Given that CBRE GIP invests in underlying fund vehicles, our investment teams engage with managers on ESG issues as part of due diligence and ongoing management and monitoring. CBRE GIP’s investment decision-making process includes determining whether managers have the policies, systems and expertise needed to integrate environmental and social considerations, including climate change, into their acquisition decisions and ownership activities and have appropriate governance in place.
Once invested in an indirect vehicle, our on-going role encompasses voting, monitoring how the local operating partner is integrating ESG issues into their investment decisions and asset management along with engaging on specific ESG issues. Steps taken include:
i) Require inclusion of ESG matters/performance in quarterly/annual reports
(ii) Maintain an ESG Register (positive, neutral or negative) and Register of Corporate Actions for Clients
(iii) Annual formal review of each investment by the Investment Oversight Committee (compliance with side letter, annual GRESB results etc).
(iv) On Advisory Committees, ensuring ESG regularly reviewed and fund’s annual strategy focused on ESG improvements, including certification.
(v) Client reports include disclosure of all voting matters and ESG matters/GRESB results and commentary on planned improvement
(vi) ESG Incident Response Team: Multi disciplinary team forms to deal with major events