In an industry that spans massive facilities, ranging from airports to energy plants, investors are used to dealing with concrete assets that deliver results. Investors now are looking for the same substance when it comes to ESG.
The days when fund managers could simply talk about ESG goals and objectives are rapidly disappearing. “Globally, there is a shift away from ‘tell us’ what you’re doing, to ‘show us’ what you’re doing, with more focus on evidence-based implementation,” says Wessel Schevernels, a senior director and operating partner, infrastructure at PATRIZIA. “Investors want to see quantifiable data and benchmarks. Do you have processes in place? Do you comply with regulations? If you say that you have net zero or diversity, equity and inclusion [DEI] strategies, what are your targets, and how are you working toward those targets? How are you taking corporate or fund-level targets and implementing and measuring those objectives at the asset level?