Achieving standardisation in data remains the holy grail for infrastructure.
Any conversation around how infrastructure investors approach ESG almost inevitably comes back to one word: data. The preoccupation with data stems from the widely held mantra that what gets measured, gets managed.
“Infrastructure fund managers face significant challenges meeting demands for ESG data from investors, regulators and stakeholders,” says Eleanor Fraser-Smith, head of sustainability at energy transition-focused manager Victory Hill Capital Partners. “Standardising this data is challenging due to varying metrics, reporting frameworks and industry-specific nuances.”
“The volume of requests we receive increases every day; it is very time consuming,” adds Lucinda Callow, head of ESG for infrastructure at German asset manager DWS. She says that the introduction of the EU’s SFDR has resulted in her firm receiving much more detailed ESG due diligence questionnaires from LPs.
“You get these requests from investors, with tight deadlines in general, and they have to take priority,” Callow says. “I spend most of my time on requests like that at the moment and it would be much better if I could spend my time actually working with our portfolio companies to improve their ESG to make ESG improvements directly.”
