As we reflect on the last 50 years of business at PGIM Real Estate and the challenges we collectively face entering this new decade, we remain grounded upon the strong foundation that we have carefully established to create exceptional value for our investors and partners within the global real estate market.
While the COVID-19 pandemic has shaken the world, our commitment to our fiduciary duties has not changed. In response to the pandemic, we rapidly adjusted our working arrangements to ensure business continuity while complying with guidance from leading authorities and health experts. With rock solid business practices in place, we dedicated ourselves to leading transparently, communicating proactively, and supporting employees, tenants and our communities to maintain a long-term focus for PGIM Real Estate as we navigate the pandemic.
Resilience remains top of mind for PGIM Real Estate with climate change, and now COVID-19, emerging as the predominant risks upon the horizon. With a robust ESG strategy and a rigorous risk management framework that is specifically designed for challenging market events, we are able to withstand large market shocks and appropriately balance our resources and risks. Our commitment to environmental stewardship remains stronger than ever as we seek to protect both the environment and our business far into the future.
More than ever, human rights and racial equity necessitates our active participation to create lasting and transformative change in our communities. We stand by the efforts to protect the lives of Black, Brown, native peoples and minority individuals, and the need to correct systemic injustices. We remain deeply dedicated to diversity and inclusion, as evidenced by a number of ongoing programs that have supported many people throughout our organization. From policies such as our parent company’s Commitment to Diversity statement as well as continual improvement to board management and diversity across all levels of our organization, we understand that diversity and equality are essential for a sustainable, vibrant global future.
We set the stage in 2018 by expanding our sustainability program to a fully-integrated, global Environmental, Social and Governance (ESG) approach that measures, monitors and reports on building performance across our global portfolio. In 2019, we built upon this foundation and developed a new ESG Fund Level Strategy that established an in-depth, multi-year approach to address the unique needs of different regions and across all funds that report to GRESB. Through a dedicated focus on collaboration across regions and strategies, we have been able to strengthen not only our ESG program, but also how we create value for our investors and partners across our global platform.
The following strategic advances across our global regions are featured in this year’s ESG report:
- In Asia Pacific, PGIM Real Estate produced strong GRESB results, spearheaded an innovative solar power generation project, developed health and well-being initiatives, and hosted diversity and inclusion events throughout the year.
- In Europe, we made strong progress with environmental performance, strengthened leadership and diversity initiatives, and commenced multiple innovative affordable housing projects.
- In Latin America, we made inroads with impactful renewable energy projects, sustainability education and ESG training, diversity and inclusion events supporting the LGBTQ community, and Kingsley Excellence awards for tenant engagement.
- In the United States, progress included an enhanced ESG communications strategy, ongoing community involvement with The Backpack Challenge, Holiday Cares, and YouthBuild International, and improved health and well-being through a Fitwel certification of one of our flagship buildings.
- PGIM Real Estate’s U.S. debt platform has financed $4.1B of affordable housing loans since 2004, with additional sustainable agriculture investments structured on a foundation that
- includes strategies to evaluate climate risk.
While the future may seem uncertain in light of the global crises we face, we are confident that our years of governance stability, environmental performance and social initiative contributions position us with the strength to face the challenges ahead of us. We continue to Do Business in a Rock Solid Way, and we will be resilient as a result of the ongoing dedication, energy and experience of the people who make PGIM Real Estate what it is today. As we take bold steps into the new decade, we are hopeful that we are advancing towards a thriving, equitable, and sustainable future for all.