Sustainability

Our mission to turn the ESG ‘SHOULD’ into a ‘MUST’ is at the heart of our strategy. We have defined our policy, framework and toolkits to design tailored action programmes. These initiatives have achieved industry recognition with Vantage Infrastructure awarded the highest ratings from the PRI and GRESB

At Vantage Infrastructure, we recognise that sustainability and ESG (Environmental, Social and Governance) considerations are inextricably linked to the long term performance, value and reputation of infrastructure investments. As a result, we consider the integration of ESG considerations in our debt and equity investment, asset management and divestment processes and practices to be of paramount importance to deliver sustainable value and positive outcomes in the best interest of all stakeholders.

Signatory to the UN Principles for Responsible Investment

Member of GRESB Infrastructure

Supporter of the Task Force on Climate-Related Financial Disclosures

Contributor to 9 of 17 UN Sustainable Development Goals

1

Equity Portfolio Highlights

0GWh

CLEAN ENERGY GENERATED2
equivalent to the annual energy needs of 222,000 households

0bn litres

CLEAN WATER CONSUMED3
equivalent to the annual drinking water needs of 1.1m households

1.3Mtonnes

CO2 ABATED ANNUALLY4
equivalent to 890,000 cars off the road

0Ktonnes

RECYCLED MATERIALS5
equivalent to the total waste produced annually by 240,000 households

0

PEOPLE EMPLOYED6

0%

WOMEN7

8

Debt Portfolio Highlights

0GWh

CLEAN ENERGY GENERATED9
equivalent to the annual energy needs of 222,000 households

0Ktonnes

WASTE DIVERTED FROM LANDFILL

0

HOMES with solar rooftops

0

PEOPLE supplied with district heating

0

PUPIL PLACES
across 29 schools

0

FIBRE CUSTOMERS
serviced by 235,000km fibre cable

Integration

Our approach to ESG rests on three principles:

  • It is integrated throughout the entire lifecycle of an investment, from the initial evaluation of a transaction, through its execution, investment onboarding and asset management and finally in divestment considerations
  • It is common across our debt and equity investment businesses
  • It is embraced at both manager and investments’ levels

IDENTIFY & MANAGE RISKS & OPPORTUNITIES

  • Review ESG-related policies and processes
  • Conduct ESG risk materiality analysis to identify main risk areas and mitigations
  • Collect ESG data to monitor ESG performance
  • Support companies with GRESB process

ENSURE OWNERSHIP & ACCOUNTABILITY

  • Assign ESG accountability to executives
  • Establish robust governance processes, with clear ESG board responsibilities
  • Set ESG targets and include ESG KPIs in incentive plans where appropriate

ESTABLISH ACTION PLAN & REPORT PROGRESS

  • Define ESG objectives, develop strategies and execute bespoke action plans
  • Develop gap analysis and improvement plan based on GRESB and other ESG assessments
  • Implement ESG and impact reporting

RAISE ESG AWARENESS & SHARE LEARNINGS

  • Foster ESG dialogue with management inside and outside the board room
  • Encourage ESG corporate culture
  • Arrange ESG knowledge-sharing workshops
  • Encourage disclosure of ESG performance

APPLY CLEAR CRITERIA TO SCREEN OPPORTUNITIES IN LINE WITH CLIENT GOALS

  • Screen against defined exclusions and apply ESG non-negotiable values
  • Complete initial ESG assessment and identify specific due diligence areas
  • Prefer best in class or improvement potential

CONDUCT DISCIPLINED DUE DILIGENCE TO ASSESS RISKS & OPPORTUNITIES

  • Define ESG scope, engage consultants, attend site visits/management presentations
  • Conduct analysis of ESG performance, risks and opportunities and assess impact on value
  • Present findings to Investment Committee

LEAD INITIATIVES AND INFLUENCE BUSINESS OUTCOMES TO PROTECT & ENHANCE VALUE

  • Lead initiatives focused on key value drivers
  • Build ESG capacity within the company
  • Monitor and influence ESG performance through bespoke action plans
  • Report ESG performance to investors

DESIGN AND EXECUTE OWNERSHIP TRANSITION PLAN

  • Agree plan to address ESG due diligence items
  • Set strategic ESG goals with management
  • Review governance, management structure and remuneration and ensure alignment

Governance

Vantage believes that promoting leadership and accountability is essential to implement its policy effectively across any business and to develop an internal ESG and sustainability culture at all levels of any organisation. This is true for our investee companies as it is for our own firm. Therefore, roles have been clearly defined across Vantage’s governance bodies and senior leaders with all investment professionals ultimately being responsible and held accountable for ESG.

BOARD OVERSIGHT

The Vantage Board is responsible for overseeing the ESG strategy and connecting sustainability with corporate purpose. The Board approves the ESG policy and monitors its implementation.

INVESTMENT COMMITTEES

The Debt and Equity Investment Committees review and challenge ESG assessments and their impact on investment decisions.

esg-governance-diagram

LEADER

A Vantage Partner champions ESG and sustainable investment philosophy, policies and practices to ensure senior decision-making accountability.

WORKING GROUP

The entire investment teams are held responsible for identifying and managing ESG risks and opportunities for new or existing investments and reporting them to the relevant committee.

INVESTMENT TEAMS

Debt and equity representatives develop and continuously improve Vantage’s ESG toolkits and processes and ensure consistent implementation across the business and at the investment level.

Notes: All figures are rounded, as of the 12-month period to 30 June 2019 and pro-rated for the percentage of Vantage Infrastructure debt managed investments within respective projects’ total debt issuance.

  1. Sustainable Development Goals contributed by Vantage Infrastructure’s equity managed investments
  2. Clean energy generated by Ventus Investments Ltd in 2018; based on typical UK domestic consumption values of 3,100KWh per annum (source: Ofgem);
  3. Clean water consumed by South East Water’s customers in Financial Year ending Mar19;
  4. Companies’ estimates based on (i) tonnes of CO2 emissions per GWh of electricity supplied in the UK estimated at 349 in 2018 (source: Digest of UK Energy Statistics 2019) for wind farms and (ii) the premise that, if natural gas was not used, more polluting fossil fuels would be used in the same proportion in which they are currently consumed, for natural gas networks;
  5. Sum of recycling waste for all investments; based on average annual waste produced per UK household;
  6. Employees and contractors working for Vantage Infrastructure managed investments;
  7. Women working for Vantage Infrastructure managed investments.
  8. Sustainable Development Goals contributed by Vantage Infrastructure’s debt managed investments
  9. As applicable, based on (i) typical UK domestic consumption values of 3,100KWh per annum respectively (source: Ofgem), (ii) annual Irish household electricity consumption of 4,200KWh (source: Commission for Regulation of Utilities) and (iii) annual U.S. household electricity consumption of 10,972KWh (source: U.S. Energy Information Administration, Dec 2019).