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Understanding the emerging risks and opportunities for Infrastructure Investors arising from climate change.
The world is more focused than ever before on the need for a global and impactful approach to decarbonisation, with the Intergovernmental Panel on Climate Change's recent 'AR6' report highlighting the need for significant and immediate action to avoid the catastrophic outcomes of a severe global warming scenario.
As the world focuses on addressing climate change in a meaningful way, our analysis of the transition risks and opportunities and their impact on the investment process has yielded several important lessons for infrastructure investors, which we explore in our latest Red Paper, including:
- Energy transition and decarbonisation are key areas of focus for infrastructure investments and portfolios to ensure that they are resilient to risks and well positioned for opportunities associated with climate change.
- Scenario analysis provides valuable insights into the range of possible climate transition-related risks and opportunities, and guidance for putting an action plan in place.
- Climate considerations can be integrated at all stages of the investment process utilising a comprehensive framework: investment origination, due diligence and active asset management.
We believe that it is important to maintain investment portfolios which are 'climate-aware' and regularly monitored to ensure they continue to hold balanced climate transition risk.
Other Infromation
QIC Global Infrastructure has formalised a net zero emissions target for the two pooled funds it manages on behalf of its clients - the QIC Global Infrastructure Fund (QGIF) and the QIC Infrastructure Portfolio (QIP) - targeting net zero emissions for scope 1 and 2 across both portfolios by 2040. Read more.