Schroders publishes net-zero pathway for £17bn real estate business | News
Schroder Real Estate has outlined its net zero carbon plan for its real estate portfolio as the company seeks to achieve goals in line with the United Nations’ sustainable development goals.
The £ 17.4 billion (EUR 20.1 billion) real estate fund manager who became a founding signatory to the Net Zero Asset Managers Initiative in December 2020 has published its path to net zero by 2050.
Schroders, who invests both directly through real estate funds and indirectly in its capital partner division, said the published pathway “aims to set and meet goals required under the Paris Treaty on Climate Change to reduce global warming to 1, Limit 5 ° C and achieve net zero carbon emissions ”.
It is said that preliminary net-zero milestones – which are expected to be in 2025 and 2030 – will be set to ensure assets are brought in line with the level of CO2 reductions required to meet the Paris Agreement.
The focus for direct real estate investments will be on reducing energy needs, increasing energy efficiency and identifying ways to generate renewable energy, with “offsetting the remaining carbon into account”.
It is planned to ensure that global requirements for low carbon regulation are met and that climate risk and resilience considerations are incorporated into the path.
“This will cover the full spectrum of a building’s life cycle, including day-to-day operational carbon emissions, as well as emissions from renovation and development.”
For indirect investments, Schroders expects to work with the managers of externally managed funds and joint venture partners to ensure they also adjust their approaches to meet the net-zero carbon targets.
Sophie van Oosterom, Global Head of Real Estate at Schroders, said: “ESG, and especially responsibility for carbon emissions, is a significant and growing priority for our investors. It is important for us to offer all of our stakeholders transparency about our strategy and our actions. Evidence of the carbon profile and the progress of our investments is central to this.
“The benefits of a net zero carbon approach are of course greater than the positive results for our stakeholders. They are vital in the transition to a low carbon society and ultimately a more sustainable future that everyone can share. “
Charlotte Jacques, Head of Sustainability and Impact Investment at Schroder Real Estate, said: “We believe our responsibility to our customers is to protect them from the effects of financial and non-financial risk. We also recognize our broader responsibility to society and the planet. We must therefore address the climate priority by reducing our emissions and moving to net zero.
“Schroder Real Estate’s commitment to net zero carbon by 2050 is a natural next step in our energy and carbon program.
“Our activities extend over the entire life cycle of a building. We strive to continuously improve the sustainability traits of our investments by actively managing our assets and have been working to reduce energy consumption and greenhouse gas emissions from our landlord controlled operations for over five years. “
Click here to read the digital edition of the latest IPE Real Assets magazine.