The objective of Resolution Capital in considering ESG issues at a company level is to identify companies with best practices approaches to corporate governance as well as environmental practices and sustainability. Resolution Capital acknowledges the challenges faced in these reviews, given the following:
- The absence of a universally accepted benchmark for assessing environmental impacts;
- The differing standards and methods of measurement of environmental impact across jurisdictions;
- The differing attitudes of management and tenants globally to the provision of environmental and social standards.
Due to varying measurement and application of ESG standards, Resolution Capital employs a varying combination of ESG collection points due to a lack of uniformity in companies’ practices and disclosures globally.
We pay close attention to corporate governance issues to ensure an appropriate level of alignment of interests between management and shareholders. We assess corporate governance through analyzing proxy statements, through conversations with management and through assessments of company actions,
For environmental issues, we consider management's approach to setting environmental standards across their asset base. We view more efficient buildings as being more competitively positioned in their marketplaces and thus better placed to lease up and to do so at superior rents.