AIP’s 2020 ESG Annual Report and compliance with the Sustainable Finance Disclosure Regulation marks another milestone on our ESG journey
Despite the challenges and uncertainties associated with the global outbreak, many governments and investors have during 2020 increased their focus and ambition towards
climate actions and Environmental, Social and Governance
(ESG) matters. At the same time, the European Union has set the regulatory foundations for the growing scrutiny and transparency requirements on how financial market participants address sustainability and responsible investing.
ESG considerations and responsible investment have been a core part of AIP’s strategy and way of working since the very beginning. We believe that a strong focus on ESG goes hand-in-hand with creating long-term value for our investors. The ESG annual report is our way as an organization to convey our progress, but most importantly to ensure transparency on ESG matters and initiatives.
The EU Regulation, on Sustainable Finance Disclosure Regulation (SFDR), is expanding the approach towards ESG and sustainability. Although not being legally required to do so, we have decided to include some of the regulatory requirements (i.e., principal adverse impact of investments) for our most recent fund, AIP Infrastructure II and subsequent funds managed by AIP, as part of our investment process. We believe the SFDR, and the forthcoming requirements will be essential to create a transparent and systematic framework to prevent misrepresentation of ESG activities or initiatives while ensuring sustainable financial growth.
Partner Ulrik Pallisø Bornø says about AIP’s ESG integration:
“We are proud to have implemented an ESG framework that fully integrates ESG throughout all stages of the investment process, from initial screening and investment analysis, during due diligence, negotiation and closing of transaction, and thereafter in the asset management phase. The implementation has been done in close cooperation with our dedicated third party ESG advisor Klinkby Enge. The regulatory requirements will be a driving force to ensure transparency but also to provide standards across the industry.”