Schroder Real Estate: Sustainability
At Schroders we believe it is our responsibility as real estate investors to identify, understand and manage environmental, social and economic impacts, positive and negative, to deliver resilient investment returns for the long term and manage exposure to impacts of financial and non-financial risks.
At Schroder Real Estate understanding these issues and their impacts is integral to our investment process and applies to all aspects of real estate investment including acquisition due diligence, asset management, property management provided by third parties, refurbishments and developments. Understanding and improving the impacts of real estate investment to the environment and society sits alongside our priority to maximise returns for our clients in a manner consistent with our funds’ risk profiles.
Our sustainability approach ”Real Estate with Impact” is founded on four pillars of impact – People, Planet, Place and Prosperity. These pillars are referenced to the UN Sustainable Development Goals: 8 Decent Work and Economic Growth; 11 Sustainable Cities and Communities; 13 Climate Action, recognising the contribution of the built environment and our responsibilities as real estate investors to society, the environment and economies.
We believe an investment programme which is sustainable should deliver enhanced returns to investors, improved business performance to tenants and tangible positive impacts to local communities, the environment and wider society for the long term.
Schroder Real Estate maintains an Environmental Management System certified to ISO 14001 to manage the deliverable actions derived from our Real Estate with Impact approach. The system applies to all aspects of direct real estate investment including acquisition due diligence, asset management, refurbishment and development as well as services provided by third parties.
Schroders participates in the Global Real Estate Sustainability Benchmark “GRESB” which is the global standard for real estate funds and companies. Schroder Real Estate is also a GRESB Participant Member and a member of the Better Buildings Partnership.
Our Pathway to Net Zero Carbon
Schroder Real Estate has committed to Net Zero Carbon by 2050. See what net zero means for our real estate activities and the actions we will take to develop pathways for our assets and portfolios.
What are the risks?
- The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up and down, which may adversely impact the performance of the fund.
- The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the assets purchased increases in value by more than the cost of borrowing, or reduces the returns if they fail to do so.
- As a result of fees being charged to capital, the distributable income of the fund may be higher but there is the potential that performance or capital value may be eroded.
- The Government has been considering reform to the residential leasehold sector since 2017, the timescale and outcome of which is uncertain and could adversely impact the value of the Company’s portfolio.