Incorporating ESG analysis in infrastructure investing - Franklin Templeton Investments

Clearbridge Investments, a Franklin Templeton specialist investment manager.

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With sustainability factors more prominent than ever in the path forward for equities, the importance of integrating environmental, social and governance (ESG) considerations when investing in real assets such as infrastructure should come as no surprise.

The features that single out infrastructure as a distinct asset class - the essential services it provides to society, its predictable long-duration cash flows and inflation-linked returns, its assets and investments exhibiting low sensitivity to economic cycles - also suggest this integration will have distinct areas of focus.

Franklin Templeton discuss the essential components of an integrated ESG approach to infrastructure investing and consider two case studies to illustrate this approach.

Date of publication: December 2020

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