Sustainable Finance Disclosure Regulation (SFDR) compliance
Antin Infrastructure Partners (“Antin”) makes the following disclosures in accordance with Articles 3(1), 4(1)(a), 4(2), and 5(1) of the SFDR.
Sustainability risk policies
A sustainability risk means “an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment”. For Antin, sustainability risks are risks which, if they were to crystallise, would cause a material negative impact on the value of the portfolios of its funds.
Before any investment decisions are made on behalf of any funds that Antin manages, the relevant investment advisory team will complete a process that identifies the material risks associated with each proposed investment; these will include relevant and material sustainability risks.
Antin considers these risks as part of its risk management process for the funds it manages, starting with an overall assessment of the likely risks associated with investments pursuant to the relevant fund's investment policy and objectives, and leading to specific investment proposals submitted to the Firm’s Investment Committee.
Antin’s Investment Committee assesses all the identified risks, including sustainability risks alongside other relevant factors set out in the proposal. Following its assessment, the Firm’s Investment Committee makes investment decisions having regard to the relevant fund's investment policy and objectives. Throughout the entire process, relevant sustainability risks are identified and assessed using the same process as is applied to other relevant risks affecting the funds and investments made on their behalf.
For more information about how Antin addresses sustainability risks throughout an investment cycle, please refer to the Firm’s Responsible Investment Policy.
Principal adverse impacts statement
Antin considers principal adverse impacts of its investment decisions on sustainability factors in the manner prescribed by Article 4 of the SFDR.
Description of principal adverse sustainability impacts
The adverse sustainability impacts Antin addresses, both during the acquisition process and throughout the life of an investment, vary depending on the sector, industry, and region a given company operates in. The adverse sustainability impacts Antin considers include, but are not limited to:
- Greenhouse gas emissions;
- Natural resource use;
- Air, water, and soil pollution;
- Waste generation;
- Work-related injuries and illnesses;
- Labour issues;
- Gender inequality;
- Bribery and corruption.
Furthermore, Antin maintains an exclusion list of sectors having adverse impacts on sustainability factors that it refuses to invest in, including controversial weapons, tobacco, prostitution, coal, gambling, pornography, illegal drugs, and alcohol.
Identification, prioritisation, and assessment of principal adverse sustainability impacts and indicators during the due diligence process
During the due diligence process, Antin identifies, prioritises, and assesses the adverse impacts a given target company has on sustainability factors with the help of its Sustainability Team, sustainability assessment guidelines and frameworks developed internally, and, where required, consultants and industry experts.
Adverse sustainability impacts are systematically documented and presented to Antin’s Investment Committee before it decides whether or not to pursue an investment opportunity.
Management and monitoring of principal adverse sustainability impacts and indicators during the holding period
Throughout the holding period, Antin’s Sustainability Team works hands-on with the Firm’s portfolio companies to help them reduce the adverse impacts of their business activities on sustainability factors.
Antin monitors the adverse sustainability impacts of its portfolio companies quarterly, during internal portfolio review meetings, and annually through a comprehensive ESG survey.
Adherence to responsible business conduct codes and internationally recognised standards for due diligence and reporting.
Antin’s responsible investment approach, which includes the management of adverse sustainability impacts, is framed around the six principles of the Principles for Responsible Investment (PRI).
Annually, Antin pays its employees a combination of fixed remuneration (salary and benefits) and variable remuneration (including bonus). Variable remuneration for relevant employees takes into account compliance with all Antin’s policies and procedures, including those relating to the impact of sustainability risks on the Firm’s investment decision making process.
Furthermore, Antin’s investment professionals are incentivised through a long term compensation deferred in instruments aligned to the performance of investment funds, which could be negatively impacted if key sustainability risks are not properly addressed and end up reducing the value of the Firm’s investments.