Hermes Infrastructure, in line with the overall approach adopted by Hermes, has a longstanding commitment to the principles of responsible investment. We firmly believe a portfolio company’s approach to ESG materially impacts long-term value and all aspects of risk management. A foundation of sound governance combined with positive management of environmental and social responsibilities better equips businesses to both reduce and mitigate the impacts of risks should they occur, which has the potential to contribute to creating enduring value.
We believe that a strong focus on responsible investment is particularly important for infrastructure assets given their public service nature. This magnifies the need for sustainability, quality of service, value for money and ensuring affordability for customers. It requires a commitment to long-term partnership and the need for constructive engagement with key stakeholders including the community, regulators, Government, customers, co-investment partners and investors.
Hermes Infrastructure has in place a responsible investment policy which comprises a framework to systemise ESG risk assessment for all investments that we make. The framework helps us to identify key risks, introduce mitigants and implement ongoing monitoring programmes over the investment lifecycle.
Hermes Infrastructure are a signatory of PRI Principles for Responsible Investment, a member of the Ofwat group on establishing Voluntary Code of Governance, and an active member of the GIIA, Global Infrastructure Investor Association.