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.

This report was originally published in https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-real-estate/5628.article