Download - Keys To Responsible Property Investing

The best deal for investors, communities and the planet.

RPI Helps Your Sustainable Business Case

December 2009

www.galleyecocapital.com 2

What is responsible property investing & why is it relevant?

The RPI principles Case studies in applying RPI Next steps and resources

Overview


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?

It’s green with market returns – that enough?


What is RPI?

Definition of responsible property investing◦ Principles of Responsible Property Investing

UNEP - F.I. RPIC

◦ "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."


Who is involved?

Institutional real estate investors◦ Kennedy Wilson◦ Bay Area Council◦ TIAA-CREF◦ Rose Smart Growth Fund

Financial institutions◦ “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.)

Third party fund managers & consultants


Current real estate practice

Current industry practice◦ No uniform standard of assessment or reporting of

ESG issues within property portfolios “Trophy” green properties featured on

corporate brochures


Why is responsible property investing relevant?

"There is a strategic link between investment and sustainability" Unable to compare investment portfolio's with ESG characteristics Green is not the same as triple bottom line Benchmarking & metrics important to demonstrate performance


Why is responsible property investing relevant?

Stakeholder Ecology & BAU Business Case

Green/EE Strategy +

Capital

Benchmarking / Metrics

Sustainable Business Case

Portfolio Reporting

RPI provides feedback on ESG performance that can be

compared over time and across portfolio’s.


The RPI Principles Energy conservation

◦ Energy use◦ CO2 emissions intensity

Environmental protection◦ Total annual water use◦ Solid waste generation◦ water management fees

Urban revitalization and adaptability◦ Brownfield redevelopment◦ Infill redevelopment

Closest links to tangible value impacts.


The RPI Principles (2) Smart growth and TOD

◦ Walkscore rating Health and safety

◦ Vulnerable location; earthquake zone Worker well-being

◦ Tenant satisfaction surveys Social Equity and community development

◦ Benefits to CRA area Local citizenship

◦ Community engagement

Social engagement including resident/occupant input.


The RPI Principles (3)

Voluntary certification◦ LEED◦ Energy Star

Governance◦ Reporting performance

Adherence to external standards


How can investors apply RPI?

Get “Metrics for Responsible Property Investing: Developing and Maintaining a High-Performance Portfolio”

Use cases◦ Acquisition

BAC

◦ Portfolio TIAA-CREF

Build from existing ESG program Tangible links to value Opportunity analysis


Get plugged in

http://www.galleyecocapital.com

[email protected] Stevenson Street #400

San Francisco, California 94105(415) 655-6668

Presented by:Lisa Michelle GalleyManaging Principal

[email protected]

http://www.galleyecocapital.com/

http://www.galleyecocapital.com/

mailto:[email protected]


Resources Galley Eco Capital can assess financial impact of sustainability

within your portfolio◦ Financial impact of sustainability strategy◦ ESG analysis and measurement

Request a copy of report "Metrics for Responsible Property Investing“ from info[at]galleyecocapital.com

Principles for Responsible Investment from UNEP-F.I. Get RPI case studies

◦ Environmental & Social Responsibility Observatory Responsible Property Investing Center