Capital Dynamics: Perspectives – integrating clean energy infrastructure

Demand for responsible investment opportunities is rising. Investors are increasingly adopting the United Nations Principles for Responsible Investing (PRI) and seeking to integrate Environmental, Social and Governance (ESG) factors into their investment selection processes. With growing concerns around possible climate change, energy security and escalating costs of fossil fuels, investors are turning toward direct clean energy investment opportunities. Given annual investment in renewable power supply in the US and Europe eclipsed that from conventional sources (coal, gas and nuclear) for the first time ever in 2008, clean energy is fast becoming a mainstream asset class. However, many are struggling to understand how these investments can best be integrated with new or existing portfolios.