In order to encourage a globally consistent approach to infrastructure investor due diligence and ESG disclosure by infrastructure managers, the PRI has today launched the Infrastructure Investor Responsible Investment Due Diligence Questionnaire (DDQ).
The DDQ was developed to help investors understand and evaluate infrastructure investment managers’ approaches to integrating material environmental, social and governance (ESG) factors into their investment practices and to understand where responsibility for doing so lies within the investment manager’s organisation.
The diversity of infrastructure businesses, sectors, financing models and regulatory frameworks requires infrastructure investors to adjust their practices to ensure that responsible investment is considered adequately but efficiently. Some ESG considerations will apply to all assets but investors must identify and deal with the most material concerns on a case-by-case basis. This means that responsible infrastructure investment will need to consider not only how ESG risks and opportunities influence the risk-return profile of an investment portfolio but also how a responsible investment portfolio affects broader societal objectives.
The key objectives of the DDQ are to ensure investors consider responsible investment practices when hiring infrastructure managers and to streamline how they do this across the industry to encourage use of a common language and reduce unnecessary reporting burden. It builds on the PRI’s private equity DDQ and both emerged from extensive consultation with investors globally.
“The PRI wants to encourage a global standard for investor due diligence when hiring external infrastructure investment managers, said Kris Douma, director of investment practices and engagements at the PRI. “Progress on responsible investment in infrastructure means moving from ad hoc to systematic practice. It means going beyond compliance to considering responsible investment as a value driver. It is about not just managing a specific risk but taking into account the overall societal and environmental impact of the investment.”
Following the launch of the DDQ, the PRI will continue to engage with investors about the DDQ to gather feedback about its usage for potential future iterations.
For more information contact:
Head of PR
The Principles for Responsible Investment (PRI)
00 44 (0)203 714 3143