Originally published: IPE Real Assets, 13 April 2022
European pension funds expect commercial properties which lack good environmental, social and governance (ESG) credentials to record “significant value depreciation due to brown discounting”, according to a report by real estate ESG data firm Deepki.
According to the research, 79% of the 250 European pension fund managers surveyed, expect commercial real estate with good ESG credentials to provide better returns or ”green value” over the next five years.
The Deepki European Pension Fund Report: Integrating ESG into commercial real estate surveyed European pension fund managers in the UK, Germany, France, Spain and Italy, with combined assets under management of €402m. The research was conducted by Pureprofile in February.
