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. As part of our Responsible Investment Policy, we have developed the ESG Screening Policy which is applicable for all assets under management at Presima.

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.


Engagement Philosophy

Presima’s engagement philosophy is anchored in the spirit of collaborative relationships and reinforces our commitment to uphold Principle 2 of the United Nations Principles for Responsible Investment (UN PRI): “We will be active owners and incorporate ESG issues into our ownership policies and practices”. Read Presima's Engagement Policy.

 

Proxy Voting

It is important for Presima to have the tools and means that are essential to its role as a global investment management firm. A policy governing the exercise of voting rights is an excellent communications vehicle. It enables Presima to take into account its responsibilities with regard to the funds it manages and with regards to the interests of its clients. It also serves to add value to the capital stock of companies and make a lasting contribution to their growth for the benefit of all their shareholders and of the communities in which such companies operate.

This Proxy Voting Policy provides Presima a guide for the exercise of voting rights.

Climate Change

Presima views climate change as a serious threat to communities, businesses and ecosystems around the world. Thus, we seek to support climate change action by aiming to understand the potential physical effects of climate change, as well as potential opportunities arising from the transition to a low-carbon economy, in the overall investment decision process.

In pursuing its investment activities and a responsible investment approach, Presima believes that climate risk factors are material and can have an impact on long-term financial returns. As such, we believe that climate disclosures are relevant and necessary in the overall investment decision process.

This Climate Policy is applicable for all assets under management (AUM) at Presima.

Presima publicly supports the Paris Agreement:

  • Presima is exploring pathways and is committed to establishing a roadmap to align its portfolio with the Paris Agreement.

  • Presima is committed to assessing the exposure of its portfolios to climate risk (in progress).

  • To ensure the profitability of the companies it invests in, as it usually does, Presima also intends on engaging with their leadership teams about their intentions and ambitions and advancements related to climate risks and opportunities.

  • This conversation will be centered around the need for sustainable, climate-ready business strategies that increase both societal and financial value.

  • Presima has also begun engaging with its own clients about climate considerations.

  • Finally, Presima envisions establishing a process to regularly and systematically report on its progress on its climate goals to its clients.

Presima also publicly support TCFD since December 2020.