Institutional Investing in Infrastructure senior editor Drew Campbell discussed the state of ESG policy in infrastructure investing with three leaders in the market — Viola Joncic, head of sustainability with Commerz Real; Shuen Chan, head of ESG, LGIM Real Assets; and Chris Newton, executive director of responsible investment with IFM Investors. The following is an excerpt of their conversation.
What are the primary challenges GPs face in adopting and executing ESG policies in their infrastructure investments?
Chris Newton, IFM Investors: There is no simple shortcut. It takes time and dedication to execute ESG policy at an asset level, whether it be undertaking due diligence or applying a philosophy as the manager or key shareholder of an asset. Each asset is different — airports, seaports, toll roads, water management — so universal standards and metrics are difficult to apply. Even assets providing the same service can be di