European infrastructure managers expect to grow their green assets portfolio in the next two years and a third of managers are unaware of EU disclosure requirements being introduced in March next year, according to a survey commissioned by law firm Linklaters.
In March 2021, EU-regulated funds will be required to disclose their approach to taking environmental, social and governance (ESG) positive and adverse impacts into account in investment decision-making.
The survey, which polled over 300 fund and portfolio managers with over £1trn (€1.1trn) of European assets under management, revealed that 23% of the managers expect to increase the size of green assets portfolio by 21%-30%, with a further 63% planning to raise levels by 10%-20%.
The research revealed that 34% of fund managers at infrastructure investment funds are unaware of the EU ESG requirements and a further 13% not sure. Out of those surveyed, 53% were aware of these requirements.
Vanessa Havard-Williams, global head of environment at Linklaters, said: “The EU disclosure requirements are due to come into force in just over seven months.
”For those funds who are yet to be across the detail, the clock is ticking, and they will need to move quickly to ensure compliance.”
The research which was carried out by Censuswide revealed that the US is the most attractive destination for infrastructure investment funds, with over 42% of those polled including it in the top three geographies they are likely to invest in over the next two years. The UK follows with 31% with Asia recording 24% of those polled.
Out of the managers polled, 21% saw opportunities in Eastern Europe and Western Europe, and 19% of the respondents saw opportunities in Southern Europe.
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