Global asset manager Nuveen has launched an Article 9 global real estate carbon reduction strategy, focused on “lessening global carbon emissions through investment in listed real estate”.
Nuveen, which has committed to achieving net zero carbon across its private real estate portfolio by 2040, said the strategy aims to provide “long-term capital appreciation and current income by investing in real estate companies that have either achieved carbon neutrality, or have a target to or track record of reducing greenhouse gas emissions in a manner that is aligned with the Paris Agreement”.
The strategy will be co-managed by Jay Rosenberg, head of public real assets, and Ben Kerl, portfolio manager and head of listed real estate investments, with support from Scott Sedlak and Jagdeep Ghuman, who are Nuveen’s regional real estate leads in the US and Asia respectively.
Kerl said: “Global carbon emissions are on track to increase temperatures by 4-5°C, leading to likely catastrophic effects on the world as we know it. Buildings are thought to be responsible for approximately 40% of global carbon emissions, a figure we believe could be hugely reduced by implementing creative plans to reduce emissions.
“We believe companies that are committed to these plans have the potential to deliver superior long-term returns as a result of reduced future financial liabilities, better pricing power for assets by appealing to a larger pool of tenants, and superior access to debt and equity capital.
“We are excited to offer this strategy to our clients, who are increasingly looking for portfolio diversification away from traditional equity and fixed income asset classes against a backdrop of challenging market conditions.”
