Considerations related to environmental, social and governance (ESG) factors are continuing to gain traction across the infrastructure investment arena, but the path forward is by no means smooth.

One data point to highlight the steady growth trajectory is that participation in the GRESB Infrastructure Assessment has increased by 75 percent during the past five years. Results from the most recent 2023 benchmark assessment included 172 participating funds reporting on 687 global assets, with a gross asset value of more than $1.2 trillion.

However, while some fund managers are embracing ESG and leading the way with best practices, others are being pulled along the path by investors and a changing regulatory landscape. At the same time, ESG is facing economic and political headwinds with anti-ESG sentiment that has made it a controversial topic in certain regions.

“The good news is that the demand from pension fund investors and other institutional inves