OUR ESG APPROACH

 

“When developing infrastructure, you’re playing the long game. This means you have to incorporate into your risk analysis metrics that are not strictly financial. These are the foundational pillars of financial sustainability, and today they have become a true differentiating factor. Industry players who effectively, and with integrity, enshrine ESG principles into their investment practices, and subject these commitments to obligations of results will emerge as true champions of the energy transition.”

 

Nicolas Rochon
CEO and founder of RGREEN INVEST

illustration Nicolas Rochon

A mission-driven company

 

Recognized as an Entreprise à Mission (Mission-Driven Company) at a statutory level, our dedicated purpose is to combat climate change by accelerating the energy transition and society’s adaptation by financing infrastructure with a proven positive and sustainable impact on the environment, local populations and territories. Specifically, this translates into a 5-step action plan:

1. Facilitating the development and widespread use of efficient, low-carbon strategies to replace the carbon-based solutions used today.

2. Investing in sustainable infrastructure that creates value and jobs at the local level, particularly in developing regions.

3. Supporting technologies adapted to the specific energy issues of the regions and populations where they are located.

4. Contributing to the construction of infrastructure with a reduced environmental impact.

5. Helping farmers in the implementation of sustainable production methods.

This deliberate decision to channel investments towards renewable energy projects and products reflects our company’s original mandate to mitigate the effects of climate change and enable society’s shift and adaptation to a sustainable and responsible energy consumption and production model.

RGREEN INVEST is also committed to a CSR (Corporate Social Responsibility) policy. In particular, the company is committed to fostering a work environment conducive to the well-being and development of the full potential of each employee and to creating a corporate culture based on the principles of equity, diversity and inclusion.

RGREEN INVEST is currently being certified B Corp. Founded in 2006, the B Corp movement now includes more than 130 certified companies that meet high standards of social and environmental performance, transparency and accountability.

Climate action and environmental commitment

As stewards of our investors’ assets, we believe in creating durable value for them and for the community by ensuring our investments bring us every day closer to reaching the objectives set by the Paris Agreement and the Sustainable Development Goals established by the United Nations for 2030, namely:

• 7. Affordable and clean energy
• 9. Industry, innovation and Infrastructure
• 12. Partnerships for the Goals
• 13. Climate Action

We also believe that, beyond environmental imperatives, this transition will provide an unprecedented opportunity to promote sustainable development and equitable economic growth around the world.

RGREEN INVEST’s sponsorship of the research platform Chaire Economie du Climat dedicated to the economics of energy transition aims to unlock financial support for the training and work of young researchers.

2021 CARBON FOOTPRINT

Alongside our independent power producer (IPP), operator and industry partners, our mandate, mission and investment strategies empower us to carry out the directives given to reduce CO2 emissions in the European Economic Area.

RGREEN INVEST’s mission-driven purpose is to participate in climate change mitigation and adaptation. As an investor, we primarily finance projects that aim to contribute to limiting and reducing the amount of greenhouse gases in the atmosphere, as well as finance adaptation technologies.

We strive to everything possible to limit the emissions required for our activity. In order to assess our impact, we have carried out a comprehensive annual carbon assessment, which includes Scopes 1-2-3 and a measurement of avoided emissions (which we call “Scope 4”). This assessment was carried out internally by the ESG team, and was reviewed durin an audit performed by KPMG.

Embedding ESG across the entire value chain

 

At RGREEN INVEST we are committed to supporting companies and projects whose first and foremost objective is the acquisition, financing, construction and operation of infrastructure that actively accelerate the green energy transition and society’s adaptation to climate change. As such, we have developed a responsible and carefully curated investment methodology in collaboration with all stakeholders across the green infrastructure value chain.

As part of our ongoing ESG approach, and answering to the expectations of our investors, we have established a Responsible Investment Policy (PRI) aligned with the UN Principles for Responsible Investment and have implemented an Environmental and Social Management System (ESMS), applicable since 2018. We have significantly expanded our procedures and tools, including an in-house ESG scoring tool to assess the performance of an investment opportunity and define the remedial actions to be implemented.

We have updated our Environmental and Social Management System (ESMS) to incorporate the use of this tool at each key stage of the investment process, from sourcing to exit. 

We are a member of Finance for Tomorrow and one of the 100 signatories of the Common Charter aimed at directing financial flows towards a low carbon economy.

Created by the French Ministry of Energy Trnasition, the Greenfin label guarantees investors that the financial products to which it is awarded effectively contribute to the financing of the energy and ecological transition and apply policies that exclude the fossil and nuclear energy sectors. The funds in the INFRAGREEN range (II-2015, III, IV and V) are Greenfin-labeled.

RGREEN INVEST, in its capacity as an AMF-approved management company, is a member of the France Invest association, which supports the capital investment industry.

AFRIGREEN impact strategy

 

Whereas RGREEN INVEST has been investing in sustainable projects for 10 years, the definition of “impact investment” is quite recent. A market consensus has been established around three key characteristics: intentionality (the investor’s intention to generate a measurable social or environmental benefit), additionality (the contribution of the investment to the impact) and the measurement of this impact.

Thus, RGREEN INVEST’s first impact fund, AFRIGREEN, establishes a series of key performance indicators linked to the UN’s Sustainable Development Goals:

The AFRIGREEN DEBT IMPACT FUND aims to finance commercial and industrial companies in Africa to (1) ensure access to stable, decarbonized energy and (2) replace fossil fuel powered generators. The defined targets are measured precisely in terms of:

• Installed solar and storage capacity (in MW)
• Tons of CO2 emissions avoided by offsetting fossil fuel generation
• Number of C&I companies modernizing and upgrading their electricity generation equipment
• Number of SMEs directly or indirectly accessing a new financing channel
• Liters of fuel consumption avoided by offsetting the use of thermal power plants and diesel generators
• Capital deployed by AFRIGREEN to contribute to climate action

 

Environmental and social regulation

SUSTAINABLE FINANCE DISCLOSURE REGULATION

RGREEN INVEST is committed to complying with the European Disclosure Regulation No. 2019/2088 of the European Parliament and of the Council of November 27, 2019 concerning the disclosure of information relating to sustainable development in the financial services sector.

The objective of this regulation is clear: to prevent the “greenwashing” of financial products and services in the EU by delivering transparent sustainability data. In other words, the SFDR aims to ensure that investors in the EU have the information they need to make informed investment decisions that are consistent with their sustainability goals.

As such, RGREEN INVEST discloses the key sustainability risks and adverse sustainability impacts of the INFRAGREEN IV fund and of all future funds.

ARTICLE 9

All funds managed by RGREEN INVEST comply with Article 9 of the SFDR’s disclosure regulations. Article 9, relating to products targeting sustainable investments, focuses on tailor-made funds targeting climate change and renewable energy. It sets the highest standards in Europe today.

EUROPEAN GREEN TAXONOMY

The European Green Taxonomy is a European regulation presenting a classification system that lists economic activities recognized as environmentally sustainable with associated performance thresholds, which indicate the level of responsibility of the proposed investment solutions and allow comparability of sustainable financial instruments.

RGREEN INVEST anticipates a high level of alignment with the European Green taxonomy for its most recent infrastructure funds and is engaged in an improvement trajectory to achieve maximum compliance with all the terms of this new regulation.

RGREEN INVEST also manages a range of private equity funds dedicated to the ecology and solidarity economy, with a more conservative level of alignment with the green taxonomy (many activities, including agriculture, are not, at this stage, included in this regulation). It should also be noted that a Social Taxonomy is under discussion at the European level.

The pre-contractual documentation for each fund (commercial presentation and regulations) outlines in detail the objectives assigned.

ENERGY CLIMATE LAW ARTICLE 29

Adopted on November 8, 2019, the energy-climate law makes it possible to set ambitious objectives for French climate and energy policy. With its article 29, it establishes a new annual extra-financial reporting obligation, presenting 1) the integration of climate and biodiversity issues within investment policies, and 2) the consideration of ESG criteria in risk management.

As stewards of our investors’ assets, we believe in creating durable value for them and for the community by ensuring our investments bring us every day closer to reaching the objectives set by the Paris Agreement and the Sustainable Development Goals established by the United Nations for 2030, namely: