ESG & Sustainability

Hastings considers Environmental, Social and Governance (ESG) and sustainability factors as relevant to selecting and managing infrastructure businesses, and producing reliable and repeatable returns over the medium to long-term. As part of its investment and asset management processes, Hastings identifies and manages ESG factors that may materially affect clients’ returns.

Hastings believes that taking a long-term approach to infrastructure investing best achieves the expected characteristics and benefits of the asset class. Hastings aims to deliver superior and sustainable performance over time by taking advantage of opportunities and controlling risks across the life cycle of infrastructure businesses. Hastings is a passionate owner and responsible steward, seeking to produce long-term equity performance for its clients.

As part of the investment process for all potential new investments, Hastings:

  • Considers ESG and sustainability factors in the context of an infrastructure asset’s overall risk and return characteristics, rather than applying separate “green” or “negative” screens
  • Conducts a thorough assessment of all known risks including those related to ESG or sustainability factors such as governance, energy efficiency, stakeholder relationships, work health and safety management, climate change impacts, political and regulatory influences, industrial relations and management team strength
  • Evaluates environmental risk and procures relevant technical and environmental assessments from industry experts
  • Explores ESG opportunities for increased investment returns 
  • Focuses on securing appropriate governance rights to enable ongoing active management of ESG issues after an investment is made

As part of the long-term commitment to ESG and sustainability management, Hastings has put in place a number of guidelines and internal training to support the teams as they monitor ESG activities at each infrastructure business through governance rights.  Additionally, Hastings requires the management teams of infrastructure businesses to regularly report on progress made in identifying and managing ESG and sustainability risks and opportunities.

Hastings has been a signatory to the United Nations-supported Principles for Responsible Investment (PRI) since 2010. As a signatory, Hastings is committed to the PRI’s six principles (Principles), which include:

  1. Incorporate ESG issues into investment analysis and decision-making processes
  2. Be active owners and incorporate ESG issues into ownership policies and practices
  3. Seek appropriate disclosure on ESG issues by the entities into which investments are made
  4. Promote acceptance and implementation of the Principles within the investment industry
  5. Work together to enhance effectiveness in implementing the Principles
  6. Report on activities and progress towards implementing the Principles

 


Hastings ESG Policy

2016