Clarion Partners LLC, an independent investment manager of Franklin Templeton, has issued its annual report detailing the firm’s wide-ranging environmental, social and governance (ESG) initiatives.
“As the global ESG landscape evolves, Clarion is committed to being a leader in the commercial real estate industry, seeking to advance our efforts and prioritize ESG in our investment strategies and in our workplace,” says Chief Executive Officer David Gilbert.
The firm has achieved many ESG-related milestones over the past year, including:
- Development of a comprehensive net zero roadmap
Working alongside its stakeholders and local communities, Clarion has developed and has begun implementing a comprehensive net zero roadmap that consists of energy efficiency programs, sustainable development and the use of on-site and off-site renewable energy. This roadmap is aligned with achieving our Urban Land Institute (ULI) Greenprint Net Zero goal.
- Expansion of climate risk mitigation and resilience program
Clarion continues to refine and implement its risk management and resilience strategy to build a more sustainable portfolio by assessing climate-related risks, conducting a survey of risk mitigation features and developing a risk management plan for its assets.
- Investments in building greater diversity in the commercial real estate industry
Clarion formed a Diversity, Equity and Inclusion (DEI) Council to build a more diverse and inclusive organization to deliver better outcomes for the firm’s employees and clients. The DEI Council will continue to expand Clarion’s core initiatives, including the Women’s Leadership Network and summer internship program with the PREA Foundation and SEO (Sponsors for Educational Opportunity), and extend Clarion’s DEI program externally through the enhancement of its vendor diversity program.
The Clarion Partners 2021-22 ESG Report can be accessed here.
Chief Investment Officer Jeb Belford notes, “We recognize that fostering a low-carbon, resilient portfolio is a value-add strategy that speaks directly to the needs of investors and tenants alike. We see these programmatic drivers as core components of responsible investing practices.”
The 56-page report provides governance information on the firm’s ESG framework and leadership, relationships with key industry organizations, climate risk management, and transparency and reporting. For environmental, it details the firm’s net zero roadmap, performance metrics and reductions, green building certified and energy rated properties, and two case studies. Social initiatives are grouped under diversity, equity and inclusion (DEI), workforce, employee community involvement and tenant engagement, and one case study.