Sustainability

Impact Down Under
Assessing Performance of Australian companies against the United Nations Sustainable Development Goals
MSCI
February 2017

MSCI ESG Research’s latest research paper, Impact Down Under looks at Australia’s sector and company revenue generation from products and services that may have a positive impact on society and the environment, while comparing MSCI World Australia Index constituents with MSCI World Index constituents.

We found that Australian constituents of the MSCI World Index derived 4.9% of their revenue from involvement in UN Sustainable Development Goals (SDGs) related activities, compared to the MSCI World Index’s 6.2%, as of October 2016, with Green Building, Major Disease Treatments and Nutrition being the main areas of involvement.

Further, Australian constituents generated significantly more revenue from products and services related to the Nutrition and Green Building Sustainable Impact categories compared to the MSCI World Index companies.

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Green Bonds And Property
The Fifth Estate
December 2015

Some of the world’s finest, most-engaged property and finance people joined The Fith Estate, an Australian online news service for sustainability and property, in London to discuss how green bonds and sustainable finance can help fast track emissions reductions in the built environment. This book is the result.

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The Smartest Building In The World – Inside The Connected Future Of Architecture
Tom Randall – Bloomberg
September 2015

It knows where you live. It knows what car you drive. It knows who you’re meeting with today and how much sugar you take in your coffee. (At least it will, after the next software update.) This is the Edge, and it’s quite possibly the smartest office space ever constructed. The Edge is also the ­greenest building in the world, according to British rating agency BREEAM, which gave it the highest ­sustainability score ever awarded: 98.4 percent. The Dutch have a phrase for all of this: het nieuwe werken, or roughly, the new way of working. It’s about using information technology to shape both the way we work and the spaces in which we do it. It’s about resource efficiency in the traditional sense—the solar panels create more electricity than the building uses—but it’s also about the best use of the humans. Tom Randall takes a tour of the smartest building in the world. There is a also a video worth watching.

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Sustainability: Quantifying ‘Green Alpha’
Tim Mockett Is Managing Director, Property At Impax Asset Management, And Chris Strathon Is A Partner, Valuation Advisory At JLL- Article Appeared In IPE Real Estate Magazine
September/October 2015

It is now possible for investors to quantify ‘green’ alpha, which is created predominantly through active energy management, write Tim Mockett and Chris Strathon. Green alpha is a relatively new concept but is quickly becoming a critical metric for investors in sustainable property. Green alpha quantifies what proportion of total ungeared differential returns from an individual asset investment can be attributed to sustainability and energy efficiency initiatives.

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2015 GRESB Report – Australia/NZ Snapshot
GRESB
September 2015

GRESB, the global standard for portfolio-level sustainability assessment in the real estate sector, undertakes an annual audit of the real estate sector. The data and report are based on an assessment of 707 property companies and private equity real estate funds, representing 61,000 assets and USD 2.3 trillion in asset value. The report provides new insights regarding the energy and sustainability performance of the global real estate industry, documenting a 3% reduction in greenhouse gas emissions in 2014, a 50% increase in on-site renewable energy generation, and a 19% improvement in overall ESG performance.

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2015 GRESB Report
GRESB
September 2015

GRESB, the global standard for portfolio-level sustainability assessment in the real estate sector, undertakes an annual audit of the real estate sector. The data and report are based on an assessment of 707 property companies and private equity real estate funds, representing 61,000 assets and USD 2.3 trillion in asset value. The report provides new insights regarding the energy and sustainability performance of the global real estate industry, documenting a 3% reduction in greenhouse gas emissions in 2014, a 50% increase in on-site renewable energy generation, and a 19% improvement in overall ESG performance.

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The Financial Rewards Of Sustainability: A Global Performance Study Of Real Estate Investment Trusts
Franz Fuerst
June 2015

This study shows for the first time, that investing comprehensively in sustainability as measured by the GRESB rating) pays off for REITs by enhancing operational performance and lowering risk exposure and volatility. Analysing a sample of REITs from North America, Asia and Europe for the 2011-14 time period, it also appears that there is a great deal of untapped potential, particularly in the REIT community, to improve the sustainability performance of corporate real-estate portfolios. For real estate assets to maintain their competitive positioning, it is critical that their owners invest in measures that improve their sustainability.

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Green Bonds – Fifty Shades Of Green
RBC Markets
March 2014

An emerging area of debt capital markets. Green bonds are conceptually very straightforward – standard fixed income instruments where the proceeds from the offering are applied exclusively towards funding ‘green projects’. Beyond the concept, however, the reality of green bonds becomes rather fuzzy as investors consider restrictions on the use of ‘green bond’ proceeds and the definition of what constitutes a ‘green project’. Ultimately, RBC believes investments in green infrastructure will be increasingly necessary from both the public and private sectors as environmental sustainability becomes a more important consideration for both social and corporate responsibility. Green bonds provide a means to unlock private capital flows into projects that support such purposes. This report provides an introduction to green bonds, investor appetite for green bonds, challenges and the role of government.

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Building Better Returns Research Report
University Of Western Sydney (UWS) And The University Of Maastricht, Netherlands
September 2011

Research commissioned by the Australian Property Institute (API) and the Property Funds Association of Australia (PFA) is the first major Australian study to assess the added value of green office buildings in their financial performance. The research was undertaken by the University of Western Sydney (UWS) and the University of Maastricht, Netherlands in conjunction with Jones Lang LaSalle and CBRE.

The report identifies the future challenges and opportunities for the green office building agenda in Australia and provides the economic rationale for sustainable property investment and development.

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