Press release: Positive Trends in Climate Risk Management ambitions for Real Estate Companies
Research by the Global Real Estate Engagement Network (GREEN) reveals a positive trend in climate risk management among listed real estate companies and non-listed real estate funds. 78% of listed companies now have short-term carbon reduction targets, and 40% have adopted Net Zero goals, up from 30% last year.
Implementing these ambitions remains challenging. Only 15% of companies have disclosed high-level pathways to reach Net Zero, and 9% (up from 3%) have estimated their Capex needs to achieve their long-term targets.
Vincent van Bijleveld, CEO of GREEN
Vincent van Bijleveld emphasizes the importance of incorporating Capex estimates to meet future carbon regulations and minimum energy performance standards into underwriting and financial planning. “A third of the real estate companies that have made an estimate expect their Capex to be above 5% of NOI. GREEN calls for better insights into these financially material estimates to help investors make informed decisions.”
The increased ambitions, implementation efforts, and disclosures are, in part, a result of heightened shareholder activity. The 46 companies collaboratively engaged by GREEN members, such as Wellington, CenterSquare, APG, MN, Bouwinvest, Schroders, Robeco, Sarasin, Trillium, Vert, Almazara, and Finance Ideas, demonstrated superior progress in target setting, implementation and disclosure, compared to their peers. This highlights the significant role that investors can play in driving change.
Maaike Hof, co-CEO of GREEN
Maaike Hof added, “Our results underscore the effectiveness of engagement as a tool for enhancing climate risk management. Our survey among listed real estate companies further confirms this need, showing that less than 20% of investors actively engage with companies about the Net zero goal.” She urges other indirect investors in real estate to foster more collaboration to enhance efficiency and effectiveness.
Note to editors
Read the annual report of the GREEN engagement results 2023
For more information about GREEN, please contact:
vincent.vanbijleveld@green-engagement.org or mobile: +31653733754
About GREEN
GREEN is a non-profit engagement network of global institutional investors in the real estate sector. The objective of the network is to ensure that the industry attains the objectives of the Paris Agreement in relation to climate change. Through the power of the coalition, the institutional investors aim to steer real estate companies to improve their sustainability performance and reduce their exposure to financial and non-financial climate risks. At present, the network is focusing on listed and non-listed real estate companies.
GREEN currently represents assets under management of approximately € 3 trillion, representing both asset managers and asset owners. To get more information please visit our website (green-engagement.org).
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