Responsible investment in 2025
The Maple-Brown Abbott Global Listed Infrastructure (GLI) strategy’s fifth annual Responsible Investment Report provides a comprehensive account of our climate analysis, engagement programme and proxy voting activity for the year to December 2025. Against a backdrop of significant policy change in the United States and evolving energy markets, the report reflects a year of active stewardship and continued progress on our emissions commitments.
To access the full 30+ page report – which includes detailed climate scenario analysis, engagement activities, proxy voting, and performance against strategic targets – please contact the distribution team.
Climate scenario analysis: portfolio resilience in a shifting policy landscape
Our fifth annual climate scenario analysis, conducted using the IEA World Energy Outlook, reaffirms our view that the GLI strategy is well positioned for a faster energy transition. Under the Net Zero Emissions by 2050 (NZE) pathway, approximately 33% of holdings could see moderate to high valuation upside, compared with around 20% facing moderate to high valuation risks, with the remaining 47% in a low impact category given their limited direct sensitivity to the pace of transition.1 The portfolio therefore skews meaningfully towards opportunity rather than risk in an accelerated decarbonisation scenario, a reflection of the strategy’s exposure to regulated and contracted infrastructure that is key to supporting the energy transition.
The IEA’s 2025 outlook also shed light on a theme that has become increasingly important for the strategy: the extraordinary growth in data centre electricity demand. The IEA expects investment in data centres to reach US$580 billion in 2025 alone, surpassing total global oil supply investment, with consumption forecast to double by 2030 and account for around half of US electricity demand growth over that period.2 This has tangible implications for our electric utility holdings, where rising load growth translates into a pipeline of regulated network investment. We see AI-driven demand growth as further reinforcing the investment case for the electric utility sub-sector.
We find that midstream infrastructure assets face the greatest potential valuation headwinds under faster transition scenarios, driven by declining fossil fuel demand assumptions, though the updated IEA outlook is somewhat less negative on near-term oil and gas demand than prior editions. Our exposure to midstream infrastructure has reduced materially since peaking in 2017 and we continue to focus on assets with highly regulated or contracted earnings that limit direct commodity price sensitivity. Airports and toll roads also carry some downside under the NZE scenario, though both have improved year-on-year. In toll roads, outcomes vary considerably by holding, with differences in road category, leverage and business mix driving a sector average improvement from -8.3% to -4.5% between 2024 and 2025.3 These findings continue to inform both our portfolio construction and the questions we ask of management.
GLI strategy exposure to valuation sensitivities in IEA World Energy Outlook 2025 scenarios relative to base case
Note: Analysis is based on equity weights of a representative portfolio of the Maple-Brown Abbott Global Listed Infrastructure (GLI) strategy as at 31 December 2025. Valuation sensitivities are measured against the IEA Current Policies scenario as a base case. Holdings in pure-play water utilities have been categorised as ‘low impact’ due to their minimal exposure to the energy transition risks and opportunities. Source: IEA (2025), World Energy Outlook 2025, IEA, Paris.
Engagement activities: one of our most active years on record
2025 was one of the most active years for ESG-dedicated engagement in the GLI strategy’s history. We engaged with 19 companies – representing approximately 63% of the strategy by weight – and wrote formal letters to 13 company boards, a significant step up from 2024 and 2023.4
A major thematic focus was energy transition risk across US electric utilities. Against a backdrop of Environmental Protection Agency regulatory rollbacks, changes to the Inflation Reduction Act (IRA) and evolving load growth expectations driven by data centers and advanced manufacturing, we engaged the majority of our US utility holdings on questions of capital allocation, coal retirement timelines, gas capacity planning and customer affordability. We sought to understand how companies are accounting for regulatory volatility into their planning assumptions and challenged boards on the credibility of stated emissions targets given the materially changed operating environment.
A distinctive feature of this year’s engagement was our active participation in the Electric Power Research Institute’s (EPRI) SMARTargets initiative – an effort by the US power sector to develop a credible, sector-specific emissions target framework as an alternative to the Science-based Targets initiative, which US utilities have argued is not directly applicable to their vertically integrated business model. We participated in one-on-one and group discussions with utilities and ESG data providers, co-signed a formal letter to the EPRI Board alongside an asset owner client, and submitted consultation feedback. Whilst we welcomed the initiative’s ambition, we raised concerns around scientific framing, near-term reduction emphasis and the need for independent validation to ensure credibility and comparability across the sector.
Beyond the US utilities sector, engagements covered physical climate risk with Ferrovial – where we reviewed the company’s proprietary ADAPTARE risk modelling tool in depth – human rights due diligence and shareholder returns at Vopak, management stability and governance at Crown Castle, and environmental performance and remuneration across a range of infrastructure industries and geographies.
Proxy voting: independent and evidence-based
We voted on 100% of eligible proxy ballot items across 32 meetings in 2025, maintaining our longstanding record of full participation. Proxy voting decisions are made by our Portfolio Managers, informed by analysis from the relevant Investment Analyst and the team’s ESG Analyst. We do not default to third-party proxy adviser recommendations, for instance, in 2025 we voted against ISS recommendations at 25% of votable meetings.5
We voted against management at least once at 35% of all votable meetings. The most common grounds for opposing management were executive remuneration structures, board independence and the credibility of emissions commitments. On remuneration specifically, we continued to push for meaningful, well-defined non-financial metrics in long-term incentive plans, and we were encouraged to see genuine progress at a number of European holdings, where the incorporation of climate and sustainability metrics into remuneration frameworks has improved noticeably.
A notable example was our vote at Ameren, where we supported a shareholder proposal calling for external, independent validation of the company’s GHG emissions target methodology. We did not consider EPRI a sufficiently independent body for this purpose, given its member-funded structure and utility representation on its board. We also voted against Ameren’s executive remuneration proposal on the basis that the total shareholder return (TSR) hurdle targeted only median performance and disclosure around non-financial metrics – under which executives achieved maximum payout – was insufficient. At the other end of the spectrum, we supported climate strategy reports at Ferrovial and Aena, where engagement efforts have yielded improvements in target-setting and transparency, and backed Severn Trent’s net zero transition plan as robust, well-incentivised and clearly disclosed.
Emissions progress: on track for our 2030 target
In 2021, we became a signatory to the Net Zero Asset Managers initiative (NZAMi) and set an interim target to reduce the Weighted Average Carbon Intensity (WACI) of the GLI strategy by 50% by 2030, relative to a December 2020 baseline. This target covers scope 1 and scope 2 emissions across all GLI strategy companies.
As at December 2025, the GLI strategy’s WACI has fallen 41% against that baseline.6 The primary driver of this reduction has been a structural shift in portfolio composition. Our exposure to vertically integrated US utilities has declined from 28% to 19% over the five years to December 2025, a sub-sector that has historically accounted for around 80% of the strategy’s WACI despite a much smaller portfolio weight. This change reflects portfolio construction decisions, and our exposure could increase again as valuations and the investment outlook evolve. The more structurally significant contribution comes from company-level progress, where portfolio holdings have reduced their own operational carbon intensity by an average of 23% over the period. Ameren delivered the largest improvement, reducing its emissions intensity by 47% driven primarily by a significant reduction in owned coal-fired generation.
We also track EU Taxonomy alignment across the strategy as a useful indicator of climate mitigation and adaption business activity, though we do not formally target a specific level. Taxonomy alignment has increased steadily, with capex alignment reaching 26% in 2025, up from 12% in 2023.7 European and UK electric utilities and grid operators represent the highest-aligned segment of the strategy, reflecting their central role in the energy transition.
On target-setting more broadly, more than 90% of GLI strategy companies now have a net zero target, though the quality and rigour of these commitments vary considerably. We continue to use the Science-based Targets initiative and Paris Aligned Investment Initiative frameworks as independent benchmarks to assess target credibility, alongside our own proprietary Corporate Sustainability and Governance scoring.
NZAMi itself paused for review in January 2025 and relaunched in February 2026 with a revised, more flexible framework for signatories. Maple-Brown Abbott participated actively throughout that review process, contributing both in person and through written submissions, and we are pleased to remain a signatory under the updated framework which relaunched in early 2026.
A directional pathway for the GLI strategy
Source: S&P CapIQ as at 31 December 2025. Preliminary values based on a representative portfolio of the GLI strategy. The WACI for the FTSE Global Core Infrastructure 50/50 Index has been grossed up to account for data that is not available. The chart should not be construed as a forecast.
Looking ahead
The 2025 report reflects a period of genuine complexity for infrastructure investors. US policy shifts, evolving energy transition scenarios and the rise of AI-driven electricity demand are reshaping the operating environment for many of our holdings. Against this backdrop, active, evidence-based stewardship remains central to how we manage risk and engage with companies on long-term value creation.
We continue to engage US utilities on the credibility of their emissions targets and capital allocation decisions as the regulatory environment evolves, to push for robust and independent target-setting standards through the EPRI process, and to use our proxy votes to hold boards accountable on governance and remuneration. Our 2030 WACI reduction target remains in place and, with a 41% reduction already achieved, we remain committed to reaching it.
1 A representative fund of the Maple-Brown Abbott Global Listed Infrastructure strategy has been used as a proxy for the analysis as at 31 December 2025.
2 IEA World Energy Outlook 2025.
3 A representative fund of the Maple-Brown Abbott Global Listed Infrastructure strategy has been used as a proxy for the analysis as at 31 December 2025.
4 ibid.
5 ibid.
6 S&P CapIQ. WACI is calculated as tCO2e/USD million revenue. Measured between 31 December 2020 and 31 December 2025.
7 Based on Taxonomy reporting produced by companies.
Disclaimer
This information is prepared and issued by Maple-Brown Abbott Limited ABN 73 001 208 564, AFSL 237296 (‘MBA’) as the Responsible Entity of the MBA Global Listed Infrastructure Fund (ARSN 164 901 982) (‘Fund’) . This information contains general information only, and does not take into account your investment objectives, financial situation or specific needs. Before making any investment decision, you should seek independent financial advice. This document does not constitute an offer or solicitation by anyone in any jurisdiction. Past performance is not a reliable indicator of future performance. Neither MBA, nor any of its related parties, directors or employees, make any representation or give any guarantee as to the return of capital, performance, any specific rate of return, or the taxation consequences of, any investment. Any views expressed on individual stocks or other investments, or any forecasts or estimates, are not a recommendation to buy, sell or hold, they are point in time views and may be based on certain assumptions and qualifications not set out in part or in full in this document. Individual stocks referred to, may or may not be currently held by the Fund. Information derived from sources is believed to be accurate, however such information has not been independently verified and may be subject to assumptions and qualifications not described in this document. To the extent permitted by law, neither MBA, nor any of its related parties, directors or employees, make any representation or warranty as to the accuracy, completeness, reasonableness or reliability of this information, or accept liability or responsibility for any losses, whether direct, indirect or consequential, relating to, or arising from, the use or reliance on this information. Before making a decision whether to acquire, or to continue to hold an investment in the Fund, investors should obtain and consider the current PDS and Target Market Determination (TMD) or any other relevant disclosure document. For the Fund, the PDS, AIB and TMD are available at maple-brownabbott.com/document-library or by calling 1300 097 995. This information is current as of 10 April 2026 and is subject to change at any time without notice. © 2026 Maple-Brown Abbott Limited.
Georgia
Interested in investing with us?
