GOVERNANCE
Board
Infratil's Board is responsible for approving and monitoring Infratil's strategic direction which is informed by macro-trends, including, as referred to earlier, climate change risk and opportunities.
The Board has overall responsibility for ESG governance and reviews and approves Infratil's exclusion policy, the Sustainability Strategy as outlined on page 10 of Infratil's FY2023 Sustainability Report (which includes a focus on climate issues) and associated sustainability initiatives. The Board also has responsibility for approving external sustainability and climate related disclosure reporting, which may first be reviewed by Infratil's Audit & Risk Committee (ARC).
Infratil's ARC is the body with delegated responsibility for Infratil's enterprise risk management system and has the function of reviewing and reporting to the Board on the preparation, review, verification and assurance processes in relation to sustainability and climate-related disclosure reporting.
We recently updated our risk management processes which now provide for the ARC to typically receive semi-annual reporting on all risks, including climate risk and for the Board to receive at least annual climate related reporting. The Board and ARC also hear about climate risk through ad-hoc updates and sustainability being a regular item on the Board's agenda.
Infratil's directors are all members of [Chapter Zero (or its](https://www.chapterzero.nz/) equivalent in another jurisdiction), the New Zealand chapter of a global network of board directors committed to taking action on climate change. Chapter Zero is hosted by the New Zealand Institute of Directors and supports directors with climate awareness, skills, and tools to steward their companies through the challenges presented by climate change.
Investment Management
Acting on behalf of Infratil, Morrison & Co is responsible for incorporating climate-related risks and opportunities into the investment and asset management process, working closely with the management of each portfolio company. Management executives are supported by the Executive Director, Sustainability Risk & Funding, and the wider sustainability team at Morrison & Co.
We set out further information on Morrison & Co and the role it plays as Infratil's manager on pages 6, 15 and 16 of Infratil's FY2023 Sustainability Report.
Portfolio Companies
At the portfolio company level, the board of each company is responsible for setting strategy and identifying and managing key risks, including climate risk. Infratil expects its portfolio companies within its emissions reporting boundaries to provide annual emissions reporting to Infratil and undertake annual [GRESB Infrastructure Assessments which have a focus on](https://www.gresb.com/nl-en/infrastructure-fund-assessment/) climate data, management, and targets. The GRESB score for Infratil's portfolio companies contributes to Infratil's [GRESB](https://www.gresb.com/nl-en/infrastructure-fund-assessment/) [Infrastructure Fund Assessment score, along with Infratil's own](https://www.gresb.com/nl-en/infrastructure-fund-assessment/) submission.