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Informed Strategies,
Sustainable Investments

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HEITMAN’S APPROACH TO SUSTAINABILITY

Heitman’s primary goal is to maximize risk-adjusted returns for our clients, regardless of the property investment strategy we are implementing. Though we do not limit our investments to those that meet specific sustainability related standards, our investment and asset management process does consider how those factors can influence our investment execution and outcomes at both the investment and portfolio levels.

Our goal: Be as informed as possible about the variables we may confront as we implement our strategies, so we increase the probability of making good investment decisions for our clients investing with us.

  • Working Toward Net Zero and Enhancing Operational Efficiencies

    As part of our ongoing efforts to assess the options to maximize risk adjusted investment returns and the operational efficiencies of the properties in which we invest in, we explore opportunities to reduce the carbon emissions of the assets that are within our private equity portfolios, when doing so is appropriate (and consistent with our client’s investment mandate).

    Heitman believes that improving the operating profiles of portfolio assets by sourcing renewable energy and making effective capital investments, can support more efficient property operations, allowing opportunity for ownership to enhance the occupancy experience, while providing tenancy with lower occupancy costs.

  • Working Toward Net Zero and Enhancing Operational Efficiencies

    As part of our ongoing efforts to assess the options to maximize risk adjusted investment returns and the operational efficiencies of the properties in which we invest in, we explore opportunities to reduce the carbon emissions of the assets that are within our private equity portfolios, when doing so is appropriate (and consistent with our client’s investment mandate).

    Heitman believes that improving the operating profiles of portfolio assets by sourcing renewable energy and making effective capital investments, can support more efficient property operations, allowing opportunity for ownership to enhance the occupancy experience, while providing tenancy with lower occupancy costs.

  • Leading in Environmental Awareness and Preservation (LEAP)

    LEAP, a Heitman employee resource network, was created with the goal of rethinking workplace activities, personal habits, and investments today for a better tomorrow. We are committed to creating alignment with our customers, partners, investors, and employees, ensuring we responsibly manage both environmental and human capital.

  • Leading in Environmental Awareness and Preservation (LEAP)

    LEAP, a Heitman employee resource network, was created with the goal of rethinking workplace activities, personal habits, and investments today for a better tomorrow. We are committed to creating alignment with our customers, partners, investors, and employees, ensuring we responsibly manage both environmental and human capital.

Industry Sustainability Participation and Reporting Standards

  • ULI GREENPRINT MEMBERSHIP
    Heitman is a member of ULI Greenprint Center for Building Performance, a worldwide alliance of real estate owners, investors, and strategic partners committed to improving the environmental performance of the global real estate industry.
  • NCREIF / PREA ESG REPORTING STANDARDS
    Heitman was involved in the development of the PREA ESG Reporting Standards. The mission of the project was to facilitate the establishment, management, and promotion of transparent and consistent private real estate industry best practices related to sustainability reporting to incorporate sustainability as a part of global investment operations.
  • GRESB
    Heitman began submitting funds to GRESB in 2011, and the firm became a GRESB member in February 2014. Heitman participates in submitting select funds to the benchmark and providing feedback to GRESB to improve their peer rating system.

EU Sustainable Finance Disclosure Regulation

Per Article 10 of the European Union’s Sustainable Finance Disclosure Regulation (“SFDR”), certain market participants are required to disclose information regarding how sustainability considerations factor into their investment and portfolio management processes.

As part of its investment process, Heitman seeks opportunities to achieve operating efficiencies for assets in its portfolios. Heitman also evaluates sustainability factors on an ongoing basis, to insure risks (including those relating to environmental matters) are mitigated as part of its investment manager process. We believe this approach can enhance investment returns.

As part of the decision-making and asset management processes, we aim to achieve the following goals and objectives:

  • Improve operating efficiency through adoption of best practices, including: (i) implementation of innovative technologies and strategies
    and (ii) ongoing identification, monitoring and assessment of environmental risks and exposures associated with the underlying asset, if
    any.
  • Ensuring that all investment decisions align with our firm’s core values and that these values are transmitted through our employees to
    the stakeholders associated with our investments.
  • Uphold strong ethical and corporate governance standards through transparency and integrity, and by working or investing with firms that
    have demonstrated the same.

 

Net Zero Disclosure

Net Zero: Heitman follows the World Green Building Council definition of net zero, which is a building portfolio that is highly efficient and fully powered by on-site and off-site renewable energy sources. Greenhouse Gas Emissions: The baseline net zero goal is based on CDP scope 1 and 2 greenhouse gas emissions, and direct operational control excluding occupant operations. Guidance on how to define operational control and boundaries for an emissions inventory can be found in the WRI/WBCSD greenhouse gas protocol (“The GHG protocol”). Operational Boundaries: Based on GHG reporting frameworks, Heitman will at minimum include all energy consumption and fuel use under its operational control. Where tenants/residents are in control of their own meter, those scope 3 emissions do not fall under the current net zero operational carbon goal. Acquisitions and Dispositions: New buildings have 36 months before they are included in the portfolio’s net zero commitment. Sold buildings are part of the net zero goal through the sale date.