First Sentier launches property fund with carbon focus

First Sentier Investors has announced the launch of its new Global Property Securities Fund, accredited by the Responsible Investment Association of Australasia (RIAA), which will feature carbon measurement and reporting.

The new fund would build on existing strategy which invests across a range of listed real estate assets from residential through to logistics, self-storage and data centres, but it would increase the focus on carbon reduction.

The manager said that carbon emissions in real estate were generated by operations – such as heating, cooling and lighting – as well the construction and demolition process – such as transport and materials production and its Global Property Securities team had developed a proprietary methodology designed to capture both of these ‘operational’ and ‘embodied’ emissions.

“To get the fuller picture of risks and opportunities, investors need to look at how companies are identifying, measuring, and acting on their carbon reduction and renewable energy ambitions, not just how they operate their assets,” Stephen Hayes, Head of Global Property Securities, noted.

“By integrating comprehensive environmental assessment into our investment process, we aim to value companies more accurately and mitigate any risks associated with environmental inaction.”

The team would be also working with landlords to help them improve their carbon footprint.