News & Analysis

Water and waste management top sustainable assets wish list

Two-thirds of institutional investor respondents to a Bright Harbor Advisors survey – mostly from North America and Europe – said measurement of impact is necessary for sustainable investments.

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Investments in water and wastewater management are what institutional investors that responded to a Bright Harbor Advisors survey said they are most interested in when seeking exposure to sustainable alternative assets. Bright Harbor, a New York-based placement agent, found that 81 percent of LP respondents have already added a sustainability, impact or ESG (environment, social, governance) mandate to their investment strategy.

Here are more highlights from the survey:

  • The 72 LP respondents were from more than 25 countries, but 96 percent are in either North America or Europe. The respondents have a combined private equity allocation of $500 billion and 82 percent manage more than $1 billion in assets.
  • Close to a third said they have a team of staff dedicated to sustainable investments, and 20 percent said they have sustainable private fund managers in a dedicated investment bucket.
  • Two-thirds of respondents said that measurement of impact is necessary to make sustainable investments.
  • Bright Harbor noted potential for bias in their findings considering potential respondents that don’t have a sustainability mandate may have declined to participate.