PT - JOURNAL ARTICLE AU - Christian Andersson AU - Christian Broberg AU - Kerim Kaskal AU - Martin Sonesson TI - Portfolio Construction and New Energy Infrastructure Investing AID - 10.3905/jesg.2021.1.033 DP - 2021 Nov 30 TA - The Journal of Impact and ESG Investing PG - 57--76 VI - 2 IP - 2 4099 - https://pm-research.com/content/2/2/57.short 4100 - https://pm-research.com/content/2/2/57.full AB - In light of the increasingly severe consequences of climate change, an increasing number of institutional investors want their investments to replicate their ethical values. This article identifies the decarbonization of global power generation as an opportunity for those investors requiring sustainable impact while enhancing the risk-adjusted returns for, and future-proofing of, their portfolios. After analyzing the worsening state of financial markets, with high equity valuations and record-low bond yields, the authors demonstrate the added benefit of economic resilience of sustainable infrastructure assets. A move into sustainable infrastructure is bolstered by global political tailwinds earmarking fiscal stimulus to upgrade existing and new green infrastructure, as well as regulators increasingly enforcing disclosure of progress. Finally, by delving deeper into portfolio construction, the authors argue for the benefits of diversifying into the adjacent renewable-energy technologies needed to sustain the forthcoming renewable-power networks to optimize the risk–return profile of portfolios.