Focus on real value

The key focus of our Responsible Property Investment programme this year is to better understand the cost-benefit implications of sustainability and how it can create real value.

Real estate experts increasingly agree that sustainability will impact financial performance in the future, though no one can say when or by how much.

We are developing our understanding and evaluating the risks and the scale of the impacts on future performance by using our knowledge of the real estate market and building on the experience we have acquired through our RPI programme.

This approach enables us to manage risks effectively and create real sustainable investment returns for our clients.

A wealth of opportunities

We have a database of over 400 interventions that can improve the sustainability profile of our real estate assets. The question is: which ones can provide a meaningful return on investment?

At Hermes we have developed a suite of Responsible Property Investment (RPI) tools to help identify and implement sustainability value-drivers. We have also worked on a number of specific initiatives to gain a unique understanding of the benefits of RPI. This helps us to consistently identify how to add real value to our real estate portfolio.

A depth of experience

Developing and implementing our RPI programme has allowed us to acquire a depth of experience in understanding the issues and benefits of implementing a responsible investment approach across our real estate portfolio.

Initially we focused our tools on the basics of pro-active property management, responsible development and community engagement. As our understanding of the impacts of sustainability on financial performance grew we extended our programme and developed tools to support our investment activities.

This programme allows us to develop our expertise, identify the most effective value-driver actions to implement, and supports our Fund and Asset Managers in making informed investment decisions based on robust sustainability information.

Real Value – Bottom Line Benefits

Real Value in Central London: Our Central London Office portfolio shows how we instil RPI through all of our real estate activities.

Real Value in Shopping Centres: Our retail portfolio provides us with great opportunities to work with occupiers and local communities to implement significant responsible investment initiatives.