Environmental, Social, Governance (ESG) Infrastructure Strategy

Investing using environmental, social and governance (ESG) factors can no longer be considered a short-term phenomenon. These principles are now considered a core part of how one does business in the world, and should be considered a part of the investment process. Rational ESG investing is about recognizing that in every sector, identifying companies with strong environmental records, high safety standards, and effective corporate governance can lead to superior investment outcomes.

Infrastructure sectors are particularly poised to benefit from ESG investment principles. Due to the regulated nature of assets, infrastructure provides the most direct short-term and long-term financial benefits to the corporate bottom line from incremental investments in environmentally-focused capital. Utilities transitioning from coal-fired generation to natural gas, wind, and solar are at the forefront of this investing mega-trend. New roads that can help optimize traffic patterns can lead to a decrease in pollution. In addition, companies that treat employees well and have lower employee turnover tend to have superior safety track records, which is tremendously important in the infrastructure space.

In addition to traditional fundamental analysis, our ESG strategy focuses on quantitatively and qualitatively identifying those infrastructure companies most aggressively transforming their portfolios to address ESG factors. While focusing not just on where a company is now, but where it is going, we believe that an ESG focused infrastructure portfolio may not only generate comparable returns to traditional portfolios, but may demonstrate enhanced growth and return potential.

 

 

Our strategies are available to institutional and accredited investors through separate accounts or a privately-offered investment funds, subject to certain qualifications and investment minimums.

Contact us to learn more.