ESG Statement


The investment objective of the Fund is to achieve capital appreciation and/or income through issuing loans, participating in loans, investment in debt/credit instruments; participations in lending, and to operations relating thereto, including investing in equity securities of entities or groups to which the Fund lends or instruments which are held for treasury, cash management or hedging purposes. Investment related to such loans will include investment in listed and unlisted companies, subsidiaries or special purpose vehicles whose main business line is the construction, investment in, management, operation or maintenance of or supply to Infrastructure Investments or which own the rights to the returns generated from Infrastructure Investments. For this purpose “Infrastructure Investments” means photovoltaic electricity plants, wind farms, solar energy plants, public projects aimed at improving energy efficiency of existing plants that utilise energy and similar investments in infrastructural projects.

 

Borrowers and investee companies that do significant harm to the sustainable investment objective are incompatible with the Investment Objective of the fund and are not considered eligible investments.

 

If a proposal by the portfolio manager is consistent with the Investment Objective, and other criteria are met, the Investment Manager commissions in-depth due diligence reports for the proposed investment which includes a substantial number of sustainability risk factors, including physical and transitional and in particular the risks to acute weather related events on physical infrastructure. The results of Due Diligence are an integral part of the Investment Managers decision making process and priority is given to any negative principal adverse sustainability impacts identified. Should Abraxas consider it unlikely for significant mitigation or elimination of an identified adverse sustainability impact is possible within a 3 year time horizon from the date of investment, the investment will not take place. Only proposals that pass the due diligence assessment proceed to the investment stage, such investment may be using loan or loan and equity.

 

Engagement with investee companies on all matters affecting the financial performance of the investment, including sustainability related risks and opportunities, takes place through either representation on the board of the investee company, or through a shareholders agreement, or a combination of these methods.

 

Data is sourced from the due diligence reports and other sources including, for infrastructure projects that have already received a permit, the project’s Environmental Impact Assessment where appropriate.

 

The primary measures of the fund’s sustainable impact are the amount of energy generated free of carbon emissions by the plants owned and/or operated by the investee companies, and in respect of development stage plants, the additional energy generation capacity developed.