The following is an excerpt of a longer article that will appear in the September issue of i3.
In just a few years, investing in accordance with environmental, social and governance (ESG) factors, also known as sustainable or responsible investing, has moved from a slightly idealistic niche to a mainstream dimension for investors, one that strongly influences the performance and resilience of their investments over time. This is particularly the case in infrastructure, in view of its wide-reaching and long-term consequences for the community.
Indeed, in many cases private investors have been not only accompanying the trend but pioneering evolutions, complementing or preceding regulatory requirements. A lot of corporations, investors and operators have embarked on communicating their values and sharing their approaches to the subject.
Last warning from Mother Nature?
Over the past three years, integration of ESG into investment de