Mercer's Findings:
Mercer Consulting's research indicates that infrastructure has a high availability of sustainability-themed strategies. This is due to the inherent characteristics of infrastructure projects, which often involve long-term, tangible assets that can integrate sustainable practices.
Mercer highlights that infrastructure investments are well-suited for sustainability themes due to their potential to contribute to societal goals such as renewable energy, sustainable transportation, and green buildings.
ESG Integration in Infrastructure:
Infrastructure projects provide ample opportunities for ESG integration, from the development phase through to operations and maintenance. These projects can significantly impact environmental and social outcomes, making them a focal point for sustainability-themed strategies.
The CFA Institute notes that infrastructure investments can drive positive ESG outcomes, such as reducing carbon emissions, improving energy efficiency, and enhancing community resilience.
Investor Demand:
There is growing investor demand for sustainability-themed infrastructure investments as they seek to align their portfolios with long-term ESG goals. This demand drives the development and availability of ESG-focused investment strategies in the infrastructure sector.
Mercer reports that the high demand for sustainable infrastructure projects is reflected in the increasing number of investment products and funds dedicated to this asset class.
Case Studies and Examples:
Examples of sustainability-themed infrastructure investments include renewable energy projects (e.g., wind and solar farms), sustainable transport systems (e.g., electric vehicle infrastructure), and green buildings that meet high environmental standards.
The CFA Institute provides case studies demonstrating how infrastructure projects can achieve significant ESG impacts, contributing to both financial returns and societal benefits.
[References:, Mercer Consulting's report on ESG integration and availability of sustainability-themed strategies by asset class., CFA Institute, "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals.", , , , , ]
