Background: The company operates as a government agency, maintaining and managing power and water projects across the country. It has no ESG ratings from leading data providers, and the ESG ratings it does have are of its government (rather than the company itself).
Insight’s engagement: Insight initiated an engagement in Q1 2022 to discuss the company, the execution of its capital expenditure plan, and to engage on ESG issues, particularly on governance and disclosure. The engagement was instructive, highlighting that the company has no independent board members, is transitioning towards compliance with international accounting standards, and that governance safeguards are in place.
Outcome: We were encouraged by the open engagement, and the Insight Ratings and Exclusions group subsequently determined that it would be appropriate to generate Prime ESG ratings for the company separate from its government, based on Insight’s proprietary ESG survey. We are committed to continued engagement with the company.