Manulife Investment Management announces strategy to meet GHG reduction target of 80% for its real estate assets by 2050

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Manulife Investment Management, a global leader in real estate asset management, announced its strategy to achieve an 80% reduction in greenhouse gas emissions for its real estate assets by 2050. The firm has implemented a comprehensive approach focusing on efficiency, fuel switching, onsite renewables, and carbon offsets. This initiative is part of a broader Climate Action Plan aiming for a 35% reduction in emissions by 2035. With real estate holdings totaling 63 million square feet, Manulife prioritizes sustainability and accountability in its operations.

Positive

• Targeting an 80% reduction in GHG emissions by 2050 shows commitment to sustainability.
• Part of broader Climate Action Plan aiming for 35% reduction in emissions by 2035.
• Real estate portfolio includes 63 million square feet of space, enhancing market presence.

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• None.

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TORONTO, June 14, 2021 /PRNewswire/ - As a leading global real estate asset manager, Manulife Investment Management recognizes its unique position to help lead the transition to a low-carbon economy¹. Manulife Investment Management released its 2021 Real Estate Sustainability report, which  focuses on how the firm is driving leadership in sustainable real estate across our global organization, and includes details on the greenhouse gas (GHG) model developed for real estate assets, which sets a reduction target of 80% by 2050².

"We are very proud of this responsible move, which represents a step forward in our commitment to climate change mitigation and our role in the transition to a healthier planet," said Steve Blewitt, Global Head of Private Markets. "Manulife Investment Management's real estate team has been measuring and reporting on greenhouse gas emissions in our sustainability reports since 2017. Setting this realistic target demonstrates our commitment to holding ourselves accountable and achieving high standards across climate-related considerations."

To actively demonstrate efforts in carbon reduction, Manulife Investment Management has started initiatives to identify ways to reduce GHG emissions across its global real estate portfolio. Over the past year, the firm conducted a deep carbon retrofit study at its buildings, in addition to updating the leasing process, with a greater focus on sustainability. This is part of a strategic approach focused on four pillars:

• Efficiency measures – conventional, cost-effective, incremental energy improvements through on-going building commissioning and efficient operations.
• Fuel switching – switching from high to low carbon intensity infrastructure through infrastructure renewal (delivering immediate emissions reduction where the electrical grid is less carbon intensive today, and additional emissions reduction as the grid improves).
• Onsite renewables and storage – installing items, such as rooftop solar panels, especially in regions with carbon-intensive electrical grids.
• Carbon offsets and Power Purchasing Agreements (PPAs) – purchasing carbon offsets and power purchasing agreements (PPAs) to address energy/carbon that remains after the above actions are completed.

________________________________________ 1 The IPE Real Assets top 100 ranking of some of the world's largest real estate investors, has captured more than $1.44trn (€1.3trn) in infrastructure assets held by pension funds, sovereign wealth funds, insurers and other institutional capital owners. To be included, investors need to be owners, not third-party managers of assets. It was based on IPE Research survey data, Rainmaker information and publicly available information, predominantly in the form of annual reports. Where accurate numbers were not available, estimates have been made. Some investors have not been included due to a lack of information. Source:  IPE Real Assets, as of 12/31/2020.

2 Target is an intensity-based reduction of Scope 1 and 2 emissions for the properties that are within our operational control.

To support these initiatives and better understand its current standing, Manulife Investment Management's real estate team will work to implement this overarching strategy, identifying regional and asset-level opportunities where energy and associated emissions can be reduced. All projects will also be evaluated in terms of their carbon-based returns and how they will assist with the reduction in emissions.

"Our approach to sustainability in real estate incorporates ESG considerations into all our 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," said Regan Smith, Global Head of Real Estate Sustainability. "It is with that in mind that we designed a strategy informed by climate science to reduce our carbon output across our real estate portfolio."

Manulife Investment Management's targeted reduction commitment to its real estate portfolio is just one segment 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. For more information, please read Manulife Announces Journey to Net Zero.

About Manulife Investment Management, Private Markets  

Manulife Investment Management's comprehensive private markets capabilities include real estate, private equity and credit, infrastructure, timber and agriculture. Through its real estate group, Manulife Investment Management develops and manages commercial real estate for thousands of customers around the globe. As of March 31, 2021, the 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. The group leverages its global platform and local expertise to provide market-leading solutions for its tenants and deliver results for its partners.  

Additional information about our Real Estate group can be found at www.manulifeim.com/realestate.

About Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. 

As of March 31, 2021, Manulife Investment Management had CAD $764.1 billion (US $607.6 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

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SOURCE Manulife Investment Management

FAQ

What is Manulife's greenhouse gas reduction target for 2050?

Manulife aims for an 80% reduction in greenhouse gas emissions for its real estate assets by 2050.

What are the key strategies Manulife is implementing for emission reduction?

Manulife's strategies include efficiency measures, fuel switching, onsite renewables, and purchasing carbon offsets.

What is the timeline for Manulife's commitment to reduce emissions by 35%?

Manulife plans to achieve a 35% reduction in emissions by 2035.

How large is Manulife's real estate portfolio?

As of March 31, 2021, Manulife's real estate portfolio totals 63 million square feet.

Who is responsible for overseeing sustainability efforts at Manulife?

Regan Smith is the Global Head of Real Estate Sustainability at Manulife Investment Management.