Investing in Sustainable Infrastructure in Latin America: Survey Results 2019
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Driven by declining global investment yields, investors have been and will likely continue to increase their allocation to real assets especially infrastructure. At the same time, investors are also increasingly looking for sustainable assets. As evidence grows on the benefits stemming from the integration of environmental, social and governance (ESG) factors into investment decisions, they are realizing that sustainable assets can deliver better risk-adjusted returns. The bottom line is, attitudes are changing quickly. This is why the Inter-American Development Bank Group (IDB Group) partnered with Mercer to gain a better understanding of the profile of infrastructure investors, their needs and preferences for investing in sustainable infrastructure in Latin America and the Caribbean (LAC). The results of this survey reflect the positions of 96 institutional investors around the world with respect to sustainable infrastructure investing in LAC. Overall these investors represent a variety of asset owners (pension funds, insurers), asset managers and banks (both commercial and development) and collectively manage trillions of dollars in assets. The 22-question survey spanned a variety of topics including basic investor characteristics, investment methods and appetites, barriers to investment and environmental or social considerations.