Sustainable Infrastructure – CIIX
CIIX to pilot in three communities in Canada
The Canadian Impact Infrastructure Exchange (CIIX) launched its pilot program with City of Vancouver, City of Toronto and City of Charlottetown that will analyze three real world infrastructure projects. Beginning in late 2016, we will perform a comprehensive sustainability analysis of the three proposed infrastructure plans (or design, depending on project stage) ensuring high ESG standards integrated in the infrastructure offering. We will bundle the three small projects into an investment ready opportunity and engage responsible and impact investors in this opportunity. The pilots will test this approach to creating high ESG standards in an infrastructure portfolio for responsible investors.
The Canadian Impact Infrastructure Exchange (CIIX) is an information exchange that brings together investors, including Canada’s largest pension plans, and infrastructure investment opportunities that feature positive social and environmental impacts for Canadian communities. CIIX is designed to help stimulate investment in impact infrastructure with high ESG standards that will help overcome Canada’s current infrastructure deficit. It does so by acting as a medium between private capital and Canada’s infrastructure requirements bringing ESG information to the market based on a lifecycle approach to infrastructure investment. It will feature infrastructure opportunities in Canada that provide both sound financial opportunities for investors and maximum positive environmental and social impacts for Canadian communities. CIIX will also act as an aggregator for smaller impact infrastructure projects, bringing them to a scale attractive to large institutional investors, while assisting smaller communities to access these markets with bundled and structured opportunities.
The CIIX improves the transparency of infrastructure projects by including analysis of the environmental, social and governance (ESG) aspects of these investments. Improved transparency advances investor confidence, making them more likely to invest in these assets, in addition by lowering risk in these transactions it reduces their required returns, making it less costly for the municipalities when utilizing such private funding.
The CIIX will conduct the proper due diligence in assessing total benefits and costs which include externalities – such as the valuation of risks, social impact and environmental impact of the various infrastructure investments. The CIIX will provide a platform in which this information is shared. Investors then have the opportunity to select the most optimal investments using the information provided. The CIIX will review infrastructure assets in the various categories, including water management, waste management, energy production and distribution, transportation, affordable housing and other social and civil infrastructure.
Impact Infrastructure Inc., a world leader in triple-bottom line economic analysis will inform the CIIX in terms of the valuation of financial, environmental and social impacts for the infrastructure projects analyzed. When evaluating the various outcomes of infrastructure projects, Impact Infrastructure assigns a dollar value to various economic factors such as the environmental costs, benefits, and risks of infrastructure projects. As an example, the benefits derived from the reduction of greenhouse gas in projects are quantified using a range of the best available social values for an incremental tonne of CO2. Other economic factors also valued include possible benefits such as: the societal, business, low income, health, recreational, or flooding risk benefits of infrastructure. By taking into consideration all of the aforementioned factors, CIIX is able to compare designs within projects and across different projects (allowing for prioritization). When assessing projects, geographically specific variables are taken into consideration in order to provide more relevant and accurate values. Such comparable metrics that include ESG considerations are vital in infrastructure investment.
Our partners, the International Institute for Sustainable Development (IISD) will assist CIIX in the bundling and financial structuring of these infrastructure contracts. While Purpose Capital will work with communities and investors to ensure the viability of the CIIX approach.
News
The Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium at Carleton University
The Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium was held on November 18th 2014 at Carleton University. This successful event brought together high-level stakeholders with a deep interest in sustainable infrastructure for an in-depth day-long discussion on how to integrate environmental, social and governance factors (ESG) into this asset class, with long-term positive impacts for communities. See below for presentation PowerPoints, as well as an in-depth Case Study of the West Coast Exchange and a White Paper on Sustainable Infrastructure that underpinned the discussion.
Resource Documents from the Nov. 18, 2014 CIIX Symposium
Sengupta, R. & Hachigian, H. Sustainable Infrastructure Symposium: Session Notes, Carleton Centre for Community Innovation, Carleton University, Ottawa (ON), Canada.
WP 14-03 Hachigian, H. West Coast Infrastructure Exchange: A Case Study, Carleton Centre for Community Innovation, Carleton University, Ottawa (ON), Canada.
WP 14-04 Mustafa, H. & Sengupta, R. (2014). Connecting Capital to Sustainable Infrastructure Opportunities, Carleton Centre for Community Innovation, Carleton University, Ottawa (ON), Canada.
Hebb, T. (2014). Sustainable Infrastructure and the Canadian Impact Infrastructure Exchange (CIIX) [Briefing Document], Ottawa, ON, November 18, 2014.
PowerPoint Presentations from the Nov. 18, 2014 CIIX Symposium
Harji, K. (2014) “CIIX and Impact Investing: Issues and opportunities for institutional investors,” Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium, Ottawa, ON, November 18th 2014.
Hebb T. (2014) “Sustainable Infrastructure Symposium,” Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium, Ottawa, ON, November 18th 2014.
Janowitz, M., Williams, J.F.II., Parker, J., & Stewart, E. (2014). “Unleashing the Capital for a More Sustainable World,” Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium, Ottawa, ON, November 18th 2014.
Parker, J. (2014) “CIIX – Standardized Input, Methodology & Output,” Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium, Ottawa, ON, November 18th 2014.
Perera, O., Uzsoki, D., & Dion, J. (2014) “Structuring Infrastructure Deals,” Sustainable Infrastructure and Canadian Impact Infrastructure Exchange (CIIX) Symposium, Ottawa, ON, November 18th 2014.