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GREEN & PROFITABLE INVESTMENT STRATEGY

How to balance your assets the clever way

Climate change must be tackled in the current holding period – that much is clear by now. However, as an investor there are many challenges to consider when managing your assets and investment strategies. So how do you balance your portfolio to meet the expectations of all your tenants and society – and still make a healthy profit from it? The thing is, you need to or your portfolio is at risk of losing its value in the first place.

PREMIUM ATTENTION: HERE’S WHERE THE FOCUS NEEDS TO BE

Investors are wise to focus on several different improvements at once. Health and wellbeing in the workplace has a strong and direct impact on employee health, making it a crucial argument for potential tenants. If they are able to rent or lease a healthy workplace, they will witness a drop in absenteeism and an increase in productivity. For them, it’s an easy win in terms of attracting talent, maximizing productivity and minimizing costs associated with illness.

In many situations, sustainability improvements to a property will automatically increase the health factor of the work environment – there’s a direct link between soft landscaping, which improves a building’s sustainability, and mental health improvements. There are fewer synergies, however, between protection against physical climate change and the creation of a healthy work environment.

This creates a certain tension for investors, making it challenging to strike the right balance between different factors: one needs to improve health and wellbeing, mitigate physical climate change risks and minimize capital expenditure and running costs all at once.

Inactivity, however, begets even greater headaches. There’s the risk of rising insurance costs and lesser attractiveness to tenants in the future, making it crucial to find a way to reconcile these goals. Not taking any action will place your assets at risk, through government regulation or loss of liquidity, or even both.

Stepping up isn’t easy, but it’s crucial for the health of your asset portfolio. That means investing in health, wellbeing and climate change resilience. Future-proof investors will surely find a way to reconcile all of these challenges into one efficient investment strategy.

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