Responsible property investment : making a difference
Plimmer, Frances
Corporate responsibility (or corporate social responsibility) is seen to be a growing force within the corporate community, with a range of policy statements available and reports into how these aspirations are being put into practice. Indeed, since July 2000, private sector pension trustees in the UK are required to report on how they take into account social, environmental and ethical considerations when they make investment decisions. Clearly, sustainability issues (however these are defined) underpin this movement. While much has been published on the efforts to achieve a sustainable built environment through a range of development-related processes, it is only in recent years that any interest has been shown in the property investment community (and, indeed, the investment community in general). Yet it is clear that the funders of development and property acquisition are in a powerful position to influence sustainability through their operations. Thus, a socially and environmentally aware developer-occupier has the potential to reflect sustainability principles in the various investment and development choices involved in securing an appropriate property. But where the investor or the investment advisor is more remote from the asset and particularly for those large-scale investors competing for funds in the general investment market and looking for returns for their shareholders, what opportunities are there if the investor stakeholders have social or environmental concerns or are seeking to demonstrate, through investment, their socially responsible credentials?
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