Work Streams

Responsible Property Investment

Responsible Property Investment (RPI) is an approach to property investing that recognizes environmental and social considerations along with more conventional financial objectives. It goes beyond minimum legal requirements, to improving the environmental or social performance of property, through strategies such as urban revitalization, or the conservation of natural resources. RPI can be implemented throughout the property lifecycle, through the following examples:

• Developing or acquiring properties designed with environmentally and socially positive attributes (e.g., low-income housing or green buildings)
• Refurbishing properties to improve their performance (e.g., energy efficiency or disability upgrades)
• Managing properties in beneficial ways (e.g., fair labour practices for service workers or using environmentally friendly cleaning products)
• Demolishing properties in a conscientious manner (e.g., reusing recovered materials on-site for new development)

The Project

Through surveying each of the main property sectors (commercial, residential, industrial...), we aim to make the connection between financial gain and RPI: to demonstrate the materiality of environmental and social issues to property finance.

Mission

To create a set of briefs or case studies that illustrate best practice in responsible property investing and in particular, RPI strategies that bring high financial yield.

Vision

To raise awareness of the importance of Responsible Property Investment within the whole investment chain, especially for fund managers, and to persuade them of the financial benefits of adopting responsible property investment practices.

Deliverables

• Dialogue between the financial sector, public institutions and academics on RPI
• Full Report and CEO Briefing
• RPI workshops or seminars, in collaboration with UNEP FI’s Regional Task Forces

Target Audience

The project is intended to assist institutional investors and asset managers wishing to incorporate sustainability issues into their investment practices.

Background

• As research for the Principles for Responsible Investment, two founding Property Working Group members were invited to prepare a report on "Responsible Property Investing".
• A survey of PWG members was carried out to determine current best practice in RPI. Results indicted that there are many examples of properties managed in an environmentally and socially sustainable manner, but that details on financial performance are lacking. Members knew these investments performed well, but documentation is needed to demonstrate this.

Contact

Regina Kessler