Sustainability Management Framework for Schroder Property Investment Management.

Gujral, Hitender (2010) Sustainability Management Framework for Schroder Property Investment Management. [Dissertation (University of Nottingham only)] (Unpublished)

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Schroders PLC is a UK based Asset Management Company offering investors a wide range of products such as equities, fixed income, Multi-asset, Private Banking and Alternatives. Property funds fall under the Alternatives category and Schroder Property has managed property funds since 1971. They manage a broad range of open and closed ended property funds offering investors exposure to both diversified and sector focused portfolios. Schroder Property Investment Management (SPRIM) seeks to build a new and possibly unique set of linked processes and systems for the collection, analysis and reporting of factors impacting property portfolios relating to the key issues of sustainability and climate change.

The ten week summer internship with SPRIM required developing a sustainability management framework to address the below mentioned six key deliverables. To achieve the same, Schroder Exempt Property Unit Trust (SEPUT) was analyzed. SEPUT is an open ended property unit trust established in 1971 and has a gross asset value of £1.361 billion as of March 2010 making it the largest fund managed by SPRIM. The key drivers for seeking a sophisticated sustainability management framework are the recently introduced CRC Energy Efficiency Scheme and the increasing awareness regarding the importance of sustainability issues amongst Schroder Property investors.

The six key deliverables achieved as part of this exercise are listed below:

1. Identification of the key sustainability (ESG) factors impacting Schroder Property’s directly held property portfolios.

2. Development of a reporting framework which is compliant with the environmental regulation based on the key sustainability factors identified enabling effective collation, analysis and reporting of sustainability information.

3. Entry of existing data/ESG information from prior consultancy work into these new processes' and systems.

4. Evaluation of current performance and any gaps in ESG performance and reporting, short of legislative requirements or other aspirations.

5. The development of goals/targets and corresponding KPI's for the Schroder Property team to closely monitor progress.

6. Recommendations for future improvements of Schroders ESG property performance which leads to the enhancement of Schroders Responsible Property Investment (RPI) policy.

Due to the development of the sustainability management framework, SEPUT would be better placed in terms of integrating sustainability issues into the standard property investment, management and valuation processes. The framework effectively incorporates the requirements of the CRC Energy Efficiency Scheme enabling SEPUT to monitor their CO2 emissions closely and establish plans for further improvements. It also highlights a number of environmental, social, economic, management and policy factors that affect SEPUT’s sustainability performance for which business plans need to be developed to manage the risks in a robust manner. The RPI policy recommendations would further enhance the existing Schroders RPI policy thereby demonstrating the firm’s commitment towards tackling sustainability issues and improving performance. Such a flexible framework could also be adapted for other property funds as well under SPRIM’s management for company wide implementation.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Nov 2010 14:20
Last Modified: 23 Jan 2018 07:44

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