Environmental Investment Framework
How we do, what we do
Diversification
Your investment is spread across multiple asset types and risk profiles
Investment
We look at all opportunities as investments first
Lens
The investment must meet our environmental goals
Convenience
You get diversified exposure to the environment, all through a single unit
Environmental Assessment Framework
EnviroInvest’s Environmental Assessment Framework establishes the environmental criteria that every prospective investment must meet before it can be classified as environmentally eligible.
The Framework applies across listed and unlisted investments, infrastructure, debt and environmental markets. It provides a consistent process for identifying, assessing, classifying and monitoring investments that deliver measurable environmental benefits.
How Investments Are Assessed
Every prospective investment must undergo a documented Environmental Assessment. The assessment considers the scale, measurability and durability of the environmental benefit, together with any adverse environmental impacts and the measures proposed to manage them.
Investments are classified as:
Eligible Investments, which satisfy the environmental requirements of the Framework;
Conditional Investments, which require additional assessment, justification, conditions or ongoing monitoring; or
Excluded Investments, which have material exposure to an excluded activity or do not meet the required environmental criteria.
The Framework also examines the source of an investment’s current revenue or, for a pre-revenue company, its forecast revenue. Businesses generating at least 80% of their past or expected revenue from environmentally aligned activities may support an Eligible classification, subject to the remaining assessment requirements. Businesses with between 50% and 79% environmentally aligned revenue, or expected revenue may require additional assessment and documented justification.
Where environmentally aligned revenue both present and/or forecast is below 50%, the investment cannot be classified as Eligible. It may only be considered as a Conditional Investment where its environmental benefit and transition pathway provide sufficient justification.
Environmental claims and green washing controls
Environmental claims must be accurate, current, evidence-based and capable of substantiation. The Framework distinguishes between verified outcomes, projected outcomes and management assumptions.
It also requires the identification of material limitations, uncertainties and data gaps. Unsupported or exaggerated environmental claims cannot be relied upon when determining an investment’s environmental classification.
What the Framework is designed to achieve
The Framework is designed to ensure that environmental claims are supported by evidence and applied consistently throughout the investment lifecycle.
Each prospective investment must demonstrate a measurable environmental benefit. This may include:
reducing, avoiding or removing carbon and methane emissions;
generating, storing or integrating renewable energy;
improving energy efficiency;
supporting water security, treatment or conservation;
protecting or restoring biodiversity;
recovering resources, reducing waste or supporting the circular economy;
participating in credible environmental markets; or
providing technology or infrastructure that directly enables an environmental outcome.
The Framework assesses environmental eligibility only. Financial analysis, valuation and broader investment considerations are addressed separately through EnviroInvest’s investment process.
Environmental Scorecard
Each investment is assessed against a 100-point Environmental Investment Scorecard covering four areas:
Environmental Benefit
Carbon and Methane Reduction
Revenue Alignment
Customer Exposure
The Scorecard considers the strength of the environmental benefit, the evidence supporting it, the investment’s contribution to emissions reduction, the alignment of its revenue and the environmental implications of its customers and end uses.
The Scorecard informs the Investment Committee’s environmental classification. It does not replace documented assessment or the Committee’s judgement.
Ongoing monitoring
Environmental assessment does not end when an investment is approved. Each approved investment must be monitored throughout the investment lifecycle.
Monitoring includes the continuing environmental benefit, changes in revenue composition, compliance with environmental conditions and any material environmental incidents.
Where an investment’s environmental benefit is no longer credible, its revenue profile materially changes or it becomes exposed to an excluded activity, EnviroInvest may impose further conditions, reduce its exposure or divest the investment.
Request the Full Framework
The full Environmental Assessment Framework includes EnviroInvest’s detailed assessment requirements, 100-point Environmental Investment Scorecard, mandatory assessment checklist and complete guide to Eligible, Conditional and Excluded Investments.
Complete the form below to receive the full Environmental Assessment Framework.
This document is for wholesale investors only.
EnviroInvest Pty Ltd ACN 685 107 957 (“EnviroInvest”) is an Authorised Representative of Daylight Financial Group Pty Ltd ACN 633 984 773 (“DFGPL”) which is the holder of an Australian Financial Services Licence (AFS Licence No. 521404).
Information in this commentary is current as at date prepared unless otherwise stated. However, please bear in mind that investments can go up or down in value, and that past performance is not a reliable indicator of future performance. For more Important Information please refer to the Disclaimer section of this website.
This communication may contain general financial product advice. It has been prepared without taking into account your personal circumstances, and you should therefore consider its appropriateness in light of your objectives, financial circumstances and needs before acting on it.