UnThink - Industry Trends Topic Guide

Industry TrendsTopic Guide

Everything you need for your second mentoring topic is curated here.Hit start and dive in.

Start

Your Industry Trends Journey

The numbers indicate the order in which the modules are supposed to be completed. For the best use of your and your partner's time, review the Mentoring 1:1 modules before you meet.

Mentoring 1:1AI

IntroductionPAT Client Survey

jan 17th

mid/late feb

early jan

late jan/ early feb

MasterclassESG

Mentoring 1:1Wildcard

Click the images to access the study material of each module.

1:1 - Wildcard

PAT Trends Survey

1:1 - AI

Masterclass - ESG

Introduction: PAT client survey 2023

In July 2023 PATRIZIA has released the real estate and infrastructure trends from its 3rd annual Client Survey. The survey is based on the views of over 120 respondents from our international institutional investor base. Read the headline results below and the full results on

PIN.

Key results

Headlines

Real Estate

Infrastructure

Perspective from Philipp Schaper

Perspective from Graham Matthews

Accelerating the transition from brown to green

The acceleration to real assets continues

Strong conviction for megatrends investments

Market creates caution in expanding portfolios

Integrating the ‘E’ in ESG became industry standard

Click the headlines to reveal details.

1:1 - Wildcard

PAT Trends Survey

1:1 - AI

Masterclass - ESG

Masterclass - ESG

Meet our expert guests:

Zaïda Thépass

Konrad Hedemann

Kirsten Henson

Discussing ESG initiatives inside and outside PAT

Pre-masterclass-reflection:

What does sustainability mean to you?

• Director of KLH Sustain-ability, a sustainable construction consultancy
• Constructed the London 2012 Olympic Park

• Lecturer at Cambridge Uni
• Gen X
• Based in LON

• ESG Manager Europe at PATRIZIA

• ED&I Council member
• PAT Academy trainer
• Gen Y
• Based in AMS

• ESG Manager Europe at PATRIZIA
• Book author
• PAT Academy trainer
• Gen Y
• Based in HAM

Share your pov on the Miro board here!

1:1 - Wildcard

PAT Trends Survey

1:1 - AI

Masterclass - ESG

Mentoring 1:1 - Artificial Intelligence

"AI will not replace humans, but humans with AI will replace humans without AI." So, how can we best realise the potential of AI to stay ahead of the curve? The listen and the read identify relevant conversation topics to explore in your 1:1 meeting(s).

Post 1:1 - 15min.

During 1:1 - 60min.

Pre 1:1 - 45min.

Takeaways

Productivity debate

Questions

Listen

"It would be even better if..."

Skills debate

Share your learnings with your peers*:

Questions

Read

Ethical debate

Miro Board

Questions

*If you have individual insights that you only want to share with the UnThink team, email us via unthink@patrizia.ag.

1:1 - Wildcard

PAT Trends Survey

1:1 - AI

Masterclass - ESG

Mentoring 1:1 - Wildcard

Besides ESG and AI there are other relevant trends affecting our industry. In this module you have the chance to bring in your trend of choice. Feel free to discuss your preferred trend informally or follow the guidance below to have a more specific conversation.

Post 1:1 - 15min.

During 1:1 - 60min.

Pre 1:1 - 45min.

Trend of your choice

Discussion

Takeaways

Instruction

"It would be even better if..."

Together discuss the guiding questions you defined under "Pre 1:1" > "+ Instruction".

Share your learnings with your peers*:

Miro Board

*If you have individual insights that you only want to share with the UnThink team, email us via unthink@patrizia.ag.

Congratulations on completing your second topic! Next stop: Wellbeing (Mar-Apr)

Any questions, comments, or feedback?Let us know via unthink@patrizia.ag.

Accelerating the transition from brown to green

According to the survey, 85% of investors believe brown-to-green development will increase over the next 12 months, of which nearly a quarter expect a significant increase. At the same time, two out of three investors anticipate an uplift in capital expenditure and refurbishment programmes, reflecting growing investor focus on value creation through hands-on asset management.

Strong conviction for megatrends investments

According to the survey, investors have a clear preference for allocating to the sectors that address the global megatrends, with a particular focus on decarbonisation. Fifty six percent said they plan to increase their investments in renewable energy, such as solar and wind farms, over the next five years, while 45% expect to increase their allocation to the energy transformation and alternative energy solutions, such as biogas and hydrogen. Likewise, nearly 40% plan to decrease their exposure to traditional energy sources, such as nuclear, coal and gas.

“Investors understand that the global megatrends of decarbonisation, digitalisation, urbanisation and demographic change make the long-term picture for infrastructure highly attractive. These megatrends underpin our global investment strategy at PATRIZIA and continue to drive the growth of our infrastructure platform, which now accounts for around 15% of PATRIZIA’s total AUM. While the market environment has clearly subdued client sentiment, our survey shows that strong appetite remains for scaling infrastructure portfolios with a focus on the energy transition, supporting the fundamental convictions we have for our flagship European & Asia-Pac infrastructure strategies.”

Graham Matthews CEO Infrastructure at PATRIZIA

Market creates caution on expanding portfolios

This year’s survey indicates that investors are more cautious on expanding their real estate allocations, reflecting the uncertainty in the current market environment. The majority of investors (55%) intend to keep their real estate portfolios unchanged, with around a fifth planning an increase in allocations and 28% intending to decrease over the next five years. In comparison, last year more than 60% of investors said they expected to increase their real estate portfolios over the next five years.

Skills Debate

From each of your perspectives...

What is the top skill AI is most likely to replace in the future? Share examples from your perspectives.

What is the top skill that is most likely to stay unique to humans? Share examples from your perspectives.

Define three concrete skills that you will start, stop, and continue to make yourself future-ready for the AI age.

“Our survey clearly shows the impact that rising interest rates and economic uncertainty are having on investor sentiment. However, more importantly it also underlines our conviction for driving the long-term value of real estate through an active asset management strategy supported by a data-led approach. Despite the short-term volatility, we anticipate the current market conditions, with a widening dual funding gap of rising decarbonisation and debt costs, to offer exciting investment opportunities. Investment managers with a rock-solid balance sheet and exceptional asset management and development capabilities like PATRIZIA are in a strong position to create most value.”​​​​​​​

Philipp Schaper CEO European Real Estate at PATRIZIA

Ethical Debate

From each of your perspectives...

Is it ethically justifiable to use AI in decision-making processes that affect employees' careers and opportunities, e.g., algorithms for screening CVs, personalizing training programs, assessing performance, automating promotions, etc.? What strategies can be applied to mitigate bias?

What ethical considerations are associated with the carbon footprint of AI systems? How should organisations address the environmental impact of such large-scale AI infrastructure?

Is there an educated risk that AI will turn against humanity one day? Please explain why or why not.

Integrating the ‘E’ in ESG has become industry standard

the main focus for investors continues to be on measuring their climate impact. Eighty two percent said they will track the energy consumption of their real estate investments over the next five years (+19% y-o-y). Over the same period, nearly three quarters will measure direct (Scope 1) CO2 emissions (+12% y-o-y), 65% will track indirect (Scope 2) CO2 emissions (+67% y-o-y) and 46% will measure Scope 3 CO2 emissions along their value chain (+40% y-o-y).

The acceleration to real assets continues

Sixty percent of investors said they plan to increase the share of infrastructure in their portfolios over the next five years, of which 11% plan a significant increase of more than 10%. While investor sentiment towards growing infrastructure allocations remains strong, a slight slowdown in the rate of growth (20% planning a significant increase in 2022) reflects the more tentative outlook on the current market environment.

Productivity Debate

From each of your perspectives...

How do you currently use or interact with AI to be more productive? Discuss specific tools and their applications.

To which extent can AI-enabled performance be attributed to the employee vs. the machine? Is the individual performance of the employee likely to be impacted by using AI?

When AI is applied to increase an organisation's efficiency, will there be less jobs or new jobs for humans? What are the reasons for your view?