La Française & GPR launch new sustainable global real estate index

Pensions, other institutional investors as well as private banking clients are more and more integrating sustainability factors into their investment strategies. With one of the highest carbon footprints, the real estate sector is naturally the first place to look in order to curb climate change; and investors, increasingly aware of their responsibility, are embracing this challenge.

In this context, Global Property Research (GPR), a service provider for leading financial institutions, specializing in customized property indices, and real estate expert La Française are pleased to announce the launch of a new sustainable global real estate index designed for institutional investors: GPR IPCM LFFS Sustainable GRES Index, which will set new standards in terms of sustainability in the listed real estate sector.

La Française member companies, Inflection Point Capital Management UK Ltd. (IPCM) and La Française Forum Securities (LFFS), together with GPR will collaborate on the creation and maintenance of this new index consisting of up to 150 global sustainable real estate securities, selected based on their real estate activities, ESG performance and market capitalization. GPR compiles and administers the Index. 

IPCM, the specialist, sustainability-focused investment advisory arm of La Française, uses its proprietary sustainability / ESG model to assess companies in terms of carbon intensity, materials use, water use efficiency, electricity use and energy efficiency, as well as health & safety, human capital management and overall governance. To generate the final IPCM ratings and achieve the best possible accuracy in rankings, IPCM synthesizes data, information, and insights from a variety of sources, including LFFS which will provide IPCM with ESG related company data, information and insights garnered from its research and interviews with management. GPR calculates index performance on the basis of its proprietary methodology on the universe of the top 150 ESG constituents with a quarterly review cycle.

Jeroen Vreeker, Head of the GPR Index Team, said: “Sustainability is a factor that is increasingly implemented when providing benchmark solutions for listed real estate investments. The GPR IPCM LFFS Sustainable GRES Index covers over 60% of the total market capitalization of the broad GPR General Quoted Index and remains highly diversified to countries and sectors. The index is a valuable addition to GPR’s suite of tailor-made benchmarking solutions.”

Matthew Kiernan, CEO of IPCM, noted: “All over the world, demand for more sustainable real estate offerings is growing exponentially. The leading, most far-sighted real estate companies have recognized this trend and are providing innovative solutions. This new index provides investors with a unique opportunity to identify the leading, best-managed companies and invest in their securities.”

Jana Sehnalova, Managing Director of LFFS, commented, “The GPR IPCM LFFS Sustainable GRES Index sets a new industry standard for climate conscious investors in the listed real estate sector. Given the growth in tenant demand for green real estate and tightening government regulations, real estate securities with underlying holdings that have superior environmental characteristics and a strong focus on social and governance factors should outperform financially.”