Harvard Management Company

Sustainable Investments

Sustainable Investment in Real Estate

Sustainable Investment in Real Estate

HMC’s dedicated approach to the stewardship of our real estate properties has had a significant and favorable impact on the value of our assets, as well as the communities in which the properties are held. HMC’s Real Estate Guidelines include ESG factors that our third-party managers are expected to follow in the day-to-day management of our direct real estate holdings, including addressing energy inefficiencies, identifying strategies to diminish water usage, adhering to health and safety guidelines, and monitoring and managing labor and tenant relations. Third-party managers are required to provide HMC with monthly reports to demonstrate integration of ESG concerns into property due diligence, operations, and reporting.

Our third-party managers, with support and guidance from HMC, have implemented a series of innovative initiatives to engage tenants on ESG issues. In residential housing, tenants are encouraged to reduce energy usage by contributing to utility costs in excess of the Green Cap applied per room. In office properties, all property managers have completed energy efficiency courses through the Building Owners and Managers Association, e-waste events are held for tenants, and all properties have building engineers to manage the proper recycling of construction debris. In life science properties, managers hold tenant lunch and learns on ESG initiatives and also promote the use of alternative transportation by supplying bike racks and parking spaces for low-emitting, fuel-efficient vehicles.