Environmental, Social, and Governance
Penwood believes that environmental, social responsibility and corporate governance (ESG) factors can have a positive impact on investment performance and should be considered when evaluating real estate investments and managing real estate assets. In an effort to attract and retain the highest quality tenants and maximize investment values, Penwood incorporates ESG factors into its investment analysis and the operations of the firm.
Penwood’s fiduciary obligations remain paramount and we strive to obtain the highest level of performance, while acting within the boundaries of each partnership’s investment guidelines. ESG matters initiated by Penwood will be designed to be transparent and improve the investment returns of the property. Public awareness of ESG issues may influence, over time, whether certain properties are deemed more attractive than others, thereby incentivizing owners to ensure assets are positioned to capitalize on this sentiment.
Penwood has determined that any environmental sustainability initiatives implemented for an investment must be practical and cost-effective, with financially attractive benefits attached to any capital invested. All initiatives will have the potential to add value to an investment through a variety of means, including reduced operating expenses and vacancies, sustainable performance certifications to help distinguish assets within their respective markets, and reduced risk of functional obsolescence, which could adversely impact disposition valuations.
Penwood defines “social responsibility” generally as the obligation of a company to make decisions and take actions that will enhance the welfare of its own employees and to act in the interests of society as a whole. At Penwood, we believe that being a good corporate citizen means investing in the communities in which our employees live and work. Penwood is committed to being a responsible member of the community and supports a range of programs and activities that enhance local and regional communities. We will continue to pursue actions that support this commitment across the business.
As an investment adviser, Penwood is mindful of how third-party service providers and joint venture partners address “social responsibility” and will take appropriate steps if it becomes aware of any cases where it believes satisfactory standards of “social responsibility” are not maintained.
At the cornerstone of our governance framework is our Code of Business Ethics, which sets forth the expectations of our principals and employees. All employees are expected to conform to the principles of honesty and integrity, embodied in the Code, in everything they do. Penwood has an ongoing commitment to the highest standards of corporate governance. The Risk Committee regularly reviews all aspects of Penwood’s governance policies and practices in light of developments in best practices, laws and regulations, and makes changes to them as appropriate.
Each year, our Sustainability Committee prepares an annual Policy Statement of Sustainability and Responsible Investing. The Policy Statement has a defined Action Plan that outlines specific company- and investment-related goals for each calendar year.