Sustainable Real Estate

• Focus on actual investment criteria and performance of real estate and sustainability
• Comprehensive statistical analysis of results from ESG (Environment Social and Governance) investment
• Insight into practical aspects of the implementation of the theory
• Thorough review of related academic research and its implications
• Perspective based on international experience in ESG
• Practical insights on ESG policy at the level of the portfolio and the financial institution

• To provide an overview of the ESG landscape and rising client expectations around ‘sustainable real estate’
• Understand emerging ESG risks that are material across residential, commercial and industrial real estate
• Be aware of the availability, quality and challenges regarding ESG data across different types of real estate
• Understand and identify key red flags of greenwashing around green/sustainable real estate investment
• Recognise and assess the characteristics of sustainable commercial and residential real estate
• Understand how to construct an ESG fund
• Know common KPIs, as well as main challenges, for reporting on ESG characteristics (risk and impact) of funds

Sustainable real estate market, expectations and regulation

• Market and key trends on ‘sustainable real estate and sustainable development in real estate’
• ESG factors relevant to real estate sustainability
  • Climate – whole life cycle impact, sea-level rise/floods, energy efficiency
  • Biodiversity – pollution and land contamination
  • Social – labour standards and working conditions, community development, controversial tenants, health and well-being of occupants, contractors and local community, diversity & inclusion
  • Governance – tax, corruption, and data privacy
• Key ESG expectations across the investment life cycle, property type (ie residential, commercial and industrial real estate) and strategy
• Regulatory trends and how it impacts industry, clients and capital providers (ie equity/loan)

Integrating ESG in property value and impact  

• Identifying key ESG issues that are material from a financial perspective
  • Additional capital expenditures
  • Increased costs
  • Future income uncertainty
  • Obsolescence risk
• Identifying key ESG issues which are material from an impact perspective
• Identifying ESG-related risks and opportunities in the short-term and long-term, and understanding the impact on property value and valuation
• Impacts of ESG on leasing and occupier
• Making sense of ESG data and assessment tools (eg CRREM)
• Ways to integrate material ESG issues in decision making
  • Deal sourcing
  • Investment decision
  • Ownership
  • Sale
• Exercise: Integrating ESG factors in due diligence
• Data, benchmarking (eg REEB) and performance measurement
• How to construct ESG and low-carbon real estate portfolios
• Case study: Flagship sustainable real estate and property investment funds  

Certifications and reporting

• Certifications
  • LEED (Leadership in Energy and Environmental Design)
  • BREEAM (Building Research Establishment Environmental Assessment Method)
  • EDGE
  • WELL
  • Identifying greenwashing
• Reporting on performance and impact
  • Client expectations
  • Examples of key indicators
  • ESG attribute of AUM

The trainer is a seasoned investment professional with over 20-years’ experience in both executive and non-executive capacities who has worked across 20 countries. For the past 4 years, he has been an independent Non-Executive Director at a large UK pension fund. He was Director of Russel Investments, and Head for EMEA on Responsible Investment, helping clients with investment strategies across public and private assets. He also worked for other large financial service firms such as GAM, where he was Head of Institutional, Lehman Brothers Asset Management, where he led Alternative Investment Solutions and Putnam Investments, where he was Head of Consultant Relations for the UK and Europe. He is a regular speaker at key investment conferences.

While ESG considerations are increasing across all asset classes, they are particularly relevant to real estate. Direct investment in real estate tends to be a long-term investment, allowing more time for material ESG issues to affect the viability and return of the asset. Also, most of the ESG issues for real estate play out at a local level: extreme weather, water stress, and community relations. This course identifies and describes the key ways in which ESG factors are financially relevant for real estate assets and portfolios, and how to identify and manage them in order to mitigate risks and enhance returns.