Environmental, Social and Governance (ESG)
Achieving the goal of environmental sustainability in urban development is a pressing issue, both today and in the future. OPEN recognises the importance of working towards sustainable goals and believes that the fund’s Environmental, Social, and Governance (ESG) framework is a crucial factor in creating long-term value not only for investors but also for society.
As a result, OPEN has been classified as an Article 9 fund under the Sustainable Financial Disclosures Regulation (SFDR). This means OPEN has a sustainable investment objective and integrates sustainability into the investment process in a binding manner. Achieving Article 9 status offers significant benefits, including better financing terms through green loans, easier access to EU grants, and improved property values due to sustainability initiatives.
Read more about the benefits of Article 9 for OPEN here.
In 2022, OPEN committed to reducing its carbon footprint such that by 2050, the combined net carbon emissions from OPEN’s portfolio will be zero, and the fund will be 100% taxonomy aligned.
ESG by Investment Zone
To support OPEN’s Real Estate arm in reaching its net zero goals, OPEN has invested in resources, networks, and utilities to advance sustainability initiatives and future-focused technologies. Through projects like renewable energy generation, data monitoring, and community-focused initiatives, these investments are key to achieving net zero emissions by 2050 and future-proofing our assets.
Utilities
In 2021, Greenman Energy was established to install photovoltaic solar panels (PVs) on the roofs and carpark carports of OPEN’s retail centres. The electricity generated is sold to the tenants in each property. By 31st December 2024, Greenman Energy’s PV portfolio is expected to generate approximately 3,000 MWh of renewable energy. Greenman Energy estimates that there are approximately 190,000 visits per day by car to OPEN’s properties, and by 2030, there could be around 40,000 visits per day by electric vehicles (EVs).
Greenman Energy is rolling out hyper-fast EV charging stations in the car parks of OPEN’s properties, with solar energy powering the chargers where possible. Once installed, the chargers offer a complementary service to customers visiting the retail centres. By 31st December 2024, it is expected that Greenman Energy’s EV charging network will be charging 88 cars per day.
Visit Greenman.Energy
Networks
Real estate is a significant source of greenhouse gas emissions, with 70% originating from operations and 30% from construction. To align with sustainability targets, OPEN has initiated a pilot project aimed at accurately measuring energy efficiency and CO2 emissions. This project will gather detailed data on building operations, including energy usage, cooling systems, and heat loss, to provide property managers with a clear understanding of energy performance.
Resources
The BEEZDORF Initiative, supported by OPEN, aims to transform shopping centres into hubs for education and community engagement. This initiative enhances sustainability by utilising unused spaces for charitable activities, promoting sustainable food production, fostering partnerships with local schools and organisations, and supporting local charitable projects through donations.
One of BEEZDORF’s main projects involves installing bee colonies on the roofs of OPEN’s centres to promote local biodiversity and species diversity, sell honey for local charities, and educate local schools about the importance of bees to their communities.
Visit Beezdorf.com
5 by 25
OPEN’s 5 by 25 commitments – where at least 5% of OPEN’s revenue in 2025 will be generated from non-rental activities – will also be an objective of the Net Zero Pathway, demonstrating the positive financial impact sustainability objectives will have on the fund’s performance.
OPEN estimates that a high percentage of all equity contributed to the Net Zero Pathway will result in either: direct additional income; have a direct positive impact on OPEN’s NAV or indirectly via other value addition mechanisms.
REPORTING
SFDR Disclosures
How Greenman, OPEN’s AIFM, considers PAI on sustainability factors in the investment decision-making as well as other sustainability disclosure requirements.
Principle Adverse Impacts Disclosure
Website Disclosure
Remuneration Disclosure
