2018 GRESB Infrastructure Results | Hong Kong
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In 2018, sustainable real assets saw a 17% increase in funds, totaling 75, while assets grew by 75% to 280 across 62 countries and 24 sectors, with over $500 billion in assets under management. The report highlights a growing focus on ESG (Environmental, Social, and Governance) performance and the need for a regulatory understanding among investors. Additionally, it emphasizes the challenges posed by climate change, particularly for critical Asian ports, and outlines the expected adaptation costs under various climate scenarios.
2018 GRESB Infrastructure Results | Hong Kong
- 1. 2018 RESULTS Sustainable Real Assets Hosted by: In partnership with: Supported by:
- 2. 2018 RESULTS Sustainable Real Assets 75 funds (+17%) 280 assets (+75%) 62 countries 24 sectors Funds: $100bn+ Assets: $500bn+
- 3. 2018 RESULTS Sustainable Real Assets 75 funds (+17%) 280 assets (+75%) 62 countries 24 sectors Funds: $100bn+ Assets: $500bn+
- 5. More ESG focus Long-term investment in illiquid assets Services and outputs critical to society Regulatory environment Investors want to understand risks and enhance returns Sustainable infrastructure source of deal flow Anticipating changing regulations and developments Opportunities REAL ASSETS
- 6. Investor Members Fund Manager, Asset Operator and Company Members
- 7. GRESB ASSESSMENTS ESG Performance Data ESG Analytics ESG Analytics Investor Perspective
- 9. FUND ASSESSMENT ASSET ASSESSMENT GRESB SCORE ASSET FUND SCORE GRESB SCORE FUND Funds with ≥25% asset participation 30% 70% Two Complimentary Assessments
- 10. 0 50 100 2016 2017 2018 51 64 75 23 29 42 Average % of fund’s portfolio reporting to GRESB Asset Assessment 2018 2017 55% 44% Total Funds (+17%) Funds with >25% Asset participation $100bn+ GAV NoOFPARTICIPANTS
- 11. 0 100 300 NoOFPARTICIPANTS 2016 2017 2018 134 160 280 Total Asets (+75%) $500bn+ GAV 200
- 12. Fund Assessment USD 5.2 bn USD 49.7bn USD 1.7bn USD 46.0bn USD 11.7bn
- 13. Asset Assessment
- 14. Fund Assessment
- 15. 2016 2017 2018 Global Average FUNDSCORE WEIGHTED AVERAGE ASSET SCORE GRESB SCORE 55 2018 Average WEIGHTED AVERAGE ASSET SCORE 49 2018 Average FUND SCORE 69 2018 Average
- 16. Funds Improving in Almost All Areas 11 Indicators in the Fund Assessment
- 17. Funds - Sustainable Investment Objectives 75% of funds have sustainable investment objectives
- 18. Funds Lead on ESG Disclosure, Assets Trail
- 19. Asset Assessment
- 20. MANAGEMENT&POLICY IMPLEMENTATION & MEASUREMENT GRESB SCORE 48 2018 Average IMPLEMENTATION & MEASUREMENT 46 2018 Average MANAGEMENT & POLICY 49 2018 Average 2016 2017 2018 Global Average
- 21. Materiality Approach Strongly Supported Strong agreement with standard sector weightings
- 22. Reporting on Performance Indicators Strongly affected by new participants
- 23. Performance Targets Room for improvement
- 25. Resilience Module Indicators Eight indicators in its first year
- 26. So… What’s next?
- 27. Sustainable Real Assets• Sustainable real asset goals • ESG performance metrics • Assessment reporting guidelines • Data capture and quality assurance processes • Scoring and benchmarking approach Sustainable Real Assets
- 28. 2018 RESULTS Sustainable Real Assets Hosted by: In partnership with: Supported by:
- 29. Climate Costs for Asia Pacific Ports May 2018 Commissioned by
- 30. The climate challenge Ports Adaptation Costs Appendices: • Engineering Assumptions • Modelling Approach • Cost Estimates Identifying actions - discuss 1 2 3 4
- 31. Temperatures are rising Credit: NASA Earth observatory / Robert Simmon Data sources: NASA Goddard Institute for Space Studies, NOAA National Climatic Data Centre, Met Office Hadley Centre/Climate Research Unit, Japanese Meteorological Agency Global Surface Temperatures
- 32. Tropical storms hitting Apac
- 33. Storms damage communities and crops Crop damage in Hainan from Typhoon SarikaTyphoon Haiwan hits Basey, Philippines Source: Wikimedia Commons - Lawrence Ruiz Source: Wikimedia Commons - Anna Frodesiak
- 34. And storms damage ports l September 2016 l A category 5 storm l Winds up to 370 km/hr l US$ 32 million in damage Damage at Kaohsiung by Typhoon Meranti Source: Xinhua
- 35. Asian ports critical for world economy • Trade accounted for 58% of Global GDP in 2015 • 9 out 10 top ports in terms of capacity are in Asia Major ports in the world Source: Wikimedia Commons
- 37. Climate scenarios Climate scenario 1 Climate scenario 2 Emissions scenario RCP4.5: peak in emissions around 2040, with temperature increases likely between 1.1°C and 2.6°C RCP8.5: emissions continue to rise throughout the century, with temperature increases likely between 2.6°C and 4.8°C Sea level rise Between 0.3m and 0.6m Between 0.45m and 0.8m Storm intensity increase by 10% to 20% increase by 20% to 30% Storm surge 0.5m to 1m 1m to 1.5m Total elevation required 1.6m 2.3m Representative Concentration Pathways Source: Intergovernmental Panel on Climate Change (IPCC)
- 38. Engineering assumptions Area Protection Apron Elevated to sea level rise only Container and Automobile Yards Elevated to sea level rise and storm surge Wharehouse Rebuilt on elevated area Silos, Dry Bulk and Dry Dock Coastline protection wall against sea level rise and storm surge Building and Multistorey Parking Surrounding wall against sea level rise and storm surge
- 39. Total costs Values in US$ billions Climate scenario 1 Climate scenario 2 Engineering assumptions A 30.9 32.3 Engineering assumptions B 47.4 49.4
- 40. 2018 RESULTS Sustainable Real Assets Hosted by: In partnership with: Supported by:
- 41. PANEL DISCUSSION MODERATOR: Will Myles Regional Managing Director, Asia Pacific, RICS PANELLISTS: Sander Paul van Tongeren Co-Founder & Managing Director, GRESB Zenda Kuo Managing Director, Macquarie Infrastructure and Real Assets Investments Benjamin McCarron Managing Director, ARE