For all new products Nuveen Real Estate makes formal commitments to responsible investment in fund formation contracts, LPAs or side letters.
Nuveen Real Estate delivers its Tomorrow's World strategy by structuring the global portfolio into a set a three pools by fund ('Leadership', 'Opportunity', and 'Responsibility' ) - each of the three pools representing a particular ESG risk and opportunity profile. The structuring of the portfolio in this way enables the Tomorrow's World programme to most effectively address the nuanced requirements of each Fund. It also allows for the allocation of tailored services and KPIs to achieve the delivery of the respective Funds' long term strategy, to meet annual targets, and to support Nuveen Real Estate in upholding its fiduciary responsibility.
On that basis, as part of product development and fund formation process, it is agreed which of the respective pools the new product falls into. This pooling classification process then forms the basis of the ESG focus for individual investments and sustainability team support and therefore the types of formal commitments to responsible investment that are made within fund formation contracts, LPAs, and other fund governance documents.
There are certain services that are incorporated within the governance documents irrespective of the pooling classification, such as undertaking ESG due diligence on all acquisitions, ensuring that portfolio environmental performance is monitored, and that all vendors attest to compliance with ESG policies and procedures annually. There are then ESG strategies which are particular to each fund, such as targeting only specific geographic regions that meet certain ESG criteria, like climate change exposure, air-quality, and grid carbon intensity, or pursuing certain voluntary certifications.