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Funds raise the bar on ESG strategies to attract HNWIs

January 29, 2021 Article 6 min read
Zack Otte Plante Moran Realpoint Investment Advisors
Interest in ESG-friendly real estate investments is growing, but the story for individual investors is nuanced. Zack Otte discusses this trend at
Portrait of smiling businessman resting chin on hand in office conference room during meeting about ESG real estate investments

Over the past several years, institutional investors have increasingly considered environmental, social, and governance (ESG) factors when investing. Today, high-net-worth and family office investors are also increasingly accounting for certain ESG factors when evaluating potential investments.

While the question “What is ESG?” is harder to define for certain investment types, real estate is a particularly fertile asset class for ESG considerations. This is largely due to real estate’s inherent potential to impact the immediate environment and the outsized role some properties can play in local economies. But investors remain cautious when evaluating a manager’s ESG policies and procedures. As with any investment considerations, it is still important to link goals with actionable items and quantifiable return on investment.

ESG interest continues to grow among investors, investment managers with strong ESG policies will likely continue to differentiate themselves.

Read more from Plante Moran Realpoint Investment Advisors (PMRIA), formerly Plante Moran REIA’s Zack Otte and others in this discussion.

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