Most real estate funds and companies are not yet actively managing their environmental impacts, according to a new report by Maastricht University’s European Centre for Corporate Engagement, commissioned by APG Asset Management, PGGM Investments and the UK’s Universities Superannuation Scheme. 
 

But Australian property firms GPT and Ethical Investor’s 2009 Sustainable Company of the Year, Stockland, stood out for their green policies and implementation, leading the new Environmental Real Estate Index.
 
GPT Group achieved the highest ranking in the index, with 83 out of 100 for management and policy, and 89 out of 100 for implementation and measurement.

 

The researchers surveyed 700 property fund managers and companies. The198 that responded were scored out of 100, based on their environmental policy and implementation.

 

“Property investors do not necessarily walk their environmental talk: a substantial percentage of the respondents score higher on environmental management and policy than on the actual implementation of these policies,” the report adds.

 

On average, Australian, British and Swedish funds and companies had the highest rankings, with a showing “substantially stronger than the performance of investors located in Asia, the US, and southern Europe”, the survey found.

 

Although the full rankings in the index have not been disclosed, the report does name the top three ‘green stars in each region, both for publicly listed and unlisted firms and funds .

 

As well as GPT, top scorers included Stockland, with 81 out of 100.

 

Vornado Realty Trust was the highest scoring US fund or firm in the index, with 55, showing the wide divergence in performance in different regions.

 

Large corporates are increasingly occupying Green Star buildings or are specifying NABERS ratings in rental specifications.

 

Private sector tenants of 5- and 6-star buildings include major banks, large resources companies, and other major corporates such as Stockland, Lend Lease, Telstra and Microsoft.