Enhancing Environmental, Social, and Governance Policies and Performance for Global Infrastructure Investment

Abstract

By enhancing environmental, social, and governance (ESG) performance, infrastructure companies can mitigate operational, physical, and regulatory risks, improve supply chain management, and build resilience to social and environmental shocks and stress. By pursuing long-term value creation, global infrastructure investors have focused on the ESG performance of their portfolio companies. The authors of this report collected and analyzed qualitative data from interviews with utilities and power generation companies and from industry reports that encompassed frameworks and methodologies for ESG measurement and reporting; correlation of ESG performance to business performance; strategies for implementation of ESG policies; and industry trends. Based on this analysis, this research provides recommendations for enhancing ESG policies and performance of infrastructure companies.