Carbon Neutral Real Estate Strategy
Last updated on 13 Oct 2020
Whilst not conceived as an Impact Strategy, the Carbon Neutral Real Estate (CNRE) Fund is a good example of intentionality aspect of Impact Investment, as the investment thesis is focused on addressing a tangible environmental need, and investment decision making is rooted in meeting this goal in alignment with the financial objectives of the Fund. CNRE is a joint venture between Columbia Threadneedle Investments, the Carbon Trust and Stanhope, developed specifically to reduce the carbon emissions of the built environment. Columbia Threadneedle explain the strategy here:
“UK office buildings contribute around a fifth of total carbon emissions in the UK. New build, carbon-compliant real estate developments are low in comparison to the total supply, and these buildings can be typically very carbon inefficient to redevelop. The Government's 2050 Net-Zero target, means emissions from existing buildings will need to be reduced by 100%, which realistically can only be achieved via refurbishment of existing buildings, and their ongoing efficient operation. As an institutional manager of UK real estate we have the ability - and the responsibility - to help drive positive outcomes for society. In 2010 we took a pioneering step towards carbon reduction in the built environment by teaming up with Stanhope, one of the UK’s leading commercial developers, and the Carbon Trust, a world-leading adviser to businesses, governments and the public sector on carbon reduction. This partnership between industry experts adds value throughout the entire lifecycle of each office building, from acquisition through refurbishment, leasing and occupation, to ensure carbon emissions are minimised.”