The FAST-Infra initiative[1] launched the Sustainable Infrastructure (SI) Label – a consistent, globally applicable labelling system designed to identify and evaluate sustainable infrastructure assets.
The label will facilitate due diligence processes and 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 sustainable infrastructure assets over time. This will promote consistent reporting under existing disclosure frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).
The SI Label has been endorsed by leading coalitions of sponsors and financial institutions who are investors in, and lenders to, infrastructure projects around the world:
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)
Long Term Infrastructure Investor Association (LTIIA)
ICLEI – Local Governments for Sustainability (ICLEI)
These endorsements will help encourage all financial institutions, institutional investors, and development finance institutions to use the SI Label, helping to address the estimated US$2.5-3 trillion annual investment gap for sustainable infrastructure8. This infrastructure gap is particularly critical in emerging markets due to the lack of investable projects and the necessary financial and operating expertise. 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 verify which assets are genuinely sustainable at the asset-level.
HSBC, Group Chief Executive Officer, Noel Quinn, said: “We welcome the FAST-Infra SI label, which gives investors confidence in the environmental and resiliency credentials of new projects, and will help make sustainable infrastructure a deep and liquid asset class. We’re working hard to mobilise finance and accelerate innovation to help our customers decarbonise. This label represents a global public-private partnership to ensure investment is swiftly channelled towards truly sustainable projects.”
Macquarie Group, Green Investment Group, Global Head, Mark Dooley, said: “As a major infrastructure and renewables investor, we see a critical need for this FAST-Infra SI label. This collaboration across banks, governments and multinational institutions will help create visibility and confidence for all stakeholders as we invest together in the journey to net zero; and we believe it can have particular impact in accelerating sustainable investment into emerging economies.”
UK High Level Climate Action Champion, Nigel Topping, said: “One of my objectives as a High Level Champion for Climate Action is to work with the private sector to help bring the very best of their work to Glasgow. I am so pleased that this impressive group of private financial institutions, development finance institutions, NGOs and others have come together to address the important issue of sustainable infrastructure. I am hopeful that the Sustainable Infrastructure Label developed by FAST-Infra will play a catalytic role in mobilizing private capital to finance the development of sustainable infrastructure at scale across the world. Ultimately, COP26 is about each of us, whether public, private or civil society, becoming climate champions and driving the meaningful change needed to reach a zero-carbon future.”
GIF, Head, Jason Lu, said: “The GIF is proud to co-lead the development of the FAST-Infra Sustainable Infrastructure Label alongside Macquarie and HSBC. The Label serves as a practical and catalytic tool – building on months of multi-stakeholder collaboration – that can transform sustainable infrastructure into a liquid asset class. We are pleased to leverage our partnership platform to contribute to this important effort to improve standard-setting for the private sector at this critical milestone.”
LTIIA, Honorary Chairman, Thierry Deau, said: “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.”
ILN, CEO, Amy Hepburn, said: “ILN members are equally committed to ensuring the integrity of their sustainability criteria as they are committed to increasing their involvement in sustainable development. By standardizing sustainable infrastructure criteria, the SI Label can help fast-track investments into credible projects. Our Network welcomes this addition to our sustainable infrastructure toolbox, and we are optimistic about its impact.”
