Nuveen has set up a real estate carbon reduction strategy focused on lessening global carbon emissions through investment in listed real estate.

The Global Real Estate Carbon Reduction strategy – categorised as an Article 9 product under the new EU Sustainable Finance Disclosure Regulation – aims to provide “long-term capital appreciation and current income” by investing in real estate companies that have either achieved carbon neutrality, or have a target to or track record of reducing greenhouse gas emissions.

Nuveen said Jay Rosenberg, the head of public real assets, and Ben Kerl, portfolio manager and head of listed real estate investments, will co-manage the strategy.

Scott Sedlak and Jagdeep Ghuman, the heads of US and Asia real estate respectively, will support the strategy in their regions.

Kerl said: “Buildings are thought to be responsible for approximately 40% of global carbon emissions, a figure we believe could be hugely reduced by implementing creative plans to reduce emissions.

“We believe companies that are committed to these plans have the potential to deliver superior long-term returns as a result of reduced future financial liabilities, better pricing power for assets by appealing to a larger pool of tenants, and superior access to debt and equity capital.”

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