Grand City Properties
Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Tenants
- Employees
- Environment
- Society
- Governance
Environmental Achievements
- Reduced portfolio CO2 emissions by 13% compared to 2018
- More than 90% of landlord gas obtained from climate-neutral sources
- 74% of portfolio supplied by 100% renewable electricity (2018: 66%)
- Increased waste recycling rate to 39.8% (2018: 30%)
Social Achievements
- Established the Grand City Properties Foundation and invested more than €100,000 in charitable projects
- Achieved DIN EN ISO 9001:2015 certification in Service Quality and Quality Management for our Service Centre
- 180 Community events held at GCP properties (2018: 168)
Governance Achievements
- Maintained zero compliance violations
- Maintained zero instances of data protection breaches
- Maintained zero human rights violations
Climate Goals & Targets
- Invest €500,000 a year in community-building activities, up to 2030
- Achieve a 40% reduction in CO2 emissions by 2030
- Become a health & wellbeing certified office by 2025
- Reduce water consumption
- Increase number of assets with on-site renewable energy systems
Environmental Challenges
- Low levels of household waste segregation and recycling rates
- Uncertainty from the coronavirus pandemic's potential impact on tenants' incomes and the general economic situation in Germany
Mitigation Strategies
- Piloted a partnership with a waste management service provider to tackle low levels of household waste segregation and increase recycling rates
- Diversified portfolio acts as an effective buffer against economic downturn; focus on affordable rental market offers additional protection
Supply Chain Management
Responsible Procurement
- Code of conduct for Business Partners
- Green Procurement Policy
Climate-Related Risks & Opportunities
Opportunities
- Positioning as a positive contributor to the low-carbon economy
Reporting Standards
Frameworks Used: GRI, EPRA
Third-party Assurance: GUT Certifizierungsgesellschaft für Managementsysteme mbH (limited assurance according to AA1000)
UN Sustainable Development Goals
- 3
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- 7
- 10
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- 13
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GCP's initiatives align with UN SDGs for Good Health and Well-being, Quality Education, Gender Equality, Affordable and Clean Energy, Reduced Inequalities, Sustainable Cities and Communities, Climate Action, Peace, Justice and Strong Institutions, and Partnerships for the Goals.
Awards & Recognition
- EPRA Gold medal for financial and sustainability reporting (three consecutive years)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Energy & Emissions
- Water & Waste
- Diversity & Equal Opportunities
- Training & Development
- Employee Satisfaction
- Occupational Health & Safety
- Tenant Health & Safety
- Local Communities
- Corporate Governance
Environmental Achievements
- Increased renewable energy share in electricity from 71.66% to 82.68%
- Increased renewable energy share in fuels from 86.76% to 88.59%
- Reduced direct Scope 1 GHG emissions by 18%
- Reduced indirect Scope 2 (location-based) GHG emissions by 2%
- Reduced indirect Scope 2 (market-based) GHG emissions by 2%
Social Achievements
- Increased percentage of female employees from 51% to 53%
- Increased average training hours per employee from 4.99 to 7.3
- Reduced employee turnover rate from 41% to 23%
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Incomplete utility bills for 2020, requiring estimations based on 2019 data for electricity, heating, and water.
- Data only available for a proportion of units under management control for recycled waste.
- COVID-19 pandemic prevented large gatherings and in-person community events in 2020.
Mitigation Strategies
- Estimations were calculated based on the previous year’s confirmed consumption during the same period. Extrapolations are based on the average of monthly demand available from bills in 2020, and then multiplied by 12 months.
- Data for units where complete data was available was extrapolated given the similarities between units and tenants.
- Physical community events were put on hold during 2020 to ensure the health and safety of both tenants and employees.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: EPRA Sustainability Best Practice Recommendations (sBPR) 3rd edition
Certifications: Null
Third-party Assurance: International Standard on Assurance Engagements (ISAE) 3000 (Revised)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Energy & Climate Change
- Water & Waste
- Diversity & Equal Opportunities
- Training & Development
- Employee Satisfaction
- Occupational Health & Safety
- Tenant Health & Safety
- Local Communities
Environmental Achievements
- Increased scope of environmental data collection to include tenant-controlled areas.
- 98.50% of portfolio certified by floor area with Mandatory (Energy Performance Certificates).
Social Achievements
- Increased percentage of women in senior management from 34% to 40%.
- Reduced employee turnover rate from 23% to 19%.
- Organized four digital events for tenants in 2021.
Governance Achievements
- Improved gender pay ratio across all employee levels.
- Maintained 100% of assets undergoing health & safety assessments.
Environmental Challenges
- Data availability for utility bills and recycled waste.
- Challenges presented by COVID-19, prohibiting large gatherings and in-person contact.
Mitigation Strategies
- Used estimations based on previous year's consumption or industry benchmarks.
- Organized digital community events as an alternative to physical events.
Reporting Standards
Frameworks Used: EPRA Sustainability Best Practice Recommendations (sBPR) 3rd edition
Third-party Assurance: International Standard on Assurance Engagements (ISAE) 3000 (Revised)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change Mitigation
- Climate Change Adaptation
- Environmental Protection
- Tenant Satisfaction
- Tenant Health and Safety
- Local Communities & Neighbourhood Development
- Fair Business & Compliance
- Supply Chain & Human Rights
- Data Protection
- Labour Standards and Employees
Environmental Achievements
- 9.9% decrease in average heating energy intensity (from 144.63 kWh/m²/year to 130.33 kWh/m²/year)
- 9.7% decrease in Scope 1 + 2 emissions intensity (from 10.15 kg CO2e/m²/year to 9.17 kg CO2e/m²/year)
- 6.8% decrease in Scope 1, 2 + 3 emissions intensity (from 43.32 kg CO2e/m²/year to 40.38 kg CO2e/m²/year)
- Increased like-for-like energy data coverage to 89% in 2022 from 63% in 2021
- Waste recycling rate of 34.74%
Social Achievements
- Launched quarterly HR roundtables for better communication and engagement
- Conducted employee satisfaction survey with 72% response rate
- Implemented Rexx as employee engagement tool for managing personal data, holiday requests, etc.
- Increased employee retention rate by 3% to 80%
- Continued support to tenants with rent and service charge payment problems, including rent-free units for charitable purposes
- Launched GCP loyalty program to enhance tenant satisfaction and promote positive behavior
Governance Achievements
- Established regular forums for interdepartmental dialogue to tackle ESG challenges
- Allocated additional resources to assess and mitigate physical climate change risks
- Improved environmental performance and energy efficiency of buildings
- Responded to corporate reporting requirements and standards including the EU Taxonomy and TCFD
- Joined the UN Global Compact
Climate Goals & Targets
- Be among the top ten most attractive employers by 2030
- Maintain zero incidents of discrimination
- Offer training and development opportunities (minimum 12hrs per FTE)
- Focus on refurbishment over new construction and demolition
- Invest up to €500,000 p.a. in community building activities until 2030
- Achieve a 40% reduction in CO2 intensity by 2030
- Achieve a 20% reduction in energy intensity by 2030
- Switch all electricity to Power Purchasing Agreements (PPAs) certified renewable electricity by 2027
- Ensure our portfolio’s increasing resilience to climate-related risks
- Continue building climate risk assessment capacities and data collection
- Set up a new database for environmental data
- Source 7% of procured energy volume from PPA renewables
- Conduct energy assessments of at least 300 properties
- Maintain a high level of tenant satisfaction
- Expansion of service possibilities through the GCP app and CRM system
- Renewal of TÜV certification for Quality Management and Service Quality
Environmental Challenges
- High energy prices and inflationary effects due to the war in Ukraine
- Economic viability of efficiency projects, especially heating upgrades
- Insufficient technologies to achieve grid decarbonization
- Data availability on energy performance for UK assets
- Potential for climate-related litigation
Mitigation Strategies
- Developed Group-wide Environmental and Energy Policy
- Developed Group CO2 Pathway to monitor progress towards 40% CO2 reduction target
- Adjusted approach to energy interventions based on World Green Building Council’s Net Zero Carbon Buildings Commitment
- Increased data collection and digital modelling to simulate the effect of efficiency interventions
- Launched Energy Investment Program focusing on solar PV, CHP/CCHP, energy storage, EV charging stations, and smart meters
- Set a goal to switch all electricity to PPA certified renewable electricity by 2027
- Conducted city-level physical risk assessment through S&P Global’s Sustainable1
- Formed a cross-departmental Building Resilience taskforce
- Implemented adaptation solutions: tree planting, flood analysis and planning, tenant guidebook for extreme conditions, and refurbishments
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Business Partner Code of Conduct
- Human Rights Policy
- Regular monitoring through site inspections
Climate-Related Risks & Opportunities
Physical Risks
- Extreme heat
- Drought
- Wildfire
- Fluvial flood
- Coastal flood
Transition Risks
- Policy changes (carbon pricing, EPC requirements)
- Legal risks (climate-related litigation)
- Market shifts (tenant and investor preferences)
- Energy market risks
- Technological obsolescence
Opportunities
- Lower operating costs from efficient buildings
- Reduced stranding risks
- Higher valuations for green buildings
- Reduced reliance on fossil fuels
- Engagement with prop-tech start-ups
Reporting Standards
Frameworks Used: EPRA Sustainability Best Practice Recommendations (sBPR), EU Taxonomy, TCFD
Certifications: ISO 27001
Third-party Assurance: Mazars GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- EPRA sBPR Gold award (6th consecutive year)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change Mitigation and Environmental Protection
- Tenant Wellbeing and Community Engagement
- Employment and Skills
- Diversity, Equity and Inclusion
- Sustainability Governance
- Human Rights and Ethics
Environmental Achievements
- 13% decrease in like-for-like landlord-obtained electricity consumption compared to 2022
- 8% decrease in like-for-like waste generation in volume [m3] in 2023 compared to 2022
- Saved 5.3 tons of CO2 emissions in 2023 through GoGreen Plus
Social Achievements
- Launched 'Activate the Base' employee engagement program
- Established a Diversity Committee
- Donated €127 thousand to charitable causes and provided in-kind support equivalent to €52 thousand
- 87% of tenants satisfied with a satisfaction score of 4 or higher
Governance Achievements
- Undertook a transitional Double Materiality Assessment in 2023
- Continued reporting in alignment with EPRA’s sustainability Best Practice Recommendations (sBPR)
- Reporting its business activities under the EU Taxonomy Regulation
Climate Goals & Targets
- Climate neutrality by 2050 (aligned with EU's ambitious climate goals)
- Maintain zero human rights violations and uphold high standard of business partner scrutiny
- 40% reduction in CO2 intensity and a 20% reduction in energy intensity by 2030
- Transition to certified renewable electricity through PPAs by 2027
- Become one of the top ten most attractive employers by 2030
- Implement asset-level physical climate risk assessments in 2024
- Implement tailored adaptation solutions over the coming years
- Relaunch the digital performance review tool in 2024, aiming for 60% adoption
Environmental Challenges
- Methodological issues with CRREM (overly general asset-type pathways and requiring tenant electricity data)
- Uncertainty as national-level implementation of the EPBD commences
- Data protection limitations in the EU regarding tenant electricity data
Mitigation Strategies
- Transitioned to prioritising stranding definitions guided by Energy Performance Certificates (EPCs) and the European Union's climate commitments
- Engaging with tenants through awareness campaigns (information videos and posters)
- Using GoGreen Plus for tenant communication to reduce CO2 emissions
Supply Chain Management
Responsible Procurement
- Business Partner Code of Conduct
- Human Rights Due Diligence process (six steps)
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
Transition Risks
- Regulatory changes, market shifts
- Potential carbon taxes and energy efficiency measures
Opportunities
- Investments in energy efficiency reducing energy costs
Reporting Standards
Frameworks Used: ESRS, EU Taxonomy, EPRA’s sustainability Best Practice Recommendations (sBPR)
Certifications: TÜV Nord for Proven Service Quality and ISO 9001:2015 for Quality Management (Service Centre), GoGreen Plus
Awards & Recognition
- 'Most Wanted Start 2024' by Kununu and Die Zeit