Environmental, Social and Governance

What ESG means to us

It is not enough to just invest in the right things like wind and solar farms. The way we invest is equally important

ESG (Environmental, Social and Governance) is fully integrated into every part of our business. To us, this means doing the right thing and engaging with a wide range of stakeholders, including our customers, shareholders, employees, the community and the environment.

We’re channelling capital towards sustainable outcomes that tackle climate change, contributing to international efforts to limit the global temperature in this century to below 2 degrees. This core impact objective is clearly aligned to our funds’ investment strategies and we measure our progress against this.

Our ESG Approach

Performance, Planet and People

We manage investments on behalf of a wide range of investors - and our investors can be sure that making a positive impact on people and the planet is fundamental to how we work.

In addition to our overarching Responsible Investment Policy, we put in place a tailored ESG policy for each fund we manage that is reviewed annually. This allows us to meet the bespoke demands for different investors and tailor the ESG and Impact approach.

All of our funds’ ESG Policies are based around our fundamental pillars: Performance, Planet and People. This framework embeds ESG into the investment processes, asset management and reporting. We mitigate ESG risks, as well as measure the positive impact the investments we manage have on society, the environment and investors.

Performance

Across our renewable energy assets, we ensure robust governance structures, rigorous due diligence, risk analysis and asset optimisation, all to deliver resilient investment returns. This all means we can maximise the amount of green electrons our portfolio produces.

Our risk mitigation strategy considers environmental, social and governance issues, protecting and enhancing the long-term value of our investments.

Planet

We’re always thinking of ways we can enhance biodiversity in the surrounding environment, from wildflower meadows, to wetland creation and local beekeeping projects. We also mitigate any environmental risks associated with the construction and operation of our renewables.

People

We look at how our investments impact society, mitigating any risks and promoting a “just transition” to a green energy future.

Whether it’s hiring locally, engaging with employees, local communities and school children, we always think about the positive effect we can have on people through the green energy projects we manage. This also means championing Human Rights and working with suppliers who meet the high standards of our Supplier Code of Conduct.

Reporting on ESG

In a market rife with greenwashing, we know that transparent and standardised ESG reporting is critical

We manage investments on behalf of a wide range of investors - and our investors can be sure that making a positive impact on people and the planet is fundamental to how we work.

For this reason, we embrace sustainable finance regulatory frameworks and report our impact in line with the UN Sustainable Development Goals (SDGs) with carefully chosen Key Performance Indicators (KPIs).

The UN SDGs aim to create a better future for all by helping to end extreme poverty, fighting inequality and injustice, and protecting our planet by 2030. These SDGs have become part of the universal language for reporting on the impact of investments.

We’re proud that our investments contribute directly to the UN SDGs 7, 11 and 13. With investor support, impact initiatives also enable us to contribute to a broader and deeper set of UN SDGs.

United Nations Sustainable Development Goals logo

Core SDGs

  • 7
    Affordable and clean energy
    An icon of the sun with a power button silhouette inside
  • 11
    Sustainable cities and communities
    An icon of an urban landscape
  • 13
    Climate action
    An eye shape with the Earth inside

Additional SDGs

  • 1
    No poverty
    An icon of a family of people
  • 3
    Good health and wellbeing
    A graph trending down then up, ending with a heart shape
  • 8
    Decent work and economic growth
    A bar chart trending upwards
  • 9
    Industry, innovation and infrastructure
    A stack of cubes with partially shaded sides
  • 10
    Reduced inequalities
    An equals sign with arrows pointing away from it in each direction
  • 15
    Life on land
    An icon of a tree on land with birds in the sky

External ESG Focused Organisations

Strengthening our approach through recognised ESG standards

On top of our own processes, we also strengthen, authenticate and measure our progress through the following globally recognised external ESG related standards:

Taskforce on Climate-related Financial Disclosures

Principles for Responsible Investment (PRI)

EU Taxonomy Alignment

Taskforce for Nature-related Financial Disclosures (TNFD)

Sustainable Finance Disclosure Regulation (SFDR)

Related Policies

Our commitment to ESG matters

In addition to fund-specific ESG Policies, Octopus Energy Generation has policies and processes that support our commitment to ESG matters, including an Equal Opportunities policy, Human Rights and Modern Slavery policy, Whistleblowing policy and Conflicts policy.