Redefine Properties joins Dow Jones Sustainability Indices

Andrew Konig, CEO of Redefine Properties

Redefine Properties has announced that it has been selected as an index component of the Dow Jones Sustainability Indices (DJSI) in recognition of Redefine’s corporate sustainability leadership in the property industry.

Redefine will be included in the Dow Jones Emerging Market Sustainability Index from 22 September 2014.

The index is composed of emerging market sustainability leaders as identified by RobecoSAM through a corporate sustainability assessment. The index aims to represent the top 10% of the largest 800 companies in emerging markets based on long-term economic, environmental and social criteria. Redefine is one of only five companies in the real estate sector across a dozen emerging markets included in the index. It joins 17 other South African companies in the index of 86 components from 37 industries in 12 countries, including the likes of Woolworths, Standard Bank, Nedbank, Netcare, Barloworld and AngloGold Ashanti.

Andrew Konig, CEO of Redefine Properties comments: “We have come a long way in our sustainability journey and, more and more, we are putting our commitment to sustainability into action. Our inclusion in the DJSI supports this and can give investors confidence that sustainability is a business imperative for Redefine.”

He explains the index serves as a benchmark for investors who integrate sustainability considerations into their portfolios. “This puts Redefine in a strong position to attract funds from capital owners who want to invest in sustainable businesses.”

Inclusion as a component of the DJSI is evaluated with the RobecoSAM Corporate Sustainability Assessment, which strives to identify the most sustainable companies in the world. Redefine’s results outperformed the Emerging Markets Index’s real estate industry average overall, as well as for all three dimensions measured: economic, environmental and social.

RobescoSam Sustainability Investing considers climate change and energy efficiency of great importance for the real estate industry as buildings are responsible for about one third of global greenhouse gas emissions. Moreover, low-energy buildings that use innovative materials reduce the impact of volatile energy prices on the cost of management and ownership of a property. This results in high demand for green buildings.

It also notes that, in addition to environmental issues, social responsibility and social integration are gaining importance in this industry. In the current volatile economic environment, community engagement and investments in areas surrounding properties are receiving increased attention to maintain asset values high and remain the preferred property owner for tenants.