Blog |November 30, 2018
Member Spotlight: Long-term Infrastructure Investors Association (LTIIA)
Hardhats lined up on an intermodal container. Photo: rawpixel / Unsplash.com
Over the past year, the Global Infrastructure Connectivity Alliance membership has grown to 13 members, ranging from national governments and multilateral development banks to international organizations and established associations. Most recently, we have welcomed four new members, including the Republic of Indonesia, The Commonwealth Secretariat, Long-term Infrastructure Investors Association, and the Maputo Corridor Logistics Initiative.
You might have seen their logos on the GICA Member page, or perhaps you have browsed through their individual websites. But what might not be obvious from a logo or website is what motivated each member to join GICA and the role cross-border connectivity plays in each member's day-to-day operations.
To learn more about how our members view connectivity, we will be introducing them to you in our Member Spotlight series. Today, we meet Long-term Infrastructure Investors Association, or LTIIA, and chat with Ms. Camille André, Operations Manager.
GICA: What motivated LTIIA to become a member of GICA?
LTIIA: Sharing and promoting best practices within the industry.
GICA: Please tell us about the origin of LTIIA and how it supports cross-border connectivity infrastructure.
LTIIA: Founded in 2014, the Long-term Infrastructure Investors Association (LTIIA) brings together investors that collectively manage in excess of $12 trillion US dollars of assets and include some of the most active investors globally in the field of long-term investment in infrastructure.
To learn more about LTIIA, watch this video presentation.
GICA: To boost investments in quality infrastructure and meet the Sustainable Development Goals (SDGs), theG20 has recognized the benefits of promoting infrastructure as an asset class. Discuss how LTIIA treats infrastructure as an asset class.
LTIIA: Robust and accessible data represents the evidence base that both private and public investors need to make better-informed and more efficient decisions about capital allocations to infrastructure sectors. Filling the large investment gap requires quality design of projects, effective procurement process, and appropriate selection of priority investments. Availability of data is essential to allow policy makers to take informed decisions and shape investment plans in the most effective and sustainable way.
To that purpose, LTIIA is promoting and supporting the following:
1. Creation of a benchmark for the infrastructure asset class for asset allocation, regulatory and risk management purposes via EDHECinfra. Today, the EDHECinfra database contains more than 3000 assets from 14 different countries with cash flows data going back 15 to 30 years. Its unique outputs have supported several policy-making dialogues, including definition and calibration of infrastructure debt and equities for Solvency II, a G20 roundtable on long-term financing for infrastructure, an OECD project on long-term institutional financing, and the Bank of Ireland’s consultation on loan origination by investment funds.
2. Better integration of Environment, Social and Governance (ESG) aspects: As Environmental, Social and Governance considerations are becoming key for most investors in infrastructure, there is a great variety of frameworks to support better ESG performance. Infrastructure investors and operators are faced with a vastly expanding flow of ESG information requests. To be able to cope with that flow effectively, our members call for a greater convergence in the scope of ESG information that needs to be managed. To support this call, LTIIA has built ESG Indicators Library — a collection that shows what ESG information infrastructure investors are tracking in their portfolios today. The first release of the Library, with more than 300 indicators, was completed in October 2016 in a partnership with eFront. LTIIA also published an ESG Handbook, which is a descriptive summary of practices, standards, and tools that infrastructure investors apply today to realize better performance on ESG and to sustain that performance over the long term. LTIIA also partners with GRESB for research on ESG and Financial Performance.
GICA: How can GICA be a platform for knowledge sharing and exchange to advance your work on these issues?
LTIIA: By making our publication and research work available to policymakers and practitioners.
Many thanks to Ms. André for sharing LTIIA's views on cross-border connectivity with us. Stay tuned for more interviews in our Member Spotlight series.