AshmoreAVENIDA, Ashmore Group´s real estate investment platform, focuses on development projects in the residential, mixed used, office and retail sectors aiming at contributing to the improvement of the available housing stock and additional services in urban infill locations. Considering the developmental needs of the markets where we invest, our current portfolio includes over 43,000 residential units with 73% being low-income housing. Likewise 60% of our mixed use portfolio is either certified with environmental certifications or pursuing certification. We favour lots in prime localisations, close to public transport and in central city areas to ensure future residents will benefit from shorter commutes and urban renovation dynamics.
In order to consistently consider relevant ESG aspects according to the scale of each individual portfolio project, we have designed the AshmoreAVENIDA Impact Framework (AAIF), which is aligned to internationally accepted standards, including the PRI and the International Finance Corporation (IFC) Performance Standards. The AAIF guides the due diligence analysis of each investment opportunity and its execution. A dedicated ESG team and an ESG taskforce oversee regular policy updates and the creation of tools and processes to monitor the real estate development process. This approach is designed to provide superior risk-adjusted returns by mitigating potential risks and increasing asset value.
Our ESG due diligence process includes: (1) identifying the risk category of the proposed investment according to the IFC Performance Standards. (2) Analysing specific potential material risks and impacts in ESG areas through the environmental and social impact assessment, which reviews the project’s characteristics, the development partner´s track record and local regulations. (3) Documenting, in the due diligence report, best practices within the proposed development, and evidencing the capacity to implement the required risk mitigation measures. (4) The process concludes with the selection of ESG investment terms, which once agreed, are written into the investment covenants. Furthermore, we monitor all projects are complying with the ESG covenants stated in the investment agreements as well as the measures needed to avoid impacts to the environment and surrounding communities according to local regulations and best international standards. This process is robust and systematic allowing us to identify all potential ESG risks and impacts to avoid or mitigate them. Moreover, it supports capacity-building initiatives within our development partners by improving their practices according to our AAIF.
Considering we invest exclusively in Emerging Markets, we have aligned our investment strategy with the Sustainable Development Goals (SDGs) and its Key Performance Indicators (KPIs). Therefore, we have developed a data based methodology to assess our contributions at the project and portfolio levels to the SDGs. At the project level, we track quantitative information in five ESG areas: water and energy, waste and recycling, workers and OHS, community, and urbanism; to assess the overall performance of the projects. This approach enables us to make comparisons across projects and implement best practices at the portfolio level, while maintaining Ashmore's commitment to attain superior risk-adjusted returns.