This report presents an example of ESG reporting in alignment with the INREV Sustainability Reporting Guidelines 2016 and aims to support the implementation of the guidelines.
The information is based on a fictional investment vehicle adduced for this example.
The report includes elements to comply with the mandatory reporting requirements as well as elements representing best practice recommendations of the INREV Sustainability Reporting Guidelines.
The mandatory Sustainability Reporting requirements are integrated into the INREV Reporting Guidelines. Claiming compliance with the INREV Reporting Guidelines therefore requires compliance with the mandatory Sustainability Reporting Requirements.
|Sustainability Reporting Requirement|
|Sustainability Reporting Best Practice|
Long Term Strategy
The Phoenix Property Fund is a balanced European based property fund covering industrial, retail and office properties.
Taking a sustainability approach is a priority for this fund. We see it as an opportunity to improve the risk-return profile of the fund as well as contribute positively from ESG standpoints while continuing to meet the fiduciary responsibilities of the fund’s investors.
|The fund has in place a long term strategy which ensures that we act on the feedback of all identified stakeholders to shape the policy, processes and methods used to manage ESG across the fund.|
|The fund sets both long term and short term targets relating to each ESG aspect identified as material for the fund, and report quarterly against targets, at asset and fund level. The fund also ensures that we have a governance structure to identify key material, sustainability aspects for the fund, review policies and processes, set targets and regularly monitor performance against annual and long term targets.|
|We measure, monitor and report on all environmental aspects of the fund, and ensure that all quantitative data is externally assured. At an asset level, we undertake sustainability due diligence during all fund acquisitions. We also ensure that all developments and refurbishments employ the best practice sustainability techniques and achieve a sustainability accreditation.|
|We recognise our responsibilities to national and European legislation requirements for ESG so we ensure compliance with all applicable ESG legislation. Through our dedicated sustainability manager, we also monitor, manage and mitigate risks due to proposed future ESG legislation.|
|To improve our expertise on this issue, the fund will ensure all staff, agents and suppliers involved in the fund management receive regular ESG related training and are incentivised through sustainability targets both in contracts and appraisal processes.|
|The fund will also play a role to encourage innovation and industry participation to further the knowledge of sustainability in the property sector. This includes building an online library system to share case studies with all stakeholders in order to promote sustainable performance of property|
These annual objectives are derived from the fund’s overall ESG approach and strategy as set out in section 1. The fund seeks to meet these objectives during the next financial year with regular reports on progress through the fund’s quarterly reports, as set out in section 3.
|No||Significant Aspect targeted||Measurement||Completion|
|Asset sustainability plans
Ensure each managed asset has an asset sustainability plan that seeks to reduce energy, water and waste.
|Development and refurbishment
Achieve an EPC of a B rating and a BREEAM excellent or Lead Gold standard for all major developments and refurbishments.
Ensure that all acquisitions are assessed for potential improvements to environmental performance.
Reduce energy and water consumption in like-for-like assets by 5% during the year. This will be achieved through various initiatives such as new lighting systems and maintenance improvements. Ensure at least 85% of waste is diverted from landfill during the year.
|Percentage reduction comparing YTD||Quarterly|
Ensure all UK assets hold an EPC and that all F&G rated EPC’s have a strategy to mitigate the risks.
|Percentage F&G EPCs in the fund by NLA and ERV||Quarterly|
Ensure all managed properties hold an ISO14001 certification by the end of 2016.
|Percentage of funds covered by ISO 14001||Quarterly|
|Employee and Supply chain targets
Set sustainability targets for all employees and monitor progress by year end. Set sustainability KPIs in all new relevant suppliers let during the year.
|Targets in employee objectives, KPI’s in supplier contacts let.||Q1
Participate in the GRESB benchmarking exercise
|Complete survey by end of June||Issue results in September|
Annual Portfolio Information
Example Property Fund Landlord Environmental Data Quarter 1
|absolute kWh||like for like kWh|
|Fuels||550,000||684,000||350,000||365,000||4%||Gas is degree day adjusted. Increase due to control issues at 5 Bluebird Pace.|
|Water||absolute m3||like for like kWh|
|9,543||84,500||5,438||5,980||5,980||Increase in water use is due to showers being installed in two multi let offices. Hence target will not be achievable this year|
|absolute KG||% diverted from landfill|
- We are confident that the electricity and carbon targets for the year can still be achieved once the controls have been repaired at 5 Bluebird Place.
- The increase in water usage due to the two showers being installed at two multi-let offices, mean it will not be able to achieve our like for like water targets this year.