ECP defines sustainable development as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs – taking full account of environment, social and governance impacts, both positive and negative’.
ECP implements sustainable development through five categories: Natural Resource Consumption, Ecosystem Services, Pollution Control, Social & Economic Contribution and Society & Governance. ECP aims to demonstrate at scale a successful investment model which prioritizes Sustainable Development alongside financial return and has identified a number of commercial benefits resulting from this approach:
- Potential for higher financial returns – understanding sustainability enables more effective investment decision making in sustainable assets
- Responsible investing - some investors will benefit from the Earth DividendTM and the Fund’s investment focus in reinforcing their position as a ‘responsible investor’
- Enhanced deal flow – ECP’s culture and values resonate with investee companies operating sustainable assets. ECP’s networks and sector knowledge also offer strategic value to investee companies – attracting high quality investment opportunities
- Investee brand positioning – a strong social and environmental reputation can aid regulatory approvals for new projects or project expansions
- Adherence to the Equator Principles during project development will ensure projects meet the project finance community minimum environment and social standards for lending, ensuring access to a full breadth of debt providers, a key factor in the current market