Park Street A/S
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environment and Climate
- Human Resources
- Human Rights
- Anti-Corruption and Bribery
Environmental Achievements
- Invested DKK 30.0 million in the maintenance and modernization of existing properties; set goals of changing metering technology to improve energy performance of buildings; consistently high standards for following all applicable building regulations including AB 18 and ABT 18 across its projects.
Social Achievements
- Constantly working to ensure a healthy physical and mental work environment with a focus on reducing sickness absence; supports all human rights within national and international laws; implementing and continuously improving processes and IT measures to meet the EU GDPR standards; establishing a policy for development of future employees; 48% of employees are female.
Governance Achievements
- Established an Anti-corruption policy where employees and business partners are not allowed to receive gifts from suppliers larger than DKK 500; strict guidelines on only paying bills according to legal documents with documented expenses, and that prices are benchmarked against usual costs; zero-tolerance approach to any form of corruption or bribery.
Climate Goals & Targets
Medium-term Goals:
- In the next 5 years aim to reach 10 cities, each with 2-4 centres. That is 1,000 residents in 2 years and onwards to 5,000 residents.
Short-term Goals:
- Reduce portfolio size with targeted exits of assets – projecting over DKK 400m of Property Sales; Reduce Debt with the sale proceeds – projecting over DKK 200m of Debt Reduction; Enhance Leasing activity across portfolio to improve efficiencies; Initiate Pulse T development; Shares buy back program.
Environmental Challenges
- Reduction of net sales partly compensated by the reduction of operating expenses, overheads and financial expenses; reduction in rental income and other income primarily due to the sale of properties, intentional vacancy in order to initiate residential projects and a delay on filling vacancies due to the uncertainties caused by Covid-19; increase in external advisor expenses and expensing the intangible asset value relating to software expenditure; increase in debt with financial institutions including development loan for Pulse N with higher margins interest rates; restraint shown by businesses to commit to leases and investment, which has delayed closings of some new leases; long expected terminations; current vacancy rate of 22.2%.
Mitigation Strategies
- Reducing portfolio size with targeted exits of assets; reducing debt with sale proceeds; enhancing leasing activity; initiating Pulse T development; shares buyback program; targeted reinvestment of capital from sales towards Pulse Living expansion; concluded sales of over DKK 100m in January 2022; signed significant leases for over 3,800 square meters since January 2022.
Supply Chain Management
Responsible Procurement
- Anti-corruption policy where employees and business partners are not allowed to receive gifts from suppliers larger than DKK 500; strict guidelines on only paying bills according to legal documents with documented expenses, and that prices are benchmarked against usual costs.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions
Transition Risks
- Increasing energy prices and suboptimal energy performance of the buildings
Reporting Standards
Frameworks Used: IFRS as adopted by the EU
Third-party Assurance: Price WaterhouseCoopers Statsautoriseret Revisionspartnerselskab