We permit the publication of our auditors’ report, provided the report is published in full only and is accompanied by the full financial statements to which our auditors’ report relates, and is only published on an access-controlled page on your website, to enable users to verify that an auditors’ report by independent accountants has been commissioned by the directors and issued. Such permission to publish is given by us without accepting or assuming any responsibility or liability to any third party users save where we have agreed terms with them in writing.

Our consent is given on condition that before any third party accesses our auditors’ report via the webpage they first document their agreement to the following terms of access to our report via a click-through webpage with an 'I accept' button. The terms to be included on your website are as follows:

I accept and agree for and on behalf of myself and the Trust I represent (each a "recipient") that:

  1. PricewaterhouseCoopers LLP (“PwC”) accepts no liability (including liability for negligence) to each recipient in relation to PwC’s report. The report is provided to each recipient for information purposes only. If a recipient relies on PwC’s report, it does so entirely at its own risk;
  2. No recipient will bring a claim against PwC which relates to the access to the report by a recipient;
  3. Neither PwC’s report, nor information obtained from it, may be made available to anyone else without PwC’s prior written consent, except where required by law or regulation; and
  4. PwC’s report was prepared with Hermes Property Unit Trust's interests in mind. It was not prepared with any recipient's interests in mind or for its use. PwC’s report is not a substitute for any enquiries that a recipient should make. The financial statements are as at 25 March 2017, and thus PwC’s auditors’ report is based on historical information. Any projection of such information or PwC’s opinion thereon to future periods is subject to the risk that changes may occur after the reports are issued and the description of controls may no longer accurately portray the system of internal control. For these reasons, such projection of information to future periods would be inappropriate.
  5. PwC will be entitled to the benefit of and to enforce these terms.
I accept

1. Select your country

  • United Kingdom
  • Austria
  • Australia
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Iceland
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • USA
  • Other

2. Select your investor type

  • Financial Advisor
  • Discretionary Investment Manager
  • Wealth Manager
  • Family Office
  • Institutional Investor
  • Investment Consultant
  • Charity, Foundation & Endowment Investor
  • Retail Investor
  • Press
  • None of the above

3. Accept our terms and conditions

By clicking Proceed I confirm I have read the important information and agree to the terms of use.


The Hermes Investment Management website uses cookies to remember your preferences and help us improve the site.
By proceeding, you agree to cookies being placed on your computer.
Read our privacy and cookie policy.

Hermes calls for action in its latest Responsible Property Investment report

Home / Press Centre / Hermes calls for action in its latest Responsible Property Investment report

30 June 2016
Real Estate

Hermes Investment Management, the £24.1 billion manager focused on delivering superior, sustainable, risk adjusted returns to its clients, responsibly, has today released its latest Responsible Property Investment (RPI) report: From climate risks to positive impacts: Time for action.

The report responds to the latest developments in tackling climate change, including the Paris Climate Agreement and describes Hermes Investment Management’s updated approach to responsible property investment governance, strategy and management. The report argues ‘now is the time for action’ and calls on the industry to follow best practice.

Time for Action – Paris Climate Agreement
The Paris Climate Agreement demonstrated a clear shift in perceptions among the institutional investment community. There is now a sense among institutional investors that to finance the necessary transition to a low carbon economy, and the adaptation to the physical effects of climate change, requires a significant re-allocation and scaling up of current private efforts.

Despite this significant progress, however, many investors have yet to fully integrate environmental, social and governance (ESG) issues into their investment decision-making processes due to structural barriers as well as cultural issues which are preventing this transformation in practice. Hermes Investment Management believes investors have a positive duty to incorporate ESG risks into their investment practices and proactively engage with companies on these issues.

Managing climate risks and opportunities: Hermes approach
RPI has been a long-term priority for Hermes Investment Management, including mitigating the risks of carbon over the next 20 to 30 years. It has explored and developed a range of decarbonisation activities across the real estate asset classes it invests in, which would be applicable for the wider investment community.

There are four elements to Hermes Investment Management’s strategy to manage these risks including:
• Portfolio managers being aware of the carbon in their portfolios, which investments are the largest contributors and what are the associated carbon risks.
• Portfolio and specific investment decisions must be made using this data as another measure of risk.
• Directly-owned assets should be managed where funds hold assets with significant carbon risk.
• Finally, to engage with public policymakers and sector organisations to support the wider market transformation of the industry.

Continuous performance: Delivering positive impacts
Beyond the medium to long term impacts of climate risks and opportunities, we work to deliver continuous performance today. At Hermes we believe that in addition to delivering excellent performance returns to our clients and beneficiaries, we must equally aim to invest for the benefit of the broader society in which we operate. We have these additional responsibilities because our activities will have impacts on the world in which our beneficiaries live and work today as well as the one in which they will retire into tomorrow. A principle which guides our actions is therefore the aim to deliver holistic returns.

For real estate this means that as well as achieving a nominal financial return we also seek to deliver and manage sustainable cities, communities and buildings, communities which have positive social impact through education and job opportunities and energy efficiency and low carbon buildings.

The report draws on case studies to illustrate this approach in practice:
• Sustainable place making for the future at King’s Cross Central in London;
• NOMA sympathetic regeneration in Manchester to a create a new smart, digital and sustainable neighbourhood, and,
• Driving positive socio economic impacts in our communities through the active management of our shopping centres.

Saker Nusseibeh, Chief Executive Officer, Hermes Investment Management, commented:
“Responsibility is ingrained in our DNA, and creating the right outcomes from our investment decisions is of vital importance. The right outcomes on a 30-year time horizon are those that mitigate risk, including carbon risk. This report highlights the importance of integrating environmental, social and governance issues into investment decision making and the welcome shift in perceptions that is taking place among institutional investors to do so. We now need to see action.”

Pension beneficiaries do not only want a good return on investment, they also want a decent and affordable economy to spend it in. Ultimately achieving this mission will mean putting the interests of clients and their underlying beneficiaries’ front and centre, stretching time horizons beyond quarterly performance figures and even beyond the tenure of a traditional mandate.

Chris Taylor, Head of Private Markets, Hermes Investment Management, said:
“If we are to think about the future, rather than benchmark against the past, we as an industry need to change our approach to investment, ensuring that environmental, social and governance issues are integrated into investment processes across the sector. Hermes continues to champion these issues and to incorporate them into our investment strategy. This can be seen most clearly in our biggest regeneration projects – King’s Cross in London, NOMA in Manchester, Paradise in Birmingham and Wellington Place in Leeds – which benefit the communities and deliver responsible and sustainable investment returns. This report gives our strongest call yet for the industry to follow suit.”

Read the report full.

Share this post:

Find posts by author

  • Alex Knox, ACA
  • Andrew Parry
  • Claire Gavini
  • Dr Michael Viehs
  • Emeric Chenebaux
  • Eoin Murray
  • Geoffrey Wan, CFA
  • Harriet Steel
  • Jonathan Pines, CFA
  • Louise Dudley
  • Mark Sherlock, CFA
  • Martin Todd
  • Michael Russell, CFA
  • Michael Vaughan
  • Neil Williams
  • Nick Spooner
  • Nina Röhrbein
  • Philip Nell
  • Saker Nusseibeh
  • Silvia Dall’Angelo
  • Tatiana Bosteels
  • Tim Crockford
  • Tommaso Mancuso

Find posts by category

  • real estate

Press contacts