ESG: We follow industry best practices for responsible investing

Smart, responsible investing

Presima believes that forward-thinking, sustainably-oriented companies that excel along a broad spectrum of ESG considerations should be rewarded with a lower risk premium than peers with a more short-term, less responsible orientation. Presima is a signatory of the United Nations United Nations Principles for Responsible Investment (UN PRI) and has adopted a Responsible Investment Policy that is one of the guiding principles in its investment process for all assets under management.

6 principles for responsible investment

  • We will incorporate ESG issues into investment analysis and decision-making processes
  • We will be active owners and incorporate ESG issues into our ownership policies and practices
  • We will seek appropriate disclosure on ESG issues by the entities in which we invest

  • We will promote acceptance and implementation of the Principles within the investment industry

  • We will work together to enhance our effectiveness in implementing the Principles
  • We will each report on our activities and progress towards implementing the Principles

 

How ESG considerations inform Presima’s investment research process

Presima usually has a medium or long-term investment horizon. It therefore intends to monitor and to contribute to the profitability of the companies in which it invests. Its contribution is intended to be constructive by targeting first and foremost a common objective - the success of the companies - and, consequently, an optimal financial return and security of investors' capital.  Presima believes that there is a positive link between ESG performance and financial performance in real estate. As such, ESG considerations are factored alongside more conventional financial indicators into every security valuation to capture a holistic view of a potential investment’s risk profile.

 

A cornerstone of Presima’s investment process is engagement with companies in its investment universe. Presima’s engagement framework requires portfolio managers and analysts to strive toward building collaborative relationships with key management personnel through dialogue and asset visits around the globe. All company meeting notes, including the identification of and progress on responsible investment issues, are logged in Presima’s proprietary portfolio management system which helps in following progress of ESG considerations through time.