A further reason for the lack of green investments by pension funds is that their asset allocation to private equity and particularly infrastructure related assets in general remains limited. To provide some context, pension funds‟ asset allocation to infrastructure assets in general is less than 1% in most countries, 27 and pension funds‟ portfolios remain dominated by more traditional asset classes such as equities and bonds where investors have more experience, more data and generally feel more comfortable (outside the largest pension funds which are some of the world‟s most sophisticated investors). As discussed, aside from green bonds, it is.
