We integrate Environmental, Social and Governance considerations across the investment lifecycle.
Effective consideration of Environmental, Social and Governance (ESG) is important for our business for the following key reasons.
- ESG drivers present an opportunity for new markets and investments. In response to evolving environmental and social challenges, there are increasing numbers of businesses, regulatory regimes and technologies which help alleviate environmental and social challenges.
- Incorporating ESG supports our high standards of financial rigour and requirements for long term financial performance. We firmly believe that a foundation of sound governance combined with positive management of environmental and social factors will improve whole-life performance of the funds and investments we develop and manage.
- By investing in the right sort of infrastructure and associated businesses, we can meaningfully support sustainable development. The infrastructure we invest in determines how healthy and productive communities can be, both now and in the future. By investing in the right sort of infrastructure we can support communities to be more sustainable and prosperous over the long term.
This philosophy is captured in our ESG policy, which can be viewed here.
As a signatory to the UN-backed Principles for Responsible Investment (PRI), we integrate ESG considerations into all our investment decision making. This is achieved by identifying and managing the issues that are, in Amber’s view, the most relevant to our investments right across the investment lifecycle.
Reporting is compulsory for all PRI signatories and is one of the explicit commitments that signatories make when signing the Principles. Amber is pleased to report that in our first year of reporting we obtained a A+ ranking for both the Strategy and Governance and the Infrastructure modules.
We positively search for investments and funds to manage that have positive demonstrable impact on the environment and society. This can be seen across the investments we make, from our portfolio of offshore transmission assets, to managing the Mayor’s Energy Efficiency Fund on behalf of the Greater London Authority.
Along with our own insights and research, we have chosen to use the UN Sustainable Development Goals (UNSDGs) as the overarching sustainability framework to help define our core impact and to guide management strategies and target setting.