Impact Investing Paper
This short paper aims to clarify the role impact investing can play across the broad spectrum of real estate investments and explains the concepts, frameworks and tools that are currently used across asset classes.
In the last decade, ESG metrics have become a standard part of strategic decision making. More recently, beyond ESG INREV sees impact investing rising to the forefront and recognises that the real estate industry is increasingly paying attention to it. INREV is working on several initiatives around impact investing to help members better position themselves within a potential market.
INREV defines impact investing as investments made with the intention to generate positive, measurable social and/or environmental impact alongside a financial return (Please see impact investing terms at Global Definitions Database (GDD)). Additionality and intentionality are key factors of impact investing. For Real Estate, the social impact, for example, might occur through developing and providing affordable housing, social housing, healthcare or education units when there is a lack thereof or by using one of the UN SDGs as an impact theme. Furthermore, environmental impact can for example, be achieved by improvement in energy efficiency as a result of sustainable building investments.
Industry experts discussed the importance and drivers of impact investing, how to measure and report and identify the key challenges faced when looking for suitable impact products.
As real estate fund managers have become increasingly keen to provide suitable products to meet institutional investors’ demand for real estate impact investments, INREV’s ESG committee has taken steps to provide more clarity and consistency in this important area. Read full article
In 2019 there is a new addition to the INREV Committee roster – the ESG Committee. This replaces the former Sustainability and the Corporate Governance Committees, and will also take on a remit to cover additional social and governance issues – the ‘S’ and ‘G’ part of ESG. Read full article>
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