CNS-Responsible-Investing 2024 - Flipbook - Page 19
Illustrative Example: Midstream Company
Assess
Score
Integrate
Engage
Analysts identified key risks
not fully captured by thirdparty providers, including
underwhelming carbon
targets, recurring indigenous
controversies, and safety concerns
tied to pipeline operations.
Cohen & Steers assigned a lower
overall ESG score (5.4 vs. third-party
provider’s 6.4), placing higher
weight on environmental and social
issues and adjusting scores to reflect
underreported land use and safety
risks leading to a below-average
Governance rating.
Valuation models reflected
heightened social and
environmental risk through
increased discount rates and
reduced growth expectations in
high-intensity business segments.
Engagement efforts focused on
discussions with the company
around the development of
carbon targets, investment in
renewables, and transparency
related to land remediation and
community impact.
Evolution and Progress
Since integrating ESG scoring into our infrastructure
investment process in 2017, Cohen & Steers has
continued to enhance how we evaluate and apply ESG
insights. We have strengthened our data infrastructure
by improving ESG mapping, automating work昀氀ows, and
adopting scalable application programming interfacing
solutions to ensure timely and consistent data delivery
across our investment universe.
“The array of ESG-related risks and
opportunities faced by global listed
infrastructure companies is wideranging and can be impactful. We
believe that thoughtfully identifying
and assessing key ESG factors can
help inform both security selection
In 2024, we began developing an enhanced ESG
Scorecard for Listed Infrastructure, with a formal launch
planned for Q3 2025. This updated framework builds on
our proprietary methodology by incorporating raw data
from leading providers alongside analyst-driven insights
to generate model scores focused on the most material
ESG issues by subsector. The new approach is designed
to more precisely capture sector-speci昀椀c risks, with a
particular focus on topics such as carbon intensity, health
and safety performance, and governance practices.
and portfolio construction decisions.”
By combining structured data with real-time
engagement insights, the forthcoming Scorecard will
o昀昀er a more focused, detailed and actionable view of
ESG performance. This evolution re昀氀ects our ongoing
commitment to advancing ESG integration across
research, valuation, and active ownership in listed
infrastructure.
ANDREW BURD
VP, MANAGING ANALYST
COHEN & STEERS | RESPONSIBLE INVESTING 19
