Research by ShareAction, which campaigns for responsible investment, shows several of the world’s largest real estate investment managers are failing to take even basic steps to tackle climate change, leaving investors exposed to financial risks and emissions unchecked in a key sector for the transition to net zero.

ShareAction’s first ever benchmark of real estate investment managers also reveals a lack of transparency from firms about their approaches to tackling climate change, with several managers not disclosing the emissions from their portfolios at all, despite making public climate commitments.

By excluding critical sources of emissions, several firms undermined the credibility of their net zero commitments. Only nine of the 16 managers included in the benchmark disclosed a commitment that can be considered comprehensive, covering both landlord and tenant emissions. Meanwhile, only five managers demonstrated leading practice by explicitly including emissions from construction in their commitments.

It was also unclear whether investment managers are anticipating and addressing the impacts of decarbonisation on their tenants, the communities they operate in, and workers in their supply chains.