Community

MIIF comes within the Macquarie Infrastructure and Real Assets (MIRA) Risk Management Framework, which itself lies within the broader operational and compliance risk management framework of Macquarie Group Limited (Macquarie). Macquarie has made a public statement on corporate citizenship which is available on its website.

Macquarie’s commitment is based on Macquarie taking a long-term view of its business activities and acknowledging the importance of good custodianship to the communities in which it operates.

As set out on Macquarie’s website, this commitment is underpinned by:

• A clear expectation of ethical behaviour from Macquarie staff, which has been adopted by MIIF and which is set out in MIIF’s code of conduct (available on request); and
• A robust framework of policies including those relevant to environmental, social and governance (ESG) responsibilities.

RESPONSIBILITY

All Macquarie staff, including those engaged by MIIF, have a collective responsibility to ensure that Macquarie continues to be a good corporate citizen. MIIF’s manager is supported in this by Macquarie’s integrity, equal employment and sustainability and environment officers, and the risk management group.

Macquarie staff may also contribute their time, expertise and/or finances to community organisations through the Macquarie Group Foundation.

MIIF believes that many social, environmental and economic benefits arise from responsible private sector development and operation of high quality infrastructure. MIIF is also aware that with these benefits lies the potential for risk, including ESG risk.

MIIF’s approach to managing risk, including ESG risk, falls under the MIRA framework, which is consistent with Macquarie’s framework. However, the MIRA framework also incorporates policies and practices that reflect the risks specifically associated with infrastructure funds’ management operations, and infrastructure investments.

The framework is applied throughout MIIF’s investment process as follows:

• Asset selection – environmental and social responsibilities are reviewed as part of the acquisition due diligence process;
• Ongoing asset management – regular asset board reporting enables compliance with environmental requirements to be monitored and environmental and social responsibility issues to be identified; and
• Stakeholder reporting – policies, social and environmental initiatives, and compliance performance are reported internally and, where appropriate, externally.

Environmental and social responsibility-related regulatory requirements

MIIF is not aware of any material breaches of relevant environmental or social responsibility-related regulatory standards by its assets during the year ended 31 December 2010.

Environmental and social responsibility-related initiatives at MIIF assets during FY2010

Examples of notable environmental and social responsibility-related initiatives undertaken during the past financial year at businesses in which MIIF invests include:

Changshu Xinghua Port (CXP)

CXP continues to participate in a programme aimed at improving the schooling provided to students of low socio-economic backgrounds within the Changshu city region. Further, CXP is currently in its eighth year of a management programme aimed at recruiting young graduates as trainees, in order to develop them for future management positions. Many of the trainees have assumed supervisory roles in CXP and have contributed positively to CXP’s operations. CXP also established logistic training classes for BingJiang Vocational Technical School and provided internships to the school. Through this programme, CXP has employed 14 graduates.

Hua Nan Expressway (HNE)

HNE is committed to serve the community and to protect the environment. In 2010, HNE supported the relief effort for the victims of the earthquake in Southern Qinghai. It organised a donation drive among its employees and the company, which raised a total of RMB200,000 for the relief effort. During the year, HNE also organised a blood donation drive. As a result of this donation drive 9,800 mL of blood was collected.

In addition, HNE supported the ‘Low Carbon Lifestyle Starts with You’ campaign implemented by Guangdong Provincial Government. It distributed handbooks to drivers with tips on how to drive in an environmentally friendly manner. HNE also placed advertising stickers with environmental-protection messages across all its toll booths.

Miaoli Wind (MWC)

The wind turbines associated with MWC are producing c.125,000 MWh of electricity annually that is being placed on the Taiwan power grid. On average, this eliminates over 100,000 metric tonnes of carbon dioxide annually from the air in Taiwan.

MWC is working hard to be a ‘good neighbour’ to the residents of Chunan and Dapong in the Miaoli County. MWC has established a financial feedback programme in which it contributes NT$1.0 million annually to the local community for use in various development programmes. MWC also installed public restrooms for residents in the Chunan area and provides free cable TV contracts for a number of residents living within the vicinity of the Dapong wind generators. MWC staff and subcontractors provide community service work by providing road cleaning for the areas close to the wind generators. This allows easier access for the local fishermen to the rivers and beachfronts in both Chunan and Dapong. This year MWC offered 4 km of our access roads to the Miaoli County government for redevelopment into bike trails.

Taiwan Broadband Communications (TBC)

TBC has an excellent track record of corporate citizenry. As an active member of its community, the company has participated in a wide range of initiatives over the years.

In 2010, TBC was a sponsor to major events including the 47th Golden Horse Awards Ceremony and the 2010 Taoyuan Film Festival. It also supported the annual February 28th Peace Memorial Concert in Taichung. TBC showed its commitment to education in the local communities by providing scholarships to deserving students. It also conducted a News Career Camp to provide local students with a taste of life as a newscaster.

As with previous years, TBC provided air time and financial support for community announcements that promote public welfare issues, and subsidises subscriptions for low-income community members.