The investment case for impact in infrastructure debt
Infrastructure debt is uniquely well positioned to deliver sustainability and impact objectives – and to align strong sustainability outcomes with the potential for resilient, long-term returns.
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The market for sustainability and impact-aligned strategies in infrastructure debt is experiencing both resilience and transformation, shaped by macroeconomic challenges, climate imperatives and evolving investor approaches.
In this new white paper, we examine the investment case for impact in infrastructure debt, setting out why we believe the asset class is uniquely well positioned to align strong sustainability outcomes with the potential for resilient, long-term returns. We also set out Schroders Capital’s approach to embedding sustainability and impact considerations across our investment processes.
Key takeaways include:
- Infrastructure debt offers a compelling combination of impact potential and resilient returns, anchored in financing essential, long-lived assets.
- The asset class is increasingly impact-aligned, especially in relation to clean energy and climate mitigation, though private debt remains underutilised within the broader impact landscape.
- Opportunities span primarily established sectors (renewables, telecoms, transport), but clear eligibility definitions and measurement approaches are required.
- Advancing impact in infrastructure debt requires robust frameworks, alternative data tools, institutional transparency partnerships and rigorous credit discipline.
- Key hurdles are data quality, disclosure inconsistency and underwriting complexity in early-stage or innovative impact areas.
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