31 July 2020
Infrastructure investors seeking green assets in wake of Covid-19
According to a survey by Linklaters, infrastructure investors are set to ramp up their pursuit of green assets, with renewables, digital infrastructure and green real estate highlighted by fund managers as key priorities for investment. The survey, which gathered results from over 300 fund and portfolio managers across Western Europe found that almost a quarter expected to grow the proportion of green assets in their portfolios by at least a fifth over the next two years.
According to the survey, climate-resilient real estate and electric vehicles are the top green targets for European infrastructure funds with the US, UK and Asia in line for a surge in investments. It also found that after growth potential, ESG credentials and transparency are the joint-second most important factors when managing portfolios.
According to the Linklaters article here the research also highlights the task ahead for funds as they prepare for enhanced disclosure requirements which are set to come in from March 2021. The new rules mean that EU-regulated funds will be required under the Sustainable Finance Disclosure Regulation, to disclose their approach to taking positive and adverse ESG impacts into account in investment decision-making.
The survey is an interesting insight into the changing focus of infrastructure funds as we build back better after Covid-19.