We believe that a fully integrated approach to ESG leads to building better businesses.
How we embed ESG
ESG is fundamental to how we source, invest in, and steward businesses, and we have embedded material ESG considerations into each phase of the investment lifecycle.
- We seek to invest in transformation where ESG considerations serve as tailwinds
- We recognize that ownership of mission-critical infrastructure demands engaged and accountable stewardship
- We seek to protect and enhance the social license of the firm and, by extension, our partners through our investment activities
- We are growth investors and asset creators and believe we can drive better financial and ESG outcomes with both in mind
- We operate ‘bottom up’ rather than ‘top down’ – deal teams act as the firm’s first and best filter on ESG
- Diligence is summarized, presented, and transparently debated in an Investment Committee forum. This process may be iterative as we will not move forward with an asset until we fully understand the ESG considerations and build them into our investment case
- Our diligence informs our onboarding and ESG business planning – we prioritize critical issues and discuss longer-term ESG initiatives, which are phased according to the company’s needs
- We are consultative in our stewardship approach, and believe aligned and empowered management teams deliver the best results
- We are active owners and direct the approach to ESG at each portfolio company according to our governance rights, focusing on matters most relevant to each company
- We seek out management team partners that are open to our input and active engagement
- We recognize ESG reporting and disclosures as important components of our wider operating principal of transparency, and guide management team partners to prepare ESG reporting aligned to evolving and increasingly detailed standards
- We are members of the UN Principles for Responsible Investment, a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD), and a member of the Net Zero Asset Managers Initiative
Our ESG frameworks
We are signatories to the United Nations Principles for Responsible Investment (PRI) as well as the Net Zero Asset Managers initiative and expect to publish our first Task Force on Climate-related Financial Disclosures (TCFD) statement and associated climate action plan in 2022.
As investors in and operators of critical infrastructure assets, we recognize our investment activities are often highly impactful against broader societal challenges and goals. We believe each of our investments meaningfully and substantively contributes to at least one of these five United Nations Sustainable Development Goals (SDGs) through its normal course of operations.
A growing global population needs access to affordable energy that mitigates or slows the impacts of anthropological climate change, as well as the adverse impacts to human health caused by airborne pollutants released by the burning of coal and oil. This requires investment in new technologies and infrastructure. Our renewables and energy transition businesses directly contribute to the advancement of this goal.
Improving living standards requires economic and employment growth, alongside greater productivity and technological innovation. As growth-oriented investors, we seek to deploy capital expenditure to expand businesses and construct assets, which creates both permanent and temporary jobs.
Infrastructure is a key enabler of economic growth and as the global population becomes increasingly urbanized and digitalized, more people rely on services provided by telecommunications, energy and transport infrastructure. As specialist infrastructure investors, this SDG is at the heart of our business.
Optimizing the use of limited resources contributes to the sustainability of economic activity. We invest in and grow businesses that have responsible consumption and production embedded into their operations
We are helping to protect the climate by supporting the transition from fossil fuels to renewable energy generation, and by guiding our portfolio companies in their efforts to reduce their carbon emissions and meet new reporting standards, such as the Task Force on Climate-related Financial Disclosures (TCFD).
Our path to Net Zero
While Stonepeak believes ESG factors can enhance long-term value, Stonepeak does not pursue an ESG-based investment strategy or limit its investments to those that meet specific ESG criteria or standards (except with respect to products or strategies that are explicitly designated as doing so in their offering documents or other applicable governing documents). Any such considerations do not qualify Stonepeak’s objectives to maximize risk-adjusted returns.