Phi’s Commitment
Phi recognises the importance of climate change, particularly the potential impacts of future climate change as well as the impacts of the transition to a low carbon economy. This Policy outlines Phi’s commitment to the incorporation of climate change considerations into its business activities as an operating entity, as well as investment and decision-making processes across the existing Portfolio Companies and potential investments.
Phi Capital is committed to:
- incorporate climate considerations into its business and investment strategy including transitional and physical climate risk and opportunity analysis into decision-making, Environmental and Social due diligence of potential investment, and ongoing portfolio monitoring.
- not invest in activities at high risk from the global transition, specifically in fossil fuel related activities including coal/peat mining, oil exploration or production, the exploration, extraction and production of natural gas, coal/peat-fired power generation, fuel-oil-fired power generation, large-scale heat production infrastructure based on unabated coat/peat or oil, or any infrastructure exclusively dedicated to the transport or storage of coal/peat or oil.
- meet national/international standards/guidelines including Task-Force on Climate-related Financial Disclosures (TCFD), International Finance Corporation (IFC) and German Investment and Development Company (DEG).
- establish a monitoring and targeting programme to track GHG emissions at Portfolio Level.
- monitor climate related indicators of portfolios to assess and manage relevant climate-related risks and opportunities and disclose climate metrics and targets using applicable frameworks.
- minimize risks from policy, technology, or market changes related to the low-carbon transition.
- assess and manage risks from climate-related events (e.g., floods, wildfires) on assets or investments.
- designate qualified personnel with the primary responsibility of implementing, administering and supervising the overarching Transition and Physical climate strategies
- engage with portfolio companies to develop and implement climate-related action plans and to monitor their carbon footprints.
- ensure that portfolio companies shall allocate adequate resources with appropriate expertise through capacity building and training, to implement climate strategy.
- reduce greenhouse gas (GHG) emissions and protect the most vulnerable communities against climate risks while building the capacity to deploy more climate finance.
- transparent and timely reporting on climate-related risks and performance to the investors and other stakeholders.
- consider taking adequate measures to safeguard business continuity in case of extreme climate change causing disruptions to its own facilities, operations and Portfolio companies.
