Foresight Solar Fund | ESG

Foresight Solar Fund Limited (“FSFL” or “Company”) does not have a formal Environmental, Social and Governance (“ESG”) Policy, however, ESG considerations are at the centre of the Company’s strategy, helping inform its investment process and its asset management operations. 

FSFL’s portfolio of solar farms and battery storage assets provide clean electricity that helps to facilitate the energy transition. These are inherently sustainable investments as established by their eligibility under the European Union’s Taxonomy for sustainable activities. 

The nature of the Company’s operations means it is well positioned to serve the needs of investors seeking to achieve positive environmental and social outcomes alongside attractive financial returns.

Sustainability considerations are central to FSFL’s investment process, integrated across all stages, from initial investment screening through due diligence to ongoing monitoring and reporting. This approach incorporates the proactive management of ESG considerations using proprietary tools structured around both regulatory requirements and key frameworks to help assess a project’s sustainability credentials and performance.

The Company monitors its portfolio’s performance by collecting and analysing monthly sustainability and ESG related metrics. This ensures progress is tracked and transparently reported, alongside measuring the positive environmental and social benefits that its assets deliver.

FSFL closely monitors the environmental impacts and biodiversity credentials of its portfolio, assessing each asset for its potential localised environmental impact, such as emissions to air, land and water, as well as effects on biodiversity. 

The Asset Manager ensures that its solar farms are effectively managed to optimise the agricultural, landscape, biodiversity and wildlife potential. This approach can contribute to reducing maintenance costs and enhancing security, whilst also generating positive impacts on the environment surrounding its assets.

During the acquisition process, and throughout an asset’s lifecycle, FSFL engages with contractors, local residents, community organisations, landowners and local authorities to promote public support for the project(s), maximise the local benefit and minimise any actual or perceived negative effects. This has been achieved through several initiatives: 

• Community engagement 

• Community investment

• Educational initiatives 

• Health and well-being initiatives

The Asset Manager actively reviews the regulatory and property consents of every solar asset to ensure compliance with the permissions and conditions attached to each site and actively engages with local government organisations to ensure ongoing compliance. This promotes trust with the sites’ local communities, in addition to ensuring FSFL is protected from potential legal challenges.   

Integral to the maintenance of the Company’s reputation is its regulatory compliance and adherence to relevant laws. FSFL is committed to carrying out business fairly, honestly and in compliance with laws and regulations, and the Investment Manager has established policies and procedures to prevent bribery. FSFL is also committed to a policy to conduct all its business in an honest and ethical manner, taking a zero-tolerance approach to facilitation of tax evasion, whether under Jersey Law, UK law or under the law of any foreign country.

Counterparty due diligence forms are an essential part of ensuring that key service providers are reputable, experienced and competent. It also serves to ensure they have an approach to governance, compliance, and ESG, which must be aligned with the Company’s and be evidenced through appropriate policies.