BELLAGIO, ITALY | May 26, 2023 –- From May 22-26, the Investor Leadership Network (ILN) co-hosted a convening at The Rockefeller Foundation’s Bellagio Center on increasing institutional investment for climate and development in emerging markets, alongside co-host the United States Department of the Treasury (Treasury) and with support from The Rockefeller Foundation and The Bill & Melinda Gates Foundation.
The ILN, Treasury, and the Rockefeller Foundation were joined by a select group of interested pension funds, institutional investors, and asset managers from ILN’s members and like minded financial institutions. Meeting attendees also included the U.S. Office of the Special Presidential Coordinator for Climate and the U.S. Trade and Development Agency, and leaders from multilateral development banks focused on private capital mobilization, including the European Bank for Reconstruction and Development, Inter-American Development Bank Invest, and International Finance Corporation.
The participants presented their different initiatives and perspectives and provided actionable advice on what it will take to fill existing gaps and scale promising initiatives in response to the growing need for investment in climate and sustainable infrastructure in emerging markets.
Amy Hepburn, CEO of the Investor Leadership Network, said, “We are thrilled with the success of the convening, the energy all participants brought to the table, and the commitment to partnering across sectors that they demonstrated. By aligning understanding, increasing access to data, and identifying financing models that have the potential to scale, we can mobilize private capital effectively and drive meaningful progress. Continued collaboration and dialogue will be crucial in achieving our shared goals of driving the transition to a sustainable and inclusive global economy.”
The meeting focused on four key areas: project identification, preparation, and development; risk perception and appetite; data utilization; and de-risking investment facilities.
Over the course of the four days, seven common themes and findings emerged:
- The need to enhance the understanding of and strengthen the case for private investment in emerging markets.
- The unique investment considerations of pension funds vs. other investors, which require tailored tools and approaches.
- The critical need for more guarantees to meet investor interest and drive capital flows.
- The importance of improving mutual understanding between public and private sector entities of the existing landscape of tools and the risk appetite of one another.
- The expansion of project preparation facilities and better integration with potential investors.
- The potential for increased transparency and greater utilization of public sector data, such as the Global Emerging Markets (GEMs) database.
- The constraints to investment on account of financial regulation and ratings agencies’ methodologies.
Sustained dialogue and collaboration will be essential to achieve the desired outcomes. The ILN, along with its partners, is committed to continuing these discussions and translating the identified actions into meaningful progress in the coming months and years. Read more about ILN and Treasury’s continued partnership.
For more information, please visit investorleadershipnetwork.org.
About the Investor Leadership Network (ILN):
The Investor Leadership Network was launched at the 2018 G7 to facilitate and accelerate collaboration by leading private institutional investors to drive the transition to a sustainable and inclusive global economy. As the leading network of investors taking action for people, planet and prosperity, the CEO-led group is composed of 12 global institutional investors representative of six countries, with over US$10 trillion in assets under management.