By SkySite Property staff
Institutional investors worldwide are being urged to consider United Nation-backed Principles for Responsible Investing in their decision-making process.
The United Nations Environment Programme Finance Initiative (UNEP FI), a global partnership between the UNEP and the financial services sector, is concerned that the property industry is taking too long to address its environmental footprint.
The UNEP FI’s Property Working Group, whose members manage $300 billion in property assets, released a new report to show investors how buildings are both directly and indirectly responsible for about half of the world’s carbon dioxide emissions.
The report, authored by University of Arizona professor Gary Pivo, said that the six Principles for Responsible Investing in this sector could help determine who should manage a transition to more sustainable managed real estate investments.
“Ultimately, responsible investors can play a critical role in breaking down what has been termed the ‘circle of blame’ that characterizes the property industry’s slowness to address its environmental impact,” said Paul McNamara, co-chair of the UNEP FI Property Working Group.
“We operate in an industry where investors, occupiers, contractors and developers each blame the other for the lack of positive action in improving the environmental footprint of new and existing buildings. Our report highlights the wide range of opportunities that exist for institutional investors who want to take positive action and apply the Principles for Responsible Investment to their property assets.”
James Gifford, PRI’s executive director, said his group’s goal isn’t to prescribe what signatories should do, but to reveal best practices within the framework of PRI.
“Institutional investors must be encouraged to embed these practices into the management of property portfolios worldwide, if we are to have any impact on reducing CO2 emissions from buildings and halting climate change,” he said. “It is hoped this report provides an introduction to the actions responsible property investors are undertaking, and inspires others to follow their lead.”
To download a copy of the report, please click here.
To learn more about the Six Principles for Responsible Investment, click here.
