Infrastructure investors launch benchmark
As governments around the world turn to the private sector to fund infrastructure projects, leading global institutional investors have partnered with GRESB to develop a consistent sustainability framework for the sector.
The GRESB Infrastructure framework will provide investors will an assessment tool evaluating and benchmarking the sustainability performance of their infrastructure assets against the industry standard.
"It provides a consistent framework for investors to collect and compare key environmental, social and governance (ESG) indicators and related performance metrics across their global infrastructure portfolio. The framework is aligned with international reporting frameworks," GRESB said.
"Infrastructure is rapidly becoming an integral part of a diversified investment management strategy, especially for long-term institutional investors.
"Data shows that 28 per cent of pension funds now invest in infrastructure, though allocations are still low (below one per cent of their total investments, on average) they are expected to increase in the coming years. Infrastructure and sustainability are closely related: as the backbone of the global economy, infrastructure investments offer scalable, resilient pathways to sustainable economic growth by delivering key societal benefits, such as vital transportation links, (renewable) energy sources, livability, social infrastructure, water and waste management systems, smart grids and low-carbon transportation systems.
"Sector-specific benchmarks serve investors during the due diligence process and post investment, helping them to identify sustainability best practices and to identify issues for future engagement.
"Access to better quality and standardized ESG data also enables investors to fulfill increasingly rigorous ESG reporting obligations."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
