Wood Presentation080610

7/28/2019 Wood Presentation080610

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Responsible Property Investing:

Measuring OutcomesDavid Wood, Director

Boston College Institute for Responsible Investment

For more on Responsible Property Investing, see

www.responsibleproperty.net

INSTITUTE FOR RESPONSIBLE INVESTMENT

THE CENTER FOR CORPORATE CITIZENSHIP AT BOSTON COLLEGE

55 LEE ROAD CHESTNUT HILL, MA 02467 www.bc.edu/corporatecitizenship


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What is RPI?Finding and Creating value through the economic, social, and environmental

profile of real estate investments

Fair Labor

Smart

Growth

Green Building

Local

Citizenship

UrbanRevitalization

Social

Benefit

Brownfield

Redevelopment

Protect

Environment

RPI


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Who are RPI Investors

: Banks, Insurance Companies, Pension Funds

UN Principles for Responsible Investment ($14 Trillion in Assets)

SRI in US ($2.7 Trillion in Assets)

Foundations: Mission-Related Investing (MRI)

2% Campaign of approx $600 billion in assets


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RPI Metrics: Economic RevitalizationSocial goal: Support economic development for underserved areas and

communities

Metrics for Performance: Geographic targeting

Jobs

Diversity

Affordable and Workforce

Housing Created

Provision of needed goods

and services

Stakeholder Engagement

Business Case for Market-

Rate Investments: opportunity for growth

underutilized resources

local knowledge

upzoning potential

public incentives

investor relationships


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RPI Metrics: Green BuildingEnvironmental Goal: Energy efficiency, reduced emissions, improved building

environment

Environmental Metrics: Energy Efficiency

Resource Use

Transit-Orientation

Brownfield Redevelopment

Third Party Standards

Business Case: reduced operating cost

reduced regulatory risk

upzoning

public incentives



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RPI MetricsConservation

Environmental Goal: Conserve Ecologically Valuable Land

Environmental Metrics: Land/Environmental

Features Preserved

Wetlands Restored Limited Development

Third Party Identification of

Value

Business CaseMultiple

Revenue Streams: restoration and preservation

banking,

sustainable timber and

agriculture

limited development public incentives



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Measurement and the Triple Bottom LineOutcomes Frequently Crosscut:

Brownfield preserves greenfield, often LMI infill

TOD can support workforce housing through upzoning, provideneeded services through mixed-use

Green benefits to underserved communities

Infill/ historical preservation as environmental strategy

But!:

No guarantee that collateral benefits necessarily correspond, nor indeed,

without measurement, that collateral benefits are real.


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Are metrics the answer? Yes, but Measurement is necessary but

not sufficient

No magic number to rate a

building or portfolio

Narrative will always be

fundamental in real estate (it

already is!)

Internal metrics will differ from

business case metrics will differ

from mission-related metrics

Can we make standard at least

the categories?

The Noisette Wheel(www.noisettesc.com)

Documents

Wood Presentation080610