A majority of global commercial real estate investors are not yet actively managing environmental issues in their portfolios, according to the results of a just-released survey.
Only a few investors from Australia, Sweden and the United Kingdom come close to attaining the top score of 100 in the global Environmental Real Estate Index, a benchmark of the environmental performance of commercial real estate developed from the survey results.
The survey was conducted by the £28 billion ($45 billion) Universities Superannuation Scheme; APG Asset Management, fund manager for the €204.7 billion ($286 billion) Stichting Pensioenfonds ABP; and PGGM Investments, which manages the €78.5 billion Pensioenfonds Zorg en Welzijn.
“Importantly, property investors do not necessarily walk their environmental talk,” stated a report on the survey by The European Centre for Corporate Engagement. A substantial number of funds and firms that had policies in place did not implement them.
Only 10 of the 198 property companies and funds that responded to the survey were in the ninth decile for having well-defined management and policies in place, but only four companies earned a high score on implementing and measuring their policies.
The top listed real estate company in the U.S. was real estate investment trust Vornado Realty Trust. Its ranking of 19 U.S. listed companies was mainly because of its high management and policy score, the report noted. If ranked by environmental implementation, the top two would have been Liberty Property Trust and ProLogis.
Big Yellow Group, a self-storage property investment company, had the highest ranking of 45 European listed companies.