Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Concor Park became the first redevelopment project in Germany to be awarded the prestigious Green Building Gold Certificate by the German Sustainable Building Council in 2016. 100% of the Spanish properties are LEED certified (Delta Nova IV and Delta Nova VI: Gold certified; Il·lumina: Silver certified; Sant Cugat Green: Gold certified).

Social Achievements

• Each employee received an average of 23.1 training hours in 2019 (higher than 20.5 hours in 2018), including ESG training. IREIT and Tikehau Capital supported initiatives promoting diversity and entrepreneurship, such as a cooking class with autistic students and an event supporting Entrepreneurs du Monde.

Governance Achievements

• IREIT Board adopted a Responsible Investment Charter in February 2019, integrating ESG criteria into the investment cycle. The Manager implemented a Code of Conduct and Ethics to guide employees on issues such as fraud, bribery, and insider trading. A whistle-blowing policy is in place.

Climate Goals & Targets

Environmental Challenges

• Slowing global trade and geopolitical uncertainties, including Brexit, weighed on Europe’s economic growth in 2020. The outbreak of COVID-19 was expected to affect global economic activity, potentially slowing office space take-up and rental growth.

Mitigation Strategies

• The majority of IREIT’s rental income is derived from long-term leases with blue-chip tenants, limiting the immediate impact of economic slowdowns. The Manager continues to pursue a growth strategy based on diversification, a long-term approach, achieving scale, and leveraging Tikehau Capital’s local presence. Focus on re-calibrating the capital structure and intensifying asset management efforts.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016)

Awards & Recognition

• Green Building Gold Certificate (Concor Park)
• LEED certifications (Spanish properties)

Environmental Metrics

ESG Focus Areas

• Active Ownership
• Occupational Health and Safety
• Training and Education
• Diversity and Equal Opportunity
• Talent Retention
• Regulatory Compliance

Environmental Achievements

• Concor Park became the first redevelopment project in Germany to be awarded the prestigious Green Building Gold Certificate by the German Sustainable Building Council in 2016. All Spanish Properties are LEED certified (Delta Nova IV and Delta Nova VI: Gold certified; Il·lumina: Silver certified; Sant Cugat Green: Gold certified). More than one third of IREIT’s FY2020 rental income is derived from certified buildings.
• 100% of IREIT’s tenants for the German Properties have committed to collaborate in sustainability initiatives. Deutsche Telekom, representing approximately 40% of IREIT’s gross rental income, is committed to reducing energy consumption.

Social Achievements

• Implemented work-from-home arrangements, restrictions of business travel, increased sanitation efforts, temperature testing and contact tracing in response to the COVID-19 pandemic.
• Each employee received an average of 18.2 training hours in FY2020.
• IREIT workforce is well balanced between female (60%) and male (40%) employees.

Governance Achievements

• Established a Responsible Investment Charter in February 2019, integrating ESG criteria into investment decisions.
• Implemented an ESG clause in every new tenant lease agreement starting in 2020.
• Established a board diversity policy in 2019.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused massive disruptions to business operations, impacting leasing activity and creating economic uncertainty.
• Reduced leasing activity in Spain due to COVID-19 lockdowns.

Mitigation Strategies

• Implemented timely measures to ensure tenant, employee, and stakeholder safety and well-being.
• Secured a pivotal five-year lease with AREAS in Spain.
• Successfully completed a rights issue to finance the acquisition of the remaining 60% interest in the Spanish Properties and repay a term loan facility.
• Implemented work-from-home arrangements, restrictions of business travel, increased sanitation efforts, temperature testing and contact tracing in response to the COVID-19 pandemic.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016)

Awards & Recognition

• Green Building Gold Certificate (Concor Park)
• LEED certifications (Spanish Properties)

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability

Environmental Achievements

• Performed environmental audits on selected properties to pursue green building certifications.
• 32% of IREIT’s portfolio valuation is from certified assets (LEED, German Green Building Gold, HQE, BREEAM).

Social Achievements

• Implemented measures to protect employee health and safety during the COVID-19 pandemic.
• Provided an average of 15.0 training hours per employee.
• Maintained a balanced workforce with 50% female and 50% male employees.
• Participated in community service events.

Governance Achievements

• Established a board diversity policy.
• Implemented a whistle-blowing policy.
• Ensured compliance with applicable laws and regulations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations and market conditions.
• Supply chain disruptions.
• Evolving demand for office space due to flexible working arrangements.

Mitigation Strategies

• Proactive asset management strategies to maintain occupancy rates.
• Capital recycling opportunities and seeking new investments to diversify the portfolio.
• Exploring different funding options to broaden financing sources and flexibility.
• Implementing a business continuity plan.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• River flood

Reporting Standards

Frameworks Used: GRI Standards (2016)

Awards & Recognition

• Overall winner in the Singapore real estate investment trusts sector by The Edge Singapore Centurion Club (September 2021)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Governance
• Community Engagement
• Responsible Supply Chain

Environmental Achievements

• 13 French properties received BREEAM certifications.
• LEED certifications renewed for 4/5 Spanish properties.
• Defined a policy to reduce greenhouse gas emissions from buildings, aligned with the Paris Agreement and the Net Zero Asset Manager Initiative.

Social Achievements

• Employees participated in ESG training.
• Board of Directors underwent sustainability training.
• Sponsored and volunteered at an event promoting social interaction for seniors.
• Employees participated in Chinese New Year Gift Pack Distribution event.

Governance Achievements

• Established sustainability governance structure.
• Conducted materiality assessment.
• Maintained zero incidents of non-compliance and corruption.

Climate Goals & Targets

Environmental Challenges

• Rising interest rates and high inflation hampered real estate leasing activity in Europe.
• Vacancy at Darmstadt Campus.
• Transformation of working arrangements at offices.

Mitigation Strategies

• Improved weighted average lease expiry through lease extensions and new leases.
• Hedging bank borrowings and maintaining low gearing ratio.
• Actively engaging existing tenants and pursuing investment opportunities.
• Improving energy efficiency and marketability of properties through green certifications.

Supply Chain Management

Supplier Audits: Every two to three years.

Responsible Procurement

• Property Management Handbook guidelines.
• Anti-corruption clauses.
• Human rights considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Cold days and frost days
• Floods and rainfall hazards
• Heat hazards
• Biodiversity

Transition Risks

• Regulatory changes
• Market shifts
• Technological risks

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: LEED, BREEAM

Awards & Recognition

• Overall winner in S-REITs sector by The Edge Singapore Centurion Club (2022)
• 14th rank out of 43 S-REITs/Business Trusts in The Governance Index for Trusts (“GIFT”) Index (2022)
• Platinum Award for “Best Office REIT (Singapore)” and Gold Award for “Best Investor Relations” at The Asia Pacific Best of the Breeds REITs Awards 2023

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety

Environmental Achievements

• Reduced total emissions to 16,963 tonnes of carbon dioxide equivalent (tCO2e) in 2023. 63% from scope 3 emissions.
• Aimed to align French assets (23% of portfolio) with the Carbon Real Estate Monitor (CRREM)'s 1.5 degrees Celsius decarbonization trajectories.

Social Achievements

• No incidents relating to tenant health and safety issues were reported in 2023.
• Aims to maintain zero incidents of serious injuries or fatalities.

Governance Achievements

• Established a sustainability steering committee comprising IREIT Global Group's CEO, management representatives, and ESG specialists from the joint sponsor to review and approve potential projects.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions represent 63% of total emissions.
• Decarbonization targets currently only apply to a minority of the portfolio (French assets).
• Varying green building certifications' requirements for energy performance.
• Potential challenges in reporting on short-term instruments (RCFs) due to their short tenure.
• Convertible bonds could lead to investors becoming shareholders, impacting the focus on green properties.

Mitigation Strategies

• Annual physical risk assessment for all properties.
• Monitoring portfolio exposure over time.
• Climate-related physical risk assessment at acquisition for new investments.
• Commitment to replacing projects that cease to comply with the framework's eligibility criteria as soon as practicable.
• Will not temporarily invest unallocated proceeds in carbon-intensive assets.

Supply Chain Management

Responsible Procurement

• Consideration of durability, recyclability, and end-of-life issues during the procurement process for renewable energy projects.

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires, floods, storms, long-term changes in temperature, precipitation patterns, and sea levels

Transition Risks

• Increased energy use in buildings, higher energy bills, higher capital expenditure for upgrades to meet energy transition and efficiency standards

Opportunities

• Low-carbon properties may achieve higher cost efficiencies or attract premium rents, enhancing their value.

Reporting Standards

Frameworks Used: Green Bond Principles, ICMA, 2021 (with June 2022 Appendix 1), Green Loan Principles, LMA/LSTA/APLMA, 2023, GHG Protocol, TCFD

Certifications: BREEAM, DGNB, HQE, LEED, Singapore's Building and Construction Authority Green Mark (potential future use)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

Green buildings, energy efficiency, electrification, renewable energy, and low-carbon transport infrastructure contribute to these SDGs.