Positive Impact in real estate investments |
Context
A collaborative project, led by UNEP Finance Initiative and the Royal Institution of Chartered Surveyors (RICS) and supported by Ceres Investor Network on Climate Risk and Sustainability (CERES), Institutional Investors Group on Climate Change (IIGCC), Investor Group on Climate Change (IGCC) and the Principles for Responsible Investment (PRI).
The market for responsible or sustainable real estate has grown steadily over the last years. Impact investment has recently emerged as an investment opportunity in a range of asset classes including real estate, albeit with only a handful of funds managed mostly by dedicated impact investors. As their name suggests these focus on social and environmental impacts achieved, e.g. affordable housing, ageing services, education, and more.
In late 2015 a group of UNEP FI members issued the Positive Impact Manifesto, a call to embed impact analysis in mainstream finance. This was followed in January 2017 by the UNEP FI Principles for Positive Impact Finance, the next step in supporting the finance sector in scaling impact investments.
These documents can be found at: www.unepfi.org/positive-impact/positive-impact/
At the heart of the Principles lies the proposition that extra-financial analysis must holistically consider both positive and negative impacts across the three pillars of sustainable development: social, environmental and economic development. Where the analysis identifies a negative impact, the investment is to include a corresponding mitigation component.
From this 2017 launch of the Principles for Positive Impact Finance, the UNEP FI Property Working Group seeks to better understand what positive impact means for, and how the Principles can be implemented in, real estate investments. The objective is to create a framework for the real estate sector, helping investors achieve scale through effective identification and targeting, investment structuring, and measurement of positive impact.
In late 2015 a group of UNEP FI members issued the Positive Impact Manifesto, a call to embed impact analysis in mainstream finance. This was followed in January 2017 by the UNEP FI Principles for Positive Impact Finance, the next step in supporting the finance sector in scaling impact investments.
These documents can be found at: www.unepfi.org/positive-impact/positive-impact/
At the heart of the Principles lies the proposition that extra-financial analysis must holistically consider both positive and negative impacts across the three pillars of sustainable development: social, environmental and economic development. Where the analysis identifies a negative impact, the investment is to include a corresponding mitigation component.
From this 2017 launch of the Principles for Positive Impact Finance, the UNEP FI Property Working Group seeks to better understand what positive impact means for, and how the Principles can be implemented in, real estate investments. The objective is to create a framework for the real estate sector, helping investors achieve scale through effective identification and targeting, investment structuring, and measurement of positive impact.
| Positive Impact Principle Two: Frameworks “To promote the delivery of Positive Impact Finance, entities (financial or non-financial) need adequate processes, methodologies, and tools, to identify and monitor the positive impact of the activities, projects, programmes, and/or entities to be financed or invested in.” |
This survey will be used for a mapping exercise on existing positive impact analysis in investment activity in real estate – inclusive of measurement methodologies, as well as how such analysis informs the development finance products and investments.
The survey is addressed to all real estate investors, covering asset owners, direct investors (asset managers), and REIT and debt investors; as well as their consultants and advisers.
It will take 10 minutes of your time to respond. We appreciate your contribution and thank you for your participation.