INREV GRESB Sustainability Report 2012 1
-
Upload
energiemedia -
Category
Documents
-
view
219 -
download
0
Transcript of INREV GRESB Sustainability Report 2012 1
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
1/27
SUSTAINABILITY REPORT 2012
INREV RESEARCH & MARKET INFORMATION
NOVEMBER 2012
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
2/27
INREV
STRAWINSKYLAAN 6311077 XX AMSTERDAM
THE NETHERLANDS
T +31 (0)20 799 39 60
WWW.INREV.ORG
INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. Our aim is to
improve the accessibility of non-listed real estate funds for institutional investors by promotinggreater transparency, accessibility, professionalism and standards of best practice.
As a pan European body, INREV represents an excellent platform for the sharing and dissemination
of knowledge on the non-listed real estate funds market.
Vereniging INREV
This document, including but not limited to text, content, graphics and photographs, are protected
by copyrights. You agree to abide by all applicable copyright and other laws as well as any
additional copyright notices or restrictions contained in this document and to notify INREV in
writing promptly upon becoming aware of any unauthorised access or use of this document by any
individual or entity or of any claim that this document infringes upon any copyright, trademark or
other contractual, statutory or common law rights and you agree to cooperate to remedy any
infringement upon any copyright, trademark or other contractual, statutory or common law rights.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
3/27
SUSTAINABIL ITY REPORT 2012
02
04
05
05
05
08
10
12
14
14
15
16
17
18
19
20
22
CONTENTS
EXECUTIVE SUMMARY
1 INTRODUCTION
2 METHODOLOGY AND SAMPLE
METHODOLOGY
SAMPLE
3 INDUSTRY PERFORMANCE
FOUR-QUADRANTMODEL
4 STRENGTHS AND WEAKNESSES
5 SUSTAINABILITY ASPECTS
MANAGEMENT
POLICYANDDISCLOSURE
RISKANDOPPORTUNITIES
ENVIRONMENTALMANAGEMENTSYSTEMS
PERFORMANCEINDICATORS
BUILDINGCERTIFICATION
SOCIALFACTORS
6 NEW DEVELOPMENTS
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
4/27
SUSTAINABIL ITY REPORT 2012
PAGE 02
EXECUTIVESUMMARY
TheresultsoftheGRESBSurveyshowthattheEuropeannon-listedpropertyfundsindustry
isstillfocusedonpolicyratherthanactionwhenitcomestosustainability.
ThesampleofINREVmemberfundsscoredonaverage37%inthesurvey,whichmeasured
fundsprogressacrossanumberofkeysustainabilityaspects.Thisresultwasinlinewiththe
globalnon-listedandtheoverallGRESBsamplesat39%and38%respectively.
Whenthisscoreisbrokendownintothetwofurtherdimensions,whichreectsanemphasis
onpolicyorimplementation,theINREVsamplescored55%and33%respectively,
demonstratingthattheindustrycontinuestobeinalearningandpreparationphasewhen
itcomestosustainability.
However,26fundsor12%oftheINREVsampleachievedaGreenStarrating,which
demonstratesbestpracticeinbothpolicyandimplementation.Thiscompareswith16%of
theglobalnon-listedsamplewhichwasawardedthesameratingand19%oftheoverall
sample,whichalsoincludeslistedpropertycompanies.
OneofthestrongestareasforINREVmembersisitscommitmentofseniormanagement
time.JustoverthreequartersoftheINREVsamplehasseniorrepresentationfor
sustainabilityonitshighestmanagementbody,outperformingtheaveragesforboththe
globalnon-listedandGRESBsamples.
Theindustrysstrongreportingethicalsocomesthroughinthesurveyresults.Around39%
oftheINREVsamplereportstotheirhighestmanagementbodyonsustainabilityon
aquarterlybasis,whichisinlinewiththeGRESBsample.However,afurther18.4%exceeded
thisbyreportingonamonthlybasis.For6.9%oftheINREVsample,thereiscurrentlynoregularreportingtothehighestboardonsustainability,whichismuchlowerthanthe
GRESBsampleof17%.
Afurtherexampleoftheindustrysgroundworktoimproveitssustainabilitypracticesisthe
highpercentageoffundswhichhavepoliciesinplacetomonitorandguideonenvironmental
issues.EnergyconsumptionandmanagementisthemainfocusfortheINREVsamplewith
81.6%havingapolicyonthisissue.Waterandwastemanagementarenextinlinewith
policiesinplacefor65.9%and65.4%respectively.Onthesetwoissues,theINREVsample
trailsslightlybehindglobalnon-listedandtheGRESBsamplelevels,whichare69.6%and
69.2%forwatermanagementrespectivelyand68.5%and69.2%forwastemanagement.
However,theINREVsamplecouldmakeimprovementswhenitcomestounderstandingthepossibleimpactofsustainabilitymeasures.TheINREVsampletrailedwhenitcameto
performingsustainabilityriskassessments.Forexample,thetopicofclimatechangerisksis
addressedbyonly30%oftheINREVsample.Themajorityofrespondentsfocusonood
risk,althoughsomearerethinkingacquisitionsanddisposalsbasedonthepotentialimpact
ofclimatechange.
Themostlikelyriskmonitoringisforregulatorychangesat58%.Thisisalsoahighpriority
fortheglobalnon-listedsampleat62%andtheGRESBsampleat64%.Thisisnotsurprising
asregulationhasdrivenmanyrecentsustainabilityinitiativesandfundsareobligedtocomply
sowillensuretheyareinformedofchanges.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
5/27
SUSTAINABIL ITY REPORT 2012
Regulationisalsolikelytohavebeenamaindriverwhenitcomestoachievingrecognised
buildingcerticatesthatprovidetenantsandinvestorswithtransparencyaboutapropertys
energyefciencyorsustainability.Around45%oftheINREVsamplesportfoliohadenergy
certicates,wellabovetheratesforglobalnon-listedat36%andtheGRESBsample
at34%.Thiscanbepartlyexplainedbythefactthatenergyperformancecerticatesare
obligatoryinmanyEuropeanjurisdictions.
ForcerticatesawardedbyorganisationssuchasLEEDandBREEAM,theresultsofthe
surveyshowthatjust10%oftheINREVsamplesportfolioshaveachievedcertication.
Thisisbelowtheglobalnon-listedandGRESBsamplesachievementsat14%.
TheINREVsampleforthissurveycomprised217fundswithagrossassetvalueof$257billion
(H201billion).Thetotalsamplesizeforthe2012GRESBsurveyis455respondentsglobally
representing$1,336billion(H1,046billion)inassetsundermanagement.Thisincludes359
non-listedpropertyfundsglobally,representing$651billion(H510billion).
PAGE 03
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
6/27
SUSTAINABIL ITY REPORT 2012
1
PAGE 04
INTRODUCTION
Aspartofitscommitmenttosupportingitsmemberstoimprovetheirsustainabilityefforts,
INREVisapartnerintheGlobalRealEstateSustainabilityBenchmark(GRESB),aglobal
consortiumofinstitutionalinvestorsandrealestateindustryassociationscommittedtoassessingthesustainabilityperformanceofrealestateportfolios.
OneofGRESBsmaininitiativesisitsannualsurvey,whichprovidesfocusanddirectionfor
therealestatesectorbybenchmarkingsustainabilityperformance.Theresultsprovidean
overviewofsustainabilityactivitiesandtrendsinglobalrealestateforboththepublicand
privatesector.
Thebenchmarkisnowusedbymorethan35institutionalinvestorstobetterunderstand
thesustainabilityoftheirinvestments.Thedataprovidesabaseforinvestorstohave
informeddiscussionswiththeirfundmanagersforexistinginvestmentsaswellassetting
parametersfornewinvestments.
In2012,455respondentscompletedthesurveywithatotalcoverageof$1,336billion
(H1,046billion)ofassetsundermanagement(AUM).Thisincluded359non-listedproperty
fundsglobally,ofwhich217werefromEurope.
INREVsupportedthissurveyandencourageditsmemberstoparticipatebycontributing
theirdata.Aspartofitspartnershipwiththeconsortium,GRESBsuppliedINREVwith
moredetailedinformationonthesampleofnon-listedpropertyfundsinthesurvey.This
reporttakesthatdataandanalysesthesustainabilityperformanceofthesefunds,with
aparticularfocusonEuropeannon-listedpropertyfunds,toprovidemoretailoredinfor-
mationandguidancetoourmembersonthistopic.
AcopyofthefullGRESBReportisavailableonINREVswebsiteatwww.inrev.org
INREVisalsoundertakingitsownsustainabilityinitiativeswithworkinthisareaguidedby
itsSustainabilityWorkingGroup.InJanuary2012,INREVreleaseditssustainabilityreporting
recommendationstohelpfundmanagersdeterminethedatatheyshouldbereportingto
investors.Theserecommendationsareinlinewiththeexistingmandatoryreportingrequire-
mentsandvoluntaryinitiatives,inparticulartheGlobalReportingInitiativesConstruction
andRealEstateSectorSupplement(GRICRESS).
In2013,INREVwillconsiderincorporatingtheserecommendationsintoitssetofindustry
standardsasitundertakesareviewoftheINREVGuidelines.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
7/27
SUSTAINABIL ITY REPORT 2012
METHODOLOGYANDSAMPLE
Methodology
ThequestionnairefortheGRESBsurveycapturesalmost50datapointsmeasuringsustain-ability,includingenvironmentalandsocialfactors.Thisincludesenvironmentalperformance
indicatorssuchasenergyconsumption,greenhousegasemissions,waterconsumptionand
wasteaswellassustainabilityprocessesandpracticessuchaspolicies,riskassessmentsand
socialindicators.
Theanswerstothesequestions,whicharecollectedviaasecureonlineplatform,aredivided
intosevensub-aspects.Thereisanadditionalcategoryaddedforpropertycompaniesand
fundswithdevelopmentactivities,whichisnotincludedinthetotalGRESBscore.Thescores
fortheindividualquestionsarebasedontheirrelevancetoinvestorsandthenaddedupto
generateatotalGRESBscorefortherespondent,whichisexpressedasapercentageofthe
maximumscore.
ThetotalGRESBscoreisfurtherdividedintotwodimensions:ManagementandPolicy
(MP),whichhasaweightofaboutone-third,andImplementationandMeasurement(IM),
whichisabouttwothirdsofthetotalscore.Thesetwodimensionsaimtocaptureboth
respondentsintentionsandactionswithintheaspects.Eachindividualquestionisallocated
tooneofthedimensions,andthescoresonMPandIMarereectedasapercentageof
thetotalscore.
Thebenchmarkssetthroughthesurveyquestionsaredesignedtohighlightreducedopera-
tionalexpendituresandlowerconsumptionlevelsthataredrivenbyimprovedsustainability
practices.Thesurveyillustratesnotonlythemitigationofclimatechangeorotherenviron-
mentalthreats,butalsotheaccompanyingreducedriskandimprovednancialperformanceofrealestateinvestments.
Sample
Thetotalsamplesizeforthe2012GRESBsurveyis455respondentsgloballyrepresenting
anAUMof$1,336billion(H1,046billion).Thisincluded359non-listedpropertyfunds
globally,ofwhich217werefromEurope.Thenon-listedpropertyfundssampleglobally
represents$651billion(H510billion),ofwhich$257billion(H201billion)isinEurope
(Table01,page06).Thelargestproportionofnon-listedpropertyfundsfromoutsideEurope
comefromtheUSwithgoodrepresentationsfromAsiaandOceania.Theguresused
inthisreportareslightlydifferenttothoseinthereportpublishedbyGRESBinSeptember.Thisisbecauseitcontinuedtoacceptdataandaddedanother12fundstothesample,
includingsixfurtherEuropeannon-listedpropertyfunds.
Forthereport,theEuropeannon-listedpropertyfundssampleof217fundswillbereferred
toastheINREVsample,asallbuttwofundsaremanagedbyINREVmembers.Theoverall
non-listedpropertyfundssamplewillbereferredtoastheglobalnon-listedsamplewhile
theGRESBsamplereferstothetotalsurveyrespondents.
2
PAGE 05
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
8/27
PAGE 06
SUSTAINABIL ITY REPORT 2012
By sector, the largest proportion o the INREV sample by number is diversifed unds at
29%, which is reective o the large number o multi-sector unds in the market (Figure 01).
This is ollowed by ofce and retail, the two most traditional sectors, at 22% and 20%
respectively.
Figure 02 shows the gross asset value (GAV) o the 217 unds in the INREV sample broken
down by the sector in which they are invested. This shows that ofces and retail represent
around one third each at 33.4% and 34% respectively. The fgure shows a urther break
down in the types of retail with shopping centres being the largest proportion at 17.8%.
Investment in residential is also signifcant at 13.3%.
FIGURE 02 / SECTOR BREAKDOWN FOR THE INREV SAMPLE, BY GAV
23.4
45.9
18.4
86.1
16.4
8. 4
34.2
4. 7
3.1 16.9
RETAIL HIGH STREET
RETAIL SHOPPING CENTRES
RETAIL WAREHOUSING
OFFICE
DISTRIBUTION WAREHOUSES
OTHER INDUSTRIAL
RESIDENTIAL
HOTELS
HEALTHCARE
OTHER
SOURCE: GRESB
TOTAL: $257 BILLION
FIGURE 01 / SECTOR BREAKDOWN FOR THE INREV SAMPLE, BY NUMBER
# FUNDS
44
47
20
25
4
11
64
2
RETAIL
OFFICE
INDUSTRIAL
RESIDENTIAL
HEALTHCARE
OTHER
DIVERSIFIED
NEW DEVELOPMENTS
SOURCE: GRESB
TOTAL GAV($ BILLION)
NUMBER OFRESPONDENTS
1,336
65 0
25 7
TOTAL GAV(L BILLION)
1,046
51 0
20 1
45 5
35 9
21 7
TABLE 01 / SAMPLE SIZE
GRESB SAMPLE
GLOBAL NON-LISTED SAMPLE
INREV SAMPLE
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
9/27
PAGE 07
SUSTAINABIL ITY REPORT 2012
Inmanycases,theINREVsamplesperformancewillbecomparedwiththatoftheglobal
non-listedsampleaswellastheGRESBsample.Thisglobalnon-listedsamplecomprises61%
Europeanfundsand39%non-EuropeanwhiletheGRESBsamplecomprises79%non-listed
propertyfundsand21%listedpropertycompanies.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
10/27
PAGE 08
SUSTAINABIL ITY REPORT 2012
3 INDUSTRYPERFORMANCE
Theresultsofthesurveyallocatedanoverallaveragescoreforeachparticipant,whichis
expressedasapercentageofthemaximumscore.Inaddition,thistotalscoreisdividedinto
twodimensionsManagementandPolicy(MP)andImplementationandMeasurement(IM)whichwereawardedaratingofaroundonethirdandtwothirdsrespectively.
TheresultsfortheINREVsampleshowthatthebalanceofactivitieswithinsustainability
isstillweightedtowardsMPratherthanIP.Overall,theINREVsamplescoredonaverage
37%,whichwasinlinewiththeglobalnon-listedandGRESBsamplesat39%and38%
respectively(Figure03).
However,withthebreakdownintothetwofurtherdimensions,theINREVsamplescored
55%onaverageforMPand33%forIM.Whilethisshowsanemphasisonpolicyrather
thanaction,itisnotdissimilartothetwoothersamples,bothofwhichscored55%forMP
withglobalnon-listedscoring32%forIMwhiletheGRESBsamplescored33%.
ThisfocusonpolicyisalsohighlightedinFigure04(page09)whichshowsthatformanage-
mentofenergy,greenhousegasandwater,morefundshavepoliciesinplacecompared
withmeasuringperformance.Thelargestgapisforenergymanagementwith82%having
apolicyinplacecomparedwith59%measuringperformance.
FIGURE 03 / OVERALL SCORES AND FOCUS ON POLICY AND IMPL EMENTATION
0% 10% 20% 40%30% 50% 60%
MANAGEMENTAND POLICY
IMPLEMENTATION
AND MEASUREMENT
OVERALL SCORE
SOURCE: GRESB
GLOBAL
NON-LISTED
SAMPLE
INREV SAMPLE
GRESB SAMPLE
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
11/27
PAGE 09
SUSTAINABIL ITY REPORT 2012
However,theindustryismakingprogressas26%showedimprovementsthroughreduced
consumptionforenergymanagementcomparedwiththe2010-2011resultswithanother
26%havingtargetsinplace.Forgreenhousegasandwatermanagement,theprogressis
slowerbutstillrespectablewith18%and15%showingimprovementsrespectivelywith
similarproportionsputtinginplacetargets.
Figure05showsthesameresultsfortheGRESBsample.Theseshowfewdifferencescom-
paredwiththeINREVsampleotherthanaslightlystrongerfocusonwatermanagement.
FIGURE 05 / OVERVIEW OF GRESB SAMPLE FOR ENVIRONMENTAL MANAGEMENT
ENERGY
MANAGEMENT
GREENHOUSE GAS
MANAGEMENT
WATER MANAGEMENT
0% 20% 60%40% 80% 100%
POLICY IN PLACE
PERFORMANCE
MEASURED
SHOWN
IMPROVEMENT
(2010 2011)
TARGET SET
SOURCE: GRESB
FIGURE 04 / OVERVIEW OF INREV SAMPLE FOR ENVIRONMENTAL MANAGEMENT
0% 20% 60%40% 80% 100%
POLICY IN PLACE
PERFORMANCE
MEASURED
SHOWN
IMPROVEMENT
(2010 2011)
TARGET SET
SOURCE: GRESB
ENERGY
MANAGEMENT
GREENHOUSE GAS
MANAGEMENT
WATER MANAGEMENT
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
12/27
PAGE 10
SUSTAINABIL ITY REPORT 2012
Four-quadrantmodel
Toshowthedistributionoftheoverallscoresforthesample,theGRESBsurveyalsoincludes
afour-quadrantmodelofsustainabilityperformance,whichratesafundorpropertycompany
onitsprogressintwodimensions.Thiscomprisestheprogressafundorcompanyshows
fromGreenStartertoGreenStarsaswellaswhetheritsactivitiesdisplayactionratherthandiscussion,makingthemGreenTalkorGreenWalk.Thefourendsofthespectrumare
denedas:
GREENSTARTERS:Havestartedtodevelopsomesustainabilitypolicies,butshowlimited
organisationalfocus.Environmentalinitiativesarenotyetfullyimplementedandmeasured
acrosstheentireportfolio.Nocomprehensivemeasurementofenvironmentalkeyperfor-
manceindicators.
GREENTALK:Dedicatedresourcesforsustainabilitymanagement,comprehensiveexternal
reporting,sustainabilityimplementationplanshavebeendeveloped.Moreattentionshould
begiventowardstheimplementationandmeasurementoftheseactionplans.
GR EE N WA LK :Integrationofsustainabilitypoliciesandmeasurementofenvironmental
keyperformanceindicators,butlimitedreporting,andalackofformalpoliciesandproce-
dures.Externalstakeholdersexpectastrongerfocusontransparency.
GREENSTARS:Integratedorganisationalapproachtowardsmeasurementandmanage-
mentofenvironmentalkeyperformanceindicators.Focusonreductionofresourcecon-
sumption,andinnovationinmeasuresbeyondenergyefciency,(eg,productivity,tenant
behaviour).
ThedistributionoftheINREVsampleinFigure06showsthatrespondentsarestillmore
talkthantheyarewalkwhenitcomestosustainability.Thismeansthatmanyhave
policiesandmeasurementinitiativesinplacebutcouldworkhardertoformalisetheseand
provideinvestorswithmoretransparency.Thisinlinewithglobalnon-listedandthe
performancetheGRESBsample,demonstratingthatthewholeindustryisstillinalearning
phasewhenitcomestosustainability.
10 0
80
60
40
20
0
FIGURE 06 / FOUR-QUADRANT MODEL
0 20 6040 80 100
INREV SAMPLE AVERAGE
INREV SAMPLE
GRESB SAMPLE AVERAGE
MANAGEMENT & POLICY
IMPLEM
ENTATION&
MEASUREMENT
GREEN WALK GREEN STARS
GREEN STARTERS GREEN TALK
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
13/27
PAGE 11
SUSTAINABIL ITY REPORT 2012
However,thisratingapproachalsosaw12%,or26funds,intheINREVsampleachieve
GreenStarstatus.Thiscompareswith16%oftheglobalnon-listedsampleawardedthe
sameratingand19%oftheGRESBsampleincludinglistedpropertycompanies.This
showsthatINREVperformsinlinewiththeglobalsampleandslightlybelowthesample
whichincludeslistedpropertycompanies.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
14/27
PAGE 12
SUSTAINABIL ITY REPORT 2012
4 STRENGTHSANDWEAKNESSES
TheGRESBreportbreaksdownsustainabilityintosevenmainaspectsaswellasnew
development,whichisincludedwhereappropriateforthefundorpropertycompany.
Figure07showstheINREVandGRESBsamplesoverallperformanceintheseareasonawebgraph.Thefactthattheshapesforthetwosamplescloselymirroreachotherdemon-
stratesthattheINREVsampleisinlinewiththeoverallsurveyresults.Themainareasof
differenceareinnewdevelopmentandperformanceindicators,wheretheGRESBsample
scoresslightlyhigher.
FIGURE 07 / SUSTAINABILITY STRENGTHS AND WEAKNESSES
%
GRESB INREV
MANAGEMENT
POLICY & DISCLOSURE
ENVIRONMENTAL MANAGEMENT
RISK & OPPORTUNITIES
PERFORMANCE INDICATORS
BUILDING CERTIFICATIONS
SOCIAL FACTORS
NEW DEVELOPMENTS
SOURCE: GRESB
FIGURE 08 / SUSTAINABILITY STRENGTHS AND WEAKNESSES, BY SECTOR
%
RETAIL OFFICE INDUSTRIAL RESIDENTIAL DIVERSIFIED
MANAGEMENT
POLICY & DISCLOSURE
ENVIRONMENTAL MANAGEMENT
RISK & OPPORTUNITIES
PERFORMANCE INDICATORS
BUILDING CERTIFICATIONS
SOCIAL FACTORS
NEW DEVELOPMENTS
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
15/27
PAGE 13
SUSTAINABIL ITY REPORT 2012
WhenlookingattheresultsfortheINREVsampleonasectorbasis,thereareclearer
differences(Figure08).Theofcessectorscoreshigherforenvironmentalmanagement
systems,riskmanagement(RisksandOpportunities)andmanagement.Retailisalsoscores
highlyinmanagementbutoutperformsofcesforitsperformanceindicatorsandsocial
factors.
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
16/27
PAGE 14
SUSTAINABIL ITY REPORT 2012
5 SUSTAINABILITYASPECTS
Management
Forsustainabilitytoachieveresults,itrequiresthecommitmentofseniormanagementanddedicatedindividualswithfundteams.
Figure09showsthat76%oftheINREVsamplehasseniorrepresentationforsustainability
onmanagementbodies.ThismeansthattheINREVsampleoutperformsboththeaverages
forglobalnon-listedandtheGRESBsample.
TheINREVsampleisalsoinlinewithglobalnon-listedandtheGRESBsampleswhenitcomes
tocommittingdedicatedresourcestosustainabilitywithinfunds.In89%oftheINREVsample,
thereisatleastapart-timeroleresponsibleforsustainabilitywhichmatchestheGRESB
sampleaverageof89%andcompareswith90%fortheglobalnon-listedsampleaverage.
FIGURE 09 / MANAGEMENT ENGAGEMENT AND DEDICATED RESOURCES FOR SUSTAINABILITY
SENIOR DECISION MAKER
ON SUSTAINABILITY IS
MEMBER OF HIGHEST
MANAGEMENT BODY
SOMEONE INTERNALLY
(AT LEAST PART-TIME)
IS RESPONSIBLE FOR
SUSTAINABILITY
0% 20% 60%40% 80% 100%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
SOURCE: GRESB
FIGURE 10 / FREQUENCY OF REGULAR SUSTAINABILITY PERFORMANCE UPDATES TO
HIGHEST MANAGEMENT BODY
0% 10% 30%20% 40% 50%
MONTHLY
QUARTERLY
BI-ANNUALLY
ANNUALLY
OTHER
NONE
SOURCE: GRESB
INREV SAMPLE
GRESB SAMPLE
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
17/27
PAGE 15
SUSTAINABIL ITY REPORT 2012
TheINREVsampleismostlikelytoreporttotheirhighestmanagementbodyonsustain-
abilityonaquarterlybasis,accordingto39.6%ofrespondents(Figure10).Thisislikelyto
beinlinewithafundsregularquarterlyreportingtoinvestors.ThisissimilartotheGRESB
surveywhere38%ofrespondentsalsoworktoaquarterlycycle.Afurther18.4%ofthe
INREVsampleexceededthisbyreportingonsustainabilityonamonthlybasis.For6.9%,
thereiscurrentlynoregularreportingtothehighestboardaboutsustainability,whichismuchlowerthantheGRESBsampleof17%.
Policyanddisclosure
Inseekingtoadoptbettersustainabilitypractices,theINREVsamplehasputinplacepolicies
tomonitorandguideonenvironmentalissues.Figure11showsthatenergyconsumption
andmanagementhasbeenthemainfocusfortheINREVsamplewith81.6%havingapolicy
onthisissue.Waterandwastemanagementarethenextmostlikelyissuesforfundsto
putpoliciesinplaceat65.9%and65.4%respectively.Here,theINREVsamplefallsslightly
behindglobalnon-listedandtheGRESBsamplelevelswhichare69.6%and69.2%forwater
managementrespectivelyand68.5%and69.2%forwastemanagement.
Thelowestpriorityisclimatechangeadaption,whichisonlyaddressedwithapolicyby28.1%
oftheEuropeanfundssample.However,thisisinlinewithglobalfundsandsurveysamples.
Itisimportantforfundstodisclosetheirsustainabilityperformancetransparentlyandfully
toinvestors.Figure12(page16)showsthattheINREVsampleisatleastinlinewithaverage
disclosuresforglobalnon-listedandtheGRESBsampleandinmanycasesisoutperforming.
At61.8%,thegreatestproportionofrespondentsincludesadedicatedsectionontheir
corporatewebsite,whichisinlinewiththesurveytotalandslightlyabovethe56.8%average
forglobalnon-listed.
At53.9%,theINREVsampleisaheadofitsglobalcounterpartswhenitcomestoproducing
stand-alonecorporatesustainabilityreports.Thiscompareswith48.5%forglobalnon-listed
and46.2%fortheGRESBsample.
FIGURE 11 / POLICIES IN PLACE TO COVER SPECIFIC ENVIRONMENTAL ISSUES
ENERGY CONSUMPTION /
MANAGEMENT
0% 20% 60%40% 80% 100%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
GREENHOUSE GAS (GHG)
EMISSIONS / MANAGEMENT
WATER CONSUMPTION /
MANAGEMENT
WASTE MANAGEMENT
CLIMATE CHANGE
ADAPTATION
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
18/27
PAGE 16
SUSTAINABIL ITY REPORT 2012
TheonlyareainwhichtheINREVsampledippedbelowtheaverageforglobalnon-listed
wasforaseparatedisclosuresectioninfundreportingtoinvestors.Theproportionwasstill
goodat43.3%butcompareswith45.1%forglobalnon-listedandtheGRESBsampleat
38.7%.INREVreleaseditssustainabilityreportingrecommendationsinJanuary,whichnow
providestheindustrywithbetterguidanceonwhatinformationtoreporttoinvestors.
Riskandopportunities
Whilesustainabilitymeasurescansupportimprovedperformance,Europeanfundsalsoneed
tostayinformedaboutpotentialriskssuchasthroughclimatechangeorregulation.This
meansthatregularriskassessmentsneedtobeputinplacetomonitortheimpactonthe
propertyportfolio.
FIGURE 12 / FORMATS IN WHICH SUSTAINABILITY PERFORMANCE AND STRATEGY IS
REPORTED TO INVESTORS
SECTION IN ANNUAL
REPORT AND ACCOUNTS
0% 30%20 %10% 50%40% 60% 70%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
STAND-ALONE CORPORATE
SOCIAL RESPONSIBILITY
OR SUSTAINABILITY
REPORT
INTEGRATED REPORT
DEDICATED SECTION ON
CORPORATE WEBSITE
SECTION IN FUND
REPORTING TO INVESTORS
SOURCE: GRESB
FIGURE 13 / RESPONDENTS WHO HAVE PERFORMED SUSTAINABILITY RISK ASSESSMENTS
ON STANDING INVESTMENTS IN THE LAST THREE YEARS
CLIMATE CHANGE RISKS
0% 20% 40% 60% 80%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
OCCUPATIONAL RISKS
FINANCIAL RISKS
REGULATORY RISKS
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
19/27
PAGE 17
SUSTAINABIL ITY REPORT 2012
Figure13showsthattheINREVsampleistrailingwhenitcomestoperformingsustainability
riskassessments.Assessingclimatechangerisksisaddressedbyonly30%oftheINREV
sample.However,thisisalsothelowestpriorityforglobalnon-listedandtheGRESBsample
at34%and36%respectively.Themajorityofrespondentsfocusonoodrisk,althoughsome
arerethinkingacquisitionsanddisposalsbasedonthepotentialimpactofclimatechange.
Themostlikelyriskmonitoringisforregulatorychangesat58%.Thisisalsoahigherpriority
fortheglobalnon-listedsampleat62%andtheGRESBsampleat64%.Thisisnotsurprising
asregulationhasdrivenmanyrecentsustainabilityinitiativesandfundsareobligedtocomply
sowillensuretheyareinformedofchanges.
Opportunitiescanbefoundthroughtheefciencyofenergyandwateruseinpropertyport-
foliostoimproveoperationalperformance.At52%,aroundonehalfoftheINREVsample
hasanefciencyprogrammeinplaceforenergyand38%forwater(Figure14).Inbothcases,
thesearelowerthanfortheglobalnon-listedsampleortheGRESBsample.Forexample,
59%ofallrespondentshaveanenergyefciencyprogrammecomparedwith52%forthe
INREVsample.ThiscouldbeduetothehighnumberofAustralianandNorthAmerican
respondentswhichtendtobefocusedonimplementingmeasurement.
EnvironmentalManagementSystems
Environmentalmanagementssystemscanenablefundstomonitorsustainabilitydata,review
systemsandbettermanagesustainabilityperformanceattheassetlevel.However,theresults
fromthesurveyshowthatthesesystemsarestillnotcommonplace.At46%,theINREV
samplehasthelowestuseofthemcomparedwithglobalnon-listed at48%andtheGRESB
sampleat50%(Figure15).
FIGURE 14 / EFFICIENCY PROGRAMMES IN PLACE FOR ENERGY AND WATER
ENERGY
0% 10% 40%30 %20% 50% 70%60 %
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
WATER
SOURCE: GRESB
FIGURE 15 / ENVIRONMENTAL MANAGEMENT SYSTEMS IN PLACE AT ASSET LEVEL
INREV SAMPLE
0% 45% 47% 49%44% 46% 48% 51%50 %
GRESB SAMPLE
GLOBAL
NON-LISTED
SAMPLE
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
20/27
PAGE 18
SUSTAINABIL ITY REPORT 2012
Thescopeoftheenvironmentalmanagementsystemswasalsoanalysedwiththelargest
proportionoftheINREVsampleat62.7%monitoringenergyconsumptionfollowedby
waterconsumptionat54.4%andwastemanagementat53%(Figure16).Healthandsafety
fortheusersoftheassetswastheonlyfactorwhichtheINREVsampleincorporatedmore
frequentlyintheirsystemscomparedwithglobalnon-listedortheGRESBsample.
Performanceindicators
Withmanypoliciesinplace,itisalsointerestingtounderstandwhichaspectsofsustainability
respondentsarecollectinginformationon.Dataonenergyuseiscollectedby58.5%ofthe
INREVsampleand60%oftheGRESBsamplemakingitthemostlikelyaspecttomonitor.
DataonwaterismonitoredbyalmosthalfoftheINREVsampleat48.8%butaswithwaste,
theguresfortheGRESBsampleareslightlyhigher.Again,thismaybelinkedtothesample
compositionwithparticipantsfromAmericaandAustraliaquitefocusedondatacollection.
FIGURE 16 / SCOPE OF ENVIRONMENTAL MANAGEMENT SYSTEM
ENERGY CONSUMPTION /
MANAGEMENT
0% 30%20 %10% 50%40% 60% 70%
INREV SAMPLE
GLOBAL
NON-LISTEDSAMPLE
GRESB SAMPLE
WATER CONSUMPTION /
MANAGEMENT
GHG EMISSIONS /
MANAGEMENT
WASTE MANAGEMENT
HEALTH AND SAFETY OF
USERS OF THE ASSETS
BUSINESS TRAVEL
SOURCE: GRESB
FIGURE 17 / DATA COLLECTION FOR ENERGY, WASTE AND WATER
INREV SAMPLE
GRESB SAMPLE
0% 10% 20% 40%30% 50% 70%60%
ENERGY
WATER
WASTE
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
21/27
PAGE 19
SUSTAINABIL ITY REPORT 2012
Forthecollectionofenergy,thisgurehasbeenbrokendownfurthertounderstandthe
limitationsduetoafundmanagersaccesstotheportfolio.ForthepartoftheINREVsamples
portfoliothatisalsomanagedbythefundmanager,dataiscollectedon34.6%ofthis.This
ismuchlowerthanthe48.6%forGRESBsample.Whenlookingattheportfoliosasawhole,
dataiscollectedon30.3%comparedwith32.5%oftheGRESBsamplestotalportfolio.
Buildingcertification
Buildingcerticatesprovidetenantsandinvestorswithtransparencyaboutapropertys
energyefciencyorsustainability.WhilecerticatesawardedbyorganisationssuchasLEED
andBREEAMaregainingmorevisibility,theresultsofthesurveyshowthatjust10%ofthe
INREVsamplesportfolioshaveachievedcertication(Figure18).Thisisbelowtheachieve-
mentsoftheglobalnon-listedandGRESBsamplesat14%.
WhenitcomestotheproportionofenergycerticatesintheINREVsample,thegurerises
to45%,whichisabovetheratesforglobalnon-listedat36%andtheGRESBsampleat34%.
Thiscanbepartlyexplainedbythefactthatenergyperformancecerticatesareobligatory
inmanyEuropeanjurisdictions.
BREEAMisthemostwidelyusedcerticateintheINREVsampleat79.1%,whichcanbe
partlyexplainedbyitsBritishorigins(Figure19,page20).ThisisfollowedbyLEED,theUS
certicationbody,at20.3%.TheresultsalsoshowthatLEEDismuchmoreinuentialoutside Europeasitcomprises62%oftheGRESBsamplescerticates.
PERCENTAGE OF GREEN
CERTIFICATES WITHIN
PORTFOLIOS
PERCENTAGE OF
ENERGY CERTIFICATES
WITHIN PORTFOLIOS
0 % 10% 30 %20 % 40 % 5 0%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
FIGURE 18 / PERCENTAGE OF SUSTAINABILITY CERTIFICATES WITHIN PORTFOLIOS
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
22/27
PAGE 20
SUSTAINABIL ITY REPORT 2012
Socialfactors
Thesocialfactorsinvolvedinsustainabilityaremuchhardertodeneandmeasurethan
environmentalfactors.However,thisisbeginningtoberecognisedbyfunds,particularly
throughtenantengagementasexistingandpotentialoccupiersexpectstronglevelsof
commitmenttosustainability.
Figure20showsthatthemostpopularmethodoftenantengagementbytheINREVsample
wasthroughmeetingtenantstodiscusssustainabilityissuesat36.9%.Thiswasfollowedby
tenantsatisfactionsurveysat33%,whichdespitetheirhighrankingaremorecommoninthe
globalnon-listedsampleat40%andtheGRESBsampleat43%.
INREV SAMPLE
GRESB SAMPLE
0% 20% 60%40% 80% 100%
LEED
BREEAM
GREEN STAR
CASBEE
FIGURE 19 / TYPE OF GREEN BUILDING CERTIFICATES ACHIEVE
SOURCE: GRESB
FIGURE 20 / TENANT ENGAGEMENT INITIATIVES ON SUSTAINABILITY
ENGAGAMENT MEETINGSTOOK PLACE
0% 30%20 %10% 40% 50%
INREV SAMPLE
GLOBAL
NON-LISTED
SAMPLE
GRESB SAMPLE
TENANT SATISFACTION
SURVEYS
GREEN LEASES
INTRODUCED
SUSTAINABILITY GUIDE
DISTRIBUTED
HEALTH AND AND
WELL-BEING PROGRAMME
IMPLEMENTED
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
23/27
PAGE 21
SUSTAINABIL ITY REPORT 2012
Therewasastrongcommitmenttoensuresuppliersmetsustainabilitycriteriawith41%
oftheINREVsamplehavingguidelinesinplace(Figure21).Thiswasjustbelowtheglobal
non-listedandGRESBsamplesat45%.
FIGURE 21 / RESPONDENTS WITH SUSTAINABILITY CRITERIA FOR SUPPLIERS IN PLACE
0% 43% 45%39% 44%41 %40% 42% 46%
GRESB SAMPLE
GLOBAL
NON-LISTED
SAMPLE
INREV SAMPLE
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
24/27
PAGE 22
SUSTAINABIL ITY REPORT 2012
6 NEWDEVELOPMENTS
Forthisyearsreport,abenchmarkhasbeendevelopedinwhichthesustainabilityperfor-
manceofportfoliosofnewdevelopmentsiscomparedwithintheirpeergroup.
TheINREVsample,whichcomprised48funds,had221newdevelopmentsvaluedat
$13,297billion.TheGRESBsamplehadnewdevelopmentsvaluedat$86,204billion.
Figure22showsthat30.8%ofnewdevelopmentsintheINREVsamplecompletedin2011
gainedgreenbuildingratings.ThisismuchhigherthantheGRESBsample,whichachieved
21.9%.However,at36.9%,theGRESBsamplehasmoregreencerticationinthepipeline
foritsnewdevelopmentscomparedwiththeINREVsampleat30.3%.
Thesurveyalsoaskedaboutthesourcinganduseofsustainablematerials.Figure23
showsthathalfoftheINREVsampleinvestigatesusinglocalmaterials,whichislowerthan
theGRESBsampleat67%.ThemajorityoftheINREVsampletakesresponsibility
toincorporatesustainablematerialswith68.8%havingalistofpreferredmaterialsand
64.6%alsoworkingwithablacklistofmaterialstobeavoided.Theblacklistisseenasless
importantintheGRESBsamplewith45.6%puttingoneinplacebutthisgroupismuch
moreproactivewhenitcomestorecyclingmaterialsat69.8%comparedwiththeINREV
sampleat45.8%.
ACHIEVED ON BUILDINGS
COMPLETED IN 2011
EXPECTED FOR BUILDINGS
TO BE COMPLETED IN
2012 AND BEYOND
0% 10% 30%20% 40%
INREV SAMPLE
GRESB SAMPLE
FIGURE 22 / GREEN CERTIFICATES ACHIEVED OR EXPECTED FOR NEW DEVELOPMENTS
SOURCE: GRESB
INREV SAMPLE
GRESB SAMPLE
0% 20% 60%40% 80%
CONSIDERS SOURCING
AND USING LOCAL
MATERIALS
WORKS WITH PREFERRED
LIST OF SUSTAINABLE
MATERIALS
HOLDS BLACKLIST OF NON-
SUSTAINABLE MATERIALS
TO BE AVOIDED
CONSIDERS USE OF
RECYLED MATERIALS
FIGURE 23 / USE OF MATERIALS IN CONSTRUCTION PROJECTS
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
25/27
PAGE 23
SUSTAINABIL ITY REPORT 2012
Figure24showsthatthetakeupofrenewableenergysourcesisverylowamongprojects
withintheINREVsample.Photovoltaiccellsarethemostpopularadditionat6.21%while
2.6%haveincorporatedsolarpowerwhilenorespondentshavelookedatwindpower.Take
upwithintheGRESBsampleisalsolowwith4.82%incorporatingsolarpowerand9.06%
includingphotovoltaiccells.
Whenundertakingnewdevelopments,Figure25showsthatrenewableenergyisagain
lowonthelistofprioritieswithonly9.2%oftheINREVsampleincorporatinginitiativeson
thisfrontand21%lookingatwatersavingschemes.ThisisinlinewiththeGRESBsample
at9.70%forrenewableenergybutbelowthe34%forwatersavinginitiatives.
However,understandingtheimpactofsustainabilityinnewprojectsismuchhigheron
theINREVsamplesprioritieswith68.75%undertakingriskassessmentsforsustainability
(Figure26,page24).ThisisslightlyhigherthantheGRESBsampleat66.87%
FIGURE 24 / CONSTRUCTION PROJECTS THAT INCORPORATE ENERGY FROM RENEWABLE
RESOURCES
INREV SAMPLE
0% 2% 4% 6% 8% 10%
SOLAR
WIND
PHOTOVOLTAIC
GRESB SAMPLE
SOURCE: GRESB
RENEWABLE
ENERGIES
WATER SAVING
INITIATIVES
0% 10% 30%20% 40%
INREV SAMPLE
GRESB SAMPLE
FIGURE 25 / SUSTAINABILITY INITIATIVES USED IN CONSTRUCTION PROJECTS
SOURCE: GRESB
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
26/27
PAGE 24
SUSTAINABIL ITY REPORT 2012
PERCENTAGE OF
PORTFOLIO INCLUDED IN
SUSTAINABILITY RISK
ASSESSMENT
0% 66% 66.5%65.5% 68%67% 69%68.5%67.5%
INREV SAMPLE
GRESB SAMPLE
SOURCE: GRESB
FIGURE 26 / SUSTAINABILITY RISK ASSESSMENTS UNDERTAKEN IN CONSTRUCTION
PROJECTS
-
7/30/2019 INREV GRESB Sustainability Report 2012 1
27/27