Sustainability

ESG Methodology

Our proprietary ESG framework integrates environmental, social, and governance factors with sector-specific metrics aligned to the Energy-to-AI value chain.

Framework Overview

25 points per dimension, 100 points total

🌍40% Weight

Environmental

Assessment of climate impact, resource efficiency, and environmental stewardship across the investment lifecycle.

Climate ImpactRenewable EnergyEnergy Efficiency+3 more
👥30% Weight

Social

Assessment of stakeholder impact including employees, communities, and value chain participants.

Just TransitionLocal EmploymentCommunity Engagement+3 more
⚖️30% Weight

Governance

Assessment of corporate governance, transparency, ethics, and risk management practices.

Board IndependenceTransparency &Ethics &+3 more
🌍

Environmental Criteria

6 scoring factors

Climate Impact & Carbon Avoidance

Quantified greenhouse gas emissions avoided or reduced relative to baseline scenarios.

25%

of Environmental

Scoring Guide
5>500,000 tCO2e/year avoided with Science-Based Targets (SBTi) validated pathway
4100,000-500,000 tCO2e/year avoided with published net-zero commitment
310,000-100,000 tCO2e/year avoided with carbon accounting in place
2<10,000 tCO2e/year avoided, basic emissions tracking
1Minimal climate benefit, no systematic tracking
Data Points Assessed
  • Scope 1, 2, 3 emissions
  • Avoided emissions calculation
  • Carbon intensity (tCO2e/unit)
  • SBTi validation status
Reference Frameworks
GHG ProtocolSBTiTCFDCDP Climate

Renewable Energy & Clean Power

Percentage of operations powered by renewable energy and progress toward 100% clean power.

20%

of Environmental

Scoring Guide
5100% renewable (24/7 CFE matching) with additionality
480-99% renewable via PPAs/on-site generation
350-79% renewable mix (including RECs)
220-49% renewable with credible pathway to 80%+
1<20% renewable, limited clean energy strategy
Data Points Assessed
  • RE100 membership
  • PPA portfolio
  • On-site generation capacity
  • REC procurement strategy
Reference Frameworks
RE10024/7 CFE CompactGHG Protocol Scope 2

Energy Efficiency (PUE/WUE)

Operational efficiency metrics for data centers and industrial facilities.

20%

of Environmental

Scoring Guide
5PUE <1.20, WUE <0.5 L/kWh, industry-leading efficiency
4PUE 1.20-1.30, advanced cooling (liquid/immersion)
3PUE 1.30-1.40, standard best practices
2PUE 1.40-1.60, improvement roadmap in place
1PUE >1.60, legacy infrastructure
Data Points Assessed
  • Power Usage Effectiveness (PUE)
  • Water Usage Effectiveness (WUE)
  • Cooling technology
  • Waste heat recovery
Reference Frameworks
The Green GridEU Code of Conduct for DCsASHRAE

Biodiversity & Land Use

Impact on ecosystems, land use change, and biodiversity protection measures.

15%

of Environmental

Scoring Guide
5Net positive biodiversity impact, habitat restoration programs
4No net loss commitment with biodiversity management plan
3ESIA completed, mitigation measures implemented
2Basic environmental compliance, limited biodiversity consideration
1Potential negative impact, no mitigation plan
Data Points Assessed
  • Land use change
  • ESIA status
  • Biodiversity offset programs
  • Protected area proximity
Reference Frameworks
IFC PS6TNFDScience-Based Targets for Nature

Circular Economy & Waste

Resource efficiency, waste reduction, and end-of-life management.

10%

of Environmental

Scoring Guide
5>95% waste diverted, closed-loop recycling, design for circularity
480-95% waste diverted, e-waste recycling partnerships
360-80% waste diverted, recycling programs in place
240-60% waste diverted, basic waste management
1<40% waste diverted, minimal recycling
Data Points Assessed
  • Waste diversion rate
  • E-waste recycling %
  • Circular design principles
  • Decommissioning plan
Reference Frameworks
Ellen MacArthur FoundationEU TaxonomyISO 14001

Water Stewardship

Water consumption efficiency and management in water-stressed regions.

10%

of Environmental

Scoring Guide
5Water positive operations, zero liquid discharge, rainwater harvesting
4>90% water recycling, closed-loop cooling systems
370-90% water efficiency, water stress assessment completed
250-70% water efficiency, basic water management
1<50% water efficiency in water-stressed region
Data Points Assessed
  • Water consumption (m3/MWh)
  • Water recycling rate
  • Water stress exposure
  • Zero liquid discharge status
Reference Frameworks
AWS StandardCDP WaterWRI Aqueduct

Sector-Specific Metrics

Material ESG factors by value chain stage

Material Metrics: Power Generation

🌍 Environmental

  • • Carbon intensity (gCO2/kWh)
  • • Capacity factor (%)
  • • Land use (ha/MW)
  • • Water consumption (L/kWh)

👥 Social

  • • Local employment rate
  • • Community benefit sharing
  • • Resettlement/FPIC status
  • • Just Transition programs

⚖️ Governance

  • • PPA transparency
  • • Regulatory compliance
  • • Grid code compliance
  • • Decommissioning provisions

Performance Benchmarks

MetricExcellentGoodAcceptablePoor
Carbon Intensity<50 gCO2/kWh50-200200-400>400
Capacity Factor>85%70-85%50-70%<50%
Local Hiring>90%80-90%70-80%<70%

UN SDG Alignment

Mapping our criteria to Sustainable Development Goals

1

No Poverty

Community economic development, living wages

3

Good Health

Worker safety, community health programs

4

Quality Education

Skills training, digital literacy

5

Gender Equality

Workforce diversity, women in leadership

6

Clean Water

Water stewardship, zero liquid discharge

7

Affordable & Clean Energy

Core thesis - renewable energy for AI

8

Decent Work

Job creation, fair wages, safety

9

Industry & Innovation

Sustainable infrastructure, AI innovation

10

Reduced Inequalities

Digital inclusion, community benefits

11

Sustainable Cities

Efficient data centers, smart infrastructure

12

Responsible Consumption

Circular economy, waste reduction

13

Climate Action

Core thesis - decarbonizing AI

16

Peace & Justice

Governance, anti-corruption, transparency

Third-Party ESG Ratings

External ratings we reference for validation

MSCI ESG

AAA to CCC

Industry-relative ESG risk and opportunity assessment

CDP Climate

A to D-

Climate disclosure quality and performance

GRESB

1-5 Stars

Real asset ESG benchmark for infrastructure and real estate

Sustainalytics

0-40+ Risk

ESG risk rating (lower is better)

ISS ESG

A+ to D-

Corporate ESG performance rating

Data Sources & Verification

How we gather and verify ESG information

✓

Company Sustainability Reports

Third-party assurance (PwC, EY, KPMG, Deloitte)

✓

CDP Questionnaire Responses

CDP verification process

✓

Annual Reports & 10-K/20-F

Audited financial statements

✓

Third-Party ESG Ratings

Methodology transparency

✓

Site Visits & Due Diligence

Fund internal verification

✓

Regulatory Filings

Government oversight

✓

News & Controversy Screening

RepRisk, media monitoring

ESG Score Classification

20-25

Exceptional

Industry-leading ESG practices

15-19

Strong

Above-average performance

10-14

Adequate

Meets minimum standards

<10

Below Threshold

Does not meet requirements

ESG score contributes 25 points to the total 100-point investment score. Minimum ESG threshold: 15/25 for consideration.