DTZ Investors rated A by 2016 United Nations PRI assessment
DTZ Investors was awarded an ‘A’ in the 2016 United Nations Principles for Responsible Investment (PRI) assessment (against a market average of ‘B’) for their overarching approach to responsible investment and a ‘B’ in the direct property module (against a market average of ‘C’).
This achievement reflects the ongoing efforts of developing and implementing their Responsible Property Investment (RPI) strategy which was launched three years ago.
In 2013, an RPI Committee was established and a formal strategy developed in recognition that Environmental, Social and Governance (ESG) criteria can positively impact the performance of investment portfolios. In the same year, DTZ Investors became a signatory to the PRI and adopted their common framework for integrating ESG in the investment process.
Since putting the RPI strategy into practice and in accordance with the targets set, DTZ Investors has achieved the following:
- Become members of the Global Real Estate Sustainability Benchmark (GRESB) and participated for the second year running with all of their discretionary funds.
- Completed ‘Property Improvement Plans’ across all directly managed assets. These identify areas for enhancement in energy efficiency with notable cost savings.
- Undertaken pre-acquisition sustainability audits for all purchases, which include assessment of EPC ratings. These audits are factored into purchase appraisals and are now part of the standard due diligence process. This has been recognised as best-practice by the PRI, and has resulted in DTZ Investors achieving the highest grade in their ‘Pre-Investment’ section in the 2016 assessment.
- Developed Green Lease clauses for all new leases in conjunction with client’s solicitors. This provides a risk management tool from legislative impacts such as Minimum Energy Efficiency Standards (MEES); as well as establishing a good working relationship with tenants to help facilitate the exchange of data and provide best practice.
- Developed guidelines for all refurbishment and redevelopment projects. The aim of this document is to provide project managers and design teams with clear guidelines to ensure asset sustainability performance is enhanced through refurbishment.
- Improved transparency and disclosure in relation to environmental performance by procuring a new energy consultant which facilitates a comprehensive collection of energy data and its appropriate management. This appointment will also accelerate the roll out of Smart Meters across the managed portfolios.
The RPI committee is chaired by Christopher Cooper, CEO, and attended by experts and representatives from the fund management, property management, facilities management and sustainability teams on a monthly basis.
Further information about the PRI
The United Nations-backed PRI initiative is the world's leading proponent of responsible investment with an international network of investors working together to put the six Principles for Responsible Investment into practice.
It works to understand the investment implications of ESG factors and to support its international network of investor signatories in integrating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.
The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.
The Principles were developed by investors, for investors. They have nearly 1,500 signatories, from over 50 countries, representing US$60 trillion.