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Keys To Responsible Property Investing


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This presentation is a short overview of the fundamental concepts of responsible property investing. Responsible Property Investing is expanding to include metrics that provide investors guidance on how to measure social responsibility within their portfolios and to compare social responsibility between different property portfolios.

Published in: Real Estate
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Keys To Responsible Property Investing

  1. 1. RPI Helps Your Sustainable Business Case<br />December 2009<br />
  2. 2. What is responsible property investing & why is it relevant?<br />The RPI principles<br />Case studies in applying RPI<br />Next steps and resources<br /><br />2<br />Overview<br />
  3. 3. 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? <br /><br />3<br />It’s green with market returns – that enough?<br />
  4. 4. What is RPI?<br />Definition of responsible property investing<br />Principles of Responsible Property Investing<br />UNEP - F.I.<br />RPIC<br />&quot;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.&quot;<br /><br />4<br />
  5. 5. Who is involved?<br />Institutional real estate investors<br />Kennedy Wilson<br />Bay Area Council<br />TIAA-CREF<br />Rose Smart Growth Fund<br />Financial institutions<br />“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.)<br />Third party fund managers & consultants<br /><br />5<br />
  6. 6. Current real estate practice<br />Current industry practice<br />No uniform standard of assessment or reporting of ESG issues within property portfolios<br />“Trophy” green properties featured on corporate brochures<br /><br />6<br />
  7. 7.<br />7<br />Why is responsible property investing relevant?<br />&quot;There is a strategic link between investment and sustainability&quot;<br />Unable to compare investment portfolio&apos;s with ESG characteristics<br />Green is not the same as triple bottom line<br />Benchmarking & metrics important to demonstrate performance<br />
  8. 8.<br />8<br />Why is responsible property investing relevant?<br />RPI provides feedback on ESG performance that can be compared over time and across portfolio’s.<br />
  9. 9. The RPI Principles<br />Energy conservation<br />Energy use<br />CO2 emissions intensity<br />Environmental protection<br />Total annual water use<br />Solid waste generation<br />water management fees<br />Urban revitalization and adaptability<br />Brownfield redevelopment<br />Infill redevelopment<br /><br />9<br />Closest links to tangible value impacts.<br />
  10. 10. The RPI Principles (2)<br />Smart growth and TOD<br />Walkscore rating<br />Health and safety<br />Vulnerable location; earthquake zone<br />Worker well-being<br />Tenant satisfaction surveys<br />Social Equity and community development<br />Benefits to CRA area<br />Local citizenship<br />Community engagement<br /><br />10<br />Social engagement including resident/occupant input.<br />
  11. 11. The RPI Principles (3)<br />Voluntary certification<br />LEED<br />Energy Star<br />Governance<br />Reporting performance<br /><br />11<br />Adherence to external standards<br />
  12. 12. How can investors apply RPI?<br />Get “Metrics for Responsible Property Investing: Developing and Maintaining a High-Performance Portfolio”<br />Use cases<br />Acquisition<br />BAC<br />Portfolio<br />TIAA-CREF<br />Build from existing ESG program<br />Tangible links to value<br />Opportunity analysis<br /><br />12<br />
  13. 13.<br />13<br />Get plugged in<br /><br /><br />71 Stevenson Street #400<br />San Francisco, California 94105<br />(415) 655-6668<br />Presented by:<br />Lisa Michelle Galley<br />Managing Principal<br /><br />
  14. 14. Resources<br />Galley Eco Capital can assess financial impact of sustainability within your portfolio<br />Financial impact of sustainability strategy<br />ESG analysis and measurement<br />Request a copy of report &quot;Metrics for Responsible Property Investing“ from info[at]<br />Principles for Responsible Investment from UNEP-F.I.<br />Get RPI case studies<br />Environmental & Social Responsibility Observatory<br />Responsible Property Investing Center<br /><br />14<br />