Vert's investment process is rooted in the results of academic research on sustainability in real estate. Our evidence-based approach focuses on the metrics within environmental, social and governance (ESG) criteria that research has shown to be most material for real estate companies. We evaluate companies based on Key Performance Indicators most relevant to their particular business within the real estate sector. Only companies with a demonstrated commitment to sustainability qualify for the portfolio. Companies that have a history of controversy, are inadequately prepared for climate risks, or that operate in certain business lines, are disqualified.
We use a long term buy and hold strategy and maximize diversification to try to lower uncompensated risks. Companies are held at approximately market cap weights to reduce turnover.
Vert is an active shareholder. REITs have abundant opportunities to maximize stakeholder value by being more sustainable and more transparent. We will encourage our portfolio companies to take these opportunities through direct engagement and coordinated campaigns with other asset owners.