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Sustainable development

Manulife Investment Management Commits to 80% GHG Reduction by 2050 in Real Estate Portfolio

Strategic Insights

— 2 min read

Manulife Investment Management, a leading global real estate asset manager, has announced its commitment to reducing greenhouse gas (GHG) emissions in its real estate portfolio by 80% by 2050. The firm has developed a comprehensive strategy to achieve this goal, focusing on four key pillars: efficiency measures, fuel switching, onsite renewables and storage, and carbon offsets and Power Purchasing Agreements (PPAs). Manulife Investment Management's real estate team will work to implement this strategy, identifying regional and asset-level opportunities to reduce energy and associated emissions.

The firm's approach to sustainability in real estate incorporates environmental, social, and governance (ESG) considerations into all its practices and investment management. Through carbon emission reduction, Manulife Investment Management aims to be a key player in the transition to a low-carbon economy. The targeted reduction commitment in its real estate portfolio is part of Manulife's global Climate Action Plan, which also commits to a 35% reduction of Scope 1 and 2 emissions by 2035, in line with the Paris Climate Agreement.

Key Takeaways:

  • Manulife Investment Management aims to reduce GHG emissions in its real estate portfolio by 80% by 2050.
  • The firm has developed a comprehensive strategy to achieve this goal, focusing on four key pillars: efficiency measures, fuel switching, onsite renewables and storage, and carbon offsets and PPAs.
  • Manulife Investment Management's real estate team will work to implement this strategy, identifying regional and asset-level opportunities to reduce energy and associated emissions.
  • The firm's approach to sustainability in real estate incorporates ESG considerations into all its practices and investment management.
  • Manulife Investment Management's targeted reduction commitment in its real estate portfolio is part of the company's global Climate Action Plan.
  • Scope 1 and 2 emissions are expected to decrease by 35% by 2035, in line with the Paris Climate Agreement.
  • The firm's real estate portfolio totals 63 million square feet of office, industrial, and retail space and over 6,500 multifamily units strategically located in markets across Canada, the U.S., and Asia.
  • Manulife Investment Management had CAD $764.1 billion (US $607.6 billion) in assets under management and administration as of March 31, 2021.

Statistics:

  • 80% reduction in GHG emissions in real estate portfolio by 2050
  • 35% reduction of Scope 1 and 2 emissions by 2035, in line with the Paris Climate Agreement
  • 63 million square feet of office, industrial, and retail space in the real estate portfolio
  • Over 6,500 multifamily units in the real estate portfolio
  • CAD $764.1 billion (US $607.6 billion) in assets under management and administration as of March 31, 2021

Sources:

  • 1. The IPE Real Assets top 100 ranking of some of the world's largest real estate investors, has captured more than $1.44trn ([euro]1.3trn) in infrastructure assets held by pension funds, sovereign wealth funds, insurers and other institutional capital owners. Source: IPE Real Assets, as of 12/31/2020.
  • 2. Manulife Investment Management's 2021 Real Estate Sustainability report.
  • 3. Manulife Announces Journey to Net Zero.

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