Making an impact: Economic return alone is no longer good enough for investors
2017 has arrived and a major trend that will surface more in the year ahead is that economic returns alone are no longer satisfactory for many long-term institutional investors throughout Europe. Forward-thinking investors and multimanagers are increasingly looking at how they incorporate environmental, social and governance (ESG) considerations and ethical issues into their portfolios and products. This is driven by a growing trend for large-scale and individual investors not only wanting economic returns but also wanting to ensure that they achieve a social and environmental impact as a result of their investments.
We are already at the point where most investors demand that the sustainability credentials of their underlying assets are in line with sustainable investment policies — this is by no means a new concept. Most commonly, investors rely on the Global Real Estate Sustainability Benchmark (GRESB) (we are delighted to report that GRESB is now a sponsor of IRE Europ