The Cheyne Real Estate team prioritises the continuous enhancement of ESG credentials across the portfolio, and its success is aligned with the delivery of positive outcomes for all its stakeholders, not least the communities in which the buildings that it finances, live, work and enjoy.
Our policy is designed to be dynamic and actively evolving over time to incorporate the latest best practice ESG developments.
Cheyne believes that an overarching focus on ESG considerations is entirely aligned with our investment goals.
1) Sustainability credentials directly support real estate valuations
2) Sustainable, energy efficient buildings are more valuable to asset owners by supporting higher rents, lower vacancies and lower operating cost and supporting exit valuations
ESG considerations in our investments are not merely a passive analysis but rather the opportunity to effect positive change
1) Cheyne Real Estate is a key stakeholder in our investments, frequently the sole lender to a real estate asset
2) This provides the ability to directly engage with all new sponsors to help drive the ESG agenda directly and seek to address any deficiencies and opportunities to improve sustainability credentials of the asset
3) This is particularly relevant in development, value-add and transitional financing, which represents a core focus for Cheyne Real Estate
The Cheyne Real Estate team analyses and works to improve the BREEAM ratings on non-residential assets in the portfolio. BREEAM is an international, independent third party certification that assesses, encourages and rewards environmental, social and economic sustainability throughout the built environment by measuring values including energy, pollution, management, transport, waste and water amongst others.
For residential assets, the team works to optimise the EPC or equivalent rating. In the UK an Energy Performance Certificate (EPC) rating is a review of a property’s energy efficiency.
Where appropriate, we assist real estate borrowers in adequately addressing ESG-related issues. Cheyne also supports its borrowers’ efforts to report externally and internally on their ESG approach and performance as related to material ESG issues. We inform our counterparties and borrowers of our commitment to responsible investment. We are committed to the following initiatives:
- Including Responsible Investment in personal development/training plans for investment staff
- Additional collaborations with ESG organisations
- Measuring the impact of investment on specific factors i.e. carbon emissions
- Regular disclosure of portfolio ESG information to investors
Social Impact Audits
We are committed to ensuring that all our social property impact investments have clear social impact covenants. The Good Economy undertakes a social due diligence audit prior to any proposed social impact property investment, is a member of the investment committee and on an annual basis measures the investments’ social covenants. Please feel free to contact us if you would like any further information on our social impact audits.
Standards Board for Alternative Investments (SBAI)
Cheyne Capital is one of the initial signatories to the Standards Board for Alternative Investments (formerly known as the Hedge Fund Standards Board) and is proud to have its Funds operate in accordance with the Best Practice Standards of the Board since December 2008.
Principles for Responsible Investment (PRI)
Cheyne Capital is a signatory to the Principles for Responsible Investment (PRI), and has been since 2017.
Alternative Investment Management Association (AIMA)
Cheyne Capital is a member of the Alternative Investment Management Association (AIMA). AIMA is the global representative of the alternative investment industry. AIMA addresses issues affecting the alternative investment industry’s development and creates a centre of knowledge and best practice for professional investment practitioners. Cheyne’s co-founder, Stuart Fiertz, is a council director of AIMA and chairman of the AIMA Alternative Credit Council.
Cheyne Capital is a signatory of the SBai and has its AIFs comply with the Best Practice Standards of the SBai. No responsibility, duty of care or liability whatsoever (whether in contract or tort or otherwise including, but not limited to, negligence) is or will be accepted by the SBai or the Board of Trustees of SBai (the "Board of Trustees") to signatories, investors or any other person in connection with the Standards or any Conformity Statement or Disclosure Statement made by any signatory.Neither SBai nor the Board of Trustees is a regulator of the hedge fund industry and their role does not extend beyond being a custodian of the Standards. Neither SBai nor the Board of Trustees will seek to enforce compliance with the Standards by signatories. The fact that a manager is a signatory to the Standards is not and should not be taken as an endorsement of such manager by SBai or the Board of Trustees or as a representation by SBai or the Board of Trustees that such signatory operates in conformity with the Standards. In determining whether to accept a manager's application to become a signatory (or whether to revoke a manager's status as a signatory), the Board of Trustees will be entitled to rely on the information provided to it by such manager without further investigation or verification.Further, subject to any duties a Trustee may have under applicable law, it is not envisaged, or expected, that a Trustee will, when participating in any such decision of the Board of Trustees, take into consideration information which it may possess otherwise than in its capacity as a Trustee. For the avoidance of doubt, Trustees are acting as individuals.SBai and the Board of Trustees of SBai do not accept any responsibility or liability for any loss or damage caused to any person who acts or refrains from acting as a result of anything contained in or omitted from the Standards or any Conformity Statement or Disclosure Statement made by any signatory or in reliance on the provisions of or material in the Standards or any Conformity Statement or Disclosure Statement made by any signatory, whether such loss or damage is caused by negligence or otherwise.