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Harvard University Endowment

PRI reporting framework 2016

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Pre-investment (selection)

PR 08. Incorporating ESG issues when selecting investments

08.1. Indicate if your organisation typically incorporates ESG issues when selecting property investments.

08.2. Provide a description of your organisation's approach to incorporating ESG issues in property investment selection.

As noted previously, HMC conducts ESG due diligence on its potential joint venture partner.  This includes a consideration of the potential joint venture partner's ability to manage ESG issues.

HMC also conducts ESG due diligence on the property itself. For example, we hire third-party experts to conduct environmental evaluations of the property, and also consider potential labor-related issues that may be associated with the property. We identify any existing litigation or regulatory violations associated with the property, which could encompass both environmental and social concerns.

If this initial due diligence identifies any material ESG risks, we consider how we can eliminate or mitigate this risk, and factor this into our investment decision. For example, we would consider energy inefficiencies, and how these can be improved. 

08.3. Additional information. [Optional]

PR 09. ESG advice and research when selecting investments (Private)

PR 10. Examples of ESG issues in investment selection process

10.1. Indicate which E, S and/or G issues are typically considered by your organisation in the property investment selection process and list up to three examples per issue.

ESG issues

List up to three typical examples of environmental issues

          Energy consumption and efficiency
          Environmental investigations of building materials (includes potentially hazardous materials such as mold, lead, and asbestos)
          Flood zone and seismic concerns

List up to three typical examples of social issues

          Health and safety evaluations
          Americans with Disability Act compliance
          Labor relations challenges

List up to three typical examples of governance issues

          Joint venture partner's property due diligence and approval processes
          Joint venture partner's cash management process
          Joint venture partner's anti-money laundering and securities policies

10.2. Additional information. [Optional]

PR 11. Types of ESG information considered in investment selection (Private)

PR 12. ESG issues impact in selection process (Private)