HICL group

Robust governance is core to our responsible investment ethos and our approach promotes accountability and transparency.

HICL’s reputation for stewardship is built on a system of rigorous checks and balances. In accordance with the AIC Code of Corporate Governance, which incorporates relevant provisions of the UK Corporate Governance code and is endorsed by the FRC, the work and conduct of HICL’s Board is regularly reviewed and evaluated.

Our Risk Committee plays a key role in providing essential challenge mechanisms and oversight of the Board’s work, as well as monitoring the wider landscape to identify risks and develop appropriate mitigation strategies.

Through our communication with shareholders we promote a deeper understanding of our portfolio.

Our portfolio

For us, active ownership means good governance through promoting accountability within our portfolio companies. We hold our subcontractors and supply chain accountable in respect of environmental, social and corporate governance.

Our principal goal for each investment is to ensure that the infrastructure and its operational performance meet the client’s and regulator’s expectations. We are held to account through regular assessment against key performance indicators. Failure may result in us suffering financial penalties.

An InfraRed representative is on each portfolio company’s board. In addition to our role in the management of the infrastructure, we engage with both client and supply chain contractors to build and maintain relationships. This supports the smooth delivery of services and maintains the quality of asset performance.

For each investment, the following management and operational safeguards are provided:

  • Management oversight of each investment through the appointment of at least one director to each portfolio company board;
  • In projects involving the construction of new facilities, progress is monitored regularly and robustly to ensure successful delivery;
  • Proactive stakeholder relationships;
  • Early resolution of operational issues; and
  • ESG initiatives in each portfolio company, where appropriate.

Efficiency whilst maintaining quality is essential to any successful investment. It is in the interests of both our clients and our shareholders that we only make cost savings where they would not have a detrimental impact on service delivery. Savings realised are typically shared by both public sector clients and shareholders.