Our real estate investment business focuses on implementing sustainability best practices across its portfolio of €37.7 billion of assets under management (AuM) of core, core plus and value-add real estate investments across the globe.
The real estate investment business has been integrating sustainability into its day-to-day operations, policy, and strategy for a number of years. Our approach is to preserve and enhance risk-adjusted returns and to strengthen our investment process by reducing risk, improving efficiency, and satisfying tenants. Since approximately 40% of global carbon emissions are attributable to energy consumption in buildings, our efforts focus on finding solutions to environmental challenges while delivering superior risk-adjusted returns to our clients.
Our approach to ESG is led by our ESG Council for Direct Real Estate, and regional real estate ESG working groups. Together, they have developed ten ESG objectives, aligned to Deutsche Bank’s six core values. This approach reflects that, in real estate, there are ample opportunities to improve building efficiency and engage with our stakeholders in a manner that supports our clients’ objectives while at the same time, reducing the negative impact that our buildings have on the environment and promoting healthy, productive work environments for our tenants.
Over the past ten years, our ESG initiatives have made a number of achievements including:
- A 5.6% reduction in energy consumption (2013 to 2014)3, and a 10.3% reduction in associated carbon emissions, across 136 buildings with comparable year-over-year data office portfolio.
- A 13% return on cost across 21 ESG projects in the USA to reduce operating costs. Approximately US$1.53 million was invested, and US $219,000 in utility rebates were secured, for total annual savings of just over US $171,000. Over the past three years, we have achieved a 21% return on cost and delivered annual cost savings of US$1.05 million.
- A growth in certified green label AuM from €4.3 billion at the end of 2014 to €5.2 billion at the end of 2015.
3 The real estate investment business operates on a schedule which does not permit 2015 data to be finalized. All data reported here is from 2014.