“ATLAS believes that over the long term, all infrastructure assets operate under an implicit Environmental, Social and Governance (ESG) ‘contract’ which will influence long term cashflows in the same way as any formal contracts they may have. We therefore incorporate ESG factors and risks directly into our forecast cashflows and hence directly into our decision making.” – David McGregor, Partner.

ESG and Climate Change


Infrastructure assets are by their nature long lived and relatively inflexible. Therefore, in purchasing long dated infrastructure assets, investors inherently take on exposure to changes in government policies and other social and climate related factors.


Our portfolio construction process incorporates and reflects ESG analysis and risk in the following ways:


  • Environment – we incorporate explicit assumptions about climate change policy and the regulatory and economic changes that will be required over the next 50 years. This forms part of our long term macro assumptions and therefore feeds into the cashflow forecasts for each asset in our portfolio. Risk is captured through specific scenario modelling as well as calculation of the beta to changes in carbon costs.


  • Social – our long term forecasts contain explicit assumptions about social contract and the ability of companies to sustain excess returns. Where there is risk to social contract through management actions or public policy, we capture this through specific stress testing for the company which is then reflected by a higher risk of loss in the portfolio.


  • Governance – we incorporate governance risk in our forecasts through direct assumptions about capital management policy and reinvestment as well as including specific stress scenarios for companies with poor reinvestment control and capital discipline.

Climate Change – Detailed Scenario Analysis


ATLAS has developed a detailed proprietary methodology which explicitly models the cash flow impacts of three climate change policy scenarios and associated economic transitions.  The scenarios modelled are Fast Transition, Base Case and Delayed Action.  Consideration of these factors is an integral part of our assessment of all investments for all portfolios, rather than an approach for a particular strategy or as an addendum to our investment process.


We record ESG risks and key issues for each company as part of a detailed research process. A summary of the key ESG issues is included and referenced in all proxy voting recommendations that are considered at the ATLAS Investment Committee.


The following information has been prepared by PAN-Tribal Asset Management for use by Sophisticated Investors / Wholesale Clients and Investment Professionals only. No account has been taken of the investment objectives, financial situation or particular needs of any particular person. Information is provided for general information purposes only and does not contain investment recommendations nor provide investment advice, nor is it intended to take the place of professional advice. Investors should not take action in reliance on information contained on this website.


Past performance information provided on this website is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. None of PAN-Tribal, its related bodies or associates, nor any other person, guarantees the repayment of capital or the performance of the Fund(s) or any particular returns from the Fund(s). No representation or warranty is made concerning the accuracy of any data contained on this website.


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