Investor groups publish new action framework on sustainable real estate

Sustainable Real Estate Investment

The PRI is one of six investor initiatives behind a new guide for real estate investors and their professional advisors on addressing climate risk and reducing greenhouse gas emissions (GHG) from property portfolios. The other groups are UNEP Finance Initiative, RICS and investor groups from Europe (IIGCC), North America (INCR Ceres) and Australasia (IGCC).

Sustainable Real Estate Investment – Implementing the 2015 Paris Climate Agreement: An action framework sets out the measures to improve returns and better protect the future value of real estate investments through by attending to environmental, social and governance (ESG) and climate change risks within standard business processes. Launching the framework in London, co-author Tatiana Bosteels, head of responsible property investments at Hermes IM and chair of both UNEP FI’s property working group and IIGCC’s property work programme said: “Buildings consume around 40% of the world’s energy and contribute up to 30% of its annual GHG emissions, so the people who manage global real estate assets – valued at around US$50 trillion – have a vital role to play if humanity is to curb emissions in line with the goals set out in the Paris Agreement. With this framework now available, real estate investors have no reason to delay taking concrete steps to transform their routine business practice so that it addresses the climate challenge.”

Eric Usher, acting head of UNEP FI added: “After COP, governments must now find new and cost-effective ways to curb pollution. Public private collaboration will be essential to finance a low-carbon economy, including the buildings sector. This new framework will allow real estate investors to play their role in making this transition happen. Fiona Reynolds, managing director of the PRI, said: “This timely and well-designed framework will become a recommended guide that we will encourage PRI signatories who invest in or manage real estate to use as a routine part of their work to meet their reporting obligations to the PRI.”

Please direct any queries about this resource or the PRI Property work stream to Natasha Buckley.