The United Nations recently issued
a report on the need for property investors to invest in eco-properties. This is a timely piece of advice for the real estate industry which has managed to create a huge carbon footprint and can be very destructive of natural land and environments.
The report entitled
“Building Responsible Property Portfolios,” was authored by University of Arizona professor,
Gary Pivo and submitted to a United Nations environmental conference last week. The report urged investors to adopt the
six Principles of Responsible Investment and emphasized the power of investors to influence property fund managers to make their portfolios ‘greener’.
The report also advises that being an eco-investor means good economics as well as good ecology. Most eco-properties which utilize renewable energy end up being more cost effective in the long run than traditional properties. In addition as demand increases for sustainable properties, the price for these investments will be higher for traditional developments.
Paul McNamara, co-chair of the UNEP FI Property Working Group, is optimistic that the report can help to break down the ‘circle of blame’ that currently exists within the real estate industry. He says that, “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. 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.”
The call to this positive action is being made by the UNEP FI Property Working Group, whose members include 18 property fund managers from Japan, India, Austria, Europe and the US. Ultimately this all looks like very positive news for the industry as we move into a more ecologically conscious age. I definitely look forward to the Caribbean getting even greener.
