Recognising the importance of decarbonising the real estate sector to the transition to net zero by 2050, Fidelity International has introduced the Fidelity European Real Estate Climate Impact Fund. Categorised as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the principal objective of the fund is to drive strong financial returns through direct property investments which aim to support the mitigation of climate-related impacts and the transition to a net zero. It will contribute to the refurbishment and repositioning of predominantly commercial real estate assets across Western Europe, with assets expected to be held for three to five years. Fidelity has made its first purchase for the fund with a property in central London which will now be refurbished to be more sustainable. It was bought for an undisclosed figure. Neil Cable, Head of European Real Estate Investments at Fidelity, said: “While investors can buy new assets built to higher environmental standards, the biggest scope for achieving impact lies in the buildings that exist today, most of which are expected to still be around by 2050. Refurbishing and retrofitting these buildings can both reduce the carbon footprint of our built environment and improve the wellbeing of those who use them. Turning brown to green also presents a significant investment opportunity as there is currently a chronic undersupply of net zero carbon space versus occupier demand, resulting in a green premium.”
