According to the 2020 Buildings Global Status Report, the operation of buildings accounts for 28% of total global energy-related CO2 emissions. With the inclusion of emissions from the construction industry, this number increases to 38%. Yet the building sector offers the largest cost-effective GHG mitigation potential, with net cost savings and economic gains possible through the implementation of existing technologies, policies and building designs.

UNEP FI’s Responsible Property Investment initiative has convened the Property Working Group (PWG) to address the most imminent challenges in the field of sustainable real estate investment. The PWG aims to

• Drive innovation by facilitating access to relevant information and best practice, as well as develop the necessary tools that property investors and professionals can systematically apply and integrate ESG criteria into investment and lending decisions.
• Collect and provide evidence to show how responsible property investment can protect or increase financial performance throughout the lifecycle of buildings, while simultaneously creating environmental and social goods.
• Support the real estate investment community in developing voluntary best practices and shaping policy and regulatory frameworks for a low-carbon and climate-resilient buildings sector globally.

Activities

Response to the COVID-19 Crisis and Recovery

• Publication of a thought leadership bulletin summarising present efforts and strategic thinking from the PWG members on responding to the coronavirus pandemic and recovery through an ESG integration lens.
• A global survey and research report on investor motivation and drivers for integrating health and wellness factors into real estate investment and management decision-making.

Aligning with the Paris Climate Agreement

• Piloting an approach to scenario development and portfolio analysis for property investors to build the first set of climate-related physical and transition risks disclosures in alignment with the recommendations of TCFD.
• Publication of the results from a survey of global real estate investors on the strategy and practice changes being seen within institutions and across the sector to deepen ESG integration and raise ambition toward meeting the Paris climate goals.
• Publication of the Sustainable Real Estate Investment Framework to provide a step-by-step guide that real estate investors, their advisors and asset managers can apply to systematically integrate ESG and climate risks factors into their investment processes.
• Through the Global Alliance on Buildings and Construction, providing leadership on investment gaps in countries’ NDCs with regards to buildings as well as contributing to status reports, roadmaps, building data tools and setting of Science Based Targets for property sector’s decarbonisation and resilience.

Positive Impact and Financing the SDGs

• Publication of Positive Impact Real Estate Investment Framework to help property investors implement an impact-based approach in their investments, developed by UNEP FI’s Positive Impact Initiative.

Increasing Investment in Energy Efficiency

• Participating in the European Commission Energy Efficiency Financial Institutions Group (EEFIG), and the Energy Efficiency Financing Platform to further promote enabling policies for energy efficiency investment and financing tools.

PWG Members

• Allianz Real Estate (Allianz SE), Germany
• Aviva Investors (Aviva plc), UK
• Axa Real Estate Managers (Axa – Group Management Services), France
• Bank J. Safra Sarasin AG, Switzerland
• BentallGreenOak, USA & Canada
• BMO Real Estate Partners Asset Management, UK
• BNP Paribas Real Estate Investment Services (BNP Paribas Fortis), France
• Caisse des Dépôts et Consignations, France
• CBRE Global Investors, USA
• City Development Limited, Singapore
• Citibank, USA
• DWS, Germany & USA
• Federated Hermes, UK
• Investa Property Group, Australia
• Ivanhoé Cambridge, Canada
• Japan Real Estate Asset Management Co, Ltd, Japan
• La Française Group, France
• LaSalle Investment Management, USA
• Lendlease, Australia
• Link REIT, Hong Kong
• M&G Real Estate, UK
• Mitsubishi Corp.-UBS Realty Inc., Japan
• Mitsubishi UFJ Trust & Banking Corporation, Japan
• Nomura Real Estate Asset Management, Japan
• Nordea Life and Pension, Norway
• Orix Asset Management Corporation, Japan
• Sumitomo Mitsui Trust Bank Limited, Japan
• Thomas Lloyd, UK
• Trillium Asset Management, UK & USA
• UBS Global Real Estate (UBS AG), Switzerland
• Zurich Insurance Company, Switzerland

PWG Chairs

• Anna Murray, Managing Director, Global Head of ESG, BentallGreenOak (2021-2023)
• Calvin Kwan, General Manager, Corporate Development & Strategy, Link REIT (2019-2021)

Advisory Group

• Maria Atkinson, Atkinson Consultancy (Australia)
• Michael Brooks, CEO of the Real Property Association of Canada (Canada)
• Ryuichi Horie, Co-founder and CEO, CSR Design Green Investment Advisory (Japan)
• Gary Pivo, Professor of Urban Planning and Professor of Natural Resources, The University of Arizona (US)
• Sarah Sayce, Part-time Professor, University of Reading (UK)

Collaboration

• The Property Working Group maintains an active collaboration with the Principles for Responsible Investment practices team to accelerate ESG integration within the real assets investment community, as well as ongoing communication with real estate industry associations and sustainability leadership groups globally.

For more information on UNEP FI’s work on property investments, please contact Matthew Ulterino