CNS-Responsible-Investing 2024 - Flipbook - Page 17
Illustrative Example: Logistics REIT
Assess
Score
Integrate
Engage
Identified material governance
risks due to underqualified
leadership and weak board
oversight. Also flagged poor
disclosure.
ESG score reflected governance
concerns, including board
composition and lack of
transparency, leading to a belowaverage Governance rating.
Adjusted valuation model with
higher discount rate to reflect
governance and operational risks.
Escalated concerns through
direct board-level engagement to
facilitate dialogue around board
refreshment, company leadership,
and quality of disclosures.
Advancing Sustainable Products
Private Real Estate ESG Integration
To further our commitment to sustainability, in 2024
we internally seeded a Sustainable REIT portfolio that
integrates advanced data capabilities with fundamental
research and top-down carbon optimization. This
strategy is grounded in a proprietary ESG framework
aligned with UN Global Compact principles and applied
consistently throughout the investment process.
In 2024, our Private Real Estate group formalized
its ESG policy, with a focus on incorporating ESG
considerations during the due diligence phase
of the investment process. Where relevant, ESG
considerations are also considered post-acquisition to
help support long-term value creation.
By combining bottom-up analysis with top-down carbon
constraints, we identify relative value opportunities
while maintaining broad diversi昀椀cation and managing
exposure to higher-emitting assets. Our approach
enables us to set and monitor speci昀椀c carbon reduction
targets across Scope 1, 2, and 3 emissions, ensuring
measurable progress toward lower-carbon real estate
investments. Through this transparent, data-driven
process, we aim to deliver competitive performance
while supporting long-term sustainability objectives.
In addition, several of our funds are classi昀椀ed as Article 8
under the EU Sustainable Finance Disclosure Regulation.
While not designated as sustainable investments, these
funds promote environmental and social characteristics,
incorporate ESG considerations throughout the
investment process, and follow good governance
practices. This approach re昀氀ects client demand and
evolving preferences in speci昀椀c product ranges and
jurisdictions where these characteristics are prioritized.
“Our Sustainable REIT portfolio re昀氀ects
our best thinking across global real
estate markets. It is thoughtfully
constructed to minimize exposure
to carbon emissions while seeking to
deliver strong, risk-adjusted returns.”
JIYANG ZHANG, CFA
SVP, PORTFOLIO MANAGER
COHEN & STEERS | RESPONSIBLE INVESTING 17
