Morgan Stanley
Infrastructure Partners

Overview
Portfolio
ESG Approach
Strategies
Insights

Overview

Morgan Stanley Infrastructure Partners is a leading global infrastructure investment platform.

Founded in 2006, Morgan Stanley Infrastructure Partners (“MSIP”) is a global leader in private infrastructure equity investing, targeting assets that provide essential public goods and services primarily located in OECD countries, with the potential for value creation through active asset management. With a diverse team across 6 offices in North America, Europe, and Asia-Pacific, MSIP leverages a comprehensive network of relationships to source investments in sectors such as transportation, digital, energy transition, and utilities. MSIP’s investors include some of the largest and most sophisticated pension, sovereign wealth and insurance companies across the globe.

As an infrastructure investor, we seek assets with long useful lives that perform essential services to society while generating stable, predictable cash flows that are linked to inflation. Our focus sectors include Power Generation and Utilities, Natural Gas, Transportation, and Digital Infrastructure. We take an opportunistic approach across various other sectors.

We have a strong track record of differentiated deal sourcing through our network of relationships and Morgan Stanley’s global franchise and we have exclusively negotiated a large majority of our investments.

We take a “hands on” approach to creating value. We prefer strong governance positions, typically through controlling or co-controlling stakes, so that we have the ability to execute planned operational improvements and, over the medium to long term, build and exit a self-sufficient asset.

Our Philosophy and Approach

An Introduction to Morgan Stanley's Private Infrastructure Platform

Portfolio

Portfolio

ESG Approach

MSIP is committed to sustainability through our ESG approach which calls for active management of ESG issues throughout the investment lifecycle for each asset.

MSIP ESG Integration into Investment Lifecycle

Due Diligence

Conduct initial ESG risk assessment, identifying focus areas for further detailed analysis
Review internal and external ESG diligence reports, liaise with internal and external ESG specialists, interview key personal and conduct site visits
Evaluate and address risks through short-term or long-term mitigation plan
Document observations and make recommendations, including ESG roadmap, to our Investment Committee

Acquisition and 100-Day Plan:
Post-Close Strategy & Implementation

Implement short-term mitigation plan to address issues raised during ESG due diligence
Ensure effective integration of ESG Policies and Procedures with portfolio company management
Assist management by utilizing MSIP best practices and system controls

Preparation for Exit

Support the preparation and due diligence process necessary for ESG documentation
Summarize key ESG policies and procedures

Monitoring and Improvement

Work with portfolio companies to define and implement strategic goals
Link management short-term incentive plan to ESG improvements
Ensure ESG processes and procedures are effectively managed
Measure and monitor ESG performance monthly or quarterly depending on materiality
Conduct formal board reviews of ESG reporting vs. key metrics and KPIs
Internal and external ESG audits and reviews

Preparation for Exit

Support the preparation and due diligence process necessary for ESG documentation
Summarize key ESG policies and procedures

REDUCING ENVIRONMENTAL FOOTPRINT

We are committed to conducting our business activities in an environmentally safe and responsible manner, and look to minimize any negative impacts, specifically in the areas of energy, waste, water, and biodiversity.

RISK MANAGEMENT AND MITIGATION

We perform robust due diligence, collaborating with internal and external ESG specialists, with ongoing monitoring and assessment of environmental risks. This translates into continuous investment, testing and maintenance with an aim of operational excellence.

COMMITMENT TO A LOW-CARBON FUTURE

We are committed not to invest in any entities whose principal business is the operation of coal-fired power plants.¹

BIODIVERSITY

We aim to preserve the natural biodiversity of our assets’ locations and believe maintaining balanced ecosystems is critical for a sustainable future. We seek to assess a variety of biodiversity metrics, including sensitive wetlands, threatened species habitats, coastal erosion and deforestation as appropriate.

¹ Exceptions apply if there is a plan to substantially convert and transition such coal-fired power plants to alternative low-carbon technologies, or to cease operations, or otherwise dispose of such power plants.

REDUCING ENVIRONMENTAL FOOTPRINT

RISK MANAGEMENT AND MITIGATION

COMMITMENT TO A LOW-CARBON FUTURE

We are committed not to invest in any entities whose principal business is the operation of coal-fired power plants.¹

BIODIVERSITY

DIVERSITY, EQUITY & INCLUSION

We believe diversity of backgrounds and perspectives leads to better decisions, improvement of employee engagement and, ultimately, productivity. We seek to promote diverse and inclusive workplace cultures, further gender balance, and have zero tolerance against any type of discrimination.

HUMAN RIGHTS

Morgan Stanley is committed to supporting the protection and advancement of human rights in our business and throughout our supply chain. With operations around the world, we strive to uphold global standards for responsible business, including equal opportunity, freedom to associate and bargain collectively, and the elimination of child and forced labor.

HEALTH, SAFETY & WORKING CONDITIONS

We are committed to working with portfolio companies to build a rigorous culture of safety. Workplace health and safety initiatives include the ‘near miss’ and ‘job hazard analysis’ programs, which reflect increased employee awareness of safety hazards, as well as a focus on recordable injuries and lost time, ultimately all with the intent to cause a lasting change in the behavior of employees and strive for zero accidents.

STAKEHOLDER ENGAGEMENT

We believe positive involvement with stakeholders, e.g. employees, customers, and the communities in which they operate, contribute to solving societal challenges and build stakeholder trust.

DIVERSITY, EQUITY & INCLUSION

HUMAN RIGHTS

HEALTH, SAFETY & WORKING CONDITIONS

STAKEHOLDER ENGAGEMENT

We believe positive involvement with stakeholders, e.g. employees, customers, and the communities in which they operate, contribute to solving societal challenges and build stakeholder trust.

ETHICS & INTEGRITY

Our portfolio companies strive to uphold high ethical standards at all times and follow standard codes of business conduct, including anti-corruption and anti-money laundering policies and procedures. Employees and contractors are encouraged to ask questions, voice concerns and report any alleged violations of company policies.

BOARD LEADERSHIP

Through our board representation, which typically reflects control equity positions, the board assesses management’s policies, practices and performance; it reviews plans and proposals for ESG metrics, policies and the measurement of progress with a focus on continuous long-term improvement.

RELATIONSHIPS WITH KEY CONSTITUENTS

We look to foster long-term relationships and build trust and good will with all key constituents, including regulators and contractors. Our constituents help shape our ESG efforts by sharing valuable feedback on new ideas, best practices and industry trends, where applicable.

MANAGEMENT ALIGNMENT

Management team compensation plans are developed to ensure alignment with corporate objectives including ESG factors and targeted outcomes.

ETHICS & INTEGRITY

BOARD LEADERSHIP

RELATIONSHIPS WITH KEY CONSTITUENTS

MANAGEMENT ALIGNMENT

Management team compensation plans are developed to ensure alignment with corporate objectives including ESG factors and targeted outcomes.

Offer For Augean

Announcements

Offer-related Arrangements

Irrevocable Undertakings

Consent Letters

Financing Documents

Scheme document and ancillaries

Constitutional documents and Annual Reports

Additional Updates and Information

Strategies

Strategy Name	Description
Private Infrastructure Strategy The Infrastructure Strategy is a leading global infrastructure investment platform.	The Infrastructure Strategy is a leading global infrastructure investment platform.

Strategy Name	Description
Private Infrastructure Strategy The Infrastructure Strategy is a leading global infrastructure investment platform.	The Infrastructure Strategy is a leading global infrastructure investment platform.

Insights

Media Appearance

Back to the Future With the Energy Transition

03-May-2021

Infrastructure Partners’ Chris Ortega highlights the importance of investing to support the value chain of technologies that will facilitate energy transition.

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