EIP established a Sustainability Risk Policy to integrate sustainability risks into its investment decision-making process. The Policy also defines the management and monitoring principles of such risks to establish the necessary risk control.
This Policy is applicable to all bodies, employees and subsidiaries of EIP. It covers the overall investment process and is relevant for all the investment decisions recommended by EIP to its managed funds.
To highlight how ESG factors can impact EIP’s investments, EIP uses the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD), where risks are grouped in two categories: “Transition” and “Physical.” These two categories are then further substantiated and examined in the context of the investment decision.
Which ESG factors have a concrete influence on companies and investments depends on the specific business model as well as the industry. EIP is active exclusively in the area of energy infrastructure assets. Against this background, EIP has identified the following overarching ESG criteria as relevant:
- Environmental: Degradation & Pollution, Resource efficiency/sourcing/use/treatment, Physical impact on infrastructure assets
- Social: Working conditions, Stakeholders, Physical impact on infrastructure assets
- Governance: Corporate governance, Operational aspects
In assessing sustainability risks, EIP applies recognized standards (UN PRI and SSF memberships). In addition to sustainable investments in renewable energy, exclusion principles and long-term partnerships with portfolio companies also support efforts to drive the energy transition.
A dedicated risk management process ensures that sustainability risks are adequately monitored and that funds and collective assets are managed within the framework of individual investment guidelines, taking into account strict risk and performance tolerance values.
The Sustainability Risk Policy can be made available upon request. Please contact us for more information.