01/2/2010
By Sophie Baker
The first global environmental benchmark for the property sector has been launched as a result of research by APG, PGGM and the Universities Superannuation Scheme (USS).
The Environmental Real Estate Index has been launched following a survey looking at the environmental performance of the commercial real estate sector by the three European institutional investors and some of the major real estate industry bodies.
Of the 700 listed property companies and fund managers that were questioned by the European Centre for Corporate Engagement at Maastricht University, the majority of participants are not yet actively managing environmental issues in their portfolios. A few investors, from the UK, Sweden and Australia, came close to reaching the top score in the global Environmental Real Estate Index, and researchers said these companies should be held up as examples for others in the industry.
"In the integration of environmental, social and governance factors across asset classes, we were finding it difficult to measure the environmental performance of our real estate investments," commented Angelien Kemna, CIO at APG. "We therefore decided to develop our own environmental survey of the sector and to use the results as the baseline for engagement."
The survey also showed that only 19 per cent of respondents are able to report actual numbers on energy consumption, 16 per cent on water consumption, and 14 per cent on carbon emissions.
"As long-term investors, the environmental performance of our assets is a major consideration, even in the aftermath of the financial crisis," added Roger Gray, CIO at the USS.
"Management of environmental issues is an essential component of good management and financial performance of our property investments, and we believe that the drivers in this area will only get stronger."
The report, Environmental Performance: A Global Perspective on Commercial Real Estate, is available at www.corproate-engagement.com
