Sustainable investing

SUSTAINABLE INVESTMENT POLICY

NESF is committed to managing its investments in a responsible manner, and this approach is an intrinsic part of the investment decision process. Full details of our policy principles can be found in our Sustainable Investment Policy.

Download the policy

SUPPLY CHAIN

NESF’s approach to supply chain management is part of our broader approach to ESG. We pay particular attention to any ESG risks associated with our supply chain and maintain active dialogue with key stakeholders.

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  • Climate Change

    NESF’s actively participates in climate change mitigation by contributing towards a zero carbon and sustainable future through the generation of clean electricity. To learn more about our commitment to tackling climate change, please read our Position Statement.

    Climate change statement

  • Biodiversity

    At NESF, solar goes beyond just providing a clean, renewable energy source. Solar presents a unique opportunity to enhance and protect local biodiversity. We actively promote biodiversity across our portfolio of sites, including wild flower meadow planting, building bug hotels, engaging with bee-keeping communities and planting nesting habitats.

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  • Human Rights

    NESF commitment to HR is guided by the United Nations Declaration of Human Rights, as well as the UN Guiding Principles on Business and HR, and it is aligned with the requirements of the UK Modern Slavery Act.

    Modern Slavery Act

ESG INTEGRATION

For NESF, ESG integration is an evolving process where stakeholder engagement and implementation of industry best practice helps us to continuously improve our practices and continue to be a leader in the solar sector. By integrating NEC’s SIP into NESF’s investment and development process, we are ensuring sustainable growth can be delivered over the long term. As NESF is involved in secondary market acquisition as well as new developments; we have defined a process by which we identify, manage, and report on ESG risks and opportunities for both types of activities.

Any secondary-market acquisitions that occurred after the SIP came into effect in 2019 has been subject to due diligence in the pre-acquisition phase in order to identify potential ESG risks. Once the initial screening has confirmed no excluded activities are being entered into, a due diligence is carried out to ensure compliance with local and national legislation, social policies and best practice.

For new developments, a comprehensive set of national and local data sets are considered in order to avoid sensitive areas, consult local communities and to comply with the applicable regulations for the deployment of solar projects. This development phase is supported by the use of geographic information system (GIS) modelling tools, and site assessments are used to review and exclude inappropriate sites during early development stages.

An outline of our secondary market acquisition approach is set out below:

  • PROJECT SELECTION

    Only projects that pass our 'No Go' selection criteria are selected

    PROJECT SELECTION

  • ESG ASSESSMENT

    Due diligence identifies discrepancies between the Seller/EPC/O&M's standards and NEC's

    ESG ASSESSMENT

  • INVESTMENT NEGOTIATIONS

    ESG clauses are incorporated into financial agreements and contracts

    INVESTMENT NEGOTIATIONS

  • RISK MANAGEMENT

    ESG clauses are incorporated into financial agreements and contracts

    RISK MANAGEMENT

  • INVESTMENT DIVESTITURE

    Portfolio ESG reporting based on standard KPIs

    INVESTMENT DIVESTITURE

  • OPERATING PLANT MAINTENANCE

    Implementation of ESG Action Plan and KPI's monitoring and reporting

    OPERATING PLANT MAINTENANCE

  • POST-ACQUISITION IMPLEMENTATION

    Execution of Action Plans and definition of ESG KPIs at each asset

    POST-ACQUISITION IMPLEMENTATION

  • INVESTMENT DECISION

    Documented ESG Memo to Investment Committee approving or declining

    INVESTMENT DECISION

Engagement & Stewardship

During the reporting year, several members of NEC’s staff engaged with Solar Energy UK (SEUK) across various workstreams, including the SPV Director, who chairs the SEUK Natural Capital Working Group, and the Head of ESG was recently appointed chair of the SEUK Supply Chain Working Group. Other employees are involved with supporting SUK on their engagement with the Department for Business, Energy and Industrial Strategy (BEIS) on the technical interpretation of the Nationally Significant Infrastructure Projects (NSIP) threshold. Additionally, members of the team have been working with Ofgem around the Renewables Obligation (RO) audits program.