www.unpri.org Open in urlscan Pro
34.252.9.76  Public Scan

Form analysis
1 forms found in the DOM

POST /

<form method="post" action="/">
  <fieldset>
    <div>
      <p>We use cookies to improve your experience on this website. To learn more, including how to block cookies, <a href="/about-the-pri/privacy-policy/723.article#">read our privacy policy</a>.</p>
      <input type="hidden" name="cookiepolicyaccepted" value="yes">
      <button type="submit" class="continue">OK</button>
    </div>
  </fieldset>
</form>

Text Content

Skip to main contentEnable accessibility for visually impairedOpen the
accessibility menu







We use cookies to improve your experience on this website. To learn more,
including how to block cookies, read our privacy policy.

OK
 * Skip to main content
 * Skip to navigation

 * PRI Applications
 * PRI Academy

UNPRI
Menu
Close menu
 * Home
 * About us
   * Back to parent navigation item
   * About us
   * What are the Principles for Responsible Investment?
   * PRI 2021-24 strategy
   * The PRI work programme
   * A blueprint for responsible investment
   * About the PRI
     * Back to parent navigation item
     * About the PRI
     * Annual report
     * Public communications policy
     * Financial information
     * Procurement
     * PRI sustainability
     * Diversity Equity & Inclusion for our employees
     * Careers
     * Support us
     * Meet the team
     * Contact us
   * Governance
     * Back to parent navigation item
     * Governance
     * The Board
     * Board members
     * Board committees
     * 2023 PRI Board annual elections
     * Signatory General Meeting (SGM)
     * Signatory rights
     * Serious violations policy
     * Formal consultations
 * Signatories
   * Back to parent navigation item
   * Signatories
   * Signatory resources
     * Back to parent navigation item
     * Signatory resources
     * Become a signatory
     * Get involved
     * Signatory directory
     * Quarterly signatory update
   * Multi-lingual resources
     * Back to parent navigation item
     * Multi-lingual resources
     * Espacio Hispanohablante
     * Programme Francophone
   * Reporting & assessment
     * Back to parent navigation item
     * Reporting & assessment
     * R&A Updates
     * Public signatory reports
   * Progression pathways
   * Showcasing leadership
     * Back to parent navigation item
     * Showcasing leadership
     * The PRI Leaders’ Group
     * The PRI Awards
 * News & events
   * Back to parent navigation item
   * News & events
   * PRI blog
   * The PRI podcast
   * News & press
   * Upcoming events
     * Back to parent navigation item
     * Upcoming events
     * PRI in Person 2024
     * All events & webinars
     * Industry events
   * Past events
     * Back to parent navigation item
     * Past events
     * PRI in Person & Online 2022 highlights
     * PRI China Conference: Investing for Net-Zero and SDGs
     * PRI Digital Conference
     * PRI Digital Forums
     * Webinars on demand
 * Investment tools
   * Back to parent navigation item
   * Investment tools
   * Introductory guides to responsible investment
   * Principles to Practice
   * Stewardship
     * Back to parent navigation item
     * Stewardship
     * Collaborative engagements
     * Active Ownership 2.0
     * Advance
   * Listed equity
     * Back to parent navigation item
     * Listed equity
     * Passive investments
   * Fixed income
     * Back to parent navigation item
     * Fixed income
     * Credit risk and ratings
     * Private debt
     * Securitised debt
     * Sovereign debt
     * Sub-sovereign debt
   * Private markets
     * Back to parent navigation item
     * Private markets
     * Private equity
     * Real estate
     * Climate change for private markets
     * Infrastructure and other real assets
       * Back to parent navigation item
       * Infrastructure and other real assets
       * Infrastructure
       * Farmland
       * Forestry
   * Hedge funds
   * Asset owner resources
     * Back to parent navigation item
     * Asset owner resources
     * Strategy, policy and strategic asset allocation
     * Mandate requirements and RfPs
     * Manager selection
     * Manager appointment
     * Manager monitoring
 * Sustainability issues
   * Back to parent navigation item
   * Sustainability issues
   * Environmental, social and governance issues
     * Back to parent navigation item
     * Environmental, social and governance issues
     * Environmental issues
       * Back to parent navigation item
       * Environmental issues
       * Sustainable land use
       * Biodiversity
       * Circular economy
       * Plastics
       * Water
       * Fracking
       * Methane
     * Social issues
       * Back to parent navigation item
       * Social issues
       * Social issues - case studies
       * Social issues - podcasts
       * Social issues - webinars
       * Social issues - blogs
       * Cobalt and the extractives industry
       * Clothing and Apparel Supply Chain
       * Human rights
       * Human rights - case studies
       * Modern slavery and labour rights
       * Covid-19
       * Just transition
     * Governance issues
       * Back to parent navigation item
       * Governance issues
       * Tax fairness
       * Responsible political engagement
       * Cyber security
       * Executive pay
       * Corporate purpose
       * Anti-corruption
       * Whistleblowing
       * Director nominations
   * Climate change
     * Back to parent navigation item
     * Climate change
     * The PRI and COP28
     * Inevitable Policy Response
     * UN-convened Net-Zero Asset Owner Alliance
   * Sustainability outcomes
     * Back to parent navigation item
     * Sustainability outcomes
     * Sustainable Development Goals
   * Sustainable markets
     * Back to parent navigation item
     * Sustainable markets
     * Sustainable financial system
     * Driving meaningful data
     * Private retirement systems and sustainability
   * Research
     * Back to parent navigation item
     * Research
     * Academic blogs
     * Academic Seminar series
     * Introduction to responsible investing academic research
 * Policy
   * Back to parent navigation item
   * Policy
   * Our policy approach
   * Policy engagement handbook
   * Policy reports
   * Consultations and letters
   * A Legal Framework for Impact
   * Fiduciary duty
   * Policy toolkit
   * Regulation database
   * Global Policy
   * Australia policy
   * Canada Policy
   * China policy
     * Back to parent navigation item
     * China policy
     * Stewardship in China
   * EU policy
     * Back to parent navigation item
     * EU policy
     * EU taxonomy
   * Japan policy
   * UK policy
   * US policy
     * Back to parent navigation item
     * US policy
     * SEC ESG-Related Disclosure


 * Home
 * About us
    * * What are the Principles for Responsible Investment?
      * PRI 2021-24 strategy
      * The PRI work programme
      * A blueprint for responsible investment
    * * About the PRI
        * Annual report
        * Public communications policy
        * Financial information
        * Procurement
        * PRI sustainability
    * * * Diversity Equity & Inclusion for our employees
        * Careers
        * Support us
        * Meet the team
        * Contact us
    * * Governance
        * The Board
        * Board members
        * Board committees
        * 2023 PRI Board annual elections
        * Signatory General Meeting (SGM)
        * Signatory rights
        * Serious violations policy
        * Formal consultations

 * Signatories
    * * Signatory resources
        * Become a signatory
        * Get involved
        * Signatory directory
        * Quarterly signatory update
      * Multi-lingual resources
        * Espacio Hispanohablante
        * Programme Francophone
    * * Reporting & assessment
        * R&A Updates
        * Public signatory reports
      * Progression pathways
    * * Showcasing leadership
        * The PRI Leaders’ Group
        * The PRI Awards
    * PRI introduces Progression Pathways, a step-by-step journey to support
      progress on responsible investment practices

 * News & events
    * * PRI blog
      * The PRI podcast
      * News & press
    * * Upcoming events
        * PRI in Person 2024
        * All events & webinars
        * Industry events
    * * Past events
        * PRI in Person & Online 2022 highlights
        * PRI China Conference: Investing for Net-Zero and SDGs
        * PRI Digital Conference
        * PRI Digital Forums
        * Webinars on demand
    * PRI in Person 2024

 * Investment tools
    * * Introductory guides to responsible investment
      * Principles to Practice
      * Stewardship
        * Collaborative engagements
        * Active Ownership 2.0
        * Advance
    * * Listed equity
        * Passive investments
      * Fixed income
        * Credit risk and ratings
        * Private debt
        * Securitised debt
        * Sovereign debt
        * Sub-sovereign debt
    * * Private markets
        * Private equity
        * Real estate
        * Climate change for private markets
        * Infrastructure and other real assets
      * Hedge funds
    * * Asset owner resources
        * Strategy, policy and strategic asset allocation
        * Mandate requirements and RfPs
        * Manager selection
        * Manager appointment
        * Manager monitoring

 * Sustainability issues
    * * Environmental, social and governance issues
        * Environmental issues
        * Social issues
        * Governance issues
    * * Climate change
        * The PRI and COP28
        * Inevitable Policy Response
        * UN-convened Net-Zero Asset Owner Alliance
    * * Sustainability outcomes
        * Sustainable Development Goals
      * Sustainable markets
        * Sustainable financial system
        * Driving meaningful data
        * Private retirement systems and sustainability
    * * Research
        * Academic blogs
        * Academic Seminar series
        * Introduction to responsible investing academic research

 * Policy
    * * Our policy approach
      * Policy engagement handbook
      * Policy reports
      * Consultations and letters
    * * A Legal Framework for Impact
      * Fiduciary duty
      * Policy toolkit
      * Regulation database
    * * Global Policy
      * Australia policy
      * Canada Policy
      * China policy
        * Stewardship in China
    * * EU policy
        * EU taxonomy
      * Japan policy
      * UK policy
      * US policy
        * SEC ESG-Related Disclosure

 * More from navigation items



PRI blog


ESG INCORPORATION IN INFRASTRUCTURE – WHAT BEST PRACTICE LOOKS LIKE

3 February 2022

   
 * 

By John C.S. Anderson, Global Head of Corporate Finance and Infrastructure at
Manulife

ESG incorporation best practice



In our experience, approaches to ESG incorporation vary across infrastructure
investing. What does not vary is a laser focus on the “G” of good governance,
which has long been a table-stakes, bare minimum requirement for successful
private operation of public-interest assets in infrastructure investing
programmes.

How infrastructure investors respond to “E” and “S” issues are better indicators
of leading practice. The environment is particularly relevant as infrastructure
projects have such a direct impact on biodiversity, resource use and the local
environment, as well as potential significant impacts on the energy transition.

The presence of new or existing infrastructure within communities makes handling
of social issues another key differentiator in the development of and investment
in infrastructure projects. Safe operation, the implementation of diversity,
equity and inclusion initiatives, and good community relations play a key role
in maintaining projects’ social license to operate and their ability to generate
attractive returns to investors.

These factors cannot be applied ad hoc. They need to be integrated
systematically across various types of infrastructure assets in portfolio
construction. Checklists and frameworks provide a useful starting point to
ensure a thorough approach. As infrastructure assets are so diverse, it’s also
important that ESG factors are evaluated in the context of their materiality on
an asset-by-asset basis. Will mishandling or ignoring these factors have a
potential negative impact on an owner’s license to operate, on an asset’s
long-term returns, or on the regulatory environment?

Leading practice is also about the sharing of sustainability expertise with
others in the industry. This might be through taking the opportunity to lead
participation in external initiatives or collaborative engagements. It may also
be about actively engaging with infrastructure management teams to help them
effectively interact with the natural environment and local communities,
engagement that effectively helps them fund their future growth.


WHAT CAN OTHERS LEARN FROM INFRASTRUCTURE?

Traditionally, infrastructure investors have been primarily concerned with
physical risks. The sector has deep expertise in dealing with these
asset-specific exposures. But physical risk is an important consideration across
all asset classes and sectors, impacting, as they do, on supply chains, physical
storefronts or manufacturing locations, and access to resources such as power
and water. Learning from infrastructure investors’ focus on physical risk is
certainly something that might provide valuable for other asset classes.

> Traditionally, infrastructure investors have been primarily concerned with
> physical risks. The sector has deep expertise in dealing with these
> asset-specific exposures

Leaders within the sector have also invested heavily in sustainability
professionals to help design sustainable investing processes and provide a range
of ESG-related decision-useful metrics. They have demonstrated that the
integration of ESG factors into investment analysis and due diligence, aided by
credible certification, creates value through stewardship, investment and ESG
integration.

As with other asset classes, collaboration is important. At Manulife Investment
Management, we have found that participating in collaborative engagements and
working groups, promoting sustainability standards and disclosure, and
influencing corporate sustainability have all proved effective in strengthening
ESG integration within the infrastructure asset class.


WHAT BARRIERS DO INVESTORS FACE TO FURTHER ESG INCORPORATION?

Differences in size, geography and ownership structure can determine the types
of barriers faced by infrastructure investors who are concerned about ESG
factors. When it comes to addressing ESG issues, resources play a key role, as
many smaller firms lack dedicated ESG specialists, limiting their ability to
effectively analyse the ESG demands raised by individual assets.

Ownership structures in infrastructure are also unlike other asset classes.
Majority ownership positions are unusual and most investors do not directly
operate infrastructure assets. We can influence but we cannot control to the
same degree as majority owners and operators, making it difficult to guide
decisions on the ground. For example, we can look to encourage operators to
improve reporting and disclosure by adhering to specific reporting standards,
but we cannot always dictate. This is changing, as we are seeing greater levels
of collaboration with investors, enabling us to work together to drive effective
change.

Measuring this change remains challenging. Key performance indicators around
sustainable investment are still evolving and quantitative measures are often
lacking, making it difficult to compare and benchmark assets. Increasingly
credible reporting standards are emerging and, with heightened interest around
sustainable investing, investors are more readily sharing information and
metrics to enable proper benchmarking.


WHAT’S NEXT?

The coherency and efficiency of reporting within the infrastructure asset class
is improving, and will continue to do so. We are still in the early stages, but
we will have more agreed standards in place that will allow us to develop far
more thoughtful approaches to monitoring and reporting ESG performance.

We will also see more innovation. Infrastructure investing is already driving
some of the most important contributions towards a lower carbon economy. For
example, we have invested in new agri-voltaic technology, in a solar project we
have developed to bring seven megawatts of solar energy to a community while
also maintaining the ground for local cranberry farmers. The project combines
potentially attractive risk-adjusted returns generated from long-term contracts
and the opportunity to support the local community’s transition to cleaner
energy.

> We will also see more innovation. Infrastructure investing is already driving
> some of the most important contributions towards a lower carbon economy

We believe that these innovations can influence valuations, portfolio
construction decisions and transaction underwriting. But projects like these
require time and planning and arise when ESG issues are placed at the core of
fundamental analysis. In doing so, we can demonstrate that strong ESG practices
are essential to building strong companies with reputations for excellence.

 

 

This blog is written by PRI staff members and guest contributors. Our goal is to
contribute to the broader debate around topical issues and to help showcase some
of our research and other work that we undertake in support of our
signatories.Please note that although you can expect to find some posts here
that broadly accord with the PRI’s official views, the blog authors write in
their individual capacity and there is no “house view”. Nor do the views and
opinions expressed on this blog constitute financial or other professional
advice.If you have any questions, please contact us at blog@unpri.org.

 

 





TOPICS

 * ESG incorporation best practice
 * Infrastructure

   
 * 


LATEST

 * ESG in Credit Risk and Ratings initiative - phase two: Watch the video
 * PRI introduces Progression Pathways, a step-by-step journey to support
   progress on responsible investment practices
 * Progression Pathways - Advancing responsible investment practices among PRI
   signatories
 * The future of reporting – planning for 2024 and beyond


MOST POPULAR

 * PRI in Person 2023
 * Spring: A PRI stewardship initiative for nature
 * Investor Reporting Framework
 * Global climate policy forecast predicts ‘well below 2°C’ Paris Agreement
   climate goals will be met








RELATED CONTENT

 * PRI Web Page
   
   
   PRI ASSET CLASS AND ASSET OWNER GUIDANCE ADVISORY COMMITTEES: CALL FOR NEW
   MEMBERS
   
   5 October 2023 11:14
   
   The PRI is looking for signatories to join its asset class and asset owner
   guidance advisory committees.

 * Workshop summary
   
   
   INTEGRATING BIODIVERSITY CONSIDERATIONS INTO INFRASTRUCTURE
   
   1 August 2023 11:14
   
   Key discussion points from two investor roundtables on how to embed
   biodiversity-related risks and opportunities into the infrastructure
   investment process.

 * Podcast
   
   
   PUTTING PEOPLE FIRST IN INFRASTRUCTURE INVESTING
   
   27 March 2023 15:31
   
   In this week’s podcast we look at the social licence of infrastructure
   investing. Joined by Gwen Colin of Vauban Infrastructure and Antoine Tréboz
   of ALiS.

Load more




MORE FROM PRI BLOG

 * Blog post
   
   
   CALIFORNIA LEADS THE WAY WITH NEW CLIMATE DISCLOSURE BILLS
   
   20 October 2023 16:55
   
   By Sam VanderMeulen, Policy Analyst, Financial Policy, PRI

 * Blog post
   
   
   PRI IN PERSON 2023 – MOVING FROM COMMITMENTS TO ACTION
   
   10 October 2023 13:33
   
   By David Atkin, CEO, Principles for Responsible Investment

 * Blog post
   
   
   REFLECTIONS FROM NEW YORK CLIMATE WEEK
   
   3 October 2023 11:53
   
   By David Atkin, CEO, Principles for Responsible Investment

Load more





LATEST

 * ESG in Credit Risk and Ratings initiative - phase two: Watch the video
 * PRI introduces Progression Pathways, a step-by-step journey to support
   progress on responsible investment practices
 * Progression Pathways - Advancing responsible investment practices among PRI
   signatories
 * The future of reporting – planning for 2024 and beyond
 * California leads the way with new climate disclosure bills
 * Briefing: Summary of the inaugural ISSB Standards
 * Do financial incentives drive the voting behaviour of ESG funds?
 * PRI in Person 2023 – Moving from commitments to action
 * PRI asset class and asset owner guidance advisory committees: Call for new
   members
 * PRI in Person 2024


MOST POPULAR

 * PRI in Person 2023
 * Spring: A PRI stewardship initiative for nature
 * Investor Reporting Framework
 * Global climate policy forecast predicts ‘well below 2°C’ Paris Agreement
   climate goals will be met
 * What is responsible investment?
 * 2023 PRI Board annual elections
 * ESG incorporation in direct lending: A guide for private debt investors
 * Reporting Framework glossary
 * Evaluating managers’ stewardship for sustainability
 * PRI in Person 2024



 * About the PRI
 * News and press
 * Annual Report
 * PRI governance
 * Support us
 * Careers
 * Contact us
 * Privacy policy
 * Collaboration Platform
 * Data Portal
 * Reporting Tool
 * PRI Academy

 * The PRI is an investor initiative in partnership with UNEP Finance Initiative
   and UN Global Compact.



--------------------------------------------------------------------------------


 * PRI Association, 25 Camperdown Street, London, E1 8DZ, UK
 * Company no: 7207947
 * +44 (0)20 3714 3141
 * info@unpri.org

 * PRI DISCLAIMER
   The information contained on this website is meant for the purposes of
   information only and is not intended to be investment, legal, tax or other
   advice, nor is it intended to be relied upon in making an investment or other
   decision. All content is provided with the understanding that the authors and
   publishers are not providing advice on legal, economic, investment or other
   professional issues and services. PRI Association is not responsible for the
   content of websites and information resources that may be referenced. The
   access provided to these sites or the provision of such information resources
   does not constitute an endorsement by PRI Association of the information
   contained therein. PRI Association is not responsible for any errors or
   omissions, for any decision made or action taken based on information on this
   website or for any loss or damage arising from or caused by such decision or
   action. All information is provided “as-is” with no guarantee of
   completeness, accuracy or timeliness, or of the results obtained from the use
   of this information, and without warranty of any kind, expressed or implied.
   
   Content authored by PRI Association
   For content authored by PRI Association, except where expressly stated
   otherwise, the opinions, recommendations, findings, interpretations and
   conclusions expressed are those of PRI Association alone, and do not
   necessarily represent the views of any contributors or any signatories to the
   Principles for Responsible Investment (individually or as a whole). It should
   not be inferred that any other organisation referenced endorses or agrees
   with any conclusions set out. The inclusion of company examples does not in
   any way constitute an endorsement of these organisations by PRI Association
   or the signatories to the Principles for Responsible Investment. While we
   have endeavoured to ensure that information has been obtained from reliable
   and up-to-date sources, the changing nature of statistics, laws, rules and
   regulations may result in delays, omissions or inaccuracies in information.
   
   Content authored by third parties
   The accuracy of any content provided by an external contributor remains the
   responsibility of such external contributor. The views expressed in any
   content provided by external contributors are those of the external
   contributor(s) alone, and are neither endorsed by, nor necessarily correspond
   with, the views of PRI Association or any signatories to the Principles for
   Responsible Investment other than the external contributor(s) named as
   authors.

Site powered by Webvision Cloud

Please ensure Javascript is enabled for purposes of website accessibility