Knowledge Hub

Climate positive activities are aimed at not only achieving but surpassing net zero emission goals through eradicating additional carbon dioxide (CO2) and/or greenhouse gases (GHG) from the atmosphere. In short, it’s about saving more GHG emissions than your actions produce, in order to create an environmental benefit.

When developing a climate positive strategy, the first stage is to apply a carbon accounting framework. For instance, if a building product manufacturer wants to develop a climate neutral or positive product, they must determine the total carbon footprint of that product. The carbon footprint covers everything — from the energy needed to source the original material/s as well as to produce, supply, use and dispose of the product — to the emissions related to product original material/s sourcing as well as product production, usage and disposal.

Once the total carbon footprint is calculated, as well as what needs to be counteracted to become carbon neutral, then an additional measurement number, such as an extra 10% for example, can then be tagged on to estimate what is needed to go climate positive.

How enterprises actually achieve climate positivity can differ. Usually, however, they meet the requirements via a mixture of reducing carbon emissions, shifting to renewable energy, producing locally, investing into offsetting, and purchasing carbon credits.

In this article, we explore an emerging sub-set of infrastructure which is garnering increasing amounts of interest from global private equity and pension funds – Educational Infrastructure or ‘EduInfra’. EduInfra refers to the infrastructure, building and land used to deliver social services like education.

EduInfra is attractive to international annuity investors looking for stabilized yield plays. The sector has an edge over other similar asset classes due to its non-GDP linked and rather recession proof character with significant potential for capital appreciation. It offers a promising 10 – 11% entry cap rate with rental escalations in the region of 3 – 5%. While the market boasts of significant depth, potential has not been unleashed as operators are only slowly moving towards asset light models.  EduInfra’s classification as infrastructure allows for tax optimal exit through InvITs which can also serve as a growth platform attracting institutional investors.

This was originally published in https://resolutpartners.com/2022/11/15/eduinfra-emergence-of-a-new-asset-class/

At a time when commercial occupancy rates across the country remain stubbornly low, the report delves into how Australian office worker expectations are changing in a digital-first, hybrid work environment and how this impacts their office attendance.

Next Flex | Technology for the next generation Australian office, which surveyed 1,000 office workers across the country, was launched by essensys, a leading global provider of software and technology for the commercial real estate industry, in partnership with Flexible Workspace Australia.

The report’s critical findings highlight a lack of adequate tech is a key factor in people deciding to work from home or an alternative third space, with more than four in five respondents (86%) reporting a disparity between the existing technology in their office and what they need to enable them to do their jobs efficiently.

As the voice of sustainable investing in the Asia Pacific, APREA has developed the ESG Guidebook for Real Assets in Asia Pacific to raise awareness about ESG and guide our stakeholders in their journey to sustainability. We believe that capital allocated to real assets can play a meaningful role in the achievement of the sustainable development goals (SDGs), while leveraging growth opportunities in a manner that benefits all stakeholders.

We recognise that the ESG landscape continues to evolve, and this Guidebook lays out the basic foundation to integrate ESG and sustainability factors in how each of us conduct our businesses. Aside from providing a framework that can be used as a basis in establishing a systematic ESG approach, we have included practical ways to build and operationalise an ESG program with effective governance, as well as clear steps to engage and communicate with key stakeholders.

The Guidebook also features case studies among APREA members that illustrate various innovative approaches, that reflect their philosophy and investment styles, and thus, facilitating the exchange of best practices.