At ArcLight, we embed ESG principles and frameworks into our investment culture because we believe that the generation of long-term returns is closely linked to the efficient management of material ESG issues.
The ESG Committee continues to build on the foundation of our ESG investment guidelines for ESG issues, established in 2011.
We perform rigorous annual data collection to assess the performance of our portfolio companies and synthesize the results in our annual ESG Report. We also illustrate our own dedication to ESG practices through our diversity, equity and inclusion efforts, as well as measure the material elements of our emissions profile.
Our integrated approach to ESG underpins two strategic goals for ArcLight: safe, reliable, environmentally conscious stewardship, and proactive capital allocation to the energy transition. We believe our commitment to deliver on these goals positions us to source, execute, finance, and enhance differentiated investment opportunities in ways that benefit all of our stakeholders together with the broader communities in which we operate.
Jake Erhard, Partner and Head of ESG
To align with ESG thought leaders, we incorporate key topics and recommendations from the Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD) into our reporting and internal procedures. ArcLight also maintains membership in leading industry ESG bodies, including the PRI, IFRS Sustainability Alliance, and the NICSA Diversity Project North America.
Our deal teams leverage internal expertise and external frameworks to assess material ESG risks and opportunities within our existing portfolio, as well as potential investments. We strive to integrate ESG principles throughout our investment cycles as we prioritize responsible stewardship of our investments.
Our Diversity, Equity, and Inclusion (DE&I) Policy establishes our dedication to promoting a diverse and inclusive workforce that we believe contributes to our continued excellence. Our value creation is made possible by bringing together diverse perspectives.
Our portfolio companies also provide updates on their performance through their own ESG reports, see below:
Third Coast Sustainability Report
We made our first investment in renewable power assets in 2001, and we have invested approximately $4 billion in renewables since inception. Today, we are one of the largest owners of gas-fired power assets, which we believe provide an important bridge to a decarbonized energy future with substantially increased renewable power capacity. As the world moves rapidly toward electrification, we believe our 21-year track record and $11 billion of electric power infrastructure investments represent our formidable depth of expertise in the electricity markets. Further, we have invested meaningful capital into a variety of critical decarbonizing strategies, including biofuels, energy storage, carbon capture, and electric vehicle charging and deployment.