RomReal Limited

Climate Impact & Sustainability Data (2016, 2018, 2020, 2022)

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

Energy Efficiency
Water Conservation
Sustainable Materials
Waste Reduction
Community Development
Healthy Living
Education
Corporate Governance

Environmental Achievements

The Company aims to identify the most energy-efficient solutions from initial site surveys through to the specification of fixtures and fittings.
All developments consider ways in which water usage can be reduced, both during construction and occupancy.
Careful selection of construction materials to protect natural resources and reduce carbon emissions.
Supports and encourages residents in their own recycling efforts.

Social Achievements

Aims to build sustainable communities by introducing improvements to the local infrastructure and including spaces for socializing and local amenities.
Recognizes responsibility to support healthy lifestyles and meet the needs and aspirations of residents by maximizing the natural benefits of sunlight, daylight, and open space.
Supported educational initiatives that spread best practice in sustainable development and enhance the local educational infrastructure.
Aims to create lasting improvements that raise standards of living and employment for the next generation.

Governance Achievements

Practices good corporate governance to strengthen confidence in the Group and contribute to long-term value creation.
Corporate governance principles based on the Norwegian code of practice for corporate governance.
Open management practices to build trust internally and externally.
Annual review of the most important risks affecting the business.

Climate Goals & Targets

Long-term Goals:

Review of possibility to start construction and development business with industrial partners on Lakeside, Oasis, and Industrial Area plots.

Medium-term Goals:

Potential sale of Alexandriei plot.
Potential sale of units of Lakeside and Oasis plots to smaller entrepreneurs.
Potential improvement and sale of existing villas on Oasis plot.
Potential new development volume studies for Balada Market plot.
Potential finalization of planning permission for Industrial Area and Commercial Park plots.

Short-term Goals:

Finalization of planning permission for Lakeside and Oasis plots.

Environmental Challenges

Economic conditions and emerging markets risk affecting rental income and lease levels.
Counterparty risk from clients and suppliers.
Financial risk associated with the Alpha Bank loan.
Foreign exchange risk due to operational exposure in Romania.
Tax risk from changes in laws and regulations.
Director's liability risk.

Mitigation Strategies

Holding tenants' deposits and/or bank guarantees to reduce fluctuations in rental income.
Annual review of clients and suppliers to identify counterparty risk.
Extending the Alpha Bank loan and paying interest in advance.
Holding most deposits in EUR to manage foreign exchange risk.
Allocating a budget to maintain idle plots in clean condition to comply with the new fiscal code.
Holding a Directors and Officers liability insurance policy.

Supply Chain Management

Responsible Procurement

Careful selection of construction materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, IFRICs

Reporting Period: 2018

Environmental Metrics

ESG Focus Areas

Energy Efficiency
Water Conservation
Sustainable Materials
Waste Reduction
Community Development
Healthy Living
Education
Corporate Governance

Environmental Achievements

Aims to identify the most energy-efficient solutions from initial site surveys through to the specification of fixtures and fittings.
Considers ways in which water usage can be reduced, both during construction and occupancy.
Aims to select all construction materials carefully to protect natural resources and reduce carbon emissions.
Aims to fulfill all legal requirements regarding waste reduction and management and encourages resident recycling efforts.

Social Achievements

Works continuously on facilitating employee development, good health, enthusiasm and commitment among its employees.
Encourages employees to use public transport to reduce pollution.
Women and men in comparable jobs receive the same pay.
Supported educational initiatives, both those that spread best practice in sustainable development, and those that enhance the local educational infrastructure in general.
Aims to contribute to sustainable communities through improvements to local infrastructure and inclusion of spaces for socializing and local amenities.

Governance Achievements

Focuses on practicing good corporate governance to strengthen confidence in the Group and contribute to long-term value creation.
Corporate governance principles are based on Bermuda Corporate Governance standards and the Norwegian code of practice for corporate governance.
Nine Board meetings were conducted during 2018.
Annual review of the most important risks affecting the business is conducted by the Board.

Climate Goals & Targets

Short-term Goals:

Focus on land value enhancing activities to improve shareholder value.
Increased and more professional sales & marketing efforts.
Some infrastructure investments and engagement of more resources into regulation processes.
Conclude several ongoing court cases satisfactorily.

Environmental Challenges

Extraordinary tax claim in excess of EUR 1.7 million related to the reassessment of loans granted to a subsidiary.
Fluctuations in the Romanian property market and rental levels.
Counterparty risk.
Foreign exchange risk due to operational exposure in Romania (RON) while reporting in EUR.
Tax risk due to changes in laws and regulations.

Mitigation Strategies

Obtained suspension of the Tax Authority Decision pending a court decision.
Holding tenants’ deposits and/or bank guarantees to reduce the impact of rental fluctuations.
Annual review of clients and suppliers to identify counterparty risk.
Holding most deposits in EUR and denominating receivables in EUR to manage foreign exchange risk.
Allocating a budget to maintain all idle plots in a clean condition to comply with the new fiscal code.

Supply Chain Management

Responsible Procurement

Careful selection of construction materials to protect natural resources and reduce carbon emissions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Waste reduction and management
Energy efficiency
Community development
Water conservation
Sustainable materials selection
Healthy living
Education

Environmental Achievements

Aiming to fulfil all legal requirements regarding waste management and encouraging resident recycling efforts.
Seeking more intelligent and sustainable approaches to design, construction and materials to reduce carbon emissions.
Specifying ways of increasing the efficiency of water usage within the infrastructure of developments.

Social Achievements

Introducing improvements to the local infrastructure and including spaces for socializing and local amenities to contribute to sustainable communities.
Supporting educational initiatives that spread best practice in sustainable development and enhance local educational infrastructure.
Facilitating employee development, good health, enthusiasm and commitment; encouraging employees to use public transport.

Governance Achievements

Practicing good corporate governance to strengthen confidence in the Group and contribute to long-term value creation.
Based corporate governance principles on the recommendation of 17 October 2018 (www.nues.no).
Annual review of the most important risks affecting the business is conducted by the Board.

Climate Goals & Targets

Short-term Goals:

Focus on land value enhancing activities to improve shareholder value; increased sales & marketing efforts.
Some infrastructure investments and engaging more resources into regulation processes.
Conclude several ongoing court cases satisfactorily.
Implement Covid-19 cost reductions and liquidity measures.

Environmental Challenges

General market challenges brought by the pandemic, resulting in a 7.3% decrease in the like-for-like value of investment properties.
Tax dispute with local tax authorities, resulting in a EUR 1.05 million payment.
Court case with local municipality due to withdrawal of a PUZ issued in 2015.
Conditional sale of 3 plots terminated; planning to file a lawsuit against the local water utility.
Covid-19 pandemic impacting market slowdown and reducing financial flexibility.

Mitigation Strategies

Actively seeking to improve liquidity, capitalize on its strong assets base, and take advantage of future developments of the country’s economy.
Made a EUR 1.05 million payment to waive potential penalties in the tax dispute; continuing the legal process.
Marketing the Balada Market property for sale; pursuing legal action against the municipality.
Implementing Covid-19 cost reductions and liquidity measures to ensure ongoing operations.

Supply Chain Management

Responsible Procurement

Careful selection of construction materials to protect natural resources and reduce carbon emissions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Waste reduction
Energy efficiency
Community development
Water conservation
Sustainable materials
Healthy living
Education

Environmental Achievements

Aiming to identify the most energy-efficient solutions from initial site surveys through to the specification of fixtures and fittings.
Selecting construction materials carefully to protect natural resources and reduce carbon emissions.

Social Achievements

Introducing improvements to the local infrastructure and including spaces for socializing and local amenities to contribute to sustainable communities.
Supporting educational initiatives that spread best practice in sustainable development and enhance local educational infrastructure.
Facilitating employee development, good health, enthusiasm, and commitment among its employees.
Encouraging employees to use public transport to reduce pollution.
Ensuring women and men in comparable jobs receive the same pay.

Governance Achievements

Focusing on practicing good corporate governance to strengthen confidence in the Group and contribute to long-term value creation.
Adhering to the Norwegian code of practice for corporate governance (the code) with a ‘comply or explain’ approach.
Conducting six board meetings in 2022.
Having four out of five board members independent.

Climate Goals & Targets

Short-term Goals:

Focus on land value enhancing activities to improve shareholder value.
Increased & more professional sales & marketing efforts.
Some infra-structure investments and, if necessary, engage more resources into regulation processes like what is planned on Oasis.
Maintain a cost efficient, and healthy organisation.
Conservative cash management and secure collection of vendor financing.

Environmental Challenges

Economic conditions and emerging markets risk, particularly the price of property/plots and general rental levels in Romania.
Risk associated with the general development of lease levels of commercial property and market conditions at the expiration of lease contracts.
Market slowdown due to Covid-19 and political risk in the region.
Changes in laws and rules regarding tax and duties.
Potential for disagreement between the company and authorities on tax law assessment.
Weakening macro fundamentals resulting in slower sales progress.

Mitigation Strategies

Actively seeking to improve liquidity, capitalize on its strong assets base, and take advantage of future developments of the country’s economy.
Holding tenants’ deposits and/or bank guarantees to reduce fluctuations in lease levels.
Regularly evaluating and monitoring the risk of market slowdown and political risk.
Pursuing all available legal means to challenge the effects of tax reassessment.
Holding deposits in a mix of RON and EUR to manage foreign exchange risk.
Allocating a budget to maintain all idle plots in a clean condition to comply with the new fiscal code.
Holding a Directors and Officers liability insurance policy.
Reviewing infrastructure investments on an ongoing basis to ensure a satisfactory cash position.