Supply Chain Network Design and Optimisation: Keeping lean supply chains relevant in a post-pandemic world (Cushman & Wakefield)
A lean supply chain, at its heart, focusses on inventory optimisation and operational excellence. It aims to eliminate waste at every stage of the production and distribution process, and so have courted additional terms such as “continuous flow” and “just-in-time”. The critical aim is optimisation of inventory management rather than minimisation, and with its focus on consistency and repeatability, lean supply chains are designed to be arguably less flexible. For this reason, some have come to view this type of network as irrelevant in a disrupted world – agility rules. However, this is not the case.
Cushman & Wakefield’s latest report, Keeping Lean Supply Chains Relevant in a Post-pandemic World, explores key trends in the supply chain industry, highlighting the importance of optimising supply chain networks, with a key focus on lean supply chain and how it will continue to be relevant.
Tackling Scope 3 emissions: The opportunities and challenges for service businesses (Cushman & Wakefield)
By Alton Wong, Executive Director, Co-head of Sustainability Services, Greater China, Cushman & Wakefield
For businesses in carbon-intensive industries, the challenge of reducing Scope 1 emissions (direct emissions from owned or controlled sources) can be great.
For service-based organizations, Scope 1 emissions may represent only a single-digit percentage of their entire carbon output. In these cases, the majority of their emissions are Scope 3 – they originate further up or down their supply chain through the activities of their suppliers.
So how do service businesses, like financial institutions and consultancies, reduce what they cannot control?
The data challenge
Any carbon reduction journey begins with reporting: you cannot manage what you cannot measure. While we have seen an increase in queries on ISO14064 – the international standard for reporting greenhouse gas emissions – reporting requires data, and capturing reliable data is the greatest challenge we see across the region.
In many cases, the data needed even to establish a baseline year – the year to which emissions will be compared – is not captured. While most, but not all, companies have utility data, few capture emissions for business travel or employee transport. This problem is compounded when tackling Scope 3 emissions.
Collaboration is the only way forward
As a service organization ourselves, Cushman & Wakefield’s Scope 3 emissions account for greater than 98 percent of our total emissions. That is why a key pillar of our net zero commitment is to engage our clients in their own carbon reduction journeys.
For businesses like ours, achieving a net zero commitment – which includes Scopes 1, 2 and 3 – is dependent on our supply chain doing the same. The good news is that it is a two-way street: by reducing our own direct emissions (by implementing energy efficiencies such as updated HVAC and LED lighting, for example) we are also bringing down the Scope 3 emissions of our clients. Similarly, when our clients implement energy efficiencies (their Scope 1), they reduce our Scope 3.
As more companies set net-zero targets, it is increasingly apparent that we are all in this together. At Cushman & Wakefield we have our own data challenges to overcome – especially around Scope 3 emissions. Like all companies, we are working hard to constantly improve, and to share our learnings with others, because we know that we will not reach net zero alone.
Alton Wong, MRICS
Executive Director, Head of Advisory Services, Valuation & Advisory Services, Greater China Co-head of Sustainability Services Cushman & Wakefield
Alton Wong, MRICS
Executive Director, Head of Advisory Services, Valuation & Advisory Services, Greater China Co-head of Sustainability Services Cushman & Wakefield
Alton is the Executive Director and Head of Advisory Services in the Valuation & Advisory Department, Greater China as well as Co-head of Sustainability Services, with over 16 years of experience in valuation and advisory services, particularly for due diligence, auditing, public document and financing purposes in Hong Kong, Mainland China and other Asia Pacific countries.
Leading the Greater China Advisory Services team, Alton provides valuation, feasibility and market study, market positioning, performance assessment, development advisory services etc., which covering different areas of alternative investments, including senior housing, logistics property, data centre and life science park.
He also has extensive experience in environmental, social and governance (ESG) advisory services, covering ESG ratings, Global Real Estate Sustainability Benchmark (GRESB), Task Force on Climate-related Financial Disclosures (TCFD), energy solutions, sustainable development, green/ wellbeing building certifications services etc. He is also our committee member of C&W’s Global Corporate Social Responsibility team.
Alton is also one of the drafting members of the HKIS Valuation Standards 2017 and 2020 editions.
Reference Guide on REITs and Infrastructure Trust Regulations and Taxation across APAC
REITs and Infrastructure Trusts have been gaining traction across Asia-Pacific. Many countries have begun to test waters by releasing their pioneer REITs. Philippines has launched their pioneer REIT in 2020, alongside UAE that released their first Green REIT, whilst China’s highly anticipated REIT pilot program finally came to fruition in June 2021, with the launch of the retail tranches of its first nine REITs all oversubscribed on its first day. China REITs are currently only backed by infrastructure assets packaged in a mutual fund structure, deliberately picked by authorities to spearhead the country’s recovery from the pandemic.
India made its debut for REITs with Blackstone and Embassy-sponsored Embassy Office Parks REIT getting listed on April 1, 2019 as India’s first Real Estate Investment Trust.
Two other REITs, the Raheja Group-backed Mindspace Business Parks REIT and more recently, Brookfield India REIT, have also debuted on the Indian stock exchanges. Together, these three REITs total approximately USD 7.5 billion of market capitalization and cover 86.0 million square feet of Grade-A commercial office space in India. India’s infrastructure investment trust (InvIT) market is growing leaps and bounds and stands at over USD 10billion and is expected to expand to over US$100 billion in the next five years, according to CRISIL Ratings.
The adoption of REITs will continue to accelerate with momentum in 2022 likely to be sustained by the region’s emerging markets. Thailand has already four in waiting. Philippines unveiled its first REIT at the height of the pandemic last year.
This reference guide covers REITs and Infrastructure Trust regulations and taxation in Australia, China, Hong Kong, India, Japan, and Singapore.
An increasing number of institutions, especially financial institutions, have started to disclose climate-related risks and opportunities in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
MSCI ESG Research LLC data and metrics can be used at the portfolio, sector and security level to support reporting on the four pillars of the TCFD recommendations: governance, strategy, risk management and metrics and targets.
Singapore Market Outlook H2 2022 (Cushman & Wakefield)
With Singapore’s economy in a position of strength, being forecasted to surpass pre-pandemic average annual growth numbers by growing 3.8% year-on-year in 2022, Cushman & Wakefield’s latest Singapore Market Outlook H2 2022 report expects the overall Singapore property market to see relatively strong but slower growth as investors seek out safe havens for wealth preservation and diversification amidst global uncertainties.
Asia Pacific ViewPoint – Landlords and Tenants Must Collaborate to Achieve Sustainability (CBRE)
With the pandemic now well into its third year, most office occupiers in Asia Pacific are displaying a clear shift towards embracing real estate strategies that recognise that COVID-19 is here to stay for the long-term.
Among these approaches are a sharper focus on wellness and sustainability in the workplace, with CBRE Asia Pacific’s 2022 Spring Office Occupier Survey finding that most tenants are implementing or at the very least considering a range of related initiatives.
This ViewPoint by CBRE Research expands upon the survey findings and identifies the main challenges and priorities facing landlords and investors as they look to respond to growing occupier demand for green buildings, leases and technologies.
Asia Pacific Investment Quarterly Q2/2022 (Savills)
CHINA
“The year got off to a challenging start in China with a slowing economy and continued debt crisis exacerbated by lockdowns. Liquidity crunches may force developers to accelerate disposals at discounted rates while interest rate cuts and reduced quarantine periods should make investments more attractive.” – James Macdonald, China
HONG KONG
“In Hong Kong investment sentiment has stabilised as the local epidemic situation has improved but plenty of caution remains. Investors are keen to look for value-add strategies including redevelopment and conversion.” – Simon Smith, Hong Kong
INDIA
“Private equity investment in life sciences research and development real estate in India has gained momentum since 2021 and we expect to see further growth in the segment, owing to favourable policies, a large workforce, and cost efficiencies.” – Arvind Nandan, India
INDONESIA
“Positive figures for the Indonesian economy combined with an improved pandemic situation has revived sentiment in the property market with some sectors seeing higher absorption levels. Despite this rental and price levels have remained under pressure during the first half of the year.” – Tommy Henria Bastamy, Indonesia
JAPAN
“Overall, the Japanese real estate market continues to attract interest from overseas investors, thanks partly to a much weaker Yen, while some remain concerned about inflation and interest hikes, and are taking a wait-and-see attitude.” – Tetsuya Kaneko, Japan
PAKISTAN
“Pakistan loses almost 40% of its agricultural output to a lack of proper storage facilities. New developments in warehousing and cold chain facilities are being driven by the demand for higher standards and sustainability goals led by exporting firms and logistics operators.” – Nadine Malik, Pakistan
MALAYSIA
“Transaction activity in Malaysia during the quarter has been underpinned by interest in both the industrial logistics sector as well as sales of development sites and operating assets. With a number of notable deals scheduled for completion in the second half, the outlook is optimistic.” – Nabeel Hussain, Malaysia
SINGAPORE
“Although transaction volumes in Singapore were lower in Q2/2022, the latent interest in our real estate remains very high.” – Alan Cheong, Singapore
SOUTH KOREA
“Despite the heightened burden on investors from the upsurge in unit prices and the base rate, core investors continue to drive activity in the office sector.” – JoAnn Hong, South Korea
TAIWAN
“A surge in COVID-19 cases and the risk of interest rate hikes in Taiwan have negatively affected buyer confidence with both land and commercial property market activity slowing in the second quarter.” – Erin Ting, Taiwan
THAILAND
“Retailers are refocusing on key retail districts and the second quarter saw activity from major international brands. Despite the absence of Mainland Chinese tourists, the luxury retail market is proving surprisingly resilient.” – Thanjira Wongsathirayakhun, Thailand
VIETNAM
“The first half of 2022 saw several macro prudential policies from the State Bank pushed forward. Not least is a review of foreign debt instruments, greater transparency around corporate bonds and a restriction in allocation of debt to real estate. Whist there may be some short term pain for exposed borrowers, the overall long term health of the property sector will be substantially improved.” – Troy Griffiths, Vietnam
Climate Positive, Proof Positive: Approaches and Rating and Benchmarking Systems for Sustainable Real Estate (Cushman & Wakefield Greater China)
Cushman & Wakefield Greater China’s report begins by considering and explaining what climate positive is and means. Secondly, the report looks at a number of selected climate-positive approaches for sustainable real estate. Thirdly, the report examines two proven rating and benchmarking systems that can go some way to help enterprises achieve their climate positive goals, and they are:
At the enterprise level – The Task Force on ClimateRelated Financial Disclosures (TCFD), and;
At the real estate level – The Global Real Estate Sustainability Benchmark (GRESB).
An Introduction to Responsible Investment – Real Estate (UN PRI)
This starter guide provides a quick summary of approaches to responsible investment for direct and indirect real estate investors. It outlines options for including ESG issues in the investment process, management of assets and the relationship between asset owner and investment manager.
Investing in real estate presents two key ESG considerations when compared with many other asset classes. Firstly, real estate is usually a long-term investment, allowing more time for material ESG issues to play out in ways that affect investors, the environment and society. Secondly, many ESG issues play out at a local level, for example extreme weather, water stress, legislative and/or regulatory requirements and community relations. Direct real estate investments are inextricably linked to a specific geographic location, making the incorporation of ESG issues particularly relevant.
Kemmu Kawai joined Longevity Partners Japan in September 2022 as the Country Director. Based in Tokyo, he oversees all operations and activities in Japan, the Asia-Pacific region and beyond. He brings him more than 16 years of experience in finance where he specialised in real estate and credit investments. Before joining Longevity Partners, he served as a Portfolio Manager at Norinchukin Bank and as Investment Manager at Center Point Development.
