Real Estate Investors Climate Performance Benchmark
Engaging real estate investors to contribute to a safe climate and just transition
Real estate is a major contributor to climate change, accounting for over 17.5% of global emissions. Reducing emissions in buildings is crucial to meeting the goal of the Paris Agreement to limit global heating and reduce the worst impacts of the climate crisis.
The impacts of climate change are felt worst by the most vulnerable in society – deadly weather events, floods, droughts and wildfires are becoming more frequent. Investors in real estate have a significant role to play in addressing this issue.
Treating housing purely as a financial asset can worsen social and environmental problems – the real estate sector needs a just transition. Investors should engage real estate investment managers and push them to mitigate climate risks and ensure long-term sustainable returns, whilst considering the social effects of their investments too.
ShareAction’s benchmark looks at major real estate investment managers with direct real estate holdings and assesses their climate and social performance. The survey covers metrics such as emission reduction targets, climate risk assessments and strategy for transitioning the buildings in the portfolio to net zero.
Off the back of the findings from the benchmarking report, ShareAction will engage with investment managers and their stakeholders with the aim of improving their performance.
