Calling for a New, Sustainable Approach

Sustainable development in the Arctic is both essential and achievable. It represents a new approach that the world needs today.


Sustainable development is a global priority, one that requires healthy improvements in the Arctic, where the infrastructure requirements alone are expected to reach US$1 trillion over the next 15 years. That’s why smart, strategic investments today will make a substantial impact tomorrow.

Building a better Arctic—and a better world—requires long-term capital that carefully weighs environmental and societal impact to support sustainable growth. It demands an entirely new framework for investment on a truly massive scale. Guggenheim Partners, working with the World Economic Forum Global Agenda Council on the Arctic, has developed the Arctic Investment Protocol, a set of guidelines for sustainable investment in the region.

The Arctic Investment Protocol aspires to promote environmentally sound economic growth that furthers community wellbeing and personal quality of life, and builds resilient societies in a fair and inclusive manner.

Over US $1 trillion in infrastructure is needed in the Arctic to deliver the healthy, sustainable economy the people of the Arctic deserve. Guggenheim Partners is leading the development of an authoritative and exhaustive database of the most urgently needed infrastructure projects across the Arctic region.

The Arctic Infrastructure Inventory is a thoughtfully and thoroughly researched database of more than 900 infrastructure opportunities valued at over US$750 billion that will create good job opportunities, grow Arctic economies, and strengthen its communities. That means better roads, rails, ports, clean energy facilities, and other critical infrastructure to unlock the full potential of the region.

In addition to these identified projects, Guggenheim estimates there is another US$250 billion in Arctic infrastructure investments that will be required over the next 15 years, not including investments in projects in other areas that would have positive impacts on sustainable development in the Arctic.

We are committed to working in close partnership with national bureaus and ministries and with local and indigenous communities to further develop the Arctic Infrastructure Inventory and ultimately share what we have learned with the world.

Given the significant need for responsible investment in the Arctic, an opportunity exists for a dedicated sustainable investment vehicle to finance infrastructure projects with meaningful and positive impact in the region. Investments would require a strict adherence to the Arctic Investment Protocol to ensure the responsible, accountable, inclusive development that the people of the region deserve.

Projects that have the highest priority would be those that are deemed financially sound, but also are researched and evaluated to be environmentally and socially sustainable, and have the greatest positive impact on the quality of life of the region’s inhabitants, now and well into the future.

A dedicated sustainable investment vehicle will help ensure a responsible, bold, and bright future for the Arctic. With smart investment, genuine commitment to the habitat and its people, and strong international cooperation, we can deliver a sound environment, a healthier global economy, and a better world for all of us.

Source: Guggenheim estimates using Arctic Infrastructure Inventory.

 




Investing involves risk, including the possible loss of principal. Infrastructure investments may be subject to a variety of risks, not all of which can be foreseen or quantified, including operating, economic, environmental, commercial, currency, regulatory, political and financial risks. Investing in a specific sector such as infrastructure is more volatile than investing in a broadly diversified portfolio, as there is a greater risk due to the concentration of holdings in issuers of similar offerings. Sustainability requirements, including environmental, social, and governance (ESG) obligations may limit available investments, which could hinder performance when compared to strategies with no such requirements.




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Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.