Infrastructure is a global asset class with a large number of different types of investment options. What started off as an asset class of schools and hospitals backed by government leases has proliferated into investments as diverse as ports and cell phone towers. The dynamic and global nature of the asset class makes it challenging from an ESG perspective. But it is also one of the most attractive asset classes to invest in if net-zero is your target. There are significant new opportunities emerging in infrastructure as a result of climate change.
Just like real estate, most infrastructure assets are fixed in a specific location. Climate change will impact certain countries, cities and specific locations unevenly so many of the analytical methods that RealAlts uses in real estate also apply to infrastructure. Unlike most real estate property types, different types of infrastructure will have generalized ESG exposures across all assets. For instance, fossil-fuel based utilities will experience economic challenges if carbon taxes are introduced even if the magnitude of the challenge is asset-specific. The good news is that investors invest in portfolios, so changing portfolio exposures to have the right balance is a winning investment strategy.
We have products and services for infrastructure investors to successfully implement strategies to change overall exposures – sometimes without selling a single asset.