The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Nuveen has launched a Global Real Estate Carbon Reduction strategy, which comes under Article 9 of the EU’s Sustainable Finance Disclosure Regulation. It is focused on lessening global carbon emissions through investment in listed real estate.

The strategy aims to provide long-term capital appreciation and current income by investing in real estate companies that have either achieved carbon neutrality, or have a target or track record of reducing greenhouse gas emissions in a way that is aligned with the Paris Agreement, the firm said in a statement.

The durability of real estate combined with increasing interest in carbon reduction solutions can potentially provide a long runway for future growth within carbon-aware real estate securities, the US-based firm continued.  Global efforts to combat climate change are fuelling worldwide demand for decarbonisation-focused investments, while cyclical tailwinds in real estate such as favourable valuations, healthy fundamentals and solid earnings and dividend growth may help create compelling investment opportunities, the firm said.

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. 

The strategy comes on top of 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.

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

“We believe companies that are committed to these plans have the potential to deliver superior long-term returns as a result of reduced future financial liabilities, better pricing power for assets by appealing to a larger pool of tenants, and superior access to debt and equity capital,” he continued.

Nuveen, the investment manager of TIAA, offers a range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. The global asset manager, which has $1.1 trillion in assets under management, also manages $151 billion across private real estate. Nuveen has committed to achieving net zero carbon across its private real estate portfolio by 2040.