As an energy infrastructure investor, Energy Spectrum recognizes that Environmental, Social, and Governance (“ESG”) considerations are critical to the responsible operatorship of our portfolio companies, our impact on the environment, and our ability to promote safety and security in the workplace and throughout our investment communities. We believe that the consideration of ESG factors aligns with our overall value creation strategies, empowering our portfolio’s ability to grow value on behalf of Energy Spectrum’s investors.
Our ESG initiatives largely have been informed by the experience of our portfolio leaders and the issues most critical to their ability to achieve success. As managers of infrastructure assets, our portfolio company teams are positioned to embed sustainability thoughtfully and in compliance with federal and state regulations both through asset construction and operation. It is our intent to maintain an ongoing, two-way dialogue about important ESG-related topics with our companies as we shepherd value-additive process throughout the portfolio. We believe a full lifecycle approach to ESG lays the foundations to underpin the growth of our companies, mitigate risk, and enhance value creation.
Our investment team evaluates the strategic viability of an investment, including a review of its assets, markets, and fundamental value drivers, which also reflects our areas of ESG focus.
Preliminary assessments made in Stage 1 are updated, with risk mitigation and post-close value creation planning made before finalizing the investment.
Material ESG-related KPIs are reported in quarterly Board meetings ensuring the opportunities and risks identified pre-investment are consistently integrated in our portfolio management.
We believe that a focus on DE&I considerations is ongoing, with a need to raise awareness and facilitate action both for our team and for the management and employees in our portfolio. Our DE&I program is overseen and directed by the Energy Spectrum DE&I Committee, whose composition and process are intended to model diverse, equitable, and inclusive business function.
Guided by our DE&I Committee, Energy Spectrum has identified priority areas where we believe we can achieve near-term engagement and advancement of our core principles. In addition to these priorities, Energy Spectrum aims to further education around DE&I-related considerations to foster a safe, inclusive work environment and promote continued appreciation for diverse perspectives in our firm.
We believe each individual – whether inside our organization or contributing to the growth of our portfolio companies – has a distinct and valuable perspective. And, we believe that embracing the diversity of these perspectives, levels of experience, and differing backgrounds and identities empowers stronger decision-making and supports greater results. We celebrate diversity as a path to enhance and advance our firm culture, and we believe that promoting an equitable and inclusive environment improves collaboration and our ability to innovate over time. Energy Spectrum believes championing DE&I leads to greater investment outcomes for our stakeholders and partners, driving collective success for generations to come.
