Social Risk Indexing and Rating for Infrastructure Investors: The Case of the UK Water Sector

Published:  March 2024
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Social Risk Indexing and Rating for Infrastructure Investors
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In this research note, we show the results of using an AI-driven methodology to analyse news and social media and measure the systematic exposures to social risks that investors face in several English-speaking countries and any infrastructure sector.

Summary

In this research note, we show the results of using an AI-driven methodology to analyse news and social media and measure the systematic exposures to social risks that investors face in several English-speaking countries and any infrastructure sector.

In the rest of this document, we first describe three types of social acceptance metrics before displaying our social acceptance sector ratings for the US, UK, Canada and Australia, as well as an aggregated (global) rating. We then carry out an in depth case study of the water sector in the UK and show how the systematic exposure to social risks faced by investors represents the largest part of their risk exposure.