How sustainable is that investment?

Opportunity

Sustainable infrastructure investment will play a critical role in creating an equitable, sustainable, and resilient planet in the coming years. Quantifying criteria to help determine and certify the sustainability contributions of an infrastructure project is no small task.

In the face of the need for stimulus investments across the globe to support the COVID-19 recovery, we can expect a surge in demand for infrastructure spending.

Solution

Researchers from KPMG and Mott MacDonald applied a selection of ESG and sustainability standards to two different operating infrastructure assets: the Yatí-Bodega Road Interconnection in Bolivar, Colombia and the Carlsbad Desalination Plant in Carlsbad, California.

Mott MacDonald was able to demonstrate and apply an integrated understanding at the nexus of infrastructure, sustainability and investment.

We developed a qualitative methodology to assess project sustainability using the United Nations Sustainable Development Goals, which are accepted as the leading international benchmark for sustainability. The methodology allowed the team to understand which of the SDGs 169 targets were being positively or negatively impacted by the case study project.

Together, we prepared a report that to assessed the effectiveness and the practicalities of implementing these standards for investors.

Outcome

Guggenheim Partners and the World Wildlife Fund (WWF) have released "Measuring Sustainability in Infrastructure Investment," a report developed by Mott MacDonald and KPMG. Niniane Tozzi of our Vancouver office was one of the two lead authors, supported by Marielle Rowan (Toronto) and Kristy McConnel (Vancouver).

The project provides the financial investment community with a more robust understanding of how sustainability frameworks can allow them to understand social impacts of their investments and identify gaps in the path forward. Given the close communication with Guggenheim Partners during project delivery, this work has directly increased understanding of social outcomes for one of the largest global investment firms.

In addition to the full report, an executive summary and press release are available on Guggenheim's website.