ESG factored into decision making
Environmental, social and governance (ESG) is particularly relevant to infrastructure businesses due to:
- The long-term investment horizon and long-life assets;
- The need to deliver stable long-term risk-adjusted returns;
- The role infrastructure companies have in providing essential services to their communities; and
- The significant positive impact that infrastructure businesses can have on the environment and carbon reduction targets.
In addition, infrastructure businesses often operate as monopolies or quasi-monopolies and therefore good ESG practice is paramount to the long-term sustainability of the business.