Our business model

The Investment Manager tracks global megatrends around decarbonisation, sustainable resource management and environmental sustainability and uses its network of relationships to originate environmental infrastructure opportunities. These are screened for suitability, and potential opportunities are subject to a full due diligence process to assess risks, valuation assumptions and ESG considerations. Investment approval is multi‑level and culminates in a decision of the Company’s Investment Committee for all material investment decisions.

ESG considerations: ESG criteria are an integral element of the investment assessment at the acquisition stage. The Investment Manager undertakes a thorough rating analysis against a pre‑determined minimum threshold for that asset class.

The Investment Manager adopts an active asset management approach tailored to the specific maturity stage of each investment - whether in development, construction, or operation. A strong emphasis is placed on identifying and mitigating risks to ensure assets are delivered and maintained in alignment with their investment cases. Regular, transparent communication is maintained with the FGEN Board, external asset managers and other key operational and corporate stakeholders to support effective asset oversight and performance.

ESG considerations: Third-party service providers, sometimes with the assistance of technical advisers, monitor and manage the day-to-day performance of each asset in the FGEN portfolio and these third parties are regularly assessed by Foresight.

Assets are regularly assessed for enhancement opportunities to increase operational and financial performance and to better meet ESG objectives. Where an opportunity appears feasible, the Investment Manager develops an initiative to capture the value identified to the benefit of shareholders.

ESG considerations: The Investment Manager continually seeks to improve all areas of ESG across the portfolio and new assets are assessed to see where improvements to ESG matters can be made over the tenure of ownership. ESG KPIs help to monitor progress in this area.

FGEN’s strategy is to hold assets in order to receive ongoing cash yield to support the Company's dividend targets. FGEN intends to exit from the growth assets in its portfolio in the medium-term once they have fully ramped up in order to crystallise value for shareholders.

ESG considerations: Depending on the Directors’ assessment of what is in the interests of shareholders at the time, capital may be allocated to repayment of debt, share buybacks or new investment into assets.