ESG - Risks and opportunities in the Infrastructure investment cycle
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“ESG” in the broadest sense covers environmental, social and governance issues. But perception regarding details of the meaning and focus areas can vary. ESG investing often refers to “sustainable” or “responsible” investments, which seek positive returns and a long-term impact on society, and/or the environment and performance of a business.
This report aims to provide a view on key trends and challenges surrounding ESG for infrastructure funds, implications of different ESG ratings, ESG considerations in the investment cycle and credit ratings considerations, in addition to considering the outlook for ESG in the infrastructure sector and response to key issues impacting infrastructure funds.
of infrastructure companies are exposed to environmental, social and governance risks
97% of infrastructure companies with core and non-core infrastructure assets are exposed to social, environmental and governance (ESG) risks that have some potential to impact their credit ratings if the risks are not actively and appropriately managed.