Infrastructure Investing and the UN SDGs

• Focus on actual investment criteria and performance
• Comprehensive statistical analysis of results from ESG (Environmental, Social and Governance) investment
• Insight into practical aspects of the implementation of the theory
• Thorough review of related academic research and its implications
• Perspective based on international experience in ESG
• Practical insights on ESG policy at the level of the portfolio and the financial institution

• Understand the context, goals and commercial opportunities for the United Nations Sustainable Development Goals, especially related to Infrastructure
• Understand emerging risks stemming from key environmental, social and governance issues relevant to infrastructure
• Identify a process to collect data and monitor ESG characteristics
• Understand and identify key red flags of greenwashing around green/sustainable infrastructure
• Recognise and assess the characteristics of sustainable infrastructure
• Know common KPIs, as well as main challenges, for reporting on how infrastructure projects contribute to the SDGs (Sustainable Development Goals)

UN Sustainable Development Goals and their relevance to Infrastructure

• Market and key trends on ‘sustainable infrastructure’
• UN SDGs
  • Environment: Life on Land, Life below Water, Clean Water and Sanitation, Climate Action
  • Social:No Poverty, Sustainable Cities, Affordable and Clean Energy, Good Health and Wellbeing, Quality Education, Gender Equality, Zero Hunger
  • Economic: Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Reduced Inequalities, Responsible Consumption and Production
• “Do no significant harm”
• Key ESG issues across: size, region, type of infrastructure, phase

 Assessment of impact on SDGs and risk  

• Impact materiality– funding innovation to advance solutions to social and environmental challenges
  • UN Sustainable Development Goals most relevant to infrastructure
  • Case studies of infrastructure aligned with SDGs: Sanitation services in Kenya, Air Cargo Facilities in Djibouti, Mott Macdonald’s UK sustainable transport
• Financial materiality – mitigating risk and enhancing return
  • Case study of ESG risk impacting the viability of the project: Adani Central Queensland railway project and the Dakota Access Pipeline
• Making sense of ESG data
  • Primary data from infrastructure projects
  • Frameworks and datasets

 Integrating SDG in the investment process   

• Areas of action on SDGs
  • data gathering
  • aligning SDG outcomes and financial considerations
  • outcome objectives
  • government-investor engagement
  • greenfield vs brownfield investing
  • investor collaboration
• SDG in financial decision making
  • Deal sourcing
  • Investment decision
  • Ownership: data collection, targets, engagement, monitoring
  • Sale
• Exercise: Integrating ESG factors in data collection, targets and engagement
• How to construct ESG and low-carbon Infrastructure portfolios
• Case study: “SDG” funds/cases (eg STOA energy infrastructure, First State Investment and Forsea)

 Reporting

• Market expectations on reporting
  • Client expectations
  • Examples of key indicators for reporting against risk and the SDGs

The trainer is a seasoned investment professional with over 20-years’ experience in both executive and non-executive capacities who has worked across 20 countries. For the past 4 years, he has been an independent Non-Executive Director at a large UK pension fund. He was Director of Russel Investments, and Head for EMEA on Responsible Investment, helping clients with investment strategies across public and private assets. He also worked for other large financial service firms such as GAM, where he was Head of Institutional, Lehman Brothers Asset Management, where he led Alternative Investment Solutions and Putnam Investments, where he was Head of Consultant Relations for the UK and Europe. He is a regular speaker at key investment conferences.

Sustainable infrastructure investment is particularly compatible with responsible investment because of the long-term nature of this asset class and its focus on essential services. On one hand, ESG factors including demographic shifts, climate change and relationship with communities can affect the timeline, commercial returns, and even licenses to operate for infrastructure projects. On the other hand, alignment with the UN Sustainable Development Goals can not only mitigate these risks but also unlock significant financial opportunities while delivering a positive impact.

This course will help participants understand how ESG factors impact the risks, benefits and returns of infrastructure investing as well as infrastructure investment trends, and how to consider and assess how an infrastructure project can contribute to the UN SDGs.