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The United Nations Environment Programme (UNEP) FI  Property Working Group and the Positive Impact Initiative  published a framework in 2018 in collaboration with RICS, UN PRI, and members of the Global Investor Coalition on Climate Change. The framework was initiated to develop an impact-based approach in real estate finance and management. 

The Positive Impact Real Estate Investment Framework offers a process tool for institutions to identify impact and corresponding investment opportunities, measure ex-ante and ex-post impact, and ultimately re-orient institutional capacities and capital for intentional delivery of outcomes that support the SDGs .

The framework provides a practical and action-oriented guidance for the real estate industry to accelerate the impact paradigm for the delivery of the SDGs. 

The Positive Impact Principles

• Four main principles are defined for positive impact within the paper; Definition, Frameworks, Transparency, Assessment
• The Positive Impact Principles require a holistic approach; appraisal of both positive and negative impacts, consideration of all three dimensions, i.e., economy, society and environment, and transparency and assessment of methodologies and impact achieved as a core requirement.

The Investment Objectives

• To operationalise the Positive Impact Principles, an action-oriented framework based on four Investment Objectives has been developed; Clarity of Impact, Market and Sustainable Returns, Measurement of Impact, Additional Finance and/or Impact Flows,
• The Investment objectives offer a way for institutions to frame decision-making for more immediate-term investment activities and longer-term aspirations that derive from a holistic and impact based approach,
• For each of the four Investment Objectives, the Framework provides a number of ‘leading questions’ and recommended actions to be considered by investment practitioners

Investors’ Motivation

• Positive Impact applies to all investment activities within institutions.
• Institutions will be subject to learning curves in building skills and capacity internally for an impact-based approach and for improved alignment between asset owners, asset managers, and others within the investment value chain.
• The framework listed the actions investors can take as they orient themselves on the adoption curve for applying an impact-based approach

Applying the Impact-Based Real Estate Investment Framework

• The paper provides a table showing an application of the framework for a preliminary assessment of property sector impacts and indicators, and how investment decisions can respond to those,
• Twenty two impact categories are included into the table with an aim of capturing all realms of sustainable development,
• Investment themes relevant to real estate investors are aligned to the impact categories,
• Suggested indicators are provided, both for delivered impact measurement and potentially for assessing additional finance and / or impact flows

Summarised by Bahar Yay Celik, Analyst at INREV’s Professional Standards Team

Jan Gruter, Legal Director and Jonathan Powling, Partner (Investment Management Team) and Zoe Connor, Partner at (Banking Team) Addleshaw Goddard present on emerging trends in real estate fund terms.

During the seminar, we are casting an eye over the latest global outlook and present the macro economic update as well as looking at the overall impact of the crisis upon our industry. We are delighted to welcome Global Head of Strategy and Research and Global Chief Economist, Sabina Kalyan, CBRE Global Investors, Jose Pellicer, Head of Investment Strategy and Research, M&G Real Estate and Richard van der Linden, PwC to the online seminar.

Tax and regulatory measures to mitigate the effects of COVID-19 for the European Real Estate industry

Through the global non-listed partnership, The INREV / ANREV / NCREIF alliance advances the global agenda of transparency, accessibility and professionalism to increase harmonization across the non-listed real estate industry globally.

The Covid-19 pandemic is a human tragedy that is unprecedented in modern times. Beyond claiming the lives of hundreds of thousands of people around the world, it has severely disrupted the daily lives of citizens and the functioning of the economy in Europe and across the globe. All countries and economic sectors have been affected.

This starter guide provides a quick summary of how to manage environmental, social and governance (ESG) issues for direct and indirect real estate investors. It outlines options for how to include ESG issues throughout the investment process and in the relationship between asset owner and investment manager.

Prepared by PRI

ANREV, INREV, and NCREIF hosted a joint briefing to inform their members of the launch of the new Global IRR Report. This initiative represents the logical integration of the three member-driven non-profit organisations to meet the data collection and, increasingly global, information needs of our members; and to serve as the basis for further collaboration in the future.

This short paper provides non-listed real estate investors with a pocket guide to the secondary markets; its uses, benefits as well as some important considerations that should be taken into account as we prepare for the new wave of challenges related to COVID-19.