INVEST WITH IMPACT CONSIDERATIONS

For many organizations and investors, putting the spotlight on Environmental, Social and Governance issues has a profound effect. This is particularly true of younger generations of managers and investors that integrate impact considerations in decision making. According to a recent survey conducted by Morgan Stanley, 84% of millennials place emphasis on the importance of ESG impact.

In our view projects and investments backed by high sustainability will become more attractive while others will erode value during the transition period, meaning that those investing in sustainable projects will maximise value creation to the people and the society and will generate benefits during this transition. A common misinterpretation is that Impact investing and management is singularly about low carbon opportunities, but there are many other factors that contribute to a company’s Impact/ESG rank or notation.

At InfraNext part of our commonly deployed Impact measuring system involves assigning notation to organizations based on our multi-factor tracking models. As you can see in the tables below, we use a wide variety of factors and formulas to come up with a first Impact notation that will serve project and investment decisions.

 

ENVIRONMENTAL SCORE (applicable to the organization, suppliers and subcontractors)

Factor                                                     Formula

Emission Margin                                 Greenhouse Gas Emitted / Revenue

Energy Margin                                     Energy Consumed / Revenue

Water Margin                                       Water Consumed / Revenue

Waste Margin                                       Waste Produced / Revenue

Other natural resources Margin        ONR Consumed/Revenue

Chemical Margin                                  Chemical Consumed/Revenue

Water Recycle                                       Water Recycled Percentage

Waste minimisation                             Waste Recycle Percentage

GHG/Power                                            Gen Greenhouse Gas Emitted / Power Generation

Water/Power                                         Gen Water Consumed / Power Generation

Energy efficiency capex                        Energy efficiency capex/Global capex

 

 

SOCIAL SCORE                            (applicable to the organization, suppliers and subcontractors)

Factor                                                  Formula

Gender Glass Ceiling                        % Women in Management / % Women in Workforce

Gender Opportunity                         % Women employed at the company

Minority Glass Ceiling                       % Minority in Management / % Minority in Workforce

Minority Opportunity                       % Minority employed at the company

Employee Turnover                          % Employees that left the company within the past year

Union’s Power                                   % Employees covered by collective bargaining agreements

Incident Rate                                      Total number of incidents resulting in lost time

Employee Wage levels                       Aligned with country and industry regulations

 

 

GOVERNANCE SCORE

Factor                                                        Formula

Board Size                                                 Number of directors on the company board

Board Average Age                                 Average age of directors on the company board Board

Age Range                                                 Age range of the members of the company board

Board Average Compensation               Average pay of Board of Directors

Executive Average Compensation         Average pay of the Executives

Total CEO Compensation                        Total compensation paid to the CEO

Women on Board Percentage                 % Women on board board

Interested in measuring the impact of your organization or invesment, please contact Xavier Pietri

xpietri@infranext-ca.com