Work Streams

News

• New report: Study urges integration of environmental metrics for property investment industry
  Environmental property metrics users and suppliers must bridge the gap that separates them to successfully measure the environmental performance of property portfolios and related improvement activities, according to a new UNEP FI study.

Introduction

Property investing is a multi-trillion dollar worldwide industry that can have profound positive or negative effects on environmental, social and cultural goals. Issues as diverse as urban poverty, global warming and indigenous people’s rights are affected by decisions about the development, refurbishment, and management of properties. Investors can have a positive influence on these decisions.

"It is a truism that properties accommodate most human activity. However, the corollary of this is that properties are also the places where a significant proportion of CO2 emissions are generated. The Association for the Conservation of Energy in the UK estimates that, through their construction, use and demolition, built structures are the source for nearly 50% of such emissions. [....]
Hence, there is a need for concerted thought and action to be given to finding ways to reduce the environmental impacts of the existing built stock. This is the specific subject area that UNEP FI’s Property Work Stream is committed to exploring. The complexities surrounding how properties are owned, leased and occupied are such that this requires specialist attention."

Dr Paul McNamara
Director, Head of Property Research & Information Team, PRUPIM
(Read Full text)

Our Work

UNEP FI’s work on property investing is carried out by the Property Working Group (PWG). Its purpose is to encourage property investment and management practices that achieve the best possible environmental, social and financial results.

The Property Working Group strives to encourage sustainability in property finance.

Aims of the Property Working Group

• Promote and encourage Responsible Property Investment by assembling evidence to show how it can protect or enhance financial returns throughout the lifecycle of buildings while simultaneously reducing negative environmental and social impacts.
• Demonstrate clearly how best practice in Responsible Property Investment can be applied to property assets, portfolios and financing.
• Work autonomously or with others to collaborate on initiatives to develop and promote best practice in property investment organizations.
• Inform and share information with policy-makers on establishing the appropriate policy and regulatory environments for Responsible Property Investment practices to flourish.
• Be a thought leader and recognised voice on Responsible Property Investment by facilitating access to relevant information, best practice and expertise.

Ongoing work

Assisting property investors and property fund and asset managers in adopting Responsible Property Investment (RPI) practices is an ongoing area of PWG work. PWG has recently finished a 'toolkit' series that informs concerned managers who wish to pursue RPI practices about the next best things they can do. The group will continue to assemble and share best practices from across the globe on all manner of responsible property investment and asset and property management.

PWG will also enforce the involvement in policy development and explore public and private financing mechanisms for energy efficiency (EE) retrofit market: PWG are set to undertake a project with a view to explore drivers and barriers of capital into commercial and residential EE retrofit market.

The group will continue to focus on the field of common metrics for property ESG performance: Main areas of work will include furthering the debate around property environmental analysis, identifying approaches to integrating environmental metrics into investment performance analysis, and promoting active engagement of property investment industry in the design of environmental metrics.

Projects of the Property Working Group

Members

Observers

• HBOR
• PGGM

Chairs

• Laurie Weir, Senior Portfolio Manager, CalPERS Global Real Estate
• Frank Hovorka, Head of Real Estate Sustainable Policy, Caisse des Depots et Consignations

Collaboration

• UNEP Sustainable Building & Construction Initiative
• Royal Institution of Chartered Surveyors (RICS)
  One of the key elements for the development of our work on property investment is the active collaboration with the RICS. It complements the financial expertise of the core Work-stream members (investors and fund and asset managers) with our partner’s in-depth knowledge of the challenges and sustainability solutions at the various stages within the property life cycle.

Contact

Elodie Feller
property [at] unepfi.org