While every investment is unique and will be subject to bespoke ESG KPIs based on a materiality assessment, Luxei Corporate Finance has set a number of mandatory considerations across all portfolio companies to drive meaningful improvements in line with the following ESG pillars:
Work to reduce greenhouse gas (GHG) emissions and to mitigate the effects of climate change on our business operations.
Protect the environment by reducing raw material consumption, minimising waste and protecting against pollution.
Respect human rights, develop human capital, and value the health, safety and wellbeing of staff and communities.
Work to ensure superior business ethics and good governance within Luxei Corporate Finance
As a financially focused investor and signatory to the UN Principles for Responsible Investment (‘UN PRI’), Luxei Corporate Finance recognises the importance of environmental, social and governance (‘ESG’) topics on the long-term performance of its funds under management. Luxei Corporate Finance’s approach to sustainability is founded on the strong and consistent link between high environmental, social and governance (ESG) standards and value creation.
Responsible ESG management creates value primarily through selecting and structuring desirable projects with lower risk profiles, and avoiding negative return impacts due to unexpected costs and project delays. To maximise this value creation and manage ESG impacts in a responsible and sustainable manner, consistent with its role as a fiduciary investment manager, Luxei Corporate Finance integrates ESG throughout the investment process and implements ESG at the project level.
Additionally, Luxei Corporate Finance has defined ESG standards for each of its funds, and Luxei Corporate Finance reports directly on ESG topics on a quarterly and annual basis to investors in its funds.
The investments have positive climate and social impacts
The Funds’ investment strategies, which focus on greenfield and renewable energy projects, create positive impact on the environment and aid high quality job creation across global markets. The projects in the Luxei Corporate Finance managed funds’ portfolios at 31 December 2020 once operational, are estimated to sustainably power approximately 3.0 million households and save the equivalent of approximately 5.6m tonnes of CO2 each year.
