UN urges eco investment

Property investors are being urged by the United Nations to invest in buildings that are environmentally friendly.

A report prepared by a leading academic for the UN points out that globally the property industry had a huge carbon footprint. But no one section is taking responsibility or willing to stick their neck out and do anything about it.

This is where investors could have a huge impact, according to the report's author Gary Pivo of the University of Arizona.

He urges investors to find out about the UN backed Principles for Responsible Investment. He also says those who don't invest in environmentally friendly properties risk seeing their returns slide sharply as eco buildings are more cost effective.

The report shows that buildings are responsible for around half of global carbon dioxide emissions, both from operations and the energy consumed by people travelling to and from them.

'Investors could exert crucial influence on property fund managers to invest in sustainable property, and reap significant financial benefits from savings on operating costs and higher rents from tenants,' it says.

'We operate in an industry where investors, occupiers, constructors, and developers each blame the other for the lack of positive action in improving the environmental footprint of new and existing buildings,' said Paul McNamara, co-Chair of the UN Property Working Group which commissioned the report.

'This report highlights the wide range of opportunities that exist for institutional investors who want to take positive action and apply the Principles for Responsible Investment to their property assets,' he added.

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