June 23, 2008
Greener Buildings

LONDON, UK -- The worldwide property industry faces great financial risk if it doesn’t take steps to improve its environmental performance, according to a new report.  “Building Responsible Property Portfolios,” which was submitted to a United Nations environmental conference last week, said investors could influence property fund managers to make portfolios greener, Reuters reported. It advised investors to follow the Principles for Responsible Investment to avoid facing diminished returns on property assets that aren’t environmentally friendly.

"We operate in an industry where investors, occupiers, constructors, and developers each blame the other for the lack of positive action in improving the environmental footprint of new and existing buildings," said Paul McNamara, co-chair of the U.N. Environment Program Finance Initiative (EPFI) Property Working Group.

Investors stand to gain financially from greener property portfolios, which typically enjoy lower operating costs and higher tenant rents.

Gary Pivo from the University of Arizona wrote the report under the supervision of the U.N. (EPFI) Property Working Group.

"Our report highlights the wide range of opportunities that exist for institutional investors who want to take positive action and apply the Principles for Responsible Investment to their property assets," McNamara said.