Property

As active managers, we consider the long-term risks and opportunities of holding any given property. ESG considerations are a key part of our strategy throughout the property cycle, which starts with acquisition, continues with asset management and refurbishment/development and ends with final disposal. By doing so, we aim to significantly reduce investment and ownership project risks.

Within our own organisation we:

• Follow all compliance obligations and maintain procedures to remain prepared for environmental legislation
• Educate employees and managers in environmental risks, opportunities and best practice measures
• Monitor and manage emerging sustainability risks as an integral part of risk management

Assessment tools and reporting

We’re an established participant in the annual Global Real Estate Sustainability Benchmark (GRESB) scheme, the leading ESG benchmark for real estate funds across the world. We also assess property-related ESG risks through GRESB’s Environmental Management System, a framework for developing and improving environmental performance to the benefit of the business, stakeholders and wider society.  We report annually on our environmental impact and carbon footprint.

Acquisition/development of new assets:

Acquisition

• We engage with specialist consultants as part of our pre-acquisition due diligence processes to minimise risks (such as pollution and flooding) and capitalise on investment opportunities for enhancing return
• Existing buildings will only be considered for acquisition if they have an Energy Performance Certificate (EPC) rating at ‘D’ or higher, unless a feasible strategy can be developed to improve the rating

Refurbishment and Development

• We seek to incorporate sustainability into design, aiming to achieve a minimum rating under the Building Research Establishment Environmental Assessment Method (BREEAM) of ‘Very Good’ or higher and EPC rating of ‘C’ or higher for all new developments and refurbishments
• We complete post-occupancy evaluations to assess success and inform future development plans

Management of existing assets

• We work with suppliers and contractors to improve environmental performance through the supply chain
• We engage with occupiers to promote sustainability, including conservation of energy and water, and diversion of waste from landfill, and encourage biodiversity where possible
• We identify, where feasible, cost-efficient improvements to protect the future quality of each asset and reflect this in its individual sustainability plans
• We take advantage of energy/water saving opportunities during the regular repair, refurbishment and replacement of services

Disposal of assets:

• We strive to be a cooperative seller and provide EPC data, building certifications and metered data, where requested and available, to prospective purchasers
• We review our disposal procedures to ensure that ESG factors are fully integrated into them, particularly with reference to net zero. We look to encourage the buyer to continue transitioning the property to net zero

Monitoring

• We measure the environmental performance of assets under management, with environmental improvement plans and targets put in place for each asset
• We ensure the accuracy of data collection by using industry-specific software and Automated Metering (AMR) Technology, and benchmark sustainability data appropriately