Do sustainable assets generate sustainable outperformance?

– The impact of Energy Performance Certificates (EPC) on investment returns for European direct real estate – To date, several studies have demonstrated that assets with green market standard ratings have higher rent levels and values, as well as higher and more stable occupancy rates. However, the impact of sustainability on investment returns has not been clear as sustainability can also be costly in terms of CAPEX or construction costs. Therefore CBRE Investment Management has conducted a study that analysed the investment performance of more than 1,200 of our own directly held assets to see if there is a correlation between the impact of Energy Performance Certificates (EPC) on investment returns for European direct real estate. The study focuses on the UK and the Netherlands, where ESG legislation has been introduced in recent years, which has made the relationship between EPC and investment returns more apparent as it increased investor demand for sustainable assets. For other European countries, binding legislation following from the Paris Agreement is still to come. As a result, if legislation mattered, we would expect to see the strongest or earliest visible evidence of a relationship between sustainability and investment returns in both the UK and the Netherlands. During this webinar our experts from CBRE Investment Management will share their vision on Sustainability and the industry’s responsibility to tackle the climate challenge. After which they will focus on the study, share the findings and discuss how further legislation could support investment returns, also in other countries than the UK and the Netherlands.