Reitway integrates Environmental, Social and Governance (ESG) principles into our investment process as part of our in-depth research to identify the globe’s best listed property investments to achieve superior risk-adjusted, long-term financial returns.
Reitway actively investigates ESG factors and principles to aid us in uncovering company risks, and opportunities, as part of our fiduciary duty to investors and being a good corporate citizen.
Our investment process uses ESG research (for example GRESB and Reuters) alongside company filings, financial data and other sources to generate our company ESG ratings. A discussion of these factors is included in our investment cases and are explicitly factored into valuations via adjustments to the company’s earnings forecasts, discount rate and / or valuation multiple, where applicable.
Our research demonstrates that best in class ESG companies can potentially deliver superior returns versus those who are laggards in terms of environmental protection, treat their employees poorly, or have minimal financial disclosure. We seek to invest in companies that benefit society, the environment, and are well managed.
Regarding Real Estate specifically, we seek to invest in real-estate assets that attract tenants by:
- Safeguarding the environment – By minimizing energy consumption, LEED certified, green power solutions, carbon mitigation, water conservation.
- Add value to their communities - Through community engagement and investment.
- Best in class governance - Representative boards, stakeholder aligned remuneration, and best practice corporate governance as per global guidelines.
ESG is the intersection of Social and Business good for the long-term benefit of all.