DORE's Sustainability commitment
DORE is classified as an Article 9 fund, which has a specific sustainability objective. To read the full SFDR document, visit here.
As an active owner of renewable energy assets, our investments naturally contribute to climate change mitigation by reducing the greenhouse gas emissions from burning fossil fuels to generate power.
DORE delegates the day-to-day management of its portfolio to the Asset Manager. In April 2023, the Asset Manager signed up to the Net Zero Asset Managers initiative along with 301 other signatories with a combined assets under management of $59 trillion.
The Asset Manager has a robust process for identifying and managing both ESG risk and opportunity through our sustainable investment approach. This includes:
i. the identification of material factors given the type of infrastructure asset;
ii. detailed assessments for deals, referencing guidance from the Global Real Estate Suitability Benchmark (GRESB), Taskforce for Climate Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), and the Sustainable Finance Disclosures Regulation (SFDR); A new section on the Asset Manager’s ESG scorecards looks at the social impacts of infrastructure, and ‘green collar’ workers.
iii. discussion and governance at investment committee;
iv. a list of sustainability actions for asset management. These include reporting emissions consumed, planning for biodiversity and engaging with suppliers and communities.
ESG scorecard assessments were carried out on DORE’s assets at inception (ii above), which provided insights on performance and areas to improve (iv).
For carbon management, as with many other investors, DORE’s main focus for the first half of this decade is data. Greenhouse gas emissions are already reported. With new data and models, the Asset Manager has begun looking at the embodied lifecycle carbon of existing wind, solar and hydro assets.
Following investment, DORE is an active owner. The Asset Manager monitors the portfolio’s emissions – made and avoided – and other ESG credentials, such as jobs created and biodiversity impacts.
Social
Downing, as the investment manager, is a certified B Corp. It has made a commitment to show regard to all stakeholders, including colleagues, clients and communities. Downing also looks for a sustainable procurement process for contractors to ensure they are aligned to DORE's expectations on environmental and social performance. Working with local communities, Downing aims to consider local aspects and needs as part of each project, including, in some circumstances, a contribution of energy or investment to local community projects.
Corporate Governance
Business ethics and transparency of reporting on the ESG performance of assets, including the indicators and disclosures required by the SFDR regulation, are integral to annual fund accounts and regular investor reporting. Downing has a dedicated internal infrastructure asset management team focused on achieving both financial and environmental targets. DORE is focused on , accountability and independence, both for its own board and that of its investment manager. A strict and robust approach is taken to risk management.,
Green Economy Mark
DORE was proud to be awarded The Green Economy Mark by the London Stock Exchange (LSE) as soon as it listed in December 2020.
The Green Economy Mark was introduced in 2019 and recognises listed companies and funds that derive 50% or more of their revenue from environmental solutions. The award is a recognition that DORE meets the required industry standards of the trust’s commitment to positive environmental outcomes. It also provides transparency for investors, giving those seeking sustainable and strong risk-adjusted returns the reassurance that they are investing in a greener future and supporting the UK’s transition to net-zero carbon.
Principles of Responsible Investment
DORE's commitment to ESG is reflected in Downing's(the investment manager) role as a signatory to the UN Principles of Responsible Investment (PRI). This is in addition to the UN Global Compact, the Institutional Investors Group on Climate Change and the International Corporate Governance Network
Sustainable Development Goals
There are four Sustainable Development Goals that DORE references in investment activity :
United Nations Global Impact
Downing is committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour the environment and anti-corruption.
Additionally, DORE reports in line with the Task Force on Climate-Related Financial Disclosures, which measure both climate impact as well as the material risks and how these are managed.
