Infrastructure development and investment has a profound impact on the environment and local communities, and promoting sustainable development is a responsibility of every member of the infrastructure value chain. Still, environmental and social metrics for the institutional investors and fund managers that invest in and manage infrastructure assets are a relatively new development. As the infrastructure asset class has matured, infrastructure investors have developed tools and methodologies to better measure the sustainability of their projects and portfolios.
In their recent paper, GPC members Rajiv Sharma and Michael Bennon provide a detailed review of several tools and assessment methodologies that measure and report on the sustainability of infrastructure projects. Their review includes assessment processes, the specific environmental or social criteria assessed, and the specific environmental performance indicators measured for a dozen different project screening tools and sustainability accounting tools used by infrastructure investors today.