Download - Keys To Responsible Property Investing
The best deal for investors, communities and the planet.
RPI Helps Your Sustainable Business Case
December 2009
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What is responsible property investing & why is it relevant?
The RPI principles Case studies in applying RPI Next steps and resources
Overview
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When you are judging different real estate investments or portfolio’s, how do you know if you’re doing a good enough job at evaluating the socially responsible opportunities that are being addressed with your capital?
It’s green with market returns – that enough?
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What is RPI?
Definition of responsible property investing◦ Principles of Responsible Property Investing
UNEP - F.I. RPIC
◦ "RPI takes into account the social, ethical and environmental factors in the selection, retention and realization of investment, and the responsible use of rights attached to such investments."
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Who is involved?
Institutional real estate investors◦ Kennedy Wilson◦ Bay Area Council◦ TIAA-CREF◦ Rose Smart Growth Fund
Financial institutions◦ “Over 170 institutions, including banks, insurers and fund
managers, work with UNEP to understand the impacts of environmental and social considerations on financial performance.” (UNEP-F.I.)
Third party fund managers & consultants
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Current real estate practice
Current industry practice◦ No uniform standard of assessment or reporting of
ESG issues within property portfolios “Trophy” green properties featured on
corporate brochures
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Why is responsible property investing relevant?
"There is a strategic link between investment and sustainability" Unable to compare investment portfolio's with ESG characteristics Green is not the same as triple bottom line Benchmarking & metrics important to demonstrate performance
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Why is responsible property investing relevant?
Stakeholder Ecology & BAU Business Case
Green/EE Strategy +
Capital
Benchmarking / Metrics
Sustainable Business Case
Portfolio Reporting
RPI provides feedback on ESG performance that can be
compared over time and across portfolio’s.
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The RPI Principles Energy conservation
◦ Energy use◦ CO2 emissions intensity
Environmental protection◦ Total annual water use◦ Solid waste generation◦ water management fees
Urban revitalization and adaptability◦ Brownfield redevelopment◦ Infill redevelopment
Closest links to tangible value impacts.
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The RPI Principles (2) Smart growth and TOD
◦ Walkscore rating Health and safety
◦ Vulnerable location; earthquake zone Worker well-being
◦ Tenant satisfaction surveys Social Equity and community development
◦ Benefits to CRA area Local citizenship
◦ Community engagement
Social engagement including resident/occupant input.
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The RPI Principles (3)
Voluntary certification◦ LEED◦ Energy Star
Governance◦ Reporting performance
Adherence to external standards
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How can investors apply RPI?
Get “Metrics for Responsible Property Investing: Developing and Maintaining a High-Performance Portfolio”
Use cases◦ Acquisition
BAC
◦ Portfolio TIAA-CREF
Build from existing ESG program Tangible links to value Opportunity analysis
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Get plugged in
http://www.galleyecocapital.com
[email protected] Stevenson Street #400
San Francisco, California 94105(415) 655-6668
Presented by:Lisa Michelle GalleyManaging Principal
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Resources Galley Eco Capital can assess financial impact of sustainability
within your portfolio◦ Financial impact of sustainability strategy◦ ESG analysis and measurement
Request a copy of report "Metrics for Responsible Property Investing“ from info[at]galleyecocapital.com
Principles for Responsible Investment from UNEP-F.I. Get RPI case studies
◦ Environmental & Social Responsibility Observatory Responsible Property Investing Center