Social value really does create long-term investment value according to Ben Sanderson, MD, Real Estate, Aviva Investors.
“Any investment one makes is like dropping a pebble into a pond, the ripples go out. What we’re trying to do is ensure that those ripples, those social value impacts, really are very much more positive than negative” he said.
He added that a good investment that is really integrated properly with the wider community – whether it is an office, retail or residential investment – and reflects truly the social impact it is having it will produce a better investment return in the long term.
“The trick is, of course, measuring. We have to measure this in a consistent, disciplined way, he added. “At Aviva Investors, social value is a very important part of how we invest.”
The firm’s approach is to integrate social value into all aspects of the investment process just as environmental factors commonly are. “We take the really strong view that unless you try and measure and acknowledge the social impact that your investments have, you will make worse investments.”
“There is no trade-off, in our opinion, between social value and investment returns and therefore we try and incorporate it into our investment decision-making in a really material way.”