RARE Infrastructure and Responsible Management
Institutional investors, investments managers and service providers are being urged to adopt a set of global best-practices for responsible investment. Known as the UN Principles for Responsible Investment (www.unpri.org), they set out guidelines for investment decision-making and ownership practices. This covers environmental, social and governance (ESG) issues.
The intention is that companies will be pressured to improve performance in these areas, and thereby become more sustainable. Adoption will lead to a closer alignment between the objectives of institutional investors and those of society at large. Moreover, it is believed that adoption of the principles can lead to improved long-term performance of investment portfolios because implementing the principles can lead to a more complete understanding of a range of material issues which should ultimately lead to lower risk.
The principles
While the principles are voluntary and aspirational, signatories are obliged to:
- incorporate ESG issues into investment analysis and decision-making processes
- be active owners and incorporate ESG issues into ownership policies and practices
- seek appropriate disclosure on ESG issues by the entities in which they invest
- promote acceptance and implementation of the principles within the investment industry
- work together to enhance the effectiveness in implementing the principles
- report on their activities and progress towards implementing the principles.
RARE Infrastructure involvement
As a signatory of the UN PRI, we
- engage with companies to seek appropriate disclosure on ESG issues and adoption of/adherence to relevant norms
- exercise voting rights that are consistent with long-term ESG considerations
- participate in collaborative engagement initiatives
- communicate ESG expectations to asset consultants and institutional investors
- request that asset consultants and brokers integrate ESG factors into research and analysis
- revisit relationships with service providers that fail to meet ESG expectations
- compile a report on progress and achievements relating to the Principles.
With respect to engagement (point 1 above), a core tenet of RARE’s investment process is close company contact with key decision makers in investee companies and targets. Through this process RARE is in a position to encourage good ESG practices in the equities market. By agitating for change, RARE seeks to unlock the inherent value in a company to achieve a superior outcome for RARE’s investors.
Please click here for further information on RARE’s ESG Policy.


