At Federated Hermes, we have long recognised that responsible investment practices are changing real estate market conditions. Regulatory drivers and growing market demand indicate that sustainable portfolio and building characteristics affect real estate investment’s fundamentals: it creates reduced risk of obsolescence and depreciation, enhances tenant retention, reduces void periods and lowers operating costs.
There have been, however, relevant questions about the limitations of this approach in delivering measurable outcomes beyond performance to investors, the economy and society. Our “Impactful Intent” approach aims to deepen our PRI practice, as well as achieving a nominal financial return we seek to intentionally deliver sustainability outcomes through selected impactful investment themes. This involves using a purposeful framework to focus our real-estate operations on impactful investment themes, and then committing to activities with measurable environmental, economic and societal impacts:
- Meaningful place-making that creates civic pride
- Healthy, engaged and productive communities
- Achieving a just transition to a low-carbon, resource efficient economy