Strong stable returns have been a key driver behind the growth in Infrastructure Investment. It's dexterity as an asset class fits the investment criteria for a multitude of Investors, Asset Managers and Private Equity Funds. Aside from the obvious financial returns, it can also be viewed in a broader context of embodying the principles of a modern day responsible investor who are conscious of ESG factors and focused on returns over time, as well as alignment on reputational risk.....
ESG is not a number, it is a living, breathing process to influence tangible change for the better, while reducing risk and achieving sustainable financial gains
Rising uptake of ESG means infrastructure is increasingly required to consider the context in which it operates, says Professor David Hart, director of sustainable energy specialists E4tech.
“The sector is having to take account of its own ESG priorities, as well as those of others, as it provides infrastructure to support initiatives which meet wider goals,” he says.
ESG is the new normal for the responsible investor says Tim Clare, ESG director at Anthesis Group. “As with wider private equity, infrastructure funds are starting to put in place internal ESG teams, policies and procedures, set meaningful management and improvement key performance indicators at asset level, and beginning to report.