Whether through direct engagement with portfolio companies and external managers,
proxy voting or collaborative engagement with our peers, we aim to use our influence
to promote strong ESG practices, particularly in our ESG priority areas, because we
believe that companies with strong governance practices and more climate-friendly and
inclusive strategies are better positioned to succeed.
Climate Change
DataBank – Driving Green Power in Data Infrastructure
In 2022, we made a US$450 million direct investment in DataBank, one of the largest data centre operators in the United States. With more than 65 purpose-built data centres across the U.S., Databank provides colocation, connectivity and cloud services to enterprise, hyperscale, government and telecommunication customers.
DataBank has pledged to achieve net zero Scope 1 and 2 emissions by 2030. In 2022, Databank procured 190 GWh or 20% of its electricity consumption from renewable sources and intensified efforts to source renewable power to meet its net zero pledge. The company was recognized for the third consecutive year for its commitment to sustainability and environmental stewardship through inclusion on the U.S. Environmental Protection Agency's 2022 Green Power Partnership Top 30 Tech & Telecom list.
Waste and Pollution
Sika AG – Supporting the Transition to Circular Economy
Sika AG, an investment in our active public equities portfolio, manufactures specialty chemical products for sectors such as concrete and roofing, embedding sustainability and delivering environmental benefits to customers in these hard-to-abate sectors. Sika has developed new technologies and methods, such as the ReCO2ver program. This is a concrete recycling process that facilitates the production of new, high-quality concrete using 100% aggregates from recycled concrete demolition waste. The program is expected to make a significant contribution to the circular economy and reduce the environmental footprint of the construction industry.
Climate Change
euNetworks – Value Creation Through Focus on Sustainability
IMCO has been an investor in euNetworks, a leading European bandwidth infrastructure company, since 2018. The company owns and operates fibre networks in 17 cities and intercity fibre infrastructure backbone connecting over 50 cities across 17 countries. IMCO engaged with the management team and co-shareholders to elevate the ESG agenda at the company and in 2022, euNetworks joined the Climate Pledge, committing to being carbon net zero by 2040 and setting science-based emission reduction targets across Scopes 1, 2 and 3. Microsoft recognized euNetworks’s commitment to sustainability and pioneering of climate change initiatives with its Showstopper of the Year: Strides in Sustainability award.
Governance
Verisk Analytics – Creating Value Through Governance Engagement
During our pre-investment due diligence on Verisk Analytics, a multinational data analytics solutions provider to international insurance markets, we noted governance issues relating to a classified board structure, and combined CEO and Chair roles, as two key areas for engagement. Following our engagement with the company and feedback from other investors, management moved to eliminate the classified board structure, separated the roles of the CEO and Chair effective at the 2022 annual meeting, and refreshed the board by appointing four new directors.
