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.

Description of principal adverse sustainability impacts

Antin Infrastructure Partners (“Antin” or “the Firm”) considers the Principal Adverse Impacts of its investment decisions on sustainability factors. . 

Subject to data availability, Antin requires all of its portfolio companies to report the mandatory principle adverse impact indicators from Table 1, Indicator 4 from Table 2, and Indicator 1 from Table 3 (Annex C 2022 1931 Annex 1 Principal adverse sustainability impacts statement). Antin’s portfolio companies are required to report these indicators on a yearly basis via the Firm’s web-based ESG data reporting platform. Indicators reported by Antin’s portolio companies are reviewed and validated by Antin’s Sustainability Team to ensure data quality and consistency. The adverse impacts of Antin’s portfolio companies are mitigated through the application of the Firm’s comprehensive Responsible Investment Process integrating ESG factors at all stages of the investment cycle, described in the “Description of policies to identify and prioritise Principal Adverse Impacts on sustainability factors” below.

Description of policies to identify and prioritise Principal Adverse Impacts on sustainability factors

A Principal Adverse Impact (PAI) is understood as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. The PAI indicators from Annex 1 of SFDR are understood as providing an overview of such impacts and are considered as complementary to Antin’s Responsible Investment Approach. To identify and prioritise Principal Adverse Impacts on sustainability factors in its portfolio, Antin applies the concept of materiality. The Firm assesses the materiality of these impacts through its internal ESG materiality assessment framework, which considers the various risks that they could pose to a company’s business as well as the value creation opportunities they might offer.

Acquisition process

Antin maintains an exclusion list of areas it refuses to invest in, including weapons manufacturing, tobacco production and distribution, prostitution, coal-based businesses, gambling, pornography, drugs- and alcohol-related activities, and any operations involving serious or systematic human rights violations. During the initial screening of potential investments, Antin first ensures a target company does not operate in any of the sectors on its exclusion list. The Firm then carries out an analysis to identify key ESG issues associated with a target company’s business activities, and flag areas to be further investigated throughout the acquisition process. After submitting a non-binding offer, Antin conducts due diligence to assess a target company’s performance in managing key ESG issues identified.

Holding period

Post-closing, Antin thoroughly reviews a new portfolio company’s performance in managing key ESG issues associated with its business activities, building up on due diligence conducted during the acquisition process. Results of this review are used to highlight areas of progress and establish an ESG action plan for the portfolio company. Progress towards implementing this plan is monitored throughout the holding period, during regular meetings and site visits. Furthermore, Antin periodically monitors the ESG performance of its portfolio companies as part of the Firm’s risk management process. ESG issues are specifically itemised for discussion at Antin’s quarterly Portfolio Review Committee (PRC) meetings, and, where required, addressed directly with the Firm’s portfolio companies during Board meetings. Antin also implemented a comprehensive ESG survey which must be completed annually by all the Firm’s portfolio companies.

Engagement policies

As mentioned above, during the holding period, Antin thoroughly reviews a new portfolio company’s performance in managing key ESG issues associated with its business activities, building up on due diligence conducted during the acquisition process. Results from this review are used to highlight areas of progress and establish an ESG action plan for the portfolio company. Progress towards implementing this plan is monitored throughout the holding period, during regular meetings and site visits. Furthermore, Antin periodically monitors the ESG performance of its portfolio companies as part of the Firm’s risk management process. ESG issues are specifically itemised for discussion at Antin’s quarterly Portfolio Review Committee (PRC) meetings, and, where required, addressed directly with the Firm’s portfolio companies during Board meetings.

Antin also implemented a comprehensive ESG survey which must be completed annually by all the Firm’s portfolio companies.

References to international standards

Antin’s consideration of Principal Adverse Impacts refers to the following norms and standards as part of its reporting methodology:

  • International Labour Organization (ILO)
  • Occupational Safety and Health Administration (OSHA)
  • Paris Agreement
  • United Nations Global Compact
  • United Nations Principles for Responsible Investment (UN PRI)
  • United Nations Sustainable Development Goals (SDGs) 

Remuneration policies

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.

Antin Infrastructure Partners 2022 Principal Adverse Impact Statement

Product-level sustainability disclosures are available on the investor portal for relevant funds.