Beyond ESG risk integration: Impact investing

Generali Global Infrastructure

  • Impact Investing

BY GILLES LENGAIGNE
MANAGING PARTNER OF GENERALI GLOBAL INFRASTRUCTURE

Environmental, Social and Governance (ESG) investment is taking root within the infrastructure investment community. Infrastructure assets have the potential to bring strong social, environmental and economic benefits to society but they are also particularly exposed to ESG risks.

Most investment firms active in the space have by now implemented ESG considerations in their investment process. Logically, these policies have been initially focused on ESG risk assessments. While this is an important development, the asset class  offers  the opportunity to go beyond risk assessment and realize its significant potential for positive impact.

Interestingly, according to a recent IFC publication, private investment fund managers pursuing impact investment strategies have deployed 62% of their capital in infrastructure assets1.

READ THE FULL ARTICLE >

“A defining element of our understanding of sustainability is a ban on investments in sectors with potential to cause strong obstructions to the UN Sustainable Development Goals (SDGs).”

RELATED INSIGHTS​

READ NOW
US INFLATION: RISING, NOT SOARING
Since the beginning of the year financial markets have started increasingly to worry about a sudden and strong re-turn of US inflation. Behind this stands the double boost from domestic demand coming from the widely expected re-opening of the economy in spring and the large fiscal stim-ulus the incoming Democratic administration will most likely deliver.
READ NOW
CHINA’S Q4 GDP GROWTH SURPRISED ON THE UPSIDE, BUT RISKS TO THE OUTLOOK HAVE INCREASED
This morning, China published its Q4 GDP growth alongside with December monthly activity data. Q4 growth accelerated to 6.5% yoy which lifted total 2020 GDP to 2.3%. December real activity data were more mixed. While exports came in strongly, important domestic demand components were a bit unsteady.
READ NOW
COVID-19 FACTS & FIGURES
US President-elect Joe Biden has unveiled a $1.9 trillion stimulus package proposal. Following the recent increase in cases, China has imposed new restrictions and lockdowns in the Hebei province. Canada has implemented new restrictions and a provincewide curfew in Quebec that will last until February 8. German Chancellor Angela Merkel warned that the recent rise in Covid-19 cases could force the country to prolong the nationwide lockdown until April.
MORE INSIGHTS

1Creating Impact – The Promise of Impact Investing, April 2019.

Generali Investments Holding S.p.A. holds a majority share of each boutique. The information contained in this document is only for general information on products and services provided by Generali Global Infrastructure and the Generali Group. It shall under no circumstance constitute an offer, recommendation or solicitation to subscribe units/shares of undertakings for collective in- vestment in transferable securities or application for an offer of investments services. It is not linked to or it is not intended to be the foundation of any contract or commitment. It shall not be considered as an explicit or implicit recommendation of investment strategy or as investment advice. Before subscribing an offer of investment services, each potential client shall be given every document provided by the regulations in force from time to time, documents to be carefully read by the client before making any investment choice. No part of this document may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Generali Global Infrastructure.  Generali Global Infrastructure or the Generali Group shall in no event be liable for any damages or losses resulting from or caused by an improper use of the information contained in this press release or by defects or omissions in its contents.