Sustainability strategy and methodology
To ensure that impact is tangible, it must be measured. Following the integration of the Sustainable Development Goals (SDGs) into our investment processes, we have developed a unique methodology to assess and report on this impact. This flexible and detailed framework enables Meridiam to transparently track its performance against the SDGs, both for each individual investment and for our funds and organization as a whole.
We believe that measuring our impact is not enough. Our methodology also enables us to identify key areas where improvements can be made for each asset. This helps us to define roadmaps for maximizing benefits. Rather than looking at our assets in isolation, we compare them to their peers, while taking into account their economic and geographical context, enabling us to track their performance on a regional and international scale. Each year, we take measurements and publish the results in our Impact Report.
Continuous improvement of our assessment
At QualityCap, we analyze our investments from a number of angles to ensure that they meet ambitious impact targets and international standards. In addition to our SDG-based methodology, we implement measures to assess our climate and carbon performance.
We actively monitor the carbon footprint of our assets and evaluate the emissions avoided through our actions. We have also collaborated with other industry players to develop a 2-infra Challenge assessment framework to measure our portfolio’s alignment with the 2°C climate target set by the 2015 Paris Agreement.
Our rigorous approach enables us to remain faithful to our sustainable development objectives and maximize the positive contributions of our projects in areas such as education, energy, the environment, health, social justice, urbanization and water.
Alignment with ambitious objectives
QualityCap places equal importance on achieving its social and environmental objectives and generating financial returns. As a company investing in long-term infrastructure projects (25 years or more), we guarantee consistent quality of service for public bodies and attractive returns for our investors.
Our team is structured and incentivized to achieve these two objectives. Our employees’ carried interest is directly linked to financial performance and impact indicators. If our funds fail to meet our impact targets, part of our carried interest entitlement is sacrificed, irrespective of financial performance. We believe that impact should be taken into account in both our remuneration and our actions.
Governance and Mission Committee
Our governance has evolved to be fully consistent with our mission. A Mission Committee has been set up to oversee the impact of our investments in relation to our five strategic pillars and define new targets for improvement. We conduct regular audits of our operations and investments with external specialists, and report on our sustainability performance through our Charter.
