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CBRE Global Investors

PRI reporting framework 2018

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Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

The Firm's investment process is founded on the following principles (more information is provided below):

  • Risk must be understood before it can be managed.
  • Market conditions change.
  • Every asset is unique.
  • Asset management creates value. .
  • Consistency counts over the long run.

The Firm’s focuses on real estate and real assets, comprehensive capabilities and fiduciary commitment to its clients. We believe that ESG practices are more than trends; rather, they are fundamental to our business strategy, our investors, key stakeholders in the communities we invest in, tenants of those properties, and the underlying investments and property companies in which we invest. The outlook and forecasts provided by the Firm’s Research Group are the foundation for the construction and execution of the Firm’s investment strategies. ESG factors and real economy impacts are considered and included as inputs to the Firm's proprietary portfolio and risk management tool which is use to build and manage portfolios that best meet the fund/client return goals and risk tolerance.The Firm provides a complete range of investment solutions for its investors and clients, including equity and debt, direct and indirect, real estate and infrastructure, and listed and unlisted strategies delivered through separate accounts and commingled funds.

 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

The purpose of the Responsible Real Estate Investment Management Policy is to:

  • Promote transparency and disclosure on material ESG issues. We believe that sustainability and other ESG issues are a material consideration in the underwriting and management of all our investments including unlisted direct real estate, listed property companies, and unlisted indirect real estate. We are mindful that business requirements vary across regions and investment programs.
  • We seek to employ responsible environmental policies and practices for the Firm’s discretionary programs and elevate our ESG disclosure rankings in GRESB and PRI, as well as to share such policies and best practices with our non-discretionary clients and within industry organizations.
  • Commit CBRE Global Investors to responsible investment throughout its operations, and
  • Outperform and be a leader in ESG performance as evaluated by industry benchmarking initiatives such as GRESB and PRI.

By adopting a culture of responsible investment, we hope to create value for our investors via:

  • Higher returns related to higher occupancy, higher rents and lower operating costs in properties or higher shareholder value due to property companies adopting responsible business practices and governance resulting in stronger performance.
  • Risk mitigation by addressing ESG-related legal or regulatory requirements, climate change issues, early recognition of emerging tenant demand for ESG-related factors, and an ability to capitalize on government and utility district incentives by implementing ESG systems and best practices.

Through this policy, we strive to meet goals that are driven by:

  • Our fiduciary responsibility to identify potential intangible risks (e.g. climate change impacts, water supply, energy costs) that could impact our investments;
  • Local and national governmental regulations for building development and operations that mandate minimum ESG-related standards;
  • Investors seeking strong performance while also meeting ESG targets to comply with commitments made to their beneficiaries, governmental agencies and non-governmental agencies (“NGOs”), such as PRI; and
  • Institutional investors who increasingly require measurable and material ESG metrics from investment managers.

ESG is an integrated part of our investment management process and is incorporated into CBRE Global Investors’ Investment Policies and Procedures. The Responsible Real Estate Investment Management Policy is supported by fund/account-specific ESG strategies and implementation plans. Please see our RI Policy which is uploaded for how we integrate ESG into the Firm's investment management process.

DIRECT REAL ESTATE INVESTMENTS

At CBRE Global Investors, a specific emphasis is placed on environmental sustainability and improving the environmental footprint of each asset under management. We recognize that we can make a tangible impact on improving energy efficiency, reducing greenhouse gas emissions and slowing climate change.

As such, we require investment teams to evaluate opportunities for green improvements for each asset prior to acquisition and track efficiency during the hold period with clear guidelines that we implement across our global investment programs at all stages – starting with the acquisition due diligence process and continuing throughout our asset management activities. We routinely engage third-party consultants to evaluate the physical and environmental characteristics of potential investments to identify opportunities for improvements that would reduce a property’s environmental impact.

Each team considers these findings when defining the investment strategy and capital expenditure program for a property, including location; energy savings; building environmental characteristics (orientation, facades, landscape, etc.); presence of harmful materials or contamination; access to public transportation and environmental characteristics impacting tenants (luminosity, olfactory comfort, etc.); as well as other relevant sustainability factors.

 

INDIRECT REAL ESTATE INVESTMENTS

ESG practices are an integral part of the analysis and management of indirect investments through CBRE Clarion Securities and CBRE Global Investment Partners. Many of the property companies and funds that we view as high-quality investments for our listed securities and unlisted indirect real estate portfolios have incorporated favorable business practices over time. This includes, for example, the practice of developing and maintaining portfolio assets, which at some level conduct activities which emphasize the use of resources more economically, including increased waste paper recycling, the economical use of water and light, HVAC upgrades, building energy management systems and creating desirable work spaces for users. From a corporate governance perspective, such practices include responsible board structures, a code of ethics and conflicts of interests policy, compliance structure as well as accurate and transparent accounting methodology.

 


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

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URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

Additional information on the Firm's investment strategy and programs can be found at the following URL:

http://www.cbreglobalinvestors.com/investmentprograms/Pages/default.aspx.

 


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

CBRE Global Investors has an allocation policy based on a rotation process so that all clients/investors are treated fairly as monitored by Compliance.

The Firm utilizes third parties (including CBRE and other affiliates) for various services. CBRE affiliates are engaged when the relationship allows the Firm to access the highest quality professionals in a given market. If CBRE professionals, services and/or pricing are determined to be less than the best available in the market (based on research conducted by the investment team), the engagement will be competitively bid. The structure of the Firm’s relationship to its parent and affiliates serves to minimize this conflict of interest. A policy is in place in which all investment decisions, including selection of service providers, are made solely by CBRE Global Investors professionals. No employee of the Firm is financially rewarded in any way for fees paid to affiliates. The compensation of senior management/investment teams is largely dependent upon portfolio performance aligning staff economic interests with those of the investor/client/partner. The relationship between a fund/account and affiliated service providers is governed by an agreement which ensures access to the highest quality professionals on arm's length terms and outlines the services to be delivered.

 

03.3. Additional information. [Optional]

To further mitigate conflicts of interest and avoid any potential incentive to direct business to CBRE on behalf of client accounts, the Firm prohibits its employees from owning CBRE stock without the consent of senior management and the Global Chief Compliance Officer. In addition, all investment professionals must disclose to senior management and the Compliance Department any personal investments in third party funds, partnerships, joint ventures, individual commercial real estate assets, or otherwise which may have overlapping investment objectives with any CBRE Global Investors’ investment programs.


SG 04. Identifying incidents occurring within portfolios (Private)


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