Insufficient integration of ESG metrics in valuation of infrastructure investments | WWF
Insufficient integration of ESG metrics in valuation of infrastructure investments

Posted on 18 March 2019

Private investors could do more to improve the integration of environmental, social and governance (ESG) considerations into infrastructure investment processes.
Urgent action is needed to ensure that expected infrastructure investment of up to $94 trillion by 2040 is made in line with global sustainability agendas, such as the UN Sustainable Development Goals (SDGs).

The new report, 'Valuing Sustainability in Infrastructure Investments: Market Status, Barriers and Opportunities' by WWF and Cadmus, explored the currently low level of ESG integration and evaluated emerging publicly available tools that seek to make sustainability impacts of infrastructure projects tangible for investors.

While there was consensus on the importance of ESG integration in infrastructure, the actual adoption of third-party ESG tools has been limited.

“Most infrastructure investors are only at the beginning of this learning journey and have yet to make use of the specific tools that are being developed to support them.” Josef Bieri, Advisory Partner at Partners Group.

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