This is an exciting week for sustainability and finance:
- The Annual NAREIT Conference (convening all US listed property companies and their share/stakeholders) is taking place in San Diego, and today Steve Wechsler, the NAREIT CEO, handed out the "Leader in the Light" Awards to 11 REITs invested different property types. The Leader in the Light Award is based for 70% on the GRESB scores of REITs, and for 30% on an additional supplement. With the help of judges from Cornell/USGBC/DOE/RealFoundations, we objectively ranked the 36 companies that submitted data. The press release is here.
- Also today, NAREIT/FTSE/USGBC announced the launch of a green property index, based on the methodology first used in my academic paper "Portfolio Greenness and the Financial Performance of REITs". In the Index, those REITs with the highest fraction of green-labeled properties (Energy Star and LEED) will receive the highest weight, providing investors with the opportunity to gain exposure to those REITs that are (presumably) better future-proofed, have stronger cash-flows, and face a lower risk of obsolescence. More details in this press release.
During yesterday's International Day @Greenbuild, we had a great panel of institutional investors, representing about $164 billion (!!) in assets under management. My friends from Tishman Speyer, Prudential Real Estate, Oxford Properties (an OMERS company) and APG Asset Management did a great job informing the audience of more than 400 delegates on how they integrate sustainability in their investment portfolios. Livestream will follow soon! And here are the slides of the session I did with Fannie Mae and Wells Fargo: