* 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."