4. ACTIAM
Aegon NV
Alberta Investment Management Corporation
(AIMCo)
Amundi
AMP Capital
AP1 First Swedish National Pension Fund
AP2 Second Swedish National Pension Fund
AP3 Third Swedish National Pension Fund
AP4 Fourth Swedish National Pension Fund
AP7 Seventh Swedish National Pension Fund
Archbishops' Council
Armstrong Asset Management
ATP
Australian Ethical Investment
AustralianSuper
Aviva Investors
AXA
AXA IM
Baldwin Brothers Inc.
Bank J. Safra Sarasin
Bayerische Versorgungskammer
Bedfordshire Pension Fund
BMO Global Asset Management
BNP Paribas Investment Partners
Brawn Capital
Brown University Sustainable Investment Fund
BT Pension Scheme
California Public Employees' Retirement System
California State Teachers' Retirement System
Cathay Financial Holding Co., Ltd.
Catholic Super CBRE Global Investors
Cbus Super
CCLA
Central Finance Board of the Methodist Church
Christian Brothers Investment Services
Christian Super
Christopher Reynolds Foundation
Church Commissioners for England
Church of England Pensions Board
Church of Sweden
Connecticut Retirement Plans and Trust Funds
Dana Investment Advisors
Danske Bank Asset Management
Danske Civil- og Akademiingeniørers
Pensionskasse
Deutsche Asset Management
Dragon Capital
EdenTree Investment Management Ltd.
Encourage Capital
Environment Agency Pension Fund
Epworth Investment Management Ltd
ERAFP
ESSSuper
ETF Partners
Eureka Funds Management
First Affirmative Financial Network
Friends Fiduciary Corporation
Friends Provident Charitable Foundation
FRR - Fonds de Réserve pour les Retraites
Greater Manchester Pension Fund
Henderson Global Investors
Hermes Investment Management
HESTA
HSBC Global Asset Management
IFM Investors
Impax Asset Management
Inflection Point Capital Management
Insight Investment
Jesuits in Britain
Juristernes og Økonomernes Pensionskasse
Kempen Capital Management
L&G Investment Management
Local Government Super
London Pensions Fund Authority
Mercer
Merseyside Pension Fund
Miller/Howard Investments, Inc.
Mirova MN Nanuk Asset Management Pty Ltd
Natixis Asset Management
NEI Investments
New York City Comptroller
New York State Common Retirement Fund
New Zealand Superannuation Fund
NextEnergy Capital
Nordea Wealth Management
North East Scotland Pension Fund
OFI
Ohman
Old Mutual Global Investors
OPTrust Oregon State Treasurer
OTTP
Pax World Management LLC
PensionDanmark
PGGM
PKA
Plater Trust
Railpen Investments
Rathbone Greenbank Investments
Representative Body of the Church of Ireland
Reynders, McVeigh Capital Management
Robeco
Russell Investments
Sisters of St. Dominic of Caldwell, New Jersey
Sonen Capital
South Yorkshire Pensions Authority
Stafford Sustainable Capital
Statewide Super
Tellus Mater Foundation
Temporis Capital LLP
The Barrow Cadbury Trust
The Joseph Rowntree Charitable Trust
The Pensions Trust
The Sustainability Group at Loring, Wolcott and
Coolidge
The United Reformed Church
Trillium Asset Management
Trustees of Amherst College
Unipension FAIF A/S
Unitarian Universalist Association
USS
Veris Wealth Partners
VicSuper
Vision Super Pty Ltd
Walden Asset Management
Wespath Benefits and Investments
West Midlands Pension Fund
West Yorkshire Pension Fund
WHEB
130
investors
14. Market transformation
Top down, bottom up
Capital
Market
Company
Portfolio
Building
Investment Community
CAPITAL
Investment
Manager
Portfolio Manager/
Asset Manager
Property Manager/
Facility Manager
COMMITMENT
16. 3.9x
The difference in overall
GRESB score between the
Top 10% and Bottom 10%
entities in 2016
17. “U.S. REITs with higher
GRESB ratings deliver higher
returns per unit of risk”
“2.75% return spread between
the Top 10% and Bottom 10%
European non-listed GRESB
entities”
22. Validation
Three-layer process for investment-grade data
100%
Validation
Plus
Site Visit
All Participant
Check
Open text boxes (quality)
Open-ended questions
Hyperlinks
Evidence (presence)
Evidence (content)
Data accuracy18%
2.5%
Reporting boundaries
Data quality
Evidence for answers
59. What’s Next?
Effective GHG emissions targets set in line with climate science
Contribute to achieving provincial & federal GHG reductions
Demonstrate absolute/aggressive emission reductions
Editor's Notes
New global commitment to reduce emissions
First ever legally-binding climate agreement
The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway.
Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including:
Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and
Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
More responsible investors (130 investors respresenting USD 13 trillion)
More focus than ever on environmental, social, and governance performance across all asset classes
They urge to:
Increase pace of transition
Increase green investments
I short: carrots & sticks are needed
List of investors that signed G20 letter from: http://www.igcc.org.au/resources/Documents/FinalWebInvestorG20Letter24Aug1223pm.pdf
4 months electricity supply in the UK
4% of all global carbon emissions from ailrine sector
XXXX Olympic pools
2.5 times the Great Pyramid of Gaza
Prologies produces one third of on-site renewables in GRESB
2015: 190GWh
2014: 179GWh
https://www.greenbiz.com/article/65-billion-real-estate-titan-second-only-walmart-solar
Add GRESB Green Star logo/GRESB Green Star rating
Link REIT case study -
https://www.gresb.com/insights/2016/08/fresh-market-waste-separation-pilot-scheme/?preview_id=11966&preview_nonce=2c17e598f7&preview=true
A joke here can be...”Yes this is innovation”
How can the real estate sector contribute to solving climate issues
Regulation provides minimum performance requirements
Leaders are in the right tail, however, the bulk is still in the “bell”
So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
Add real numbers
We’ve seen that the capital market provides a very effective top down push towards bottom up commitment
PRI currently meeting in Singapore – 1,500 asset owners
Transparency companies and funds vary significantly in their environmental, social, and governance performance
Opportunity leadership, quality, competitive advantage, resilience, superior returns, lower operating costs, mitigation of social and environmental impacts
Risk regulation, compliance, obsolesce, competitive disadvantage, physical damage, material impact, lower returns, higher operating costs, excessive social and environmental impacts
Almost 4x
The difference in overall GRESB score between the Top 10% and Bottom 10% entities in 2016
Message: there is a great differentiation amongst GRESB reporters. Our aim is to provide transparency to the bottom performers in terms of how the top performers are managing risks and utilizing opportunities, so they can close the gap.
Top 10% average score: 86.6
Bottom 10% average score: 21.9
There is an increasing amount of evidence that backs the correlation between financial performance and ESG performance.
Studies using GRESB data clearly show that market transformation also makes business sense.
What does current market transformation look like in terms of reducing the built environment’s footprint?
Less energy consumption
Our process to connect industry stakeholders
Central in this process is data quality, both at the company/fund level and at the portfolio level
Scoring framework is based on what is most material to investors.
Process that supports in providing investment-grade data (co-developed with PwC)
Something different: highlight GRESB leaders
No need to show these (already included in previous slides)
Listed: 201
Private: 558
Let’s put these figures in context
Disclaimer: this figure is from 5 September 2016
iPhone 7 will be presented today, let’s see what Apple’s market cap is tomorrow morning
Transparency on ESG provides competitive differentiation & advantage.
The opposite is true for lack of transparency.
Conclusion: transparency leads to improved performance/leadership
Drilling down deeper, companies and funds are also differentiated in terms of carbon output
Looking at intensities, this differentiation provides interesting insights into sector types and their impact
Looking at intensities per unit of invested capital, it becomes clear where the opportunities for improvement are, and how “green investments” might actually have the most positive impact
I thought there were 43 leaders?
New global commitment to reduce emissions
First ever legally-binding climate agreement
The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway.
Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including:
Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and
Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
Regulation provides minimum performance requirements
Leaders are in the right tail, however, the bulk is still in the “bell”
So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
Regulation provides minimum performance requirements
Leaders are in the right tail, however, the bulk is still in the “bell”
So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
Add real numbers
Canada:
national carbon pricing mechanism
standardized GHG emissions disclosure for companies
CaGBC: Energy Benchmarking, Reporting & Disclosure in Canada: A Guide to a Common Framework