ESG Vision: Catalyzing Investment in Resilient Infrastructure

Why is funding resilience important? Climate inaction costs up to US$200 billion per year. Resilient infrastructure in Brazil.

Disasters are costly, not only in human lives but also in lost development. Every investment in prevention saves far more in response and recovery.

Infrastructure is the backbone of modern society. It powers cities, connects communities, and sustains economic activity.

However, every year, disasters devastate infrastructure worldwide, causing profound macroeconomic impacts, with direct losses estimated at over US$200 billion annually, or over US$2.3 trillion per year when cascading costs and ecosystem costs are considered. The economic impact is 10 times greater than previous estimates.

To change this reality, the UN Office for Disaster Risk Reduction - UNDRR 1, is working with governments, financial institutions and the private sector to make investment resilience the norm.

By incorporating DRR (Disaster Risk Reduction) into financial systems and investment decisions, it is possible to move from reactive spending to forward-looking, economically viable, and risk-informed investments.

Currently, most disaster funding focuses on post-event response and recovery, rather than prevention. However, studies show that every $1 spent on disaster risk reduction generates an average return of $15 in terms of avoided future costs.

Here in Brazil, the Brazilian Association of Infrastructure and Basic Industries – Abdib, presented studies that indicate that every R$ 1 invested in adaptation can generate up to R$ 7 in economic benefits.

Infrastructure is a fundamental strategic pillar for economic success, with investments in the sector generating a ripple effect that drives growth, competitiveness, and quality of life in the country.

However, Brazil faces significant challenges due to historically low investment, which compromises national productivity and competitiveness.

Critical sectors such as transportation (highways, railways, ports), energy, basic sanitation, and telecommunications are essential for the development of productive activities and the attraction of companies and industries.

We are in a country of continental dimensions, which in itself says a lot about the size of the challenge. With an estimated investment of 278 billion in 2025 (approximately 2.2% of GDP), 70% of that amount comes from private sector resources.

According to the Brazilian infrastructure sector analysis for 2025, the country would need to invest more than 4% of its GDP annually for at least two decades to reach the global average infrastructure stock, which corresponds to 60% of GDP. Currently, Brazil has 35.5%, one of the lowest levels among emerging economies.

Given this familiar scenario, it is worth adding the factor of Climate Resilience to infrastructure projects. Integrating the challenges related to the workforce, supply chain, innovation capacity, and governance, a systemic and comprehensive approach to infrastructure resilience is crucial to maintaining service continuity in the face of various threats.

The OECD Recommendations on Infrastructure and Critical Risks emphasize the importance of governance aimed at limiting service disruptions and increasing recovery capacity after shocks.

The OECD Infrastructure Governance Indicator (IGI) assesses key governance elements to enhance the resilience of critical infrastructure: multi-stakeholder governance; interdependencies and vulnerabilities; trust and secure information sharing; partnerships for a common vision of resilience; policy, tool and incentive set; accountability and monitoring; and multi-stakeholder cooperation to improve the use of policy tools to prioritize cost-effective measures throughout the infrastructure lifecycle.

Infrastructure assets are generally only part of a broader system, which must be considered in its entirety within a comprehensive resilience strategy.

The types of risks faced by critical infrastructure are constantly evolving. Climate risks and other natural disasters, digital threats, and security risks can disrupt services with far-reaching socioeconomic consequences.

In this dynamic risk environment, a comprehensive policy must adopt an approach that considers all risks and threats to the resilience of critical infrastructures, in order to ensure a more resilient infrastructure.

The goal is to avoid three "spirals" that can cause systemic collapse: indebtedness coupled with revenue loss, the emergence of areas deemed too risky to be covered by insurers, and a scenario of recurring humanitarian needs. "Smarter investments" that build resilience to future disasters and alleviate pressure on public finances.

It's important to remember that the impact is felt disproportionately by the poorest nations, where fragile infrastructure can mean the difference between recovery and years of lost development. We need to raise awareness and provide a calibrated compass for the need for social infrastructure.

Future perspectives: how to monitor

Monitoring the resilience of the infrastructure sector involves assessing vulnerability, developing adaptation strategies, and tracking performance using IoT tools such as stress tests, satellite imagery, and composite indicators.

This process helps identify weaknesses in critical sectors such as energy, water, and transportation, enabling governments and organizations to strengthen infrastructure against disasters and disruptions through planning, investment, and adaptation measures.

Key activities include comparison with global best practices, development of risk assessments, and implementation of long-term roadmaps to incorporate resilience throughout the infrastructure lifecycle.

The Global Infrastructure Resilience Index (GIRI) is a composite indicator that seeks to measure infrastructure resilience by combining financial risk metrics with three sets of social, economic, environmental, and political indicators that represent the capacity to absorb, respond, and restore.

The report should be based on five main pillars: Pillar 1: Global Infrastructure Risk Model, Pillar 2: Global Infrastructure Resilience Index, Pillar 3: Nature-Based Solutions, Pillar 4: Monitoring Progress, and Pillar 5: Financing Infrastructure Resilience.

In recent years, Brazil has consolidated important advances in the infrastructure sector, with new concession models, legal certainty, robust projects, and a technical and institutional ecosystem that is increasingly prepared to face major national challenges.

But the complexity of the current scenario demands that projects be executed with strategic vision, adaptability, and above all, resilience. Amidst the energy, climate, digital, and social transitions, planning a robust infrastructure increases productivity and efficiency, facilitating trade and attracting investment. (Follow everything about: ESG, Sustainability, Climate, Climate Change, Infrastructure NEXT)

This perspective and scenario, full of complexities but also opportunities, was addressed at the 5th Edition of the Infrastructure, Cities and Investments Forum, held by Exame on December 2, 2025, which brought together public, private and civil society leaders to discuss with pragmatism and a broad vision capable of connecting the present and the future of infrastructure in Brazil.

Investing in integrated transport modes (railways, ports, highways) and digital infrastructure is essential for systemic competitiveness and sustainable development. Resilient infrastructure in Brazil.

Onara Lima is the founder of ESG Advisory and an associate of IBRAAC. She has worked in Environmental Management and Sustainability for 23 years and has worked for companies such as Gerdau, Suzano, Grupo Ambipar, and CCR. - article published in Exame magazine and available on the website: https://exame.com/esg/visao-esg-catalisar-o-investimento-em-infraestrutura-resiliente/