Kestrel Introduces First Standardized Resilience Taxonomy for U.S. Infrastructure
As climate-driven physical risks increasingly threaten U.S. infrastructure, sustainability intelligence firm Kestrel has released its Resilience Taxonomy for U.S. Infrastructure, offering the first standardized framework for benchmarking resilience in the $4.3 trillion municipal bond market.The taxonomy establishes best practices that help investors identify infrastructure assets designed to withstand climate impacts while supporting long-term value creation. By bringing clarity to resilience planning, the framework addresses a growing need for transparency as cities, utilities, and public agencies face mounting environmental and financial pressures.
The release comes amid a convergence of major market forces. U.S. infrastructure assets are experiencing heightened exposure to climate risks, while municipal bond issuance is projected to reach record levels in 2026, with an estimated $600 billion in new bonds. At the same time, research from the World Resources Institute shows that every dollar invested in climate resilience can generate up to $10 in economic benefits, underscoring the financial case for proactive adaptation.
Kestrel’s taxonomy is informed by the firm’s benchmarking of more than 15,000 municipal bond series representing over $3 trillion in par value. It is designed to help investors assess how issuers are integrating resilience strategies into long-term planning, particularly within broad-market investment vehicles such as municipal bond ETFs, where asset-level insights are critical to protecting valuations.
As market expectations for resilience continue to evolve, clarity is essential,” said Monica Reid, CEO of Kestrel. “Resilience reduces costly disruptions, strengthens financial performance, and supports overall market stability. It is fiscally responsible, non-partisan, and fundamental to long-term value creation.”
Key elements of the taxonomy include material resilience indicators—such as vehicle-to-grid charging capabilities for K–12 schools, underground power lines for electric utilities, and flood-elevated design standards—that are increasingly relevant to long-term credit quality. The framework is supported by a standardized data architecture through Kestrel Sustainability Intelligence™, replacing fragmented issuer disclosures with decision-ready data aligned to global sustainability standards.
By closing the resilience transparency gap, Kestrel’s taxonomy aims to ensure capital flows toward infrastructure that is better prepared for climate risk while delivering durable economic value.
About: Kestrel is a leading provider of external reviews and ESG research for the U.S. municipal bond market, helping market participants evaluate sustainability and resilience of public finance projects.
