If the real estate industry is to achieve its net-zero goals, it requires investment at scale without compromising on sustainability.
To achieve Net Zero, investment in Real Estate is required at scale. While there are Impact funds that deliver strong sustainable metrics, they tend to be in their infancy and are typically smaller in scale.
However, just because a fund is bigger doesn't mean it needs to compromise on its sustainable focus. James Coke, Co-head of Institutional UK Real Estate at Columbia Threadneedle Investments highlights how research from their Environmental Consultants found that it is in the financial interest of the funds to be ambitious from a sustainability perspective.
Their analysis demonstrated that once the cost of offsetting is taken into account, it is financially more advantageous to achieve net-zero in advance of the 2050 deadline. As a result, Coke says their goal for their Threadneedle Pensions Limited Pooled Property Fund and the Threadneedle Property Unit Trust funds is to be operationally net-zero by 2040, rather than 2050.
This post was funded by Columbia Threadneedle Investments.