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Attributes of Resilient  Infrastructure Finance

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Resilient Infrastructure is a Wicked Problem

Horst Rittel and Melvin Webber coined the term “wicked problem” in a 1973 publication to describe complex societal challenges that resist simple solutions. Wicked problems are difficult to define because stakeholders often view them differently, have no single right or wrong solution—only options that may be better or worse—and every solution creates lasting consequences that are difficult to predict or reverse. Challenges such as extreme weather, water scarcity, and resilient infrastructure planning are classic examples, requiring decisions that balance competing priorities, uncertainty, and long-term impacts.

Resilient Infrastructure is Thick

Thickness has its origins in the work of Dr. Robert Vos, a scholar at the University of Southern California. It was formally introduced in a 2007 scholarly publication. It has several unique features upon which criteria have been developed to screen the environmental performance of infrastructure investments. Specifically, four criteria are applied to assess thickness for resilient infrastructure finance.

Scaleable:
Infrastructure is scalable to the magnitude of the problem.
Repeatable:
Infrastructure that can be replicated throughout the world.
Material:
Infrastructure that is effective in different circumstances and geographies.
Measurable:
Infrastructure whose impact can be quantified over a period of time.
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Grand Coolee Dam Rotor Replacement
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Benefits of Resilient Infrastructure

  • It helps communities adapt to extreme weather.
  • It reduces the strain on scarce natural resources.

We have a scoring system to rate how effectively a project achieves either goal.

Thick Adaptive InfrastructureTM
Seeks to adapt to the urgent consequences of extreme weather
Short-term Impacts and Benefits
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Resiliency

Adaptive Scoring Process

Our Adaptive scoring process focuses on climate - how communities and companies harden their systems, processes, and infrastructure to adapt to and protect against the adverse consequences of extreme weather. Our thinking is influenced by the City Resiliency Index, which was developed by ARUP, with the support of The Rockefeller Foundation. This index is based on the four qualities of resiliency:

Integration

The degree to which infrastructure systems share information to function collectively and respond rapidly through short feedback loops.

Robustness

The ability to of an infrastructure system to withstand the increasing severity of hazard events without significant damage.

Reflectiveness

The ability of an infrastructure system to continuously evolve and improve to prepare for increasing uncertainty.

Resourcefulness

The design of the infrastructure system with alternative functions that meet the needs of a community during shock or stress, and its ability to rapidly respond to change.

Thick Preservative InfrastructureTM
Seeks to preserve natural resources
Long-term Impacts and Benefits
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Preservation

Preservative Scoring Process

Our Preservative scoring process focuses on the environment – how transactions between humans and nature occur and how they are managed. We either take from nature or we give to nature. In our vocabulary, we consider four forms of natural capital from the book Natural Capitalism: Creating the Next Industrial Revolution (1999) by Hawkins, Lovins and Lovins. The authors refer to the environment as “natural capital” and classify the environment into four categories which are finite in supply and should be consumed thoughtfully in the pursuit of economic growth:

Energy

Geologic non-renewable sources (oil, coal and natural gas) and perpetual renewable sources (wind, such and water).

Water

Essential for planetary life with no substitutes.

Atmosphere

Balance of gases necessary to sustain life.

Habitat

Living places and interconnected ecosystems that provide essential life-support functions.

Case Studies

Gain better understanding of our investment philosophies with real world examples.

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Further Resources

Explore case studies, research papers, short educational videos, and other valuable resources for quick overviews and in-depth learning about how we invest.

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Our channel offers in-depth discussions about critical issues on Resilient Infrastructure Finance. Join our experts as they break down complex topics, provide actionable insights, and keep you informed about the latest trends in sustainable finance.

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