calendar year, InfraRed activities resulted in 2,059 tCO2e of emissions or 10.6 tCO2e per InfraRed staff (based on 2019 FTE). This reflects the direct and indirect greenhouse gas emissions (Scope 1, Scope 2 and Scope 3 emissions within InfraRed’s control) of our global offices, which have been quantified in accordance with The CarbonNeutral Protocol.

Business travel, which includes travel by air, rail, car and public transport as well as hotel accommodation, is our company’s largest source of emissions, accounting for 87% of InfraRed’s total carbon emissions in 2019. Whilst travelling is important to keep us connected with our stakeholders and enable us to actively manage our investments, we are looking at ways to reduce carbon emissions from business travel. Following our experiences in 2020, we will encourage our staff to embrace technology as an alternative to travelling where possible.

With the help of Natural Capital Partners, we have developed an offsetting programme which delivers finance to emission reduction projects, which support the transition to a low carbon economy as well as making a positive contribution to InfraRed’s other prioritised SDGs. All credits adhere to the International Carbon Reduction and Offset Alliance (ICROA) and have been independently verified to assure emissions reductions are occurring.    

Moving forward, we will continue to quantify, reduce and offset InfraRed’s future greenhouse gas emissions as part of our overall commitment to minimise our company’s corporate carbon footprint.

Carbon logo

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:

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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, infrastructure and real estate 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, real estate and infrastructure businesses. 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.

Timeline

Our story so far

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.

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2017

InfraRed is inducted as a member of the PRI Infrastructure Advisory Committee.

2014

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

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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.

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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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