ESG factored into decision making

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.