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State of the Practice: Sustainability Standards for Infrastructure Investors
The report analyzes the proliferation of sustainability metrics in the infrastructure asset class, distinguishing between project screening tools and accounting tools. It identifies key challenges in standardization, such as the high degree of project idiosyncrasy (materiality), the trade-off between measuring management practices versus performance indicators, and the influence of varying regional regulatory regimes. The authors conclude that while there is a desire for a single industry standard, the complexity of infrastructure will likely lead to a continued diversification of tools, with pioneering investors often using multiple systems simultaneously to balance project-level relevance with portfolio-level aggregation.
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Document type: Executive summary