During the sourcing and due diligence process, the investment team will assess whether the asset may be faced with any ESG risks that cannot be mitigated or whether unrealized ESG opportunities may exist to provide upside.
Environmental factors considered in investment selection include location, tenant and industry exposure, physical and transitional climate change risks and opportunities, potential energy and water use savings, presence of harmful materials or contamination, building exterior characteristics (orientation, facades, landscape, etc.), building interior characteristics (lighting, air quality, etc.), and access to public transportation, employment and amenities.
Social factors considered in investment selection include accessibility issues, reputational risk based on the tenant roster and the ability to incorporate our proprietary operating programs which address tenant and community engagement and programming among other items which lead to higher tenant satisfaction and retention.
Governance factors considered in investment selection include conformance with governmental regulations and the Firm's exclusions list. The Firm generally seeks to exclude investments in assets with a primary use being in industries involved with armaments (manufacture or storage), nuclear/unknown, tobacco and tobacco-related products, gambling, pornography, child labor, and endangered or protected substances (e.g. ozone-depleting substances).