The growing importance of sustainability in real estate investing is set to continue, according to M&G Real Estate’s tenth Responsible Property Investment report.
Assessing and improving the environmental efficiency of assets has long been a core pillar of the investment process, along with driving industry initiatives and steering groups in the development of performance measurement in this space.
Having continued to drive environmental improvements in the past 12 months, highlights include:
• 11 per cent reduction in CO2 emissions in UK shopping centres
• 11 per cent reduction in CO2 emissions in our largest 20 multi-let offices
• GBP1,950,000 reduction in energy bills in our shopping centres since 2008/2009
• 76 per cent of funds under management have been submitted to the Global Real Estate Sustainability Benchmark
Nina Reid, director, responsible property investment, M&G Real Estate, says: “In our role as real estate fund managers, our approach has evolved into one of understanding and managing risks that environmental, social and economic issues represent for the real estate we invest in. Reporting annually, for the past decade, is essential for us to measure our progress in this area and by committing to meet our sustainability targets, we have in turn enhanced our investments.
“We have a strong track-record of identifying assets that fall below RPI standards and through active management and refurbishment, we have been able to unlock these properties full investment potential. Good investment performance and sustainability management of real estate go hand in hand.”