Public HTML RI reports - PRI reporting framework 2020

Nuveen, a TIAA Company

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG factors [LEI 08 - 10] ESG incorporation in passively managed listed equities [LEI 11] Outputs and outcomes [LEI 12 - 13]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Direct - Fixed Income

ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (A) Implementation: Screening [FI 04 - 06] (B) Implementation: Thematic [FI 07 - 09] (C) Implementation: Integration [FI 10 - 12] ESG incorporation in passively managed fixed income [FI 13] Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]

Direct - Property

Overview [PR 01] Fundraising of property funds [PR 02 - 03] Pre-investment (selection) [PR 04 - 06] Post-investment (monitoring and active ownership) [PR 08 - 14] Overview [PR 08] Property monitoring and management [PR 09 - 10] Property developments and major renovations [PR 11] Occupier engagement [PR 12 - 13] Community engagement [PR 14]

Direct - Inclusive Finance

Context [IFD 01 - 06] PIIF Principle 1: Range of services [IFD 07 - 10] PIIF Principle 2: Client protection [IFD 11 - 13] PIIF Principle 3: Fair treatment [IFD 14 - 17] PIIF Principle 4: Responsible investment [IFD 18 - 24] PIIF Principle 5: Transparency [IFD 25 - 27] PIIF Principle 6: Balanced returns [IFD 28 - 31] PIIF Principle 7: Standards [IFD 32 - 34]

Indirect - Inclusive Finance

Context [IFI 01] Selection [IFI 02] Contractual agreements and mandate design [IFI 03] Investment manager monitoring and reporting [IFI 04 - 05] Disclosure [IFI 06 - 07]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Direct - Property » Outputs and outcomes

Outputs and outcomes

PR 15. ESG issues affected financial/ESG performance

15.1. Indicate whether your organisation measures how your approach to responsible investment in property investments has affected financial and/or ESG performance.

We measure whether our approach to ESG issues impacts funds’ financial performance

15.2a. Describe the impact on the following.

Describe the impact on:	Impact
Funds` financial performance	Positive Negative No impact

We measure whether our approach to ESG issues impacts funds’ ESG performance

15.2b. Describe the impact on the following.

Describe the impact on:	Impact
Funds` ESG performance	Positive Negative No impact

None of the above

15.3. Describe how you are able to determine these outcomes.

Through the Tomorrow's World Sustainable Property Management programme, Nuveen Real Estate tracks relevant KPIs in order to measure the impact of ESG issues on both financial and ESG performance. In both cases, through the established environmental monitoring programme in place it is possible to see the positive impact of operational efficiency initiatives (e.g. energy and water initiatives) on overall asset efficiency performance and therefore on Net Operating Income (via reduced utility costs) for the Fund, ultimately increasing return. The outcomes from the impact analysis of ESG issues on ESG and financial performance feed directly into property management and asset management reporting in order to inform future decision making.

A further example of the financial impact of ESG issues relates specifically to the UK portfolio where the Minimum Energy Efficiency Standards came into affect in April 2018. The legislation sets a minimum property level energy performance threshold for the letting of property in England and Wales - the performance is indicated via Energy Performance Certificates (EPC). On that basis, if properties do not meet the minimum required threshold as per the EPC, then we have already identified instances where this has impacted on price, and therefore Fund performance

PR 16. Examples of ESG issues that affected your property investments

16.1. Provide examples of ESG issues that affected your property investments during the reporting year.

Add Example 1

ESG issue	Energy and carbon regulation
Types of properties affected	All property sectors are impacted in the event that asset does not meet standard.
Impact (or potential impact) on investment	Assets that do not meet performance standard may be subject to fines and possible leasing restrictions.
Activities undertaken to influence the investment and the outcomes	Additional review of benchmarking data accuracy and assessment of investment required to achieve energy reductions required to meet efficiency standards.

Add Example 2

ESG issue	Flood risk
Types of properties affected	Any asset in area experiencing frequent flooding
Impact (or potential impact) on investment	Impact ability to access property resulting in loss of tenant demand
Activities undertaken to influence the investment and the outcomes	Deploy resilience measures (e.g. flood defences) to mitigate risk. If reslience can not be managed via cashflow, assess opportunity for divestment.

Add Example 3

ESG issue	Physical climate risks
Types of properties affected	Properties in areas of high risk of severe storms experienced insured losses. All assets experiencing increases in insurance costs.
Impact (or potential impact) on investment	Increase in insurance costs.
Activities undertaken to influence the investment and the outcomes	Ensure emergency preparedness practices are in place with on-site management team.

Add Example 4

Add Example 5

16.2. Additional information. [Optional]

Climate risks identified during investment process are monitored to determine if and how the risk materializes and the actual financial impact in order to improve the accuracy of future investment analysis and underwriting.

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