Implementing ESG in Private Real Estate Portfolios: The Case of U.S. and Pan-Europe Core Fund Managers

This paper provides an overview of current environmental, social, and governance (ESG) practice with some of the leading U.S. and pan-Europe institutional real estate open-end fund managers. There were 18 firms that participated in the interviews, which were conducted with 36 persons, of which 72% were at the decision maker level. The participant firms represented over $300 billion in assets under management at year-end 2009. The paper discusses how fund managers balance fiduciary responsibilities and sustainability goals, the impact of green regulatory pressures, holistic approaches to ESG implementation, green push/pull on tenants, perceived and realized economic returns to sustainability, and the need for internal and external "buy in" for sustainability implementation.