1. Nature and climate are inextricably interlinked.
Real estate and infrastructure sector should consider both in the decision-making process throughout the value chain. From keeping our buildings cool during warm weather to managing surface water flood risks and treating effluents, nature-based solutions offer efficient infrastructure services and therefore are a key opportunity area to mitigate climate risks and create social and economic value.
2. Nature and biodiversity are material to ESG considerations.
Real estate assets are exposed to wider macroeconomic and systemic risks arising out of nature and biodiversity crises. In addition, there are indirect/supply chain related nature and biodiversity risks. These are material to ESG considerations. Investors and asset owners/managers might need to consider approaches that go above and beyond compliance.
3. Every asset has an ESG potential.
Asset managers are best positioned to identify, evaluate and recognize the ESG potential of their asset-base. Asset owners should help optimise that capacity and draw out the benefits.
4. Creating value beyond Capex.
Asset managers and owners would be encouraged to create broader social and environmental value going beyond routine CAPEX. A helpful starting point will be to assess what percentage of current business-as-usual CAPEX is dedicated to ESG related activities and recognising how that can be increased over time to improve ESG performance.
5. Perfect (data) is the enemy of good (data).
It is understood that managing nature and biodiversity risks and creating opportunities require deep understanding and extensive data. However, delaying action and investments until the perfect dataset or model has been developed does not serve the purpose. Making the best use of available datasets and triangulating with scientific evidence can help identify least/no-regrets options and approaches.