Bouwinvest position paper 
From Net Zero to Financial Underwriting

In November 2024, Bouwinvest formally adopted its ESG Investment Belief at the platform level. Building on scientific evidence from the IPCC, Bouwinvest believes that the transition towards a lower-carbon economy and the physical consequences of changing climate patterns will become financially material to parts of the real estate market, with some consequences not yet fully reflected in prevailing prices or underwriting.

“Changing climate patterns are among the defining challenges of our time. We believe we have a responsibility to act. But years of working on sustainability have shown us that conviction alone doesn’t create change at scale. We need to connect climate action to financial returns. That’s precisely what this ESG Investment Belief does,” says Timothy Prescott, Manager ESG at Bouwinvest.

From belief to investment decisions
Complementing Bouwinvest’s Paris Proof commitment, the ESG Investment Belief provides a financial rationale for decarbonization, informing investment and asset management decisions in products where investors choose to adopt it.

Bouwinvest uses CRREM pathways to assess decarbonization progress and develops strategies addressing both operational and embodied carbon in its directly held investments, focusing on actual rather than theoretical emissions. To further embed sustainability in investment decision-making, Bouwinvest has decentralized its ESG specialists into the investment teams.

“Lasting change requires more than ambitious targets. By connecting our investment beliefs, decarbonization strategies and the way we organize ourselves, we are taking meaningful steps towards making sustainability an integral part of how investment decisions are made to bring about the change we need,” Prescott explains.

Read the position paper
Bouwinvest continuously tests its investment thesis against market developments and evidence from its portfolios. Further research will follow as evidence accumulates. Want to learn more about the ESG Investment Belief and how Bouwinvest puts it into practice? Read the full position paper From Net Zero to Financial Underwriting.