The latest version of the reference infrastructure investment taxonomy created by EDHECinfra provides mappings to the NACE, EU Taxonomy and CPRS classifications and can be used to conduct sustainability and climate risk analyses of infrastructure equity and debt portfolios.
The Infrastructure Company Classification Standard (TICCS®) is used by investors all over the world to define the style of their infrastructure equity or debt portfolio. TICCS® allows infrastructure investments to be classified by business risk, activity, geo-economic segment, or corporate structure and creates representative benchmarks of funds or portfolios that have or seek exposure to these segments.
The 2022 version of TICCS® is the result of a robust industry-validation process: a market consultation took place in June 2021 – January 2022 and found that 78% of respondents considered the 2020 TICCS® edition to be adequate and not requiring any changes.
The remaining comments and suggestions were reviewed by the TICCS® Independent Review Committee* in April 2022 and their recommendations have now been implemented by the TICCS® Executive Committee.
The 2022 edition of TICCS® includes several new industrial activity classes including hydrogen power generation and Smart Metering Companies, as well as the related asset subclasses (i.e. hydrogen storage). More precise definitions of TICCS® asset subclasses were also added to the Industrial Activity pillar to allow better classifications at the infrastructure asset level.
Implementation guidelines have also been added to support TICCS® users in their effort to classify infrastructure assets and companies.
Frederic Blanc-Brude, Director of EDHECinfra said: “TICCS® is the go-to classification system for investors to map and benchmark their infrastructure portfolios. TICCS® segments are relevant for investors because they correspond to the actual characteristics of deals, whether relating to the business model, activity or corporate structure. With new sustainability mappings, it is now possible to relate an infrastructure portfolio to climate risk scenarios or ESG regulation frameworks.”
The TICCS® 2022 documentation can be read and downloaded here.
*The TICCS® Review Committee includes Andrew Knight (RICS) – Chairman, Avi Turetsky (Landmark Partners) – Secretary, Mark Blair (OTTP), Tony Li (OTTP) , Patrick Boylan (BlackRock), Anne-Christine Champion (Natixis), James Davis (OPTrust), Christophe Dossarp (SOURCE), Marie Lam-Frendo (Global Infrastructure Hub), Trevor Lewis (Asian Development Bank), Christoph Manser (Swiss Life), Laurence Monnier (Aviva Investors), Petya Nikolova (New York City Comptroller’s Office), Paul Shantic (CALSTRS), Marija Simpraga (LGIM), Nicholas Tan (Clifford Capital), Joss Blamire (GRESB), Fraser Hughes (GLIO)