Barings, which has one of the largest global real estate investment managers, has achieved its highest scores to date in the annual Global Sustainability Benchmark for Real Assets (GRESB).
Three of its flagship European funds, comprising of both core and value-add real estate investment, were the highest performers among its peer groups, with two recognised as ‘Real Estate Sector Leaders’ in four categories, it said.
Barings European Core Property Fund, which has been participating in GRESB for seven years, earned five out of a maximum of five green stars with a score of 93 out of 100. The fund was ranked first out of its 15 peers. The largest improvements were observed in the data performance sections. Energy, greenhouse gas emissions, water and waste categories all saw an increase in scores from the previous year.
This was primarily due to increased data coverage and asset-level energy efficiency measures including increased on-site renewables. Increases were also observed in the climate risk assessment and building certifications sections.
Meanwhile, Barings Real Estate European Value Add I (BREEVA I) fund also achieved five stars with a score of 97 out of 100 points, ranking first out of seven in its peer group. Its successor fund BREEVA II was also ranked first in its peer group of seven, with five stars and an unprecedented score of 99 out of 100. BREEVA II has been recognised as a ‘Real Estate Sector Leader’ for the second year in a row, this time at both global and regional levels.
The compnay said its approach to Net Zero Carbon (NZC) was a key contributing factor towards improved ratings. Both BREEVA I and II increased the number of assets that are designed to meet NZC standards for both construction and operation. NZC targets devised for these European funds take into account fund strategy for reducing GHG Scope 1, 2 and 3 emissions, and extend support to tenants and the wider value chain via asset-level initiatives. This approach is expected to enable further performance improvements and will continue to strengthen ESG integration for Barings’ European real estate funds.
Nick Pink, head of European real estate, said: 'Over recent years we have built a strong team, led by Kristina Arsenievich, and invested significantly into the performance of our assets and strategies, which means we can face the current uncertain market and changing environmental regulations with confidence.'
Valeria Falcone, head of European value-add investing, added: 'Creating best-in-class assets through repositioning or speculative development is fundamental to how we create value and a big part of why our value-add strategy continues to be so successful.'
