How will Impact Investing affect Real Estate Fund Managers?
The Association of Real Estate Funds ESG & Social Impact Investing Committee recently launched The AREF ESG 5 Year Roadmap, in collaboration with Carbon Intelligence.
This series features six exclusive short films that explain when you will be affected by incoming regulation or market change and how you can prepare. There will be leaders and laggards in the race to zero and those who embrace responsible investing will come out on top.
This video features Sarah Teacher, Executive Director, Impact Investing Institute and Ann Xu, Senior Associate at CBRE Global Investors
Key Takeaways from the Impact Investing Institute
- Impact investments are made with an explicit intention to generate positive, measurable social and environmental impact alongside a financial return
- Impact investing does not mean sacrificing financial return
- In 2020 the global impact investing market was estimated to be at $715bn up from $502bn in 2019
- Winning funds will be those as adept in speaking in assets and yields, as they are in impact language
Key Takeaways from CBRE Global Investors
There are three key principles
- Intentionality – be clear and establish your impact themes, don’t retrospectively convert
- Additionality – think about the output/outcomes from actions. Use the Impact Management Project Framework to establish key metrics, KPIs, target groups and time frame
- Measurement – integrate throughout the investment process. Ensure your stakeholders understand the need for more data collection and engagement
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