Sustainable investing in real estate – a business with a future
Amid an environment of global risks such as climate change, dwindling biodiversity and threats to society and state of health, sustainable conduct is increasingly gaining significance. Specific issues emerge with regard to sustainability through SFP Group’s activities at the interface between the real estate sector and financial industry.
According to an estimate by the Federal Office for the Environment (FOEN), buildings in Switzerland account for roughly 40% of energy consumption and cause around one-fourth of all greenhouse gas emissions. We therefore detect our greatest impact on the environment here. Real estate has a vast array of effects on the environment across its overall life cycle.
SFP Group has set an objective of integrating ESG criteria in all its products and business activities along the entire value-creation chain. At the same time, the Group is expanding its internal reporting framework with ESG-related risks and specifying the requisite models for risk calculations. Hence, SFP Group is assuming responsibility for their effects on the environment, society and economy. ESG criteria are integrated in the valuation and investment decision-making process. Such integration with indirect funds is systematically carried out already at present and will be introduced with direct products next.
Commitments
SFP Group has set the following objectives, among others: Greenhouse gas emissions from direct real estate will be cut in half by 2030 compared with the level of 2019 and energy consumption continuously reduced. In specific terms:
- Cutting greenhouse gases emissions and intensity in half compared with the levels of 2019 (17,543 tCO2, 20 kgCO2 / square metre)
- Reducing energy consumption and energy intensity compared with the levels of the base year 2019 (81,765 MWh, 94 kWh / square metre)
- Investing in renewable energy sources
- Reducing water consumption and water intensity compared with the levels of the base year 2019 (505 million litres, 592 litres per square metre)
Indeed, this can only be accomplished with a motivated staff. SFP Group’s 86* employees are its most valuable commodity. A safe, innovative and inspiring working environment should be provided for all employees. Such an environment also includes promoting diversity at every level as well as actively searching for female professionals with the requisite expertise especially for open positions at the management level.
SFP Group is continuously developing its sustainability strategy and aiming to formulate specific and quantified objectives for all important issues by 2021.
* as at 31 December 2019
Contact
ESG Manager