Nuveen offers global real estate carbon reduction strategy

Investing in carbon-neutral companies or those with a track record of reducing emissions

Nuveen has launched a real estate strategy focused on carbon reduction.

The Nuveen Global Real Estate Carbon Reduction strategy invests in real estate companies that have either achieved carbon neutrality or have a target to or track record of reducing greenhouse gas emissions in a manner that is aligned with the Paris Agreement.

Jay Rosenberg, head of public real assets, and Ben Kerl, portfolio manager and head of listed real estate investments, will co-manage the strategy, supported by Scott Sedlak and Jagdeep Ghuman, respectively the regional real estate leads in the US and Asia.

Kerl said: “Global carbon emissions are on track to increase temperatures by 4-5°C, leading to likely catastrophic effects on the world as we know it. Buildings are thought to be responsible for approximately 40% of global carbon emissions, a figure we believe could be hugely reduced by implementing creative plans to reduce emissions.

“We are excited to offer this strategy to our clients, who are increasingly looking for portfolio diversification away from traditional equity and fixed income asset classes against a backdrop of challenging market conditions.”

The strategy, which is classified as Article 9 joins Nuveen’s other Article 9 strategies: the Global Core Impact Bond, US Core Impact Bond, Emerging Markets Impact Debt and Global Clean Energy Infrastructure Impact strategies.