At Schroder Real Estate sustainable Investment applies to all stages of managing a property portfolio from investment selection, acquisition, through the period of holding the investment and to sale. SREIM has an Investment Procedure for Transactions which confirms Fund Manager responsibility for ensuring all necessary due diligence is undertaken to include, inter alia, the primary considerations set out below:
• Legal title review
• Environmental review
• Flood and other relevant hazard risk review
• Technical review/structural survey
• Sustainability risk assessment
• Tax risk review
These requirements are supplemented by the Schroder Real Estate’s Sustainability Guidance for Investment and Asset Management which outlines the importance of sustainability aspects for an asset's longer term resilience and ability to deliver performance. Sustainability considerations may improve an asset i.e. by reducing occupational costs and improving internal comfort for the benefit of tenants and should help retain and attract tenants, support or boost rents, manage obsolescence and improve investor appeal. We believe that consideration should be given to the risks and rewards of providing more sustainable built environments whilst also ensuring regulations are adhered to. Risk and reward assessments carried out for any potential investment are made at asset level and across the portfolio.
All proposed investments are subject to the approval of the SREIM Investment Committee before they can be progressed for acquisition.