ShareAction, the non-governmental organisation campaigning for responsible investment, says that its first benchmarking exercise of investors in property highlights a lack of transparency around approaches to tackling climate change, including gaps in emissions data relating to portfolios even while making public climate commitments.
The conclusion is based on research into public disclosures up to May 2025 by16 real estate investment managers of non-listed investments that do not already appear in ShareAction’s other benchmarks. ShareAction pre-populated a survey based on each manager’s disclosures. Investment managers were invited to verify and supplement the findings. Six managers verified the survey: Brookfield Asset Management, CBRE Investment Management, Heimstaden, Hines, Nrep, and Partners Group.
The research supporting the report measured 12 standards that investment managers were expected to achieve, including making a public commitment to achieve net-zero emissions by 2050, and setting interim carbon reduction targets. The key standards are described by ShareAction as attainable measures of performance on climate action – each was achieved by at least one manager. Managers were then ranked by score, reflecting their performance in areas covered by the key standards, to provide additional context. The research identified several instances where it was not possible to determine from public disclosures whether managers met the standards, and where the managers did not respond to verify the survey. In these cases, they were treated as having failed to meet the criteria.
ShareAction stated that the combined value of the investments in scope was some $1.66trn as of 2024 – equivalent to the value of the entire New York City property market.
Despite noting that each standard was met by at least one investment manager, and that one firm was able to achieve every standard, nine of the 16 managers did not meet even half of them, ShareAction noted: “Some of the largest firms – Blackstone, Starwood Capital Group and Greystar – failed to achieve any of the key standards and ranked last in the benchmark.”
It went on to state that by excluding critical sources of emissions, several firms undermined the credibility of their net zero commitments. “Only nine of the 16 managers included in the benchmark disclosed a commitment that can be considered comprehensive, covering both landlord and tenant emissions. Meanwhile, only five managers demonstrated leading practice by explicitly including emissions from construction in their commitments.”
It stated that the research did not find clarity around the extent to which investment managers are “anticipating and addressing the impacts of decarbonisation on their tenants, the communities they operate in, and workers in their supply chains”.
“While firms said they engage with their tenants and communities, discussion of the social impacts of decarbonisation was almost entirely absent from their public disclosures.” This, ShareAction concludes, is “putting a just transition at risk”.
Other key findings from the report include:
- Six investment managers had not set interim carbon reduction targets, including four firms that had made a net zero commitment. Several managers did not disclose the proportion of their assets covered by their interim targets – meaning uncertainty around assets currently managed in line with their net zero commitments.
- Few investment managers had disclosed portfolio-wide targets on energy efficiency that covered landlord and tenant energy use. The low level of target setting came despite the clear benefits of energy efficiency for decarbonisation and making buildings commercially attractive for tenants.
- Only one investment manager – Nrep – demonstrated a clear commitment to stop installing fossil fuel infrastructure in buildings. Others had failed to make the same commitment, despite technologies to replace such infrastructure already being available.
Positive points
It is not all doom and gloom, however, as the findings did highlight certain practices that lead the way.
Nordic firm Nrep landed the top spot in ShareAction’s benchmark, having achieved every key standard. Managers in the top half of the ranking had set science-based targets and are making plans to meet them, and transparently disclosed their emissions, ShareAction noted, including Savills Investment Management, Patrizia, Heimstaden and Prologis, who were awarded B grades, while Hines and CBRE Investment Management received C grades.
Aidan Shilson-Thomas, senior research manager at ShareAction, commented: “Some of the world’s largest real estate investment managers are failing to act on climate change at a time when rapid action is needed. The construction and operation of buildings account for a staggering third of global emissions, creating financial risks that managers must take seriously. The asset owners they act on behalf of, including pension funds, are relying on them to do so.”
“A few investment managers demonstrate commitment to climate action, but continued inaction by their peers is pulling the real estate sector further off track from net zero, with devastating consequences for people and planet. Given the size of this sector, we need managers to step up and take responsibility for their impacts, while ensuring workers, tenants and communities are at the centre of plans to tackle climate change.”
