How we measure impact, additionality and ESRG
Impact, additionality, and Environmental, Social, Resilience and Governance (ESRG) are important to us because they are central to our investment decision-making, and are therefore vital in helping us achieve our strategic objectives. We have developed the following set of frameworks and guidance to help us measure and monitor these in our investments:
Impact Framework
All our investments should be impactful, and the kind of well-designed infrastructure we were created to finance should contribute to local economic opportunity and help tackle climate change (our triple bottom line).
Our Impact Framework is designed with this in mind – underpinned by the principles of learning and feedback, proportionality, credibility and transparency, and a focus on being consistent and evidence based.
It sets out:
- our approach to impact, including identifying the principles and pathways to achieving impact. The pathways help inform our assessment of deal impact and set out the core deal metrics - for example employment , greenhouse gas emissions, private co-investment mobilised, and other deal metrics we use to assess our impact
- how we plan to monitor progress towards our impact goals and evaluate our impact and additionality to help the organisation learn
Additionality approach
In simple terms, additionality is the extent to which, what happens because of our support, would not have happened otherwise. Our additionality guidance sets out:
- how we test and assess the extent to which impact would not have materialised without us, at the deal level
- how we will maximise our achievement against its strategic objectives, for example through crowding-in investment, offering flexible financial products and accelerating project delivery
You can read about our additionality approach. This blog also explains the principle behind additionality and how it plays a crucial part in our investment decision-making.
ESRG Framework
To help ensure we can be transparent and credible in meeting our objectives, we have developed our Environmental, Social, Resilience and Governance (ESRG) Framework.
It helps us communicate to the market and our peers, how we manage any materially important ESRG risks and opportunities in our portfolio. It reflects how we are different to other financial institutions in that we have £22bn of capital to invest to support specific objectives and we are building new infrastructure assets without needing to manage a legacy portfolio.
Our impact to date
Since our launch, we have invested over £3.8 billion in projects across the UK that will support over 10,700 jobs, and mobilise almost £11 billion in private investment.
For more information on our impact to date, please see our latest Annual Reports and Accounts.
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Cornish Lithium CEO Jeremy Wrathall talks about the impact of our investment
In August 2023 we announced an equity investment of approximately £24 million to support Cornish Lithium in the development of the UK’s critical minerals supply chain. Watch founder and CEO of Cornish Lithium Jeremy Wrathall talk about why the Bank's role was critical, providing confidence to other investors and supporting and creating hundreds of jobs.
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Port of Tyne's CFO Mark Stoner shares more on the port's regeneration
In June 2023 we committed up to £50 million to the Port of Tyne’s regeneration and expansion plans. Watch Mark Stoner, Port of Tyne CFO, talk about the deal, and how it will create and support local jobs.