The responsible ownership and operation of real estate can have a significant positive impact not only on the environment but also on the financial performance of an investment. Environmental and social risks are incorporated into the evaluation criteria when acquiring or developing properties.
Incorporating environmental (including resilience and climate change) and social risks into the evaluation criteria, and identifying RI strategies for multi-manager real estate investments – where possible on a look-through basis – and considering these in the investment decision-making process are main topics in our investment decisions.
We have developed a common approach across regions when buying direct property. We evaluate the sustainability performance of all new acquisitions during the technical due diligence process prior to completion.
Physical (which includes operating systems) and environmental evaluations are part of the standard scope of work for due diligence of all property acquisitions and are a required section in both the acquisition checklist and the Investment Committee brief.
We will also screen all transaction counterparties to ensure appropriate compliance with AML, anti-bribery and corruption laws.
In all cases the results are presented to the internal UBS investment committee, which approves or rejects the investment proposal presented by the acquisition team.