ESG Investing: Operational Excellence in Real Assets Part 2: The Ownership Phase

Fidante ESG Investing

 

ESG Investing: Operational Excellence in Real Assets

Part 2: The Ownership Phase

 

In this series, Operational Excellence in Real Assets, we focus on the environmental, social and governance challenges encountered during the lifecycle of a real asset. We aim to enable investors and asset managers to achieve a higher level of operational excellence when assessing and managing real assets.

In Part One of the series we explored the factors that need to be considered in the planning and development phase of a real asset. The most important operational considerations in the acquisition phase of a real asset include land governance, corruption, labour rights and environmental issues. Adequately considering ESG risks at the planning and development stage of a real asset project can avoid complications later in the process, potentially avoiding hazards and unforeseen costs in the later stages of the project and asset lifecycle. 

In this, Part Two of the series, we explore the key ESG factors in the next stage of the lifecycle of an asset, the Ownership phase. We examine the important considerations during the construction phase of an asset, which include the use of construction materials and safety standards. We also explore the factors that are relevant during the usage phase of the asset. Issues such as transparency, money laundering and data protection, environmental aspects, labour rights and community engagement are all pertinent factors during this phase.  

Read Part Two here.
Read Part One here

 

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