InfraRed Capital Partners Limited
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:5,106,963 tCO2e (absolute); 620,086 tCO2e (attributable)
Scope 1 Emissions:2,773,699 tCO2e (absolute); 292,853 tCO2e (attributable)
Scope 2 Emissions:291,455 tCO2e (absolute); 45,468 tCO2e (attributable)
Scope 3 Emissions:11,740,330 tCO2e (absolute); 281,765 tCO2e (attributable)
ESG Focus Areas
- Climate
- Environment
- Communities
- People
Environmental Achievements
- 98% response rate to annual Greenhouse Gas Questionnaire (up from 75% in 2021)
- Installation of two seabins at East Anglia One, potentially catching up to a tonne of plastic waste per year per seabin.
- 89% of AUM implementing biodiversity positive initiatives.
- Implementation of AI-based puffin monitoring system at Beatrice Offshore Wind Farm.
Social Achievements
- Launched second Client Insights Survey, achieving a high response rate and donating over £30,000 to charities.
- Recirculate initiative donated 155 bikes, 20 laptops, 800 desks, 31 whiteboards, 30 vacuums, and 25 projectors.
- North Middlesex Hospital food boxes initiative provided fresh food boxes to nurses at reduced prices.
- Ukraine Taskforce donated £64,000 to humanitarian relief efforts.
- Dodgeball Taskforce raised £50,000 for SOFEA and 4Louis charities.
Governance Achievements
- Set diversity targets for InfraRed staff.
- Improved data collection and management processes.
- Updated Sustainability Policy to reflect deeper ESG integration.
- Reported SFDR Principal Adverse Impact (PAI) indicators for funds.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions across portfolio
Medium-term Goals:
- 70% of AUM to be aligning, aligned or net zero by 2030
- 90% of emissions to be subject to direct or collective engagement by 2030
- 50% of AUM to be invested in climate solutions by 2025
- One third of senior level roles to be held by women in five years
Short-term Goals:
- 80 responses to Client Insights Survey by 2025
- 50 submissions to Creating Better Futures Awards by 2025
Environmental Challenges
- Data limitations in GHG emissions reporting, particularly Scope 3 emissions.
- Challenges in implementing portfolio-wide biodiversity strategy due to location specificity.
- Cost-of-living crisis tightening budgets and aggravating staffing constraints for clients.
- Complexity of ensuring responsible supply chains and human rights due diligence.
Mitigation Strategies
- Improved data collection measures and ongoing dialogue with portfolio companies.
- Active management of biodiversity risks at the acquisition level and tracking impacts/initiatives.
- Designing solutions with clients and partners to reduce budget pressures and improve operational efficiency.
- Collaboration with PRI on developing guidance on human rights due diligence processes.
Supply Chain Management
Responsible Procurement
- Strong ESG standards for suppliers of materials with supply chain risks (e.g., batteries, solar panels).
Climate-Related Risks & Opportunities
Physical Risks
- Not explicitly listed, but implied through climate risk assessments
Transition Risks
- Not explicitly listed, but implied through climate risk assessments
Opportunities
- Investment in climate solutions (e.g., EV infrastructure, renewable energy)
Reporting Standards
Frameworks Used: PRI, TCFD, EU Taxonomy, SFDR, PCAF, NZIF
Certifications: CarbonNeutral
UN Sustainable Development Goals
- 7
- 9
- 11
- 3
- 4
- 13
Awards & Recognition
- Creating Better Futures Awards
- PPP awards
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:4,272,469 tCO2e (attributable)
Scope 1 Emissions:2,787,583 tCO2e (attributable)
Scope 2 Emissions:243,784 tCO2e (attributable)
Scope 3 Emissions:1,241,101 tCO2e (attributable)
ESG Focus Areas
- Climate
- Environment
- Communities
- People
Environmental Achievements
- 62% of AUM invested in climate solutions (surpassing the 50% target by 2025)
- 62% of AUM with material water consumption have reduction initiatives in place
- 74% of AUM with material waste generation have reduction initiatives in place
- Implementation of biodiversity-positive initiatives such as wellbeing gardens
Social Achievements
- Scaling initiatives such as ‘community fridges’ and ‘Recirculate’ to address social inequality
- 13 companies recognized for ‘gold standard’ ESG initiatives through the Creating Better Futures Awards
- Tyne Tunnel's employment opportunities for people with autism
Governance Achievements
- Established a dedicated Sustainability Team and integrated sustainability into investment and corporate activities
- Maintained PRI 5-star rating for Policy, Governance & Strategy and Infrastructure modules, and received a 4-star rating for the Confidence Building Measures (CBM) module
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- 70% of AUM to be aligning, aligned or net zero by 2030
- 90% of emissions to be subject to direct or collective engagement and stewardship actions by 2030
- 33% of the senior team to be women by 2028
Short-term Goals:
- Increase net zero alignment percentage by supporting companies in setting targets and implementing decarbonisation plans
Environmental Challenges
- Limited flexibility for financing, optimizing, and changing energy systems in public-private partnerships (PPPs)/private finance initiative (PFI) projects due to pre-existing contracts
- Challenges in operational control and data access for some portfolio companies
- Data gaps in energy data controlled by third parties
- Complexity of addressing biodiversity loss across a diverse portfolio
Mitigation Strategies
- Adopting the Infrastructure and Projects Authority's (IPA) guidance for decarbonizing operational PFI projects
- Engaging with portfolio companies to improve data collection and implement decarbonisation initiatives
- Using proxy estimations for data gaps and improving data quality over time
- Reviewing TNFD framework and upcoming ISSB regulation to understand how to incorporate recommendations into approach for monitoring and reporting nature-related risks and opportunities
Supply Chain Management
Responsible Procurement
- Monitoring supplier net zero alignment
- Encouraging suppliers to set science-based targets
Climate-Related Risks & Opportunities
Physical Risks
- Storms
- Floods
- Droughts
- Wildfires
- Heat stress
- Solid mass/ground movement
Transition Risks
- Increased energy prices and volatility
- Changes in public transport use
- Climate-related illnesses
Opportunities
- Investments in energy transition technologies (e.g., battery storage, electric vehicles)
Reporting Standards
Frameworks Used: PRI, TCFD, SFDR, EU Taxonomy, PCAF, GHG Protocol, NZAM, SBTi, UN SDGs
Certifications: Cyber Essentials Plus
UN Sustainable Development Goals
- 3
- 4
- 6
- 7
- 9
- 11
- 16
Alignment with SDGs based on the essential services provided by investments
Sustainable Products & Innovation
- AI-powered home energy management system (Wondrwall)