AGTPF Infrastructure Fund I Energy Transition
Website product disclosure for financial products that promote environmental or social characteristics in accordance with Chapter IV, Section 1 of the Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 and Article 10 of the Regulation (EU) 2019/2088 of 27 November 2019 (the "SFDR").
The Sub-Fund promotes energy transformation in Africa by investing in projects contributing to renewable energy production.
In particular, the Sub-Fund targets to mobilise private and public capital into renewable generation, transmission infrastructure, and scalable clean energy platforms across Sub-Saharan Africa, mainly in 5 countries. The Sub-Fund will invest into the projects to ensure access to clean energy resources.
It promotes Environmental/Social characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 60% of sustainable investments.
80% are investments with E/S promoted characteristics
60% are sustainable investments (with environmental objective, not aligned with EU Taxonomy)
The management team of the Sub-Fund will pursue the following strategy:
Select projects with a considerable output to produce renewable energy in MW, while relying on proven technologies like PV and wind;
Conduct a pre-diligence check and review of the climate and other environment related PAIs indicators. Please note as the Sub-Fund targets to invest only in projects, the PAIs related to companies (indicators for social and employee will not be considered). At this stage the projects could be abandoned in case PAIs indicators were not acceptable.
Conduct a full due diligence following the IFC Performance Standards and reviewing the project parties involved including PAIs related to companies as mentioned under b. In case of deviations, propose a corrective plan to improve alignment of the project with the IFC Standards or for the project parties involved to improve their governance;
Eligible investments will be proposed to the Expert Committee for the review and key sustainability metrics will be outlined. The management team of the Sub-Fund will target to bring 80% of the portfolio with E/S characteristics to the AIFM for approval.
The Sub-Fund will not be investing in companies, only projects are in focus of its activities, nor investments in companies referred to in article 12(1)(a) to (g) of the CDR (EU) 2020/1818, including but not limited to controversial weapons, the cultivation and production of tobacco. Good governance practices will be assessed in regard to project parties as part of the due diligence following the IFC Performance Standards assessment performed for each investment.
Yes, the Sub-Fund will have a minimum proportion of 60% of sustainable investments.
Yes, the Sub-Fund promotes the environmental and social characteristics.
The Sub-Fund is assessing all investments against IFC Performance Standards, identifying whether the investments have activities mentioned in the exclusions (referred in initial LPA) and whether the project bears certain environmental and social risk that could deter the Sub-Fund from investing. During the investment period, the investments will be checked regularly (once per year) in their compliance with IFC Performance Standards.
The management team of the Sub-Fund will review for each project the production of "green energy" (i.e. without use of the primary fossil resources), the electricity access for distribution via the grid or off grid, the projects contribution to the local job market and the good governance practices of the involved project parties.
As the Sub-Fund will follow evaluation methodology based on the IFC Performance Standards, where applicable for renewable energy generation project, mandatory indicators for adverse impacts on sustainability factors will be taken into consideration. In respect to climate related indicators, the projects are assessed in respect to renewable energy produced, to its impact on biodiversity (in case of a new construction), water use and waste disposal (when relevant). In respect for social and employee indicators, the Sub-Fund will review and select solely good governance companies to be involved in construction or in operation of the projects assets. However, since the Sub-Fund is not investing in companies, there will be no detailed reporting on the compliance of their human resources policies with international standards.
The sources include quantitative and qualitative data from primary and secondary data sources. Primary data originate from the project developers and the reports issued by the third parties (i.e. technical studies). The Sub-Fund accesses primary data through self-reporting documents or templates directly from the potential partners, but also through interviews and surveys. Secondary data is collected from outside, like project databases (i.e. Global Solar Atlas, Solargis), including statistical, technical, or area-related data points.
The advisory team of the Sub-Fund will be carefully evaluating the data received from the project developers, all project data could be compared with the technical assumptions of the similar projects. We will conduct interviews with the stakeholders in the area of construction or assets upgrade.
Data will be processed internally for each project separately.
The Sub-Fund intends not to use any estimated data.
The developer might not provide the accurate data. The advisory team of the Sub-Fund is required continuously to use own experience, external sources and know-how of the local partners for data validation and apply corrective measures in collaboration with the project developers.
The Sub-Fund is looking to mainly support the projects that are technically well developed. Every project is required to have an independent technical review and ESIA (Environmental and Social Impact Assessment) study, which will point out the potential issues related to the project. The advisory team will validate the issues mentioned there with the local team. As a result of this analysis some of the projects might not be considered as sustainable.
In the due diligence (as mentioned above under c), the advisor team will be guided by the IFC Performance Standards and consider climate and other environment related PAI indicators. The categorisation of the projects in accordance with potential social and environmental risks will be done and reflected in the investment proposal. All identified issues, corrective measures and related risks will be included in the sustainability analysis of the proposal and presented to AIFM for the review.
The Sub-Fund is not investing in companies and will not pursue engagement policies at the companies' level. However, any issues (i.e. doing significant harm) when found during the lifetime of the project could trigger the exclusion of the investment as a sustainable investment and reflected in the yearly reporting going forward.
Is not applicable.
