Our Sustainability Responsibility
Achieving the goal of environmental sustainability in urban development is a pressing issue, both today and in the future. At GMO we recognise the importance of working towards sustainable goals and we believe that the fund’s Environmental, Social and Governance (ESG) framework is an important and binding factor in creating long-term value for not only our investors but also for society.
While GMO does not have, as its objective, a sustainable investment, we do promote environmental and social characteristics making ESG factors an integral part of the investment and development process, with the potential to increase the value of our investment portfolio, reduce exposure to risk, and play an important part in ‘future-proofing’ assets.
To follow the GMO’s ESG Framework and meet its ESG goals we intend to target the following environmental and social characteristics:
Environment
GMO has committed to reducing the negative environmental impact that its retail centres have upon their surroundings. To do this GMO will set and work to achieve energy consumption targets, support our tenants in also achieving these targets, promote renewable energy generation all in order to achieve an environmentally friendly portfolio.
Social
Real estate plays a pivotal role in the development of a more sustainable world not only because of its considerable use of materials and land, but also because people’s lives are centred around buildings. GMO aims to promote their Community Engagement across all its retail centres, ensuring it’s retail centres support the local community.
Governance
The General Partner (GP) of GMO is responsible for the implementation of the fund’s offering document and is overseen by a Board committed to high standards of corporate governance. The GP has also appointed a Management Company, a Depositary and an Administrator to ensure strong governance and effective oversight.OUR SUSTAINABLE ENVIRONMENTAL TARGETS
Carbon Neutrality
By 2040 Greenman OPEN’s portfolio will have a carbon neutral footprint.
To achieve this, we will:
- In 2021 initiate an Environmental Impact Audit of its portfolio.
- From September 2021 all new acquisitions must undergo an Impact Review during the due diligence process to ensure the potential acquisition fits into the fund’s ESG framework.
- In 2022 conduct Impact Reviews of GMO’s centres which will recommend enhancements and improvements to the Centres to promote sustainability characteristics.
- By 2035 all acquisitions made must have a carbon neutral footprint.
OUR SUSTAINABLE ENVIRONMENTAL TARGETS
Financial Commitments
In 2021 Greenman will commit up to €22.2m to ESG related activities annually and in 2022 GMO will commit to deploy a minimum of €6.3m up to a maximum of €22.2m on ESG related activities.
5by25
To demonstrate the positive financial impact ESG and non-rental income initiatives will have on the GMO’s performance we have set ourselves the target, that by 2025, 5% of the fund’s annual revenue will be generated from non-rental income initiatives.
These initiatives will include, but not be limited to, the environmental and social activities listed below.
Reduction in Energy Consumption
OPEN will make investments into upgrading infrastructure and technical equipment of the retail centres to reduce the building’s energy consumption.
Renewable Energy Generation
OPEN will construct or retrofit systems and develop processes to optimise materials used in our Centres and remove or reuse waste.
Smart Buildings
OPEN will implement technologies to make our Centres and processes smarter, allowing us to better understand the needs and requirements of our tenants and consumers.
Artificial Intelligence Investment
OPEN will implement technologies to monitor, map, evaluate and distribute data and develop artificial intelligence to support the Smart Building Investment.
Sustainable Food Production
OPEN will develop, support and create sustainable farming activities to promote the manufacture and sale of local, traceable and sustainable foodstuffs.
Localised Supply Chain
OPEN will develop, support and monitor novel and future grocery and non-grocery retail distribution solutions, promoting shorter supply chains and local production.
Charity & Education
OPEN will provide financial, operational or personnel support to charitable organisations engaging in community education around food related issues.
REPORTING
PRINCIPLE ADVERSE IMPACTS STATEMENT
How Greenman, GMO’s Alternative Investment Fund Manager, considers PAI on sustainability factors on a practical level in the investment decision-making.
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