Environmental, social and governance ('ESG') Policy
The Board of Ecofin Global Utilities and Infrastructure Trust plc (the “Company” or “EGL”) believes that analysis of ESG factors is an essential element of the investment management process and that companies exhibiting good ESG credentials are more likely to perform well over the longer-term.
Ecofin Advisors Limited, the Company’s Investment Manager, has a research process which integrates traditional fundamental analysis and a study of ESG factors which it believes may affect stock valuations and shareholder value. Engagement and proxy voting are integral parts of active management and a case-by-case assessment is made for decisions relating to all proxies, corporate actions and events relating to portfolio holdings. The Board endorses the Investment Manager’s active stewardship approach and is pleased that its parent company is a signatory of the PRI.
In the power sector, the Company’s strategy is to invest predominantly in companies investing to achieve their own or government targets for emissions reductions and greener grids and eventually decarbonisation. EGL’s portfolio is oriented, therefore, toward clean generators and suppliers of electricity, and we fully expect that it will be at all times cleaner in terms of carbon emissions (tons of CO2 emitted per megawatt hour of generation) than the overall power sector (as measured by the MSCI World Utilities Index). Please refer to page 21 of the Company’s 2020 Annual Report for an outline of the Investment Manager’s stewardship policy.
The Company is an investment trust with no executive directors or employees and no operating assets. Apart from the need for Directors to travel to Board meetings, the Company has no direct impact on the environment or on the communities in which it carries on its investment activities.