The future contribution of property
There is a growing bank of international data proving the relationship between sustainability and performance. We are, therefore, increasing awareness amongst managers that sustainability risk is a real threat, as well as recognising that there is a duty to manage this issue. Future-proofing portfolios against this is therefore not only a prudent action but necessary to delivering long term performance.
Clients expect more
Positive corporate social behaviour is perceived positively by clients, investors, partners and all third parties. It has been considered a deciding factor in terms of attracting capital to our funds as well securing joint venture partnerships.
regulation catching up
The growing raft of regulation created over recent years also obliges owners of real estate to measure aspects of sustainability, particularly in terms of energy usage.
the complexity of ownership
We are is serious about our role in minimising its impact on the environment, but recognises that in order to implement fundamental change we need to go beyond measures within our own control. In the future, we need to grow partnerships with advisers, suppliers, tenants and other stakeholders. It is becoming increasingly accepted that, due to the complexity of ownership structures, operational control and ‘end use’, within the property industry, it is only through collaborative partnerships that real strides forward can be made.
measure, understand, reduce
Until recently the measurement of sustainable property investment performance has not been considered essential. However, this is now rapidly changing as investment managers see the real need to understand the sustainability risks and opportunities within their portfolios. As the quality of data improves, the importance around understanding sustainability and positioning for the future will grow. With growing legislative costs, rising energy prices, increasing tenant demands and investor requirements, it is hard to see a future where sustainable does not impact on real estate performance and, ultimately, values.
Our targets for 2013 include:
- Improve the social and community impact of all property investment portfolios
- Adopt Global Reporting Initiatives (GRI) reporting standards for the Legal & General Property Portfolio
- Reduce energy in the top 20 buildings in Legal & General Property by 4%.