February 26, 2013
Dear Clients, Friends and Colleagues,
The 2013 Global 100 list of the world's most sustainable companies was announced at the recent World Economic Forum in Davos, Switzerland, and once again, U.S.-based real estate companies made a disappointing showing. Only one, Prologis, which develops, owns and operates industrial properties throughout the world, made it onto the list, ranking 89th.
The Global 100 ranking system, published since 2005 by the investment research firm Corporate Knights, is strictly quantitative, significantly transparent and relatively simple, setting it apart from other green ranking systems. Beginning with a universe of the 4,000 or so largest global companies, Corporate Knights uses 11 equally weighted key performance indicators to arrive at each year's Global 100 list, looking both at then-current resource productivity as well as directionality: the rate of improvement over prior years.
According to Corporate Knights ---- and we agree ---- the Global 100 are "leading a resource productivity revolution, transforming waste into treasure and doing more with less." Two thirds of the Global 100 are on track to double their resource productivity by 2025, which in this "era of peak commodity prices...makes as many dollars as it does sense." The Green Edge thesis that organizations that employ sustainability strategies will be rewarded by overall performance benefits recognized by the investment community is borne out by the performance of Global 100 stock over the past eight years relative to its benchmark, an index that measures the stock performance of companies listed on 45 developed and emerging country indices.
So we applaud Prologis, which has appeared on the Global 100 list for the past five years as a result of its commitment to green building strategies, renewable energy and climate change mitigation. We urge other real estate companies to take heed: embracing green building strategies, employing renewable energy and mitigating climate change risk are key components to future-proofing your company. Don't get left behind, it's much harder to play catch up than it is to keep up.
I will be leading an open discussion with real estate owners, operators and tenants about greening their projects and businesses for concrete bottom line results. Please join us ---- you can't afford not to. Click here for more information.
As always, I look forward to helping you take advantage of opportunities to lower costs and increase rent rolls, asset value and company performance by employing green strategies.
Warmly,
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