As many real asset investments are made through private markets, there is a dearth of information available, which makes assessing the ESG value of specific assets very challenging. A real asset is physical and tangible, deriving worth from intrinsic value- including but not limited to commercial and residential real estate; land; farmland; traditional and technology infrastructure; and commodities. Demand to invest in real assets is growing, they offer stable cash flows, low or negative correlation to public financial markets and reduced exposure to inflation- cementing their place as part of a diversified investment portfolio. Simultaneously, on a societal, individual and institutional investment level, environmental, social and governance values have become a priority along with the elevated profile of net-zero carbon emissions amongst asset managers. This raises the question of how to measure ESG impact when investing in real assets.

Investors have the opportunity to exert considerable influence over companies and assets they own and are increasingly being called upon to act as ESG stewards. This applies to real asset investments too, especially when looking at real estate, infrastructure, agriculture projects, there is opportunity to shape the prioritisation of sustainability features, especially when starting from scratch with a new project. Even with new legislation like the EU sustainability framework for asset managers, this task is hard enough in publicly traded markets where benchmarks and frameworks are relatively developed. As a real asset can be so many different things, with very different and specialised characteristics, measuring ESG impact requires further thought about criteria, what should be prioritised, and ultimately an established framework.

Hosted by the Financial Times in partnership with Nuveen, this timely virtual webinar will discuss the challenges related to navigating real asset investing while also upholding ESG values. The discussion will unpack the issue of “greenwashing” and will examine the positive ESG impact real assets provide, as well as the challenges and pitfalls which need to be addressed. A senior Financial Times journalist will chair the discussion.

Theme 1

Projects or assets can be rated positively for one ESG value, and negatively for another. How can investors balance one attribute over another and avoid “greenwashing”? 

Theme 2

What are the challenges in creating assessment frameworks for measuring ESG value and impact for real assets? What is the roadmap for establishing such frameworks?

Theme 3

In a world where investors are not willing to compromise on returns when adhering to their ESG investment goals, which real assets are able to meet these demands easily and which necessitate too much financial compromise?

Theme 4

How does real asset investing fit into net-zero carbon emissions goals set by asset managers to ensure that they are prioritising climate change?

Theme 5

When looking at real estate investments from an ESG angle the focus has been on emissions and energy efficiency- how can we go beyond these parameters to proactively incorporate other important values, in particular social values?

Theme 6

The acquisition of land is a common part of a real asset investment fund, what concerns can this raise especially when investing in land in developing countries, and how can this be addressed proactively?

Theme 7

The Covid-19 pandemic has seen many industries suffer, especially commercial and retail real estate, transport and travel- what role should investors play in “building back better” and how could this be defined?

Theme 8

When investing in real assets in developing countries, what challenges must be addressed in balancing return on investment with ESG values?

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