Infrastructure
| Sector | Infrastructure |
| Sub-sector | Sustainable infrastructure |
| Location | Global |
Ensuring this investment is channelled into sustainable projects is essential. However, investors currently lack a common framework for evaluating the sustainability of infrastructure projects. This is the challenge a new initiative, developed by FAST-Infra and co-chaired by Macquarie, aims to address.
By creating a globally applicable sustainable infrastructure label, the initiative aims to give investors confidence and visibility over a project’s contribution to existing sustainability taxonomies and standards. In turn, this should raise the standard of infrastructure projects, while helping to transform sustainable infrastructure into a mainstream, liquid asset class.
Working with partners in FAST-Infra, including the Global Infrastructure Facility and HSBC, an extensive mapping exercise of more than 25 leading taxonomies was undertaken. This was supported by a multi-stakeholder engagement process and public consultation to help refine the proposed approach, ensure it met current industry needs and challenges, and raise awareness.
In a strong signal of support, the Sustainable Markets Initiative (SMI) formed a strategic partnership with FAST-Infra in 2021. Member organisations from its Financial Services, Asset Managers & Asset Owners, and Insurance taskforces committed to working with FAST-Infra, Macquarie and partners to help further develop the label and amplify its importance.2
Outcome
With a governance structure inspired by the Green Bond Principles,3 it introduces credibility, impartiality and technical rigour in the labelling of sustainable infrastructure. And, with strong support from key industry players and financiers, it looks set for broad adoption.
By using the FISI label, market participants can demonstrate the positive impact of a project, enabling capital allocations to be guided towards sustainable infrastructure and ultimately helping to bridge the $US18 trillion investment gap.
number of taxonomies mapped to create the FISI label
number of organisations participating in stakeholder engagement
Investors are hungry for exposure to sustainable infrastructure, but they also seek greater confidence in the impact of projects. By providing a simple, practical framework to communicate sustainability credentials, the FISI label should provide clarity to investors and developers, helping guide capital allocations towards the sector.”
Mark Dooley
Global Head of MAM Green Investments
Macquarie Asset Management
At Macquarie Asset Management, we view sustainability as part of our fiduciary duty to protect and grow our clients’ assets. This focus also helps us generate positive outcomes for our investee companies and the communities they serve. Our latest Sustainability Report outlines the progress we have made over the past financial year.
