{"id":23620,"date":"2023-05-16T21:04:27","date_gmt":"2023-05-16T21:04:27","guid":{"rendered":"https:\/\/share.ca\/?p=23620"},"modified":"2023-08-01T14:07:36","modified_gmt":"2023-08-01T14:07:36","slug":"investors-for-affordable-cities-metrics","status":"publish","type":"post","link":"https:\/\/share.ca\/blog\/investors-for-affordable-cities-metrics\/","title":{"rendered":"New SHARE report identifies metrics, data gaps in REIT ESG disclosures"},"content":{"rendered":"\n\n
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Updated Aug. 1, 2023<\/em><\/p>\n

Investing in the housing sector raises a distinct set of human rights risks for investors.<\/span><\/h3>\n

Real Estate Investment Trusts (REITs) have come under scrutiny in the media for adverse impacts on the <\/span>human right to adequate housing<\/span><\/a>, such as <\/span>neglecting building maintenance, driving up rents and high rates of evictions<\/span><\/a>. These practices can contribute to reputational and regulatory risks for investors.<\/span><\/p>\n

The growing presence of institutional investors in the Canadian rental real estate market is a phenomenon often called the financialization of housing<\/a>. Through their public equities portfolios, a wide range of investors are exposed to REITs in the residential sector. <\/span><\/p>\n

Investors have human rights obligations<\/span><\/a>, however, there are few tools to guide investors in understanding if and how their residential REITs investments uphold the human right to adequate housing and effectively address the associated risks. <\/span>\u00a0<\/span><\/p><\/blockquote>\n

Our latest report<\/a>, State of the Sector<\/em>, proposes a set of recommended ESG disclosures for REITs. If adopted, REITs could provide the data that would allow investors to identify, manage, prevent and\/or mitigate adverse impacts related to the human right to adequate housing in their residential portfolios. Across sectors, reporting and transparency allow for more robust accountability and more effective mitigation of portfolio risks.
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Institutional investors expect publicly listed companies to disclose enough information on investment risks, including human rights risks, to enable them to adequately consider <\/span>environmental, social and governance (ESG) factors and conduct human rights due diligence.<\/span><\/p>\n

With next to no information in their reports on eviction rates and approaches to building maintenance, the report concludes that REITs do not disclose enough data to enable investors to assess how well they are upholding the right to adequate housing.<\/p><\/blockquote>\n <\/div>\n\n <\/div>\n <\/div>\n