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CBRE Global Investors

PRI reporting framework 2020

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Post-investment (monitoring and active ownership)

Overview

PR 08. ESG issues in post-investment activities

08.1. Indicate if your organisation, and/or property managers, considers ESG issues in post-investment activities relating to your property assets.

08.2. Indicate whether your organisation, and/or property managers, considers ESG issues in the following post-investment activities relating to your property assets.

          The Firm's proprietary operating program incorporates social and environmental issues in its delivery of superior service, adaptable space, supportive amenities and seamless technology.
        

08.3. Describe how your organisation, and/or property managers, considers ESG issues in post-investment activities related to your property assets.

A business plan is developed for every asset post-investment which includes ESG strategies that align with the fund's portfolio ESG strategy. The implementation of the business plan (including ESG issues) is monitored on a quarterly basis by the portfolio team.

Each fund's ESG strategy is reviewed on a semi-annual basis as part of the Portfolio Oversight Committee process. The Portfolio Oversight Committees are comprised of senior leadership in the region.

We discuss ESG matters with property managers on an ongoing basis and incorporate ESG initiatives to address any ESG deficiencies identified during the due diligence process.

 

 


Property monitoring and management

PR 09. Proportion of assets with ESG targets that were set and monitored

09.1. Indicate the proportion of property assets for which your organisation, and/or property managers, set and monitored ESG targets (KPIs or similar) during the reporting year.

(in terms of number of property assets)

09.2. Indicate which ESG targets your organisation and/or property managers typically set and monitor

Target/KPI
Progress Achieved
          Science-based reduction targets for carbon emissions reduction.
        
          Increase the number of assets with green building certification
        
          Increase GRESB scores and reporting scope.
        
          All funds with ESG strategies have set carbon reduction targets. A Firm-wide ESG database and monitoring system (Measurabl) rolled out for carbon data collection.
        
          Five-year (2019 - 2024) BREEAM In-Use portfolio certification programme adopted across EMEA portfolios. Similar LEED approach being prepared for the US and APAC.
        
          Record 25 portfolios reported in 2019. Global aggregated portfolio received four stars (85 points, increasing from 74 in 2018). Nine funds received five stars rating.
        
Target/KPI
Progress Achieved
          Improve results from tenant satisfaction surveys.
        
          Improve results from employee satisfaction survey.
        
          Gender diversity percentage to meet set benchmarks.
        
          Roll out of global alignment of tenant satisfaction surveys questionnaires for comparability and transparency is being prepared.
        
          In 2019, there was a 10 point increase in employee satisfaction. The Firm continually works to improve employee satisfaction through employee engagement initiatives.
        
          In 2019, saw continued improvement in the Firm's gender diversity and contributed to PREA and Toigo Foundations to promote diversity in investment management sector.
        
Target/KPI
Progress Achieved
          Set up regional and business line RIMCos and activate them.
        
          60% of employees will complete annual compliance training on conflicts of interest.
        
          Include downside scenarios with analyses of risks related to Brexit in our investment documentation.
        
          This was achieved for every region, except APAC and for all business lines.
        
          This was achieved.
        
          Reviewed scenarios implemented in 2019.
        

09.3. Additional information. [Optional]

CBRE Global Investors has been committed to responsible investment for over a decade, having joined the Principles for Responsible Investment (PRI) and piloted a new framework for the Global Real Estate Sustainability Benchmark (GRESB) in 2009. The Firm’s ambitions, commitment, and practices have continued to grow and evolve along with the environmental, social and governance (ESG) field. The Firm has led the industry in the past by participating in the founding of the Institutional Investors Group on Climate Change (IIGCC) as an example. In 2017, CBRE Global Investors adopted a broader Responsible Investment Management Policy and established a more structured approach to ESG governance through Responsible Investment Management Committees (RIMCos) on a global, business line and regional scale. In 2018, portfolio-level ESG strategies for the active pooled funds were developed.

In 2019, with the help of sustainability advisor, WSP, CBRE Global Investors took stock of the progress made over the past ten years, benchmarked peer performance and market developments and undertook a thorough stakeholder engagement process with employees and clients among others. The Firm identified both an opportunity and responsibility to positively impact the approximately 20 million people interacting in various ways with the assets we manage and a need to maintain and enhance our leadership position in ESG. To address both issues, CBRE Global Investors developed a comprehensive vision to guide the Firm for the next twenty years. The broad variety of asset types, regions investment programs, profiles, and modes of implementation across the global platform presented a challenge for the formulation of a cohesive framework, which at the same time allows for a fine calibration for specific products and regions.

The CBRE Global Investors ESG Vision is based on the fundamental belief that sustainable investment is a critical driver for superior investment performance. CBRE Global Investors commits to leading the transition to a net-zero carbon, resilient and healthy society. Recognizing that this can be achieved only as a collaborative effort, we encourage our partners to join us in delivering this ambition together. The targets and actions are being arranged around three material pillars of ESG which were identified through stakeholder engagement: Assets, People and Influence.

Assets: We commit to respecting the environment and managing climate-related risks and opportunities. We will do this by delivering net-zero carbon performance and climate resiliency in our portfolios and operations.

People: We commit to improving social wellbeing. We will provide facilities and services to enhance the wellbeing of people who use our assets, our employees and the wider community.

Influence: We commit to exerting a positive influence on our stakeholder groups. We will engage and inspire all those we work with to embrace sustainability and effect positive change.

Above all, we will continue to fulfil our fiduciary duty to support the lives of those all over the world for whom we invest by delivering the financial returns upon which they depend.

Further, CBRE Global Investors recognized that the achievement of this vision requires a carefully laid out pathway, with clear and measurable milestones along the way. For this purpose, the Firm developed an ESG maturity matrix aligned with BSI PAS 7340:2020, defining four levels for both investments and operations:

Level 1, Basic: Maintain legislative compliance

Level 2, Improving: Identify and manage sustainability impacts

Level 3, Engaged: Implement sustainability practices and improve performance

Level 4, Integrated: deliver exemplary ESG performance as business as usual

The key performance indicators for measurement of success are aligned with key globally recognized sustainability frameworks such as BREEAM, LEED, and GRESB, lending an additional layer of assurance and third-party verification. The bespoke framework provides structure while being adaptable to the ambitions of different investors and different types of portfolios and assets, as well as to changes in portfolios, markets, regulations and external standards. We will also apply the maturity matrix to the Firm’s operations and sustainability pathway, enabling clear communication and transparency to internal and external stakeholders.


PR 10. Certification schemes, ratings and benchmarks (Private)


Property developments and major renovations

PR 11. Proportion of developments and refurbishments where ESG issues were considered

11.1. Indicate the proportion of active property developments and major renovations where ESG issues have been considered.

(by number of active property developments and refurbishments)

11.2. Indicate if the following ESG considerations are typically implemented and monitored in your property developments and major renovations.

          Sustainable building certification
        

11.3. Additional information. [Optional]

Our new construction and major renovation assets undertake a sustainable building certification to a high standard, relevant for the region and asset type (e.g. an office certified to LEED EBOM Gold in the US, a shopping centre in London to BREEAM Excellent and an office in Paris to HQE Excellent). By so doing, we ensure that all the complex sustainability issues relevant to such a project have been taken into account and addressed, local standards have been implemented and market recognition is achieved.

The following is our ESG approach for CBRE U.S. Development Partners 5:

Alongside CBRE Global Investors’ commitment to responsible investment management, Trammell Crow Company (“TCC”), the Fund’s preferred development partner, has long recognized that prudent environmental stewardship is a fundamental social and ethical corporate responsibility. TCC seeks to build value with comprehensive, integrated building solutions that are attentive to the environment, the health of the occupants and the needs of the investors. TCC seeks LEED certification for its projects when possible. TCC is a member of the U.S. Green Building Council and currently has 34 team members that are LEED APs and more than 40 million square feet of office, industrial, retail, civic and multifamily projects in the pipeline, under construction or completed that are sustainable or in various stages of obtaining LEED certification.

Recognizing that real estate development projects have a generational impact, TCC has moved toward the idea of healthy communities to better reflect the long-term significance of TCC projects. Beyond core environmental influences, TCC is committed to addressing the economic, wellness, social, transportation, and governance impacts of its developments. Each of these attributes contributes to developing healthy communities. This comprehensive approach aligns the interests of community members, stakeholders, investors, and clients, creating a Shared Advantage. 

The CBRE U.S. Development Partners 5 portfolio is reporting to GRESB Development module in 2019 for the first time.

European Value Partners 2 has adopted an ESG strategy specifying a minimum level of BREEAM Very Good for all forward funding regardless of the developer. As an early instance of implementation, an opportunity has been identified to certify the portfolio of assets to a higher level of green building certification than initially proposed by the developer (BREEAM Very Good instead of Good). The developer was requested to provide a list of additional sustainability features to include in the design and construction of the buildings. The additional cost was deemed acceptable and the development is progressing with an enhanced sustainability approach for all five buildings. The European Value Partners 2 portfolio is also reporting to GRESB Development module in 2019 for the first time.

 


Occupier engagement

PR 12. Proportion of property occupiers that were engaged with

12.1. Indicate the proportion of property occupiers your organisation, and/or your property managers, engaged with on ESG issues during the reporting year.

(in terms of number of occupiers)

12.2. Indicate if the following practises and areas are typically part of your, and/or your property managers’, occupier engagements.

          Green Refurbishment and Fit-Out Guide
        

12.3. Additional information. [Optional]

The Firm’s funds conduct tenant satisfaction surveys and collect consumption data to design initiatives that are bespoke to each asset and tenants’ individual requirements.

The Firm’s stakeholder engagement approach takes several paths to provide a holistic and well-rounded interaction with tenants:

Tenant Satisfaction Survey: A survey aligned to relevant industry best practice is sent out at least biannually to better understand a tenant’s overall experience and identify any issues and opportunities.

Tenant Data Collection: Data collection allows each fund to identify areas for improvement. Each fund seeks not only to gather landlord data, but also, as much information as possible from tenants. The data collected provides critical information that identify trends and patterns in consumption data that then can be managed more effectively.

Corporate Collaboration: Whenever possible, each fund engages with large corporate tenants to agree to sustainability data sharing and collaboration on improvement projects.

Green Leases: Green lease clauses, including regulatory requirements as well as landlord-tenant collaboration, are integrated in new and renewal leases when possible.

Sustainability Guides: Green fit-out guides are provided to tenants to improve sustainability of their fit-outs. Improvements to environmental performance of existing fit-outs are discussed and agreed upon as part of lease renewals.

On-site Sustainability Workshops and Events: Events and workshops with tenants and the local community are delivered in partnership with property managers. Active engagement with the community is particularly important when a major refurbishment is planned. The feedback received often directly influences the final architectural design.

 


PR 13. Proportion of green leases or MOUs referencing ESG issues (Private)


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