The arrival of ESG on the investment scene comes as little surprise — climate warning signs, a COVID pandemic, and carbon levels approaching 419 parts per million have a way of focusing one’s mind.

Environmental, social and governance issues present investment risks — a fund manager’s approach to identifying and managing ESG risk is an increasingly important consideration for any new LP investment allocation.

Identifying ESG risk requires a systematic approach, grounded in a common language with peer-based context.

In 2015, a group of 10 forward-thinking LPs developed the GRESB Infrastructure benchmark as a framework of ESG best-practices tailored to infrastructure fund managers. Early adopters used GRESB benchmarking to identify ESG risks, integrate ESG themes into business strategies, and communicate successes through data-driven key performance indicators metrics.

IREI’s upcoming inaugural edition of ESG Means Business — Infrastructure