ESG considerations in infrastructure investments focus on how long-life, essential assets manage environmental, social and governance risks over extended timeframes.

Environmental considerations

Infrastructure assets are often exposed to long-term environmental risks. Key considerations include:

• Climate change impacts and physical resilience
• Emissions, energy use and transition risks
• Environmental compliance and remediation obligations
• Biodiversity, land use and nature-related impacts

These factors are assessed during investment due diligence and monitored throughout ownership where they may affect asset performance.

Social considerations

Infrastructure assets interact closely with communities and users. Social considerations commonly include:

• Health and safety of users, workers and contractors
• Community impact and social licence to operate
• Labour standards and supply chain practices
• Human rights and anti-modern slavery practices.
• Accessibility, reliability and service quality

Social risks and opportunities are managed as part of ongoing asset stewardship.

Governance considerations

Strong governance is critical for infrastructure investments due to regulatory oversight and long asset lives.

Key governance considerations include:

• Board and management oversight
• Regulatory compliance and risk management
• Managing conflicts of interest
• Transparent reporting to investors

Effective governance supports long-term decision making and accountability.

Integration into investment decisions

ESG considerations are typically assessed:

• During investment screening and due diligence
• When deciding whether to acquire, hold or divest assets
• As part of ongoing monitoring of risks and opportunities

These factors are generally considered where they may have a financially material impact on long-term returns.

Measurement and reporting

Infrastructure ESG performance is often measured and disclosed using recognised frameworks, such as:

• Portfolio level ESG benchmarks
• Asset level performance indicators
• Regular sustainability and investor reporting

This helps investors understand how ESG risks and opportunities are being managed over time.