Gemma-Louise Wright’s Post

SA REIT Association and Nedbank Corporate and Investment Banking have launched a sustainability and best practices guide for REITs: https://bit.ly/4epYEYp #reit #sustainability #industryinsights #industrybenchmarking #ESG #JSE #shareholders #listedcompanies #propertyfund #assetmanagement #realestatenews #commercialrealestate #propertyowners #landlords #realestateinvestment

QIC Real Estate has made a further commitment to its sustainability goals by successfully converting A$3.75bn of bank loans into Sustainability-Linked Loans (SLLs) for its two largest real estate funds - the QIC Property Fund and the QIC Town Centre Fund. These deals combined, form one of the largest REIT SLLs to come to market within Australia in recent years, with a broad range of targets across core retail assets in the two funds.   QIC Real Estate's Managing Director Deborah Coakley said sustainable finance is an effective and critically important tool to deliver sustainability goals in a commercially responsible way.    ANZ, Commonwealth Bank, and MUFG acted as joint sustainability coordinators on the transaction.    Read more: https://lnkd.in/guZeWDN7

Of the three letters in the acronym, “G” for governance (in ESG) is the least discussed, however, arguably just as important as the other two for maintaining a business's long-term sustainability. Corporate governance broadly refers to the management of a business and various responsibilities and activities. For real estate companies, there are a two key governance considerations that are vital for sustaining business.   Two key governance considerations relevant for real estate companies: 1.     Trust structures & compliance   Real estate companies often utilise various trust structures, such as Real Estate Investment Trusts (REITs). Listed real estate vehicles, like REITS, commonly utilise stapled securities, and instrument where shares in a company and units in a trust are stapled together and cannot be trade separately, providing investors both equity ownership and income distributions. This allows for the trust structure to benefit from tax concessions, while the responsible entity can operate as a corporation. However, significant governance & compliance complexities are introduced due to the nature of these dual instruments.   2.     Risk & challenges in portfolio valuations Unlike any other asset classes with more frequent trading volumes , reliable real estate valuations are far more challenging, with valuations differing between different appraisers and appraisal methods depending on industry standards and subjective criteria. Accurate valuation is essential for real estate to be able to make informed decision around investments and financing. Hostplus, an industry superannuation fund, has closed its property and infrastructure funds due to over-inflated commercial property valuations in properties it held, now diving. Feel free to share your thoughts in the comments! #ESG #Corporate #Governance #Risk

CBA is incredibly proud to support The Australian Office of Financial Management’s (AOFM) with its inaugural Green Treasury Bond Issuance as Joint Lead Manager.   We are committed to playing a leadership role in Australia’s transition and this bond will be critical in driving capital towards activities that support sustainable outcomes.   As Australia’s largest bank, we know that companies and institutions in Australia are competing on the global stage, especially when it comes to capital to fund the energy transition and decarbonise our economy. This is another key milestone in the evolution of Australia’s sustainable finance market, and we commend the AOFM and Treasury on their robust Green Bond Framework.   The proceeds can be allocated to eligible expenditure critical for Australia’s transition, such as Rewiring the Nation, sustainable water use and the protection of the Great Barrier Reef.   The international book build attracted a final order book in excess of A$22 billion, for the A$7 billion issuance, as global and domestic investors expressed strong appetite for the inaugural Green Treasury Bond Issuance. The sheer size and scale of the bond shows that there is a deep, liquid market for ESG issuance from in Australia.   We anticipate this issuance will act as a catalyst for further labelled issuance in the Australian market from both government and corporate issuers going forward.  

The Australian Office of Financial Management’s (AOFM) inaugural Green Treasury Bond is a testament to our nation’s continued investment in the infrastructure and assets required for Australia’s future sustainable economy, which is why CBA is incredibly proud to support AOFM as Joint Lead Manager. The international book build attracted a final order book in excess of A$22 billion, for the A$7 billion issuance, as global and domestic investors expressed strong appetite for the inaugural Green Treasury Bond Issuance. The sheer size and scale of the bond shows that there is a deep, liquid market for ESG issuance in Australia. CBA’s Andrew Hinchliff, Group Executive Institutional Banking & Markets, said: “As Australia’s largest bank, we know that companies and institutions in Australia are competing on the global stage, especially when it comes to capital to fund the energy transition and decarbonise our economy. This is another key milestone in the evolution of Australia’s sustainable finance market, and we commend the AOFM and Treasury on their robust Green Bond Framework. We anticipate this issuance will act as a catalyst for further labelled issuance in the Australian market from both government and corporate issuers going forward.”

Swiss finance bodies have updated their self-regulation measures in anticipation of a government decision on greenwashing regulations. This move is significant for the banking sector, as it aims to enhance transparency and accountability in sustainable finance practices. The revisions are designed to align with potential new government policies to prevent misleading claims about environmental credentials. These changes could have a substantial impact on how banks manage and disclose their sustainability initiatives. For more details, read more in Responsible Investor here:

ESG performance evaluation is increasingly becoming an integral part of the refinancing process. This integration feeds into the overall dialogue between investors and financial partners on one hand, and issuers and assets in need of capital on the o https://lnkd.in/e6quagKJ

Fiduciary Duty & Sustainability ✒ 🌳 21st-century fiduciary duty requires stakeholders to embed sustainability throughout. Regularly engaging with clients to truly understand their views on different sustainability values is therefore fundamental. 🗣  Not doing so not only poses the risk of misalignment with the end client but also financial risks long term💲 💰 Through a double materiality lens, we know that threats like climate change not only pose a financial risk to portfolios but the holdings themselves can cause negative externalities which can further damage returns. 🏭 📉 As often heard, the cost of inaction far outweighs the cost of action. Whether it's purely for financial reasons or moral interest, a client's values must be understood. The Etcho profiler does just that helping trustees and advisors align their client's values with their portfolios and ensure they're truly representing their best interests. If you want to learn more, get in touch! This article by Barclays Private Bank dives into modern fiduciary duty in more detail.

Thanks Rachel Lowe for keeping us updated on the ever changing world of ESG rules and regulations! If anyone needs help navigating any of this or you have any questions or concerns, Rachel is your person! #Proskauer #ESG

US & Europe; lessons to learn? — RAO Global https://lnkd.in/eKhAJyK5 but will we all learn from each other? In time? #assetmanagers #fundowners #GPs #LPs #responsibleinvesting #RAOEurope24