Socially responsible property investment (SRPI): An analysis of the relationship between equities SRI and UK property investment activities

Abstract

Purpose

Socially responsible investment (SRI) is now a well established part of equities investment. Questions are now being raised over property investment and whether similar attempts to be “socially responsible” should be incorporated into investment practice. This paper aims to examine the investment practices of large fund managers for both equities and property in order to identify products and activities which are contributing to the progress of SRPI.

Design/methodology/approach

Analysis was conducted of equities SRI, and potential SRPI activities, for the top ten UK property fund management using publicly available company literature. This was analysed using simple matrices to understand common activities, industry application, and market‐leading innovations. Relationships between progress in SRI and SRPI, are also explored, along with the consideration of SRPI actions in the context of SRI concepts.

Findings

Market leaders were established in terms of their equities SRI products and services, though this did not necessarily equate to progress in the field of SRPI. Only one potentially SPRI product was identified. However this does not represent the overall consideration of sustainability issues in relation to property investment practices. Half of the companies studied were found to be taking actions which demonstrate attempts to consider the impacts associated with property investment.

Originality/value

This paper reflects a call from key SRPI thinkers to assess the current extent of SRPI practices, which will be a useful starting point for further analysis/debate of the most appropriate SRPI methods. It should therefore be of interest to both SRI and general property investors alike.

Citation

Rapson, D., Shiers, D., Roberts, C. and Keeping, M. (2007), "Socially responsible property investment (SRPI): An analysis of the relationship between equities SRI and UK property investment activities", Journal of Property Investment & Finance, Vol. 25 No. 4, pp. 342-358. https://doi.org/10.1108/14635780710762490