0. Energy efficiency Investment voluntary initiatives - The role of investors in scaling up EE investment
Tatiana Bosteel
Director for Responsibility
Hermes Real Estate

1. Energy efficiency As first fuel

2. Impact to investment performance
MSCI green rated office performance – EE in buildings
MSCI findings 2015
Responsible Property Investment 2017

3. Global Real Estate Sustainability Benchmark
Growing voluntary disclosure

4. EEFIG Recommendations 2015 Institutional Investors Priorities
Responsible Property Investment 2017

5. De-risking
open source database to disclose real performance data of real investments projects
An EEFIG underwriting toolkit for investments in energy efficiency
Energy efficiency financing, a win/win situation also for financiers and investors:
More reliable cash flows
Increased asset value
Risk reduction
increased business opportunities
Refinancing opportunities

6. DEEP database Risk & Valuation GUIDANCE
DEEP: De-risking Energy Efficiency Platform
& EEFIG UNDERWRITING GUIDANCE
DEEP database
Risk & Valuation GUIDANCE
Financial institutions and energy efficiency
Financing Energy Efficiency
The Project Life Cycle
Value and Risk Appraisal
Resources
Helps bridge the gap between the technical world and the financial world
Helps build capacity in financial institutions
Provides case studies of financial institutions deploying capital into energy efficiency.

7. Mapping Tools: “Energy Efficient World” for the G20…
Core
Integrated
USD trillions
USD 221bn
ESCOs (USD 24 bn); “Self-financed”
Energy subsidies; Inefficient markets; Supply-led planning.
Energy Transition; National Renovation Strategies; Vehicle Fleet Standards; Transparent Energy Planning.
“EE First”; Mandatory targets/ standards; NZEBs; EE Obligation schemes; National EE Action Plans.
Mainstreaming
Enabling
Finance undertaken without explicit consideration of energy “externalities” or cost effective energy improvements.
Green tagging; Green buildings lending; green lending; climate lending; Equator principles.
EE mortgages; Building renovation loan; EE credits/loans; EE tagging.
Green tagging and company disclosure; Collaborative shareholder activism; Green funds; Sustainable real estate funds.
EE funds; Energy Productivity Indexes; Own real estate EE renovation; EE tagging.
Product and services without explicit consideration of energy “externalities”.
Green buildings insurance; Climate mitigation insurance and investments; Addon coverage; Technical assistance, advisory services.
Energy saving insurance; energy performance guarantee; EE advisory services.
Resource Efficiency; Safeguards; ESG & Climate Commitments;
Direct EE Lending; EE Policy lending; EE targets; Technical assistance.
$33 bn
$7 bn

8. Our approach to holistic returns means we are committed to delivering excellent long-term investment performance and stewardship, while improving the lives of many

9. Hermes Investment Management
We are an asset manager with a difference. We believe that, while our primary purpose is to help savers and beneficiaries by providing world class active investment management and stewardship services, our role goes further. We believe we have a duty to deliver holistic returns - outcomes for our clients that go far beyond the financial - and consider the impact our decisions have on society, the environment and the wider world.
Our goal is to help people invest better, retire better and create a better society for all.
Our investment solutions include:
Private markets Infrastructure, Private Debt, Private Equity, Commercial and residential real estate
High active share equities Asia, global emerging markets, Europe, US, global, and small and mid-cap
Credit Absolute return, global high yield, multi strategy, global investment grade, real estate debt and direct lending
Multi asset Multi asset inflation
Stewardship Active engagement, advocacy, intelligent voting and sustainable development
Offices London | New York | Singapore
Contact information
United Kingdom
+44 (0)
Africa
+44 (0)
Asia Pacific
Australia
Canada
Europe
Middle East
United States
Enquiries

10. Join #EUSEW17 www.eusew.eu ‘EU Sustainable Energy Week’
@euenergyweek & #EUSEW17
‘EU Sustainable Energy Week’