ACTIAM launches ESG-focused real estate fund
Fund and asset manager ACTIAM has launched the ACTIAM Duurzaam Index Vastgoedfonds Europa real estate fund, which will only investing in real estate companies with a high ESG score and a demonstrable contribution to the sustainable development goals (SDGs).
Recent research by INREV (the European trade association for institutional real estate investors) shows that (Dutch) institutional investors are aiming for more real estate in their portfolios. At the same time, these investors are increasingly embedding the subject of "Climate" in their investment principles.
Dennis van der Putten, Director Sustainability & Corporate Strategy for ACTIAM, says: “The financial sector plays a crucial role in realising the Paris Climate Agreement and the real estate sector displays ample scope for improvements. Various studies show that the built environment is responsible for 30% of global energy consumption and more than 30 per cent of CO2 emissions. The real estate sector therefore plays a crucial role in limiting global warming to a maximum of 1.5 degrees Celsius.
“The ACTIAM Duurzaam Index Vastgoedfonds Europa was launched to counteract the negative impact of real estate on climate and at the same time to make it easier for institutional investors to make responsible choices within their own real estate portfolios, ACTIAM determines the ESG score of real estate companies based on an internally developed methodology and external data sources, such as GRESB. For this, ACTIAM looks not only at the policies of these companies, but also at their actual implementation. Key topics are energy, water and materials consumed. The ACTIAM Duurzaam Index Vastgoedfonds Europa has now been rewarded with the highest sustainability score of Morningstar (five globes).
“ACTIAM has worked together with Global Property Research (GPR) to develop the Duurzaam Index Vastgoedfonds Europa. Index provider GPR made the benchmark for ACTIAM on which the latter bases its real estate portfolio. The ACTIAM Duurzaam Index Vastgoedfonds Europa invests exclusively in publicly traded shares of European real estate companies. These enterprises are judged upon their contributions to the SDGs. The ACTIAM Duurzaam Index Vastgoedfonds Europa focuses on SDG 13: Climate Action. This sustainable development goal has been formulated to combat climate change and its impact.”
Jeroen Vreeker, director at GPR, says: “As well as providing the sector with a number of standard index series, we also cooperate closely with our clients in order to create custom solutions. The integration of the Sustainable Development Goals of the United Nations into a benchmark for the ACTIAM Real Estate Fund is an excellent example of cooperation within the financial sector. We are proud of these developments in the sector and our cooperation with ACTIAM.”