Sustainable Investing
Sustainability and responsible investing creates a clean environment for all of us to enjoy while also improving sustainable investing for the long term.
Increasing Assets With ESG Mandate
Sustainability is not just an aspirational concept. One does not need to consider investing in sustainability as a noble and altruistic endeavor. This can also improve the overall project performance and profitability by developing a sustainable and energy efficient building. This also reduces the carbon emissions that many jurisdictions are looking to decrease. There clearly is a strong interest worldwide to sustainable investing as this also makes good business sense.
According to PwC, asset managers globally are expected to increase their ESG-related assets under management (AuM) to US$33.9tn by 2026, from US$18.4tn in 2021. With a projected compound annual growth rate (CAGR) of 12.9%, ESG assets are on pace to constitute 21.5% of total global AuM in less than 5 years.
They further project, under PwC’s base-case growth scenario, ESG-oriented AUM in the US would more than double from US$4.5tn in 2021 to US$10.5 tn in 2026; in Europe (already up 172% in 2021 alone) it would increase 53% to US$19.6tn. Investors in other regions outside the USA and Europe are also growing their allocations. Asia-Pacific (APAC) has the fastest percentage growth in ESG AuM, with this expected to more than triple, reaching $3.3tn in 2026. ESG products in Africa and the Middle East are gaining market share, as well as in Latin America, where ESG products account for $25bn in AuM.
Environmental
In commercial real estate, ESG can encompass numerous factors. IMK is focused on the sustainability metric that is associated with the environmental portion of Environmental, Social and Governance (ESG). The environmental portion considers the energy savings and net zero targets.
Through the use of the renewable energy generating glass facades, we can work towards the energy savings and net zero targets. By doing so, not only are we working towards these objectives, IMK also improves the overall project performance and our investment returns. We will be generating renewable energy in the building glass facade. This does not just reduce the carbon emissions, but we are generating excess carbon credits from the renewable energy that we are generating. This also achieves the energy savings by both saving energy and also generating clean energy which increases our cash flow and NOI.
