Supplementary NZIF implementation guidance: Private Markets Infrastructure

This supplementary guidance draws on investor experiences gathered since the initial publication of the NZIF Guidance for Infrastructure Assets. These insights have been used to help address questions on implementation of the guidance and have been explored to help better facilitate its use and adoption.

• Clarify methodological and technical issues faced by asset managers and asset owners that may be associated with asset alignment assessment, target setting, and implementation guidance (i.e. direct management and asset engagement).
• Present detailed case studies tailored to the infrastructure asset class, representative of various stages along the maturity scale, demonstrating how to progress toward the ‘Aligned to a net zero pathway’ and ‘Achieving Net Zero’ categories.

The recommendations from NZIF’s ‘Asset Level Assessment and Targets’ section encourage investors to consider the following steps:

1. Determine which assets should be considered within scope of target setting.
2. Assess the alignment of existing and new assets using NZIF’s alignment criteria.
3. Set individual targets to increase the alignment of assets to net zero within a five-year period.
4. Deliver the target utilising available levers (asset selection, management, and engagement).
5. Monitor to ensure sufficient progress is made and targets are updated when necessary.

The guidance reflects discussions led by members of IIGCC and Initiative Climate International (iCI), including a dedicated joint Private Equity Infrastructure working group.