MQA’s approach to sustainability

MQA is committed to ensuring environmental and social risks are identified, assessed and managed responsibly.

Environmental and Social Responsibility (ESR)

At MQA, we believe that many environmental, social and economic benefits arise from the responsible private sector development and operation of infrastructure. We are also aware that with these benefits lies the potential for risks, including environmental and social responsibility (ESR) risks which can have commercial, reputational and regulatory impacts on our business and affect the communities in which our portfolio assets operate.

We are committed to ensuring environmental and social risks are identified, assessed and managed responsibly at both the MQA corporate level and at our portfolio companies in order to generate the best long-term outcomes for our stakeholders.

Our approach to sustainability

We structure our ESR management approach around focus areas that are considered to have a material impact on our portfolio. 

Our approach to each focus area is provided in more detail in our 2016 Environmental and Social Responsibility Management report

ESR Framework

Existing portfolio companies

Each of our portfolio companies is responsible for adopting and maintaining its own environmental and social risk management framework that adequately ensures compliance with the relevant regulation and minimum standards for ESR matters in the country and industry in which the asset operates.

Our ability to control or influence the ongoing management of ESR issues will differ for each asset based on the extent of its control/governance rights at each asset through the level of ownership influence, board representation and regulatory environment governing each asset.

MQA-appointed board representatives will in all cases promote and support the implementation of good ESR and governance practices within each asset to the extent that they are able to under the co-ownership arrangements.
Regular reporting from each portfolio company to MQA also assists in monitoring compliance with ESR requirements and in the identification of ESR issues across our portfolio. The ESR performance of each portfolio company is reported to the MQA Boards regularly, with major environmental and social incidents reportable within 48 hours of occurrence.

New Investments

ESR risks and opportunities are central considerations in our evaluation of new investments. We aim to invest in asset companies that regard environmental and social issues as a high priority and we are committed to complying with all regulations and engaging responsibly with the community.

Accordingly, all potential investments are screened for environmental and social risks, including workplace health and safety and climate change. ESR risks are included as part of the independent due diligence performed and included in any investment proposal presented to the MQA Boards for consideration.

In addition to our own processes and policies, new infrastructure projects/extensions are often subject to extensive social and environmental impact reviews by governments before being given approval to proceed.

Our ESR management

ESR-related risks are dealt with under several of MQA’s policies and form part of our overarching risk management framework in accordance with Principle 7 of our Corporate Governance Statement.

In this document we outline MQA’s approach to managing ESR. MQA’s governance responsibilities and policies are covered in our 2016 Corporate Governance Statement