As an asset manager, we systematically integrate the evaluation of ESG risks and opportunities into our origination, asset management and exit decisions. Our focus on managing ESG risks and pursuing ESG opportunities relevant to infrastructure stems from our aim to consistently act in the best interests of our investors and other stakeholders and our firm belief that incorporating ESG factors into our policies and procedures helps us to create responsible investee companies generating sustainable value for all stakeholders and thus delivering better long-term returns for our investors.
Arcus has a public ESG policy which applies to all members, employees and contractors. The ESG policy sets out Arcus’ ESG objectives, the ESG principles that Arcus follows, the ESG Committee’s terms of reference and incorporates guidelines concerning responsible investing. The policy also details Arcus’ approach to reporting ESG matters to investors and ESG training provided to Arcus team members. The policy is reviewed annually.
The application of the ESG policy to our investments is relevant both to the origination and due diligence of new investments, and to the asset management of our existing portfolio. Regarding the latter, we target continuous sustainable improvements in the investee companies’ management of ESG factors over time. Our ESG policy can be found in our ‘Downloads’ section.
Arcus believes that investing responsibly protects its investors’ interests, through identifying and managing ESG issues early in the investment process and actively managing and reporting on these throughout the investment cycle. By incorporating ESG factors into policies and procedures, Arcus seeks to identify both risks and opportunities which can ultimately add value (or avoid losses) for stakeholders and our investors.
This graphic shows how Arcus incorporates ESG considerations into the various stages of the investment lifecycle. For further information about how we integrate ESG into our investment lifecycle, please see page 15 of our Sustainability Report 2022.
- ESG Committee: management of ESG policy, its integration within Arcus and investee companies' policies and procedures
This graphic shows how Arcus incorporates ESG considerations into the various stages of the investment lifecycle. For further information about how we integrate ESG into our investment lifecycle, please see page 15 of our Sustainability Report 2022.
- ESG risks and opportunities are assessed by transaction teams during origination / initial evaluation
- Comprehensive and detailed due diligence including full ESG risk and opportunity review
- External ESG advisors are appointed as required
- Detail of ESG considerations and assessment in final investment approval paper
This graphic shows how Arcus incorporates ESG considerations into the various stages of the investment lifecycle. For further information about how we integrate ESG into our investment lifecycle, please see page 15 of our Sustainability Report 2022.
- ESG risks and opportunities are assessed and proactively managed by asset teams on an ongoing basis
- 100 Day Plan: implementing ESG policies and building business plan including key ESG KPIs and targets
- "ESG continuous improvement programme": implemented at each asset annually, monitored and measured
This graphic shows how Arcus incorporates ESG considerations into the various stages of the investment lifecycle. For further information about how we integrate ESG into our investment lifecycle, please see page 15 of our Sustainability Report 2022.
- Quarterly risk & ESG KPI reporting
- Quarterly Investors reports
- Annual Investors reports
- Annual Sustainability report
- Incident reporting
- Participation in UNPRI, GRESB, UK Stewardship Code assessments/reporting
This graphic shows how Arcus incorporates ESG considerations into the various stages of the investment lifecycle. For further information about how we integrate ESG into our investment lifecycle, please see page 15 of our Sustainability Report 2022.
- ESG Continuous Improvement Programme throughout ownership
- Management and decreasing risk factors
- Value realisation from pursuing ESG opportunities
Oversight of climate-related risks and opportunities is embedded into the Arcus investment lifecycle from the origination stage through to exit. During pre-investment due diligence, climate-related risks and opportunities are assessed and next steps are identified.
Post investment, Arcus seeks to pro-actively work with investee companies to effectively manage relevant physical and transition climate change risks and seek to maximise value from transition opportunities.
Arcus commenced TCFD reporting in 2020 and became an official TCFD supporter in 2021, further reinforcing our commitment towards climate action and disclosure.
Arcus is supportive of the 2030 Agenda for Sustainable Development adopted by the United Nations Member States in 2015. Among the Sustainable Development Goals (“SDGs”), Arcus has a particular interest in supporting the 13 SDGs set out below. Arcus is most likely to have the greatest impact on the SDGs identified as they are well aligned with the Firm’s investment strategy and the long-term trends that are affecting the core European markets such as decarbonisation of the economy as a result of climate change, demographic shifts leading to rapid urbanisation and increasing telecommunication data usage.
The following disclosure statements are released in order to comply with Article 10 (1) of the European Union Sustainable Finance Disclosure Regulation (“SFDR”). These disclosure statements, refers exclusively to Arcus European Infrastructure Fund 3 (“AEIF3”), Arcus European Infrastructure Fund 2 (“AEIF2”) and Arcus European Trains (“AET”). These Funds promote environmental and social characteristics and as such, are subject to Article 8 of SFDR
People and diversity
Arcus embraces a diverse and inclusive work environment (in its own activities and within investee companies), drawing upon a variety of viewpoints and personal experiences, along with broad professional expertise, lead to better decisions, are critical to innovation and provide a competitive advantage.
58
people
Arcus
16
nationalities
17
languages
senior management
at Arcus
gender ratio
at Arcus
4
offices
Portfolio Companies
5,113
employees across all portfolio companies
gender ratio across all portfolio companies
as at 31 March 2023
ESG team
The Arcus Management Committee appoints a Head of ESG and members to the Arcus ESG Committee to assist with the management of ESG and its integration within Arcus and investee companies’ policies and procedures. This structure has operated since 2016.
The ESG Committee comprises dedicated Arcus ESG professionals and team members drawn from the asset management, origination and investor relations disciplines, meets quarterly and, as set out in the Arcus ESG policy, is responsible for assisting with: policy and procedure matters; external compliance and reporting; managing ESG continuous improvement programmes at Arcus and investee companies; managing ESG training; reviewing ESG reporting to investors; coordinating Arcus’ social and environmental charitable activities; measuring and improving ESG KPIs and considering and managing ad-hoc ESG matters on an incident-driven basis. The ESG Committee members have specific Arcus ESG objectives included within their annual personal objectives.
Neil Krawitz
Partner
Biography
Neil was part of the team that founded Arcus in 2009. Prior to joining Arcus, Neil was part of Babcock & Brown’s European Infrastructure Team and Corporate Finance Team in London. Neil started his career with Ernst and Young in London and Sydney where he was part of the firm’s Transaction Services team. Neil holds a BCom from University of New South Wales (Australia). In addition, Neil is a member of The Chartered Accountants Australia and New Zealand.
Management Roles
Head of Asset Management & ESG
Asset Manager for Alpha
Management Committee Member
ESG Committee Member
Ethics Committee Member
Board Member for Alpha & Peacock Leasing
Languages
English
Date Joined
2009
Office
London
Jenni Chan
Partner
Biography
Jenni joined Arcus in 2009. Prior to joining Arcus, Jenni was with Babcock & Brown European Infrastructure Team in London. Before that, Jenni was with Prudential, PKF, Merrill Lynch and Barclays Capital in London. Jenni started her career at Felsers in Sydney and then at Pitcher Partners. Jenni holds an Executive MBA from London Business School, MCom (Advanced Finance) and BCom (Finance and Accounting) from University of New South Wales (Australia). Jenni is a CFA® charterholder and member of Chartered Accountants Australia and New Zealand.
Management Roles
ESG Committee Member
Asset Manager for Peacock Leasing
Board Member for Peacock Leasing
Languages
English
Date Joined
2009
Office
London
Ian Harding
Managing Partner
Biography
Ian was part of the team that founded Arcus in 2009. Within Arcus Ian oversees the formulation and execution of investment strategies for assets being acquired and Arcus’ assets under management. Prior to joining Arcus, Ian was with Babcock & Brown’s European Infrastructure Team. Before Babcock & Brown, Ian was with Citigroup’s infrastructure advisory group and with NM Rothschild & Sons natural resources team. Ian holds an MA (Economics, Clough Scholar) from Fitzwilliam College, Cambridge University (UK).
Management Roles
Investment Committee Member
Management Committee Member
Head of Debt and Treasury
Head of Origination
Arcus Advisory Council Member
ESG Committee Member
Ethics Committee Member
Languages
English
Date Joined
2009
Office
London
Shirene Madani
Investment Director
Biography
Shirene joined Arcus as an Investment Executive in 2018. She works within the investment team focusing on deal execution and asset management. Prior to joining Arcus, Shirene held positions in the project finance and corporate and investment banking coverage teams at Citigroup in London and Toronto, respectively. Shirene holds an HBA degree from Ivey Business School at Western University (Canada).
Management Roles
ESG Committee Member
Languages
English, French
Date Joined
2018
Office
London
Stephan Grillmaier
Head of Investor Relations
Biography
Stephan joined Arcus in 2016. Prior to joining Arcus, Stephan was a Partner at Aerius Associates and MVision Private Equity Advisers in London. Stephan started his professional career with positions at VCM Capital Management in Munich and Swiss Re Private Equity Partners in Zurich. Stephan holds a BA (International Relations) from Webster University St. Louis (USA) and a MLitt (Management, Economics and Politics) from University of St. Andrews (Scotland). In addition, Stephan attended the Advanced Management Programme at the Wharton School of University of Pennsylvania (USA).
Management Roles
ESG Committee Member
Languages
English, German, French
Date Joined
2016
Office
London
Bansi Dhillon
ESG Executive
Biography
Management Roles
ESG Committee Member
Languages
English, Gujrati, Hindi, Punjabi
Date Joined
2018
Office
London
Kaj Bakker
Senior ESG Director
Biography
Kaj joined Arcus in 2021 as the ESG Director based in Amsterdam. In his role Kaj manages ESG activities across the investment lifecycle from origination, through to asset management, contribution to long-term sustainable growth. Prior to joining Arcus, Kaj was an International Sustainability Manager at Cromwell Property Group, where he was responsible for the ESG framework across the European platform, helping minimise the adverse impacts the company’s operations have on the environment, increasing disclosure and providing transparency on the performance of the assets managed, ensuring they were all in line with increasing reporting requirements and company objectives. He holds a Bachelor degree in Real Estate from the Amsterdam University of Applied Sciences.
Management Roles
ESG Committee Member
Languages
English, Dutch
Date Joined
2021
Office
Amsterdam
Tanja Vocke
ESG Executive
Biography
Tanja joined Arcus in 2023 as an ESG Executive within the ESG Team and is based in Amsterdam. Prior to this, Tanja was in the responsible investment sector working for Triodos Investment Management.
Languages
English, German
Date Joined
June 2023
Office
Amsterdam
For each investee company, Arcus appoints an Asset Manager with responsibility for the ongoing management of that investment. As part of that role, each Asset Manager is responsible for identifying and managing ESG risks and opportunities relating to the investment and has specific ESG objectives relating to the investee company included in their annual personal objectives. Investment professionals within Arcus (including Asset Managers) receive annual training on ESG issues and are expected to update and expand their ESG knowledge continually.
ESG journey
Responsible investment has been an important consideration for Arcus since formation in 2009. Our focus on building the sustainable infrastructure of the future stems from our desire to act in the best interests of our investors and other stakeholders. We foster a culture of continuous improvement and look forward to progressing our ESG journey.
Signatory to Initiative Climat International (iCI)
December 2022
March 2021
Update of ESG policy for integration of SFDR
Arcus implements TCFD reporting across all portfolio companies
December 2020
February 2020
Signatory of UN Global Compact
Enhanced approach towards implementation of UN SDGs
November 2019
January 2019
Arcus begins carbon offsetting all business travel
Arcus joins the GRESB Europe infrastructure Benchmark Committee
October 2018
December 2017
Integration of UN SDGs in ESG management
Arcus commences support of the Starlight Children’s Foundation
July 2017
March 2017
Signatory to UN PRI
Member of GRESB, and mandatory investee company participation in GRESB
March 2017
February 2017
Updated LP ESG reporting in line with Invest Europe Guidance
Appointment of Arcus Head of ESG and ESG Committee
December 2016
June 2016
Arcus portfolio company, TDF pilots participation in augural GRESB Infrastructure assessment
First Arcus ESG policy and principle-based approach to managing ESG
July 2014
March 2010
Signatory to the UK Stewardship code
Creation of Arcus Asset Management framework with E, S and G considerations
October 2009
July 2009
Arcus established
Industry engagement
External ESG Assessments and Awards
Global Transport – Fund
Europe – Fund
Transport – Asset
Rail Companies – Asset
Network Utilities – Asset
2022 UNPRI Assessment
Direct Infrastructure
Module score 97 / 100
Investment & Stewardship Policy Module score 100 / 100
BVCA 2019 Responsible Investment Award Winner
Further details of our Fund and investee company scores in the annual GRESB infrastructure ESG assessment are contained in our annual public Sustainability Report which can be found in our ‘Downloads‘ section below. For 2021 scores, please see the press release below in the News section
Community Engagement
Arcus also supports social and environmental charitable activities and all members and employees are encouraged to fundraise, volunteer, participate and contribute to charitable organisations that they feel passionately about.
Arcus supports individual volunteering and provides “matched-funding” for selected fundraising initiatives on an annual basis.
These are some of the charities that we recently supported.
Archive
| Year | Document |
|---|---|
| 2021 | Arcus Sustainability Report |
| 2020 | Arcus Sustainability Report |
| 2019 | Arcus Sustainability Report |
Press Releases and Opinion Articles – ESG
The latest ESG updates from Arcus and our portfolio companies:
