The UNEP FI Property Working Group, in collaboration with RICS, PRI, and members of the Global Investor Coalition on Climate Change, have produced a practical, action-oriented framework to accelerate a new financing paradigm for the delivery of the global SDGs.
The 25 leading institutional investors and asset managers of the UNEP FI Property Working Group – alongside partners RICS, PRI, IIGCC, AIGCC, and IGCC – have published a new guide for developing and executing an impact-based approach in real estate finance and management. The Positive Impact Real Estate Investment Framework responds to finance sector interest in investment outcomes for productive, equitable, healthy, and resilient economies and societies.
Positive Impact posits a holistic approach to finance, requiring an appraisal of both positive and negative impacts; consideration of all three dimensions economy, society and environment; and transparency and assessment of methodologies and impact achieved. The Positive Impact Real Estate Investment Framework offers a process tool for institutions to identify impact ‘areas of influence’ and corresponding investment opportunities, measure ex-ante and ex-post impact, and ultimately re-orient institutional capacities and capital for intentional delivery of outcomes that support the Sustainable Development Goals (SDGs). It draws upon the UNEP FI Impact Radar, guidance that translates the SDGs into meaningful terms for businesses and financing impact assessment.
Quotes from investors and collaborators:
“The real estate framework is a must-read for all property lenders and investors looking to increase their impact. It’s also a testament to the power of collaboration between institutions advancing sustainable finance.” Eric Usher, Head, UNEP Finance Initiative
“Through impactful investment frameworks real-estate investors can intentionally deliver social and environment outcomes that support the delivery of the UN Sustainable Development Goals’ target. We do this in Hermes by focusing on selected impactful investment themes – place making, climate and resource efficiency, health & well-being. The Real Estate Impact Framework is a useful tool for investors to map and select the most relevant actions they can take to support the SDGs suiting their specific investment strategies.” Tatiana Bosteels, Director Responsibility, Hermes Investment Management and chair UNEP FI Investment Commission
“The real estate and built environment sector more broadly can absolutely implement the UN Sustainable Development Goals. We will only get results on sustainability if we help the sector prioritise looking at investments by both their positive and negative impacts, and initiatives like this framework are a tangible way we are supporting professionals to do so.” Sean Tompkins, CEO Royal Institution of Chartered Surveyors (RICS)
“As a long-standing member of the UNEP FI Property Working Group, PRI is pleased to have contributed to the development of this report. It provides a useful guide for any real estate investor looking to implement an impact-based strategy. “ Fiona Reynolds, CEO, Principles for Responsible Investment
“We welcome the publication of this guide, which will be an important tool for investors looking to increase the impact of their real estate investments in supporting the implementation of the Sustainable Development Goals and in contributing to a low carbon future.” Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC)
“Investors in Asia are increasingly looking to align their portfolios to the SDGs, and this framework is an essential tool helping investors readily identify where they can add impact to their strategies in real estate.” Rebecca Mikula-Wright, Director, Asia Investor Group on Climate Change
“This Framework provides a useful tool for Australian investors looking to better assess the impact of their capital allocation decisions and really drive sustainable outcomes in real estate. We need new ways of thinking to better tackle the challenges we face. Guides like this will support greater investor action and ambition”, Investor Group on Climate Change (IGCC) Emma Herd, CEO, Investor Group on Climate Change