Implementing ESG is a challenge for investors and investment managers focused on Europe alone, but if the portfolio is global the challenge is even more testing.
“ESG is a movement which is very much driven from within the European Community, but for us as a fund acting on a global scale it’s quite important also to understand what’s happening across the world,” said Commerz Real’s global head of asset management Jens Böhnlein.
“So if we come up with an idea in lovely Wiesbaden we also have to think about how we can implement it in Australia and elsewhere as well,” he told Real Asset Insight’s Richard Betts.
There may be differences from data, tax and legal perspectives. But among the latest challenges in Europe is the recent introduction of the EU Taxonomy, which is posing questions to which answers are still needed, Böhnlein said .
Futhermore, ESG has to be implemented not just in the actual product but in asset management and facilities management. “So you really have to think about the full chain of services,” Böhnlein said.
He said that the starting point is always obtaining a better view of energy consumption which automatically provides a picture of your CO2 footprint. Commerz Real has devised its own tool to help understand better what needs to be done with each asset. Böhnlein warned that 2050 is closer than people realise and to fulfil the net zero requirements it is necessary to start today,“because you have to balance out your portfolio”.
Click on the video above to watch the full interview or listen to the podcast below.