Introduction

"Responsible Property Investment is part of our fiduciary responsibilities.
Assets that are future-proofed, in terms of sustainability, are likely to
outperform. In five years’ time, buildings that haven’t been brought up to the
new environmental standards may find they can only command a reduced rent." Paul McNamara, Director: Head of Property Research

Throughout 2006, PRUPIM has continued to take an active lead in the field of Responsible Property Investment (RPI). Our Research Director – and long-term champion of RPI – Paul McNamara, has assumed chairmanships for two leading groups on RPI, including his role as the Chairman of the IIGCC Property Working Group.

Through Paul, PRUPIM is co-chair of the UNEP FI Property Working Group. Its purpose is to encourage property investment and management practices that achieve the best possible environmental, social and financial results. Projects include a study of property investment portfolios managed, taking account of sustainability. The study hopes to establish a connection between financial gain and RPI.

The Investment Property Forum (IPF)/Institutional Investors Group on Climate Change (IIGCC) – Sustainability Special Interest Group aims to inform and educate the property investment community as to the impact of sustainability issues and related policy responses on the value of property investment. In particular, the Working Group holds educational events, promotes and commissions research and is looking to develop an appraisals methodology to capture the level of progress made towards RPI.

Our own approach to RPI has moved on significantly since we reported last year, from 'thinking and conceptualising' to 'doing'. With the launch of our Improver Portfolio in early 2007, the emphasis has now switched to working with property managers to identify what practical things we can do with properties and leases to encourage sustainable practices. The Improver Portfolio is founded on the premise that properties that are working towards environmental sustainability will prove more lettable and saleable and, as a result, could perform better than non-sustainable buildings in the coming years.

Click here for further details on the Improver Portfolio.