Challenges and developments in the global and national context have transformed sustainability factors into powerful drivers of opportunity and risk management. Tages Capital SGR, through its asset allocation and investment strategy, strives to capture and leverage these drivers.
Owing to its investments in the renewable energy sector, sustainability is at the forefront of investment and decision-making by the SGR, and is integrated throughout internal processes and operations, starting with technical and legal Due Diligence and including management, monitoring and periodic reporting.
The SGR has developed a comprehensive risk management model integrated into its Risk Policy and investment process. Owing to its focus on the core asset class of photovoltaic and wind power installations, the model takes into account operational and counterparty risks that are associated, both directly and indirectly, with sustainability factors, including environmental compliance, operational costs associated with weather conditions and natural catastrophe events, poor supplier track records and governance issues by counterparties. These and other risk drivers are factored into investment decisions, starting with the Due Diligence process.
As part of its commitment to responsible investment, the SGR incorporates sustainability factors into its investment decision making and ownership policies, with the aim of managing risks and impacts and generating real-world value in addition to financial returns. The legal and technical due diligence process integrates environmental requirements, standards and performance metrics useful to formulate investment considerations. These, in turn, are carried over to the investment phase through active management with business partners and continuous monitoring and reporting.