The Principles for Responsible Investment (PRI) has set up a new infrastructure workstream in response to the growing demand for sustainable infrastructure solutions in both developed and emerging markets.
It will involve a series of initiatives to support and guide infrastructure investors on implementing “robust responsible investment strategies” and will be overseen by an expert advisory committee (see below) of institutional investors and fund managers.
The new panel adds to the PRI’s existing advisory committees on asset classes such as fixed income, hedge funds and listed equity.
The workstream will focus mainly on private debt and equity investments in infrastructure, both direct and via funds. It will also ensure consideration of material ESG factors in investment decision-making, and provide guidance on integrating responsible investment throughout the investment process from origination to exit.
“The commercial reality is that investors adapting to the ‘new normal’ of a low/no return environment are seeking opportunities for higher yields,” said PRI Managing Director Fiona Reynolds.
“Long-term investors with lots of patient capital need a home for those funds and infrastructure and long-term sustainable investing are like a marriage made in heaven.”
Separately, an infrastructure investment company that owns an oil terminal in Houston and a string of pipeline assets, has become a PRI signatory.
Alinda Capital Partners, the $10bn infrastructure firm, has a portfolio that includes the Houston Fuel Oil Terminal Company (HFOTCO), which owns and operates a facility that provides storage for residual fuel oil, crude oil, clean petroleum products and asphalt.Alinda acquired 100% of HFOTCO – the largest residual fuel oil storage terminal on the US Gulf Coast – for an undisclosed sum in 2011.
Other fossil fuel-linked firms in its portfolio include pipeline and storage operators Howard Energy Partners, Martin Midstream GP, NorTex Midstream Partners and RIGS Haynesville Partnership. It is also a part owner of London’s Heathrow Airport. Alinda’s investors are predominantly US and European pension funds for public sector and private sector workers.
Among other new signatories to the PRI is DuPont Capital, the institutional asset manager owned by the US chemicals giant. Other recent sign-ups are the Rockefeller Brothers Fund and Pensioenfonds PGB, the Dutch graphics industry scheme.
PRI Infrastructure Advisory Committee:
Adrian Best, Victoria Funds Management Corporation (Australia)
Vikram Bhaskar, GCM Grosvenor (USA)
Millie Chow and Zaman Velji, British Columbia Investment Management Corporation (Canada)
Isabelle Combarel, SWEN Capital Partners (France)
Martin Ewald, Allianz Global Investors (Germany)
Kristian Fok, CBUS Superannuation Fund (Australia)
Adam Heltzer, Partners Group (Switzerland)
René Kassis, La Banque Postale Asset Management (France)
Veronique Leroy, Aviva Investors (UK)
Andrew Major, HESTA Super Fund (Australia)
Vhahangwele Manavhela, Public Investment Corporation (South Africa)
Leisel Moorhead, QIC (Australia)
Chris Newton, IFM Investors (Australia)
Katarina Romberg, AMF Pension (Sweden)
David Scaysbrook, Quinbrook (Australia)
Carl Tishler, Beshertine (UK)
Mark Wayment, InfraRed Capital Partners (UK)