Investing in Real Assets with Real Purpose to Create a Sustainable Future Infrared | Creating Better Futures CEO Statement | Infrared
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SUSTAINABILITY REPORT Investing in real assets with real purpose to create a sustainable future InfraRed | Creating better futures CEO Statement | InfraRed CEO 01 Statement being transparent reporting and the publication of this in line with Task Force for Climate-related Financial sustainability report. Disclosures (“TCFD”); expanded our reporting framework and data collection; increased engagement with portfolio I am proud of the progress we have made in delivering companies on sustainability issues; and aligned our staff’s against our sustainability commitments. Whilst Covid interest through the introduction of individual sustainability impacted some of our assets, particularly those with performance objectives. demand-based revenue streams and those in the health and educational sectors, their operational resilience Whilst we are delighted with the progress we have has remained strong. This is a testament to the active achieved, we recognise there is a lot more to be done. In asset management approach and robust governance the coming year, we will set a clear path on how we can frameworks which underpin our investments and overall achieve net zero carbon emissions using science-based business alike. targets for assets under our direct operational control. Where we do not have operational control, we will work with Supporting our stakeholders Werner von Guionneau CEO clients to support their net zero journeys. We will also put At the start of the pandemic, we set out priorities for I am delighted to present InfraRed’s inaugural sustainability further steps in place to measure our impact against the managing our assets in response to the crisis. The first report. UN Sustainable Development Goals (“SDGs”), particularly priority was maintaining the availability of assets and those which we prioritise: SDG 3 Good Health and For over a decade, we have held the belief that a delivery of their related services to meet the immediate Well-being, SGD 4 Quality Education and SDG 13 Climate sustainability-led mindset is essential to delivering needs of our clients and end-users. Long-established Action. long-term success. This mindset has directed our business continuity plans were implemented across assessment and management of the Environmental, our portfolio, and we worked proactively with portfolio Contents Social and Governance (“ESG”) aspects of our business. companies, delivery partners and clients to ensure public As owners and managers of infrastructure and real estate “We will set a clear path on CEO Statement 2 services for which we were responsible continued to be 01 assets – social infrastructure including hospitals, schools delivered. We also facilitated the sharing of best practices how we can achieve net and other facilities used by the general public; transport between the management teams of our assets. About InfraRed and our 6 infrastructure such as roads and rail; power infrastructure zero carbon emissions.” 02 approach to sustainability such as renewables generation and power storage facilities; We equally prioritised the health and well-being of our and real estate assets such as residential and office staff, clients, stakeholders, and delivery partners, as well 16 In our next sustainability report, we are committed Progress against our accommodation – our business impacts the lives of millions as the end-users of our assets. sustainability commitments to reporting in line with best in practice disclosure 03 of people around the world who use and interact with our Through our portfolio companies, we recognised the requirements such as TCFD, European Union (“EU”) Responding to COVID 18 assets daily. contribution made by national healthcare organisations Taxonomy and Sustainable Finance Disclosure Regulation 04 With this comes not only the responsibility for InfraRed and and facility management staff working in our healthcare (“SFDR”). Our Sustainability Manager, Kate McKeon, has assets by providing support such as free healthy meals, set out further information on the future objectives of our Driving climate action 24 its staff to set a high bar for behaviour and conduct, but also the responsibility to deliver positive outcomes for all access to mental health helplines and various other sustainability programme in Section 8. 05 programs. stakeholders. This holistic view is inextricably linked with While sustainability has been central to our business for Our infrastructure business 28 the long-term success of our assets, which often have We also implemented measures to support our own a long time, we have achieved a step-change in recent 06 lifespans exceeding 50 or even 100 years, and our business staff’s health and well-being, including the introduction of years. Much of the progress is attributable to the passion Our real estate business 38 overall. ‘meeting-free’ times and virtual social and activity-based of our staff in driving the sustainability agenda forward. 07 InfraRed has been a signatory to the United Nations (“UN”) challenges, one of which raised £160,000 for international This momentum will continue to accelerate as we work in Principles for Responsible Investment (“PRI”) since 2011 charities supporting those severely impacted by Covid. collaboration with our parent company, Sun Life, which Looking forward 45 and has consistently achieved top ratings. In 2018, we I am extremely impressed by the way my colleagues shares our vision of creating a sustainable future. Together, 08 decided to further elevate our approach to sustainability embraced new working environments and supported each we will explore new possibilities to create positive impact. other during this period. Glossary and Disclaimer 46 and refreshed our corporate vision statement to Investing I trust you will enjoy reading our sustainability report and in real assets with real purpose to create a sustainable Continuing to raise the bar we welcome any feedback that you may have. Would you This document is issued by InfraRed Capital Partners Limited future. This new approach reflected an energized vision for (“InfraRed”). InfraRed is authorised and regulated by the Financial Despite the challenges caused by Covid, it was crucial that kindly send to us via [email protected]. We are Conduct Authority (“FCA”) with firm reference number 195766. This sustainability, developed by and shared by all staff. excited to continue engaging with our stakeholders as we document is for information and convenient reference, and does we accelerated the implementation of our sustainability not constitute an offer or solicitation for, or advice that you should Since then, we have continuously refined our sustainability programme. We achieved a number of significant progress on our sustainability journey. enter into, the purchase or sale of any security or other investment product or investment agreement, or any other contract agreement policy and drove its systematic implementation into all milestones in 2020: in particular, we enhanced the or structure whatsoever. Potential investors should read all offering aspects of our operation. This policy is founded on five sustainability requirements in our investment processes; Werner von Guionneau documentation in full, when and to the extent that this becomes May 2021 available. This will contain important information required to be commitments which are set out in the report, one of which assessed climate-related risks and progressed reporting disclosed by InfraRed under applicable law. 2 | Sustainability Report Sustainability Report | 3 InfraRed | CEO Statement Creating better futures | InfraRed Our 2020 highlights ▲ We achieved the highest possible rating of “A+” under the PRI scoring system for our strategy and governance, real estate and infrastructure businesses.1 ▲ We committed US$700m to sustainable investments during 2020. This included over 1GW of offshore wind generation capacity across four investments. ▲ InfraRed, HICL Infrastructure Plc (“HICL”) and The Renewables Infrastructure Group Limited (“TRIG”) became official TCFD Supporters as part of their commitment to act on climate change through consistent climate-related financial disclosures. ▲ InfraRed became a certified CarbonNeutral® company and will remain carbon neutral as we firstly reduce, then offset our future carbon emissions.2 ▲ We collaborated with our clients and delivery partners, to ensure that essential public services continued whilst protecting the health & well-being of all parties and maintaining financial stability for our investors. ▲ As part of our commitment to improve diversity, two female appointments were made to Investment Committees during the year. ▲ £1m allocated to promoting social inclusion, health and well-being through the recently established InfraRed Charitable Foundation. *https://www.un.org/sustainabledevelopment 1 Principles for Responsible Investment (“PRI”) ratings are based on following a set of Principles, including incorporating ESG issues into investment analysis, decision-making processes and ownership policies. More information is available at https://www.unpri.org 2 In accordance with The CarbonNeutral Protocol. Further information is available at https://carbonneutral.com/ the-carbonneutral-protocol Salford Schools, UK HICL 4 | Sustainability Report Sustainability Report | 5 InfraRed | About InfraRed About InfraRed | InfraRed About InfraRed and our 02 approach to sustainability Our business Our vision Staff profile by gender2 At its heart, InfraRed brings together investors looking