TH Real Estate, an affiliate of Nuveen (the investment management business of TIAA), is making a public commitment to reduce the energy intensity of its 134 million square foot, $68bn global equity portfolio by 30% by the year 2030, based on a 2015 baseline. Energy intensity is measured by the asset’s use of kilowatts per hour, per square foot[i]. This commitment builds on the organization’s long-established effort to embrace sustainability and reduce the risk and impact of climate change. TH Real Estate demonstrates leadership in this area through its involvement with industry organizations and via proactive internal initiatives such as the target set in 2007 to reduce US energy consumption 20% by 2020, a goal that has been achieved ahead of schedule.

TH Real Estate’s new commitment responds to and supports the ambitious goals for sustainable real estate established at the 21st annual Conference of Parties (COP21) held in Paris in September 2015.

It is estimated that real estate is responsible for about 40% of global carbon emissions. These emissions arise from onsite fuel usage (such as gas for boilers) and also from the use of electricity and other sources of energy. Energy efficiency is a critical part of reducing the carbon emissions from real estate and also benefits our tenants through reduced utility bills.

As one of the world’s largest institutional real estate investors with equity investments in nearly 900 office, retail, industrial and residential assets worldwide, implementing sustainability measures across the portfolio aligns with TH Real Estate’s view that being stewards of the environment can produce attractive long-term returns while also contributing to positive outcomes for the economy and the well-being of individuals and communities.

 “This target is in line with current industry interpretations of climate change science, and means that our business is playing its part in the global movement to limit global warming to 2 degrees and strive towards 1.5 degrees, as agreed in the Paris Accord. Over time we will continue to review our targets to ensure they meet global best practice,” said Abigail Dean, TH Real Estate’s Head of Sustainability. “Our sustainability efforts have been a focus of our platform since its creation and are an integral part of the Tomorrow’s World investment philosophy which sits at the core of our investment process and operations.”

TH Real Estate’s ‘Tomorrow’s World’ philosophy is anchored around four pillars:

• Preparing for Tomorrow’s World… which is constantly changing, by ensuring that our business, the assets we manage and our people, are ready for the heightened pressures, growing responsibilities and new opportunities in the markets of tomorrow, so that TH Real Estate consistently outperforms through the cycles.
• Investing in Tomorrow’s World… by actively considering the impact of megatrends on the assets of today and tomorrow, with investment strategies focused on opportunities to safeguard and enhance value for our clients. 
• Helping to create Tomorrow’s World… which supports thriving communities, businesses and ecosystems by creating outstanding places for people in the communities of tomorrow, where community-wide prosperity is unlocked and environmental systems are restored.
• Ready to be part of Tomorrow’s World… in which we are an active and positive corporate citizen, engaged and influential in the business of tomorrow.

Find out more about their work by viewing our Tomorrow's World video.

[i] This will be measured by kWh of “electricity equivalent” (kWhee) of whole building imported energy use per sq ft. The numerator is calculated by adding kWh of imported electricity to kWh of any imported fuel multiplied by 0.4 and kWh of imported hot or chilled water multiplied by 0.5kWh. The ‘kWhee’ energy metric enables direct aggregations of building energy use and comparisons of efficiency across international property portfolios. The denominator represents the gross internal floor area of space to which TH Real Estate supplies energy.

Contact details

Daisy Okas
Director. Communications

T: +1 212 916 4102

E: daisy.okas@nuveen.com