Secure income and green infrastructure: an unlikely marriage? - Natixis Investment Managers (Ostrum Asset Management)
How to source stable, long-term cashflows from infrastructure debt with a strong ESG focus
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If you feel under pressure to find secure and sustainable income streams, you are far from alone. As stewards of institutional assets, you may also be under growing pressure to source those income streams under tight ESG constraints.
Institutional investors must secure sustainable income while meeting increasingly demanding ESG expectations. The challenge to meet both objectives is considerable. The underlying beneficiaries of the assets you manage need secure income that is stable even as markets rock and roll through financial cycles. But because those beneficiaries, and society at large, now expect assets to be managed according to (some version of) ESG principles, investments should also enhance society and the environment. Or at least not do harm to them. Infrastructure debt provides an opportunity to meet both objectives. If investors lend to ESG-focused infrastructure projects which represent secure credits and are operated well, they can receive returns which both match long-term liabilities and improve society, the workplace and the environment.
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