Information about the policies on the identification and prioritisation of principal adverse sustainability impacts and indicators.
ERSTE Immobilien KAG makes use of an ESG toolbox to address and consider various sustainability impacts and sustainability indicators.
The properties are evaluated for their social components, environmental compatibility, and economic efficiency during an audit procedure. General suitability for the funds is assessed here. The integration and associated reduction of ESG risks in the property selection process improves the risk profile of the respective real estate fund through the lower weighting of non-sustainable or less sustainable properties in the portfolio and also ensures that the real estate fund makes an active contribution to the reduction of social and environmental problems. One example is a typically better carbon footprint.
All properties purchased for the real estate funds in the past are also subjected to this assessment. Portfolio properties are refurbished to reduce ESG risks, taking the interests of the investors into account. The goal here is especially to reduce carbon emissions from the buildings in question.
The improved risk-adjusted return opportunities that result from integrating ESG risks into investment decisions have been confirmed by a large number of scientific studies.
The ERSTE Immobilien KAG ESG toolbox addresses the following criteria:
Tenant screening (can generally be applied to all products but with different focuses)
Tenant screening assesses potential tenants for their conformity with certain international standards so as to manage and limit sustainability risks in the portfolio.
Use type (can generally be applied to all products but with different focuses)
The long-term use of the property is a precondition for purchase in the interests of preserving value over the long term and generating sustainable returns. Thus, properties such as industrial plants and warehouses are not purchased for the funds.
Sustainability rating (can generally be applied to all products but with different focuses)
All properties are assigned a sustainability rating. This sustainability rating is determined through a procedure that as-sesses the performance of real estate projects and properties in terms of specific environmental, social, and economic sustainability criteria. The goal of the sustainability rating is to achieve improvements in social, environmental, and economic aspects of the property and to increase the transparency of the property. This also allows the sustainability commitment of properties to be improved and their risks in this area to be assessed more accurately.