1. ESG as a Key Success for Infrastructure Investment
a value creation perspective
Eugene Zhucheko
Executive Director, LTIIA
June 1, 2017

2. Demand for infrastructure investment
$3.3 trillion funding gap

3. Energy Generation Cost Comparison
Germany
67-100$/MWH
96$/MWH
68-109$/MWH UK
93-122$/MWH
120$/MWH US
75-120$/MWH
$/MWH
China
47$/MWH
$/MWH
80-91$/MWH
65-70$/MWH
India
30-35$/MWH
Onshore wind
68-94$/MWH
88-116$/MWH
35-39$/MWH
83-104$/MWH
Utility PV
45-65$/MWH
Brazil
70-105$/MWH
Coal LCOE
49$/MWH
Australia
South Africa
Gas LCOE
81$/MWH
69$/MWH
51$/MWH
64-80$/MWH
54-67$/MWH
65$/MWH
84-95$/MWH
67-76$/MWH
32-54$/MWH
80-95$/MWH
Source: Global Infrastructure Hub

4. Energy Transition European Union Outlook
Source: 2ºC limit scenario, International Energy Agency, World Energy Investment Outlook, 2014

5. Social Infrastructure
Unlocking the opportunity
Infrastructure spending by sector, $bn at 2014 exchange rates
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2006
Extractions
2016
Transport
2025
Telecommunications
Utilities
Manufacturing
Social
Source: Oxford Economics

6. ESG Frameworks and Standards
UN Global Compact (2000)
UN Global Reporting Initiative (2006)
UN Principles for Responsible Investment (2006)
US Private Equity Council Responsible Investment Guidelines (2009)
European Development Finance Institutions Principles for Responsible Financing (2009)
ISO ( )
Sustainability Accounting Standards Board (2011)
IFC Performance Standard (2012)
Equator Principles (2013)
Green Bond Principles (2015)
GRESB Infrastructure (2016)
SuRe Standard – Global Infrastructure Basel and Natixis (2016)

7. Pricing ESG Risks

8. LTIIA contributions Financial Benchmark for infrastructure
ESG Handbook and ESG Indicators Library
Policy Dialogue on convergence in ESG frameworks
LTIIA Climate Task Force helping governments implement COP21 commitments