Sustainability is a cornerstone of our investment approach. From our investment selection and strategy to our engagement as investment managers, we integrate sustainability factors across our work.
In terms of households powered and emissions avoided
8.13 million households
Could be powered with renewable energy
6 million
Avoided tonnes of CO2 equivalent
Our Sustainability Report 2024
Introduction
Over the years Energy Infrastructure Partners has grown larger and increasingly international, but our mission has remained the same
“We thoughtfully integrate sustainability into our investment process, acknowledging its potential to help mitigate risks and uncover long-term value opportunities.”
Pelayo Menéndez Calvo
Head of Sustainability
Case studies
Sustainability at work – Case studies from across our portfolio
Case studies are for illustration purposes only. Holdings are subject to change, this does not constitute investment advice to buy or sell the presented securities.
Report Library
Download past reports detailing Energy Infrastructure Partners’ progress towards a more sustainable, resilient future
Through our work as an asset manager, we invest in strategic areas of the global energy system taking into consideration sustainability factors
We take into account evolving sustainability regulation, expectations from investors and other stakeholders, as well as emerging sustainability-related topics in the energy industry.
To this end, EIP is a signatory or member of voluntary standards and associations in the field of sustainable finance.
Approach
EIP fully integrates sustainability factors throughout the investment lifecycle
We recognize the significance of sustainability for investors, local communities, the environment, and biodiversity. Moreover, we are convinced that long-term investors benefit when portfolio companies actively manage key sustainability factors. As per Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”), sustainability factors are defined as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.
Whilst the SFDR at the entity level does not directly apply to EIP AG, we believe it provides a relevant framework to enhance transparency for EIP AG too.
Integration of sustainability factors at EIP
Our experienced in-house Sustainability team works closely with other functions to ensure effective integration of sustainability factors into our investment decision-making process, as set out in our Sustainability Risk Policy (summary available here).
The applicability and materiality of sustainability factors vary across investment opportunities. These factors can present both risks and opportunities that first need to be identified, then assessed and monitored, managed and/or capitalized upon. Therefore, we tailor our due diligence and asset management phases accordingly, and, where appropriate, use our leverage (which will vary across the portfolio) to take steps to enhance ESG performance of the portfolio companies.
Origination
Compliance with exclusion list
Preliminary ESG screening
Sub-Investment Committee approval (screening)
Transaction
Definition of scope of ESG due diligence
ESG due diligence (in-house experts and, generally, with support from external advisors)
ESG Committee approval
Final Investment Committee approval
Execution
Definition of investment conditions
Incorporation into legal documentation
Investment Management
Active and ongoing performance monitoring
Active management and engagement with companies
Asset management monitoring meetings
Exit after holding period elapses
Sustainability impacts
At EIP, we consider adverse and positive sustainability impacts across our managed portfolios and throughout the investment lifecycle – from the early due diligence to asset management and exit stages.
Remuneration policies in relation to the integration of sustainability risks
Our Remuneration Policy does not reward any excessive risk taking – including sustainability risks. It seeks to encourage the alignment of the risks taken by us (and the decisions of employees and senior leadership) with those of the assets we manage and the interests of the underlying investors.
For the specific sustainability-related disclosures as per SFDR requirements relating to, the alternative investment fund manager domiciled in Luxembourg, please see Sustainability-Related Disclosures for EIP Luxembourg S.à.r.l
Introduction to Sustainability-Related Disclosures
Energy Infrastructure Partners Luxembourg S.à r.l.
Energy Infrastructure Partners Luxembourg S.à r.l. (“EIP Luxembourg”) is authorized to act as an alternative investment fund manager (“AIFM”) within the meaning of Chapter II of the Luxembourg Law of 12 July 2013 on alternative investment fund managers.
Transparency is important to us
In accordance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”), EIP Luxembourg qualifies as a financial market participant in accordance with the SFDR and is therefore required to provide transparency with respect to the following at entity level:
Article 3 SFDR – Sustainability risk policies
Article 4 SFDR – Adverse sustainability impacts at entity level
Article 5 SFDR – Remuneration policies in relation to the integration of sustainability risks
Further transparency requirements apply to the managed investment funds and are included below.
Regardless of the transparency requirements, sustainability considerations are key to EIP Luxembourg and, hence, integrated in its operations. It is EIP Luxembourg’s conviction that investors, as long-term stakeholders, benefit when investments operate their businesses responsibly. Sustainability risks or adverse sustainability impacts can not only harm the investment and its stakeholders, but also expose investments to material risks that can materialize in different ways affecting the activities and the value of the investment.
On the other hand, robust sustainability and ESG practices can contribute to both value preservation and value creation.
Transparency of sustainability risk policies (Art. 3 SFDR)
As per SFDR, sustainability risks are defined as environmental, social and governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment.
EIP Luxembourg established a Sustainability Risk Policy to integrate sustainability factors and risks into its investment decision-making process. This policy also defines the management and monitoring principles of such risks to establish the necessary risk control.
EIP Luxembourg has delegated the portfolio management function to Energy Infrastructure Partners AGwhich has robust in-house sustainability expertise. The delegated portfolio manager shall be responsible for the investment decision-making process and the consideration of sustainability risks. Sustainability risks deemed relevant shall be integrated within the due diligence and investment decision-making process and, subsequently, during the asset management phase in accordance with EIP Luxembourg’s Sustainability Risk Policy, which, inter alia, refers to SFDR requirements.
EIP Luxembourg will monitor the integration of sustainability risks in the investment decision-making process as part of the due diligence and ongoing monitoring of the delegated portfolio manager and managed funds.
Transparency of adverse sustainability impacts – No consideration of adverse impacts of investment decisions on sustainability factors at entity level (Art. 4 SFDR)
This statementdescribes Energy Infrastructure Partners Luxembourg S.àr.l.decision with respect to the requirements of article 4 (1) SFDR regarding the consideration of principal adverse impacts (hereinafter “PAIs”) of investment decisions on sustainability factors.
Transparency of remuneration policies in relation to the integration of sustainability risks (Art. 5 SFDR)
EIP Luxembourg ensures that it adopts remuneration policies and procedures which are consistent with the integration of sustainability risks, to the extent sustainability risks are integrated into the investment decision-making process.
EIP Luxembourg remuneration structures do not encourage excessive risk-taking with respect to sustainability risks and remuneration is limited to risk adjusted performance.
Transparency of the promotion of environmental or social characteristics for EIP Luxembourg managed funds (Art. 10 SFDR)
SFDR article 8 funds managed by EIP Luxembourg promote environmental characteristics as they intend to positively contribute to energy transition, mitigate climate change and/or related environmental challenges. These funds invest in technologies and assets that support the transition to a more decarbonized future and contribute to energy security of supply.
For investors, please find here the full sustainability-related disclosures required for Article 8 financial products:
Assets in all fee-bearing investment vehicles for which EIP serves as portfolio manager or provides similar services, as of December 31, 2024.
Other types of renewable energy sources, like biomass or very small-scale power plants, account for less than 1% of capacity and generation.
Other types of renewable energy sources, like biomass or very small-scale power plants, account for less than 1% of capacity and generation.
Assumes average electricity consumption of 3.7 megawatt hours per household per year, as stipulated by the European Commission-backed project Odyssee-Mure, which studies energy efficiency and European energy policy.
Assuming 22kg of CO2 equivalent captured by a mature tree annually.
