In 2023, ABP decided to allocate 15% of its global real estate portfolio to the Netherlands, of which two thirds will be dedicated to impact investments. This is therefore a mandate that APG will manage, and its real estate team has already developed a business plan.

The aim is to be 75%-80% invested in newly built affordable housing with the remaining part in senior living and student housing. Investing in education is also potentially considered an impact investing sector because of the renovations and refurbishments of schools and universities to improve energy efficiency.

The principal objective of the new impact mandate is to serve marginalised groups in the Netherlands who tend to allocate substantial portions of their income to housing. Essential workers, starters, young couples, families and active adults are all characterised by specific residential preferences.

Ivanhoé Cambridge’s (Ivanhoé) environmental actions are intended to put its portfolio on the trajectory required to ensure global warming of no more than 1.5°C above pre-industrial levels. As part of this, in 2017, it systematically integrated ESG due diligence for all new acquisitions as part of the underwriting process. This process saw 55 transactions reviewed accordingly in 2023.

By the end of 2023, the operational carbon intensity of Ivanhoé Cambridge’s directly owned portfolio had been reduced by more than 30% compared with 2017. Ivanhoé pursues a “brown-to-green” investment strategy that targets existing assets with the intent to refurbish them and significantly reduce their carbon intensity.

Over the past year, it implemented a Green IRR (internal rate of return) metric to account for the value of carbon and a more comprehensive assessment of the financial benefits derived from a carbon reduction project.