Infrastructure

PGGM Infrastructure focuses on direct, long-term equity investments in privately owned companies or projects that operate essential assets and services for society. These assets can be movable or immovable fixed assets and support basic needs such as energy, transport, water, digital connectivity and social infrastructure. 

Infrastructure assets are typically capital intensive and have long economic lives. Their cashflows are often relatively predictable because they are supported by long-term contracts, regulation, monopoly-like market positions and demonstrated resilience across multiple economic cycles. 

PGGM Infrastructure invests across four sectors: Energy & Utilities, Digital Infrastructure, Transport, and Social & PPP. These sectors include assets and services such as energy networks, heating systems, water utilities, waste treatment, fiber networks, data centers, telecom towers, rails, roads, hospitals, schools and student accommodation. 

As an asset class, infrastructure has broadened considerably over time, evolving from traditional regulated utilities, toll roads and PPP projects to now encompass digital infrastructure and the energy transition. 

PGGM invests in infrastructure because essential infrastructure can support stable, affordable and sustainable pensions for clients and their participants. Infrastructure companies provide services that society relies on every day, including energy, transport, digital connectivity, water, waste and social infrastructure. These services remain necessary across economic cycles, which makes infrastructure relevant for long-term pension investors. 

Infrastructure investments can offer stable and predictable long-term cashflows, inflation protection and diversification benefits. Due to their essential nature and predictable revenue characteristics, infrastructure investments have historically shown low correlation to traditional asset classes such as listed equity and bonds, making them a valuable component of a diversified pension portfolio. Revenues are often supported by long-term contracts, regulation or resilient demand, contributing to reliable yield and stable real returns. 

At the same time, the scale of investment required to meet global infrastructure needs cannot be met by governments alone. Private capital plays an essential role in closing this gap, and long-term institutional investors, such as PGGM, are well positioned to provide it. 

PGGM Infrastructure focuses on direct ownership because it allows meaningful governance and active engagement. Through direct ownership and governance rights, PGGM can engage with portfolio companies on strategy, capital allocation, operational performance, sustainability and long-term resilience. 

PGGM's infrastructure investment approach is guided by the 3D investment framework, which balances return, risk and sustainability. Investment decisions are assessed not only on expected financial return, but also on long-term risk and measurable sustainability outcomes. 

The return dimension focuses on delivering long-term financial outcomes for pension participants. The risk dimension considers long-term financial and non-financial risks, including environmental, social and governance risks. The sustainability dimension focuses on intentional and measurable contribution to positive outcomes, including investments that support the transition to a more sustainable economy. 

Sustainability is integrated throughout the infrastructure investment lifecycle. Transition and sustainability risks are assessed during underwriting, while asset level sustainability requirements and decarbonization objectives are embedded in asset management plans. Delivery is supported through active ownership and board engagement. 

PGGM Infrastructure aims to support portfolio companies in following credible, science based decarbonization pathways and in developing infrastructure that contributes to meaningful emissions reduction and positive societal impact. The direct investment model helps PGGM translate portfolio level sustainability objectives into concrete company level actions. 

We also value transparency and accountability. PGGM Infrastructure has been participating in the GRESB Infrastructure benchmark since its inception, and we are proud that under our ownership an increasing number of portfolio companies have decided to participate in GRESB assessments as well, improving the quality and transparency of their non-financial reporting.