Over the last decade, awareness of climate change and of investors’ influential global role has grown, prompting funds to turn to sustainable infrastructure projects. These investments are varied and still evolving
Sustainability has become a driving force in investment. The shift is motivated partly by growing awareness of climate change and its effects, as well as increasing public understanding of the influential role that the investment community plays on a global scale. The greater focus on environmental, social and governance factors coincides with renewed interest in infrastructure in the last decade.
After the 2008 financial crisis, investors looked to infrastructure and real estate to diversify portfolios. There was also a greater need for financial institutions, especially those with public mandates like sovereign funds and pension funds, to appear as responsible investors in the post-financial crisis world. Investing in sustainable infrastructure projects was the natural intersection of two goals: diversification and ESG adoption. By investing in green infrastructure projects, asset owners could achieve two objectives with a single deal. More broadly, investing in sustainable infrastructure makes public investors important enablers of growth in the real economy and crucial partners in improving quality of life across the globe.