Upholding a standard of responsible investment. Equiton’s environmental, social, and governance policy.
Environmental, social and governance policy.
Sustainability
Our Philosophy
ESG Factors
As a signatory of PRI (Principles of Responsible Investing), we define ESG factors as follows:
Our Purpose
Equiton’s Philosophy and Commitment
We base investment decisions on our professional judgment supported by thorough due diligence. Our principal responsibility is to maximize investment returns for our investors without undue risk of loss.
Our view is that real estate, as an asset class, is susceptible to ESG risk factors for three primary reasons:
- Buildings are inherently long-term in nature with long useful lives, and correspondingly, our investors tend to have similarly long investment horizons. This exposes real estate investments to ESG risks over an extended period which can amplify their effects.
- Unlike corporate operations, real estate is physically immoveable. A real estate investment has exposure to localized ESG issues, which are not mitigated simply by moving operations. Such localized ESG issues may include more stringent regulatory requirements, changing societal preferences for places to work, live and play, and exposure to climate-related events such as flooding, water quality/scarcity and extreme weather conditions.
- With the rise of global carbon emissions being created by the construction and operation of buildings, real estate is in an industry of particular focus among ESG investors.
Our philosophy is that incorporating relevant ESG issues into our decision-making processes will result in better risk assessment, better buildings for the communities we serve, and better investment decisions for our investors. Moreover, we believe that by being active owners, we can realize greater long-term value for our investors and property stakeholders. Being a responsible owner empowers us to enhance the long-term, risk-adjusted performance of our portfolios.
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