A New Capital Source: $50 Trillion
$1 billion Freedom Place is tapping this massive wave of impact investment.
Recent years are seeing a massive increase in institutional capital prioritizing Environmental, Social, and Corporate Governance (ESG) targets. Large pension funds in the UK managing hundreds of billions of dollars have been required since 2019 to report how they incorporate ESG factors in their investment decision-making. Starting in 2021, all European asset managers, insurers, and pension funds must report ESG performance of their investments.
ESG investment has already exceeded $30 trillion, according to Global Sustainable Investment Alliance, and is set to grow above $50 trillion by 2028 as investors demand more transparency.
Freedom Place is uniquely positioned as a large real estate project: real estate historically achieves a very high risk/reward profile thanks to its typically steady cash flows generated by fixed assets. Yet Freedom Place is one of the few real estate projects that meets impact investment objectives, making it a prime opportunity for investors looking for “double bottom-line” returns. That is impact investment jargon referring to not only financial profits (the bottom-line), but also the greater social impact of Freedom Place’s inspiring vision to fight human trafficking.
European pension funds are taking a leading role in ESG investment.
There are multiple frameworks for ESG reporting, including the UN PRI, the GRI Standards, and others. Freedom Place’s sustainable impact can be reflected in the achievement of multiple United Nations Sustainable Development Goals.
Impressively, Freedom Place achieves 12 of the 17 SDGs, namely: No Poverty, Good Health and Well-Being, Quality Education, Gender Equality, Decent Work and Economic Growth, Partnerships for the Goals, Industry Innovation and Infrastructure, Reduced Inequalities, Sustainable Cities and Communities, Climate Action, Life on Land, and Peace Justice and Strong Institutions.