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ESG & Impact
Impact and ESG considerations underlie every investment decision.
AEIT sets out to have a positive social and environmental impact through its investments and is committed to regularly measuring and reporting performance against these objectives.
AEIT is categorised as an Article 9 product for the purposes of the EU SFDR.
Our approach to ESG
Environmental, social and governance (ESG) considerations are integral to the Company’s overarching investment objective. Robust and effective ESG policies and processes are a prudent risk management tool that improve the financial performance of the Company while reducing risks.
AEIT is an impact fund with a core impact objective to accelerate the transition to net zero through investments, building and operating a diversified portfolio of sustainable renewable energy assets in South and Southeast Asia.
As a dedicated impact investor, AEIT’s Investment Manager, Octopus Energy Generation, only invests responsibly, with the objective of contributing to environmental and social progress. Octopus Energy Generation's Responsible Investment Policy here.
ESG factors are integrated throughout the investment process and the monitoring and oversight of investments.
The AEIT Board is mindful of investors’ responsibilities to society as a whole and it shares OEGEN’s belief that ESG considerations can have a material impact on the value of the Company’s underlying assets, its social licence to operate and therefore on investors’ capital.
AEIT has established a dedicated and fully independent ESG Committee to reinforce the importance placed on ensuring the highest standards of ESG investment and serve to foster a culture of responsibility and transparency
AEIT’s alignment with the UN’s Sustainable Development Goals
The Sustainable Development Goals were adopted by all United Nations member states in 2015 to support the vision of achieving a sustainable future for everyone in a medium-term time horizon. The17 objectives are interrelated and present global challenges such as the eradication of poverty, the fight against climate change, peace and prosperity for all, education, women’s equality, environmental protection and sustainable urban development.
Therefore, the AEIT strategy is focused on increasing the direct impact the Company can have on addressing SDGs 7, 8,11 and 13. Investments may also advance the impact on the other SDGs.
Climate action
The Company committed to making a difference and contributing to the drive for a sustainable low-carbon future to fight against climate change.
The investment strategy is solely focused on investing in renewable energy, primarily preconstruction or construction-ready projects which means the Company is creating real and new renewable energy sources, providing more people with a renewable energy supply and new competition to heavily polluting thermal power plants.
Sustainable cities and communities
More than half the world’s populations now live in urban areas and this figure is expected to continue to rise. Often urban habitation is coupled with extreme poverty and increased pollution, therefore the provision of sustainable and affordable renewable energy is fundamental to reducing these with the goal of one day eliminating them.
The Company’s investments are dedicated to the provision of new renewable energy sources to power sustainable cities and communities now and in the future.
Decent work and economic growth
The investment portfolio provides new and continuing opportunities for work that is productive, secure, fair and equal. Sustainable poverty reduction is driven by increasing such opportunities.
Affordable and clean energy
SDG 7 is a key focal point of the the Company whose aim is to provide financing to drive the transformation to clean energy, making it available to all where it is needed the most.
The investment strategy invests in a number of different renewable technologies in a growing number of countries to counteract the significant number of people still using power made from polluting fuels or who don’t have access to power.
Attractive Economics
There is a powerful commercial case for investing in sustainable energy infrastructure. Our investment strategy can produce sustainable long-term energy at a lower cost than fossil fuel alternatives.
In Asia, it is now 65% cheaper to build renewable energy power capacity in Asia than it is to build new fossil fuel generated power.
Geography plays an important role. The amount of solar radiation available for electricity production is highly dependent on location and climate. In India, for example, the quality and quantity of sunshine is extremely good, particularly when compared to Europe.
Renewable energy investments can also help investors mitigate the erosive impact of inflation. Cash flows are derived from a combination of long-term fixed-price or index-linked offtake agreements, where the link between prices and inflation is largely direct and transparent, as well as enshrined in law.
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We have been collecting empirical data to demonstrate the positive impact of all our investments in Asian sustainable infrastructure since2013. Metrics include:
