While institutional investors are keen to invest in sustainable infrastructure that can offer stable, long-term returns, there remains a gap in the market to easily & consistently verify which assets are genuinely sustainable at the asset-level. The label will facilitate due diligence processes & structuring of investments for sustainable infrastructure assets, thereby reducing transaction costs. Information on all labelled assets will be readily available to market participants via a data repository, which will provide a transparent platform for the market to disclose, report, and measure performance of those assets over time. The SI Label should thus contribute to closing the trillion-dollar investment gap by transforming sustainable infrastructure into a mainstream, liquid asset class.
LTIIA has been contributing since the inception to this initiative and fully endorses the SI Label , along with leading coalitions of sponsors and financial institutions (The G20’s Global Infrastructure Facility (GIF), The Investor Leadership Network’s (ILN), Glasgow Financial Alliance for Net Zero (GFANZ)Task Forces of the Sustainable Markets Initiative (SMI) & Local Governments for Sustainability (ICLEI). To accelerate adoption of the SI Label, LTIIA correspondingly asks its members – and beyond, the broader infrastructure investors community- to:
1. Incorporate the SI Label framework into their sustainable infrastructure financing/investment requirements/guidelines as it becomes operational
2. Support the efforts of the FAST-Infra initiative, so that the SI Label becomes the industry standard for sustainable infrastructure.
The FAST SI label is the first comprehensive, global label dedicated to helping investors select and monitor projects meeting sustainability standards in the infrastructure field. It will help develop further the infra asset class, which is necessary to bridge the financing gap that exists, in particular in emerging markets, to tackle climate change at scale.LTIIA Honorary Chairman, Thierry Déau