For liquid investments, when conducting fundamental investment analysis on companies and industries to identify the value creation drivers, our investment team considers the financial materiality of ESG issues along with other valuation metrics. Where relevant, the risk-reward analysis conducted on each potential investment takes into account ESG perspectives. During the life of the investment, ESG considerations are monitored and contribute to the decision-making process leading to changes in the size of the investment.
For real estate investments, the due diligence is performed by our acquisitions team, and our legal team works with transaction counsel, local counsel and third parties (environmental consultants, architects, etc.) to identify any potential environmental risks and opportunities. Our approach to environmental sustainability focuses on operational interventions to reduce resource usage and improving energy performance — including as an example: installing energy performance window glass, transitioning to LED lighting and improving A/C systems.