Fengate ESG Case Study

Page 1

2021 ESG Policy

Case Studies


FENGATE - 2021 ESG Case Studies


FENGATE - 2021 ESG Case Studies

Table Of Contents


FENGATE - 2021 ESG Case Studies

1. Introduction


2. Responsible Investment in Practice Infrastructure Case Study


3. Responsible Investment in Practice Private Equity Case Study


4. Responsible Investment in Practice Real Estate Case Study



FENGATE - 2021 ESG Case Studies

Introduction At Fengate Asset Management (Fengate), our mission statement is: We deliver excellent investment results and fulfill lives through the impact of our work. Responsible Investment, our practice of incorporating environmental, social, and governance factors into our investment processes, forms the foundation of our mission. Fengate is a leading alternative investment manager that invests on behalf of institutional and high net worth investors across infrastructure, private equity, and real estate. We believe that responsible corporate behavior and responsible investment are intrinsic to strong, long-term investor returns and align such principles with our portfolio objectives in each of our business lines. In 2018, Fengate became a proud signatory of the United Nations-supported Principles for Responsible Investment, which promotes the application of six foundational principles into business operations and investment management processes in the belief that ESG factors can positively influence financial performance. The purpose of this policy is to set out Fengate’s responsible investment beliefs, objectives, and approach to integrating ESG assessments throughout the investment processes across each of our asset classes, to deliver long-term sustainable returns for stakeholders. This policy applies to each of Fengate’s business units; infrastructure, private equity, and real estate. Due to differing asset classes and investment strategies, each team is independently responsible for their own investment decisions, assessment of material ESG factors, and incorporation of the assessment into their investment processes.


FENGATE - 2021 ESG Case Studies

Responsible Investment in Practice Infrastructure Case Study Prince George’s County Public Schools In Q4 2020, Fengate Infrastructure reached financial close on Prince George’s County Public Schools, an alternative construction financing project to design, build, finance, and maintain six middle schools in Prince George’s County, Maryland. This pioneering delivery approach is the first of its kind for a U.S. public school system and is designed to build new schools faster, cutting the delivery time in half with lower construction costs and preventative maintenance. The Project will provide 7,200 middle school seats and 800 elementary school seats across the six schools, supporting the need for additional middle and high school seats to avoid forecasted county-wide overcrowdivng.

Environmental – Design and Operations The Project is required to obtain LEED silver certification upon construction completion, promoting sustainable and efficient school buildings. In addition, the buildings systems will be operated in an efficient manner, designed to minimize utility consumption and manage conservation initiatives.

Social – Promoting Quality Education The Project will accelerate the delivery of critical middle school facilities, to create a positive educational experience for students and staff, and supports the Authority in modernizing its building systems to meet expanding capacities. Prince George’s County has among the second oldest school facilities in Maryland, with over 40% of its buildings constructed over 50 years that are in need of replacement or a complete renovation. The Authority and Consortium together announced the creation of a $1 million endowed fund, supporting scholarships, student internships, mentoring opportunities and apprenticeships, as part of the school system’s Alternative Construction Finance Program.


FENGATE - 2021 ESG Case Studies


FENGATE - 2021 ESG Case Studies

Responsible Investment in Practice Private Equity Case Study eStruxture In Q4 2017, Fengate Private Equity reached financial close on a co-investment in eStruxture Data Centers (“eStruxture”), which provides a network and cloud-neutral data center solutions. In Q1 2021, Fengate Private Equity executed a follow-on investment in eStruxture and Fengate Infrastructure completed a new investment, supporting the acquisition of additional colocation-focused data center facilities. eStruxture is now one of the largest national data center platforms in Canada, with a total of 14 facilities comprising over 32 MW of built capacity and nearly 500,000 sq. ft. of white space.

Environmental – Energy Management and Water Efficiency Sustainability is at the forefront of partnering decisions at eStruxture, driving collaboration with partners that share a common goal of sustainability. In Montreal, Quebec and Vancouver, British Columbia, eStruxture has partnered with Hydro Quebec and BC Hydro to ensure 99% and 95% of the power supply, respectively, are generated from renewable sources. In addition, as data centers are one of the largest consumers of water, eStruxture is focused on water effciency, taking steps to minimize the use of water as well as committing to become water-neutral across all its legacy facilities. The use of the latest compressor technology along with utilization of free cooling as a result of the location of facilities enables eStruxture to minimize water consumption.

Social – Diversity and Inclusion Diversity and inclusion are two of the core values at eStruxture, with a long-term vision to continue to diversify its workforce, and it is notable this would be a key differentiator in the current market. eStruxture prides itself on the diversity of its workforce, with over 50% of its workforce from diverse backgrounds, while nearly 40% of the company’s executive team is female.


FENGATE - 2021 ESG Case Studies


FENGATE - 2021 ESG Case Studies

Responsible Investment in Practice Real Estate Case Study Mirabella Condos In late 2016, Fengate partnered with Diamante Developments to build-to-sell a residential condominium project in Toronto, Ontario. Mirabella, the development project, is a a luxury condominium development comprised of two 38-storey towers, 721 units, located at 1926 Lakeshore Avenue West, Toronto, Ontario.

Environment – Design and Construction Mirabella is registered under the LEED green building rating system with a goal of achieving LEED Gold certification post-construction. LEED Gold certification is achieved by demonstrating the development is less stressful on the environment, including the use of energy and water. The development has also exceeded the local government’s sustainable construction requirement, due to the measures taken throughout construction to improve air quality, reduce greenhouse gas emissions and improve water quality, including a waste reduction initiative diverting 90% of construction waste from landfill.

Social – Essential Services The development is designed to offer health and wellness benefits to future tenants, including large amenity space, enhanced indoor air quality, water efficient fixtures, electrical vehicle charging and bike storage.


FENGATE - 2021 ESG Case Studies


FENGATE - 2021 ESG Case Studies

“Fengate” refers to the Fengate group of companies which is comprised of Fengate Capital Management Ltd., its affiliated entities and the funds or other investment vehicles that they manage. Fengate has produced this information brochure (the “brochure”) for informational purposes only. The information contained in the brochure (the “Information”) is believed to be accurate at the time of publication of the brochure; however, Fengate does not guarantee or warrant or make any representations concerning the quality, suitability, accuracy completeness or timeliness of the information contained in the brochure. This brochure and the information contained within it does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. In no event will Fengate be liable to any party for any claim or any direct, indirect, exemplary, incidental, punitive, special or other consequential damages arising out of information available in the brochure. Fengate is a trade name of Fengate Corporation. All other trade names, trademarks, service marks or logos found in this brochure are owned by their respective owners. © 2021 registered and unregistered trademarks are the property of Serafini Holdings Corporation. Designed and produced by Fengate. 2021.08.12

Toronto | Houston | Oakville info@fengate.com

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FENGATE - 2021 ESG Case Studies

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