The Earth DividendTM system provides an annual measure of the sustainable development impact which an ECP Fund's operating assets have across five categories of Environment, Social and Governance (ESG) issues, comprising a total of 30 ESG indicators.
The Earth DividendTM scorecard has been developed by ECP's in-house Sustainable Development specialists following review of best practice approaches to the assessment, reporting and assurance of environmental, social and governance issues and performance. The Earth DividendTM is reported annually, at which time each asset agrees a performance improvement plan with ECP. The plan targets improvements in the asset's contribution to sustainable development which will also enhance the underlying commercial performance of the asset. The Earth DividendTM is assessed according to:
- Natural Resource Consumption
- Ecosystem Services
- Pollution Control
- Social and Economic Contribution
- Society and Governance
To provide the Investment Adviser, Fund Manager, ECP Sustainability Council, Fund investors and the ECP Advisory Board with assurance that the Earth DividendTM scorecard is representative, complete and accurate, a three tier assurance process is implemented. This includes independent external assurance by a specialist sustainability assurance provider and a related public statement of their findings.