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Market and Policy Paper:
Responsible Property Investing Authors: Gary Pivo and Paul McNamara Start Page:128
Abstract: This paper was
written for the principles for responsible investment project of the United
Nations Environment Programme Finance Initiative (UNEP FI). The UNEP FI is a
global partnership between UNEP and the financial sector to understand the
impacts of environmental and social considerations on financial performance.
As recommended in this paper, the UNEP FI is organizing a Property Working
Group (PWG) to further examine the issues discussed here. Information about
the PWG can be obtained from the authors. Responsible property investing (RPI)
means maximizing the positive and minimizing the negative social and
environmental effects of property investing, consistent with fiduciary
responsibilities. Our understanding of these issues has progressed a good
deal over the decades due to work by the United Nations and others. Property
markets are inextricably linked to urban problems and better management of
both new and existing properties is needed to resolve them. The perception
that RPI necessarily dilutes investment returns should be challenged. There
is mounting evidence that RPI can be financially sound and socially
beneficial. Leaders have emerged that are demonstrating its feasibility.
Their activity should be considered as a basis for best practice guidelines.
There is a need to develop metrics for comparing progress on RPI. We
recommend: 1) establishing an RPI working group, 2) summarizing prior
reports on urban issues, 3) identifying investment strategies that are
profitable and responsive to the issues, 4) clarifying the financial effects
of different responses and improving our means of measuring them, 5)
identifying best practices, 6) adopting a rating system, 7) supporting RPI
investment funds, and 8) recognizing leaders in the field. |
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