60% of infrastructure assets have a net zero target, but targets lack ambition

Source: Global Infrastructure Hub based on GRESB data. Note that while data show Asia as the region most likely to have net zero targets set, this result is likely to be skewed by a relatively small sample size of assets in this region.

One of the major challenges for current Environmental, Social, and Governance (ESG) data in the infrastructure sector is that such data typically does not reflect actual ESG performance. Rather, it reflects the extent of ESG policies in place, ESG risk management, transparency of ESG reporting, or the extent of ESG target setting. For example, ESG scores typically assess whether an entity reports on their greenhouse gas (GHG) emissions, rather than the level of GHG emissions itself.

Nevertheless, data on ESG commitments and targeting indicates at least a willingness to improve sustainability outcomes in infrastructure. For example, data on net zero targeting of infrastructure assets – as captured for the first time by GRESB’s 2023 Infrastructure Asset Assessment – can help shed light on progress towards the decarbonization  of infrastructure.   

This data show that only 60% of the 687 infrastructure assets reporting to GRESB currently have a GHG emissions reduction target aligned to net zero. Further, these targets may not be ambitious enough, with only one third of assets having a net zero target that is science-based or aligned with a net zero target-setting framework. Furthermore, only 56% of assets with a net zero target (or about one-third of all reporting assets) have also set an interim target. This suggests that many assets have not yet defined a pathway to net zero, which may hinder their success in achieving these targets.

Current net zero targets for infrastructure assets also tend to capture only Scope 1 and 2 emissions, and not emissions across the entire value chain (i.e Scope 3 emissions). They also tend to reflect location-based emissions, rather than market-based emissions. However, regional variances do exist, with Europe leading the way in Scope 3 and market-based net zero targeting.  Indeed, a comparison of Europe and the Americas – the two regions with the highest concentration of reporting assets (together accounting for over 80%) – suggests a divergent performance between the two regions. 67% of European infrastructure assets have set a net zero target, compared with only 47% in the Americas. Further, most European targets (53%) include Scope 3 emissions, more than double the equivalent share in the Americas (25% of targets). In other words, European infrastructure assets are not only more likely to have set a net zero target, but also have targets that are more ambitious.

Greater commitments to reduce the carbon footprint of infrastructure assets are a critical and positive step to steering the sector towards decarbonization. However, with only 60% of infrastructure assets currently having set a net zero target and evidence showing that there is significant scope to increase the ambition of these targets, there is still a pressing need for further progress to secure a more sustainable future.

60% of infrastructure assets have a net zero target, but targets lack ambition.