ADVERO Properties Socimi, S.A.
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Sustainable Housing Model
- Carbon Reduction and Energy Efficiency
- Resource Management
- Diversity & Inclusion
- Fair & Ethical Conduct / Risk Management
Environmental Achievements
- Reduced energy consumption by 15% through retrofitting properties with energy-efficient lighting and HVAC systems (target)
- Installed photovoltaic panels to cover the energy demand of all common areas in at least all of the 2022 portfolio of assets + an annual 10% portfolio increase (target)
Social Achievements
- Implemented tenant support actions in the field of energy cost saving, financial support policies and residents’ networking (target)
- Increased tenant satisfaction by 15% (target)
Governance Achievements
- Improved the ratio and presence of underrepresented groups within the Board of Directors (target)
- Increased transparency and availability of regular information to stakeholders by implementing a quarterly newsletter (target)
- Established delegated committees within the Board of Directors to enhance risk control, talent retention and ethical management (target)
Climate Goals & Targets
Long-term Goals:
- Increase transparency and availability of regular information to stakeholders
- Establish delegated committees within the Board of Directors for risk control and ethical management
Medium-term Goals:
- Improve the ratio of underrepresented groups within the Board of Directors
- Install photovoltaic panels to cover the energy demand of all common areas in at least all of the 2022 portfolio of assets + an annual 10% portfolio increase
Short-term Goals:
- Increase tenant satisfaction by 15%
- Reduce energy consumption by 15%
- Implement tenant support actions
- Define a policy for sustainable rental prices and prevention of vulnerability
Environmental Challenges
- Runaway inflation
- Sharp upturn in borrowing costs
- Impending slump in consumer spending
- Uncertainty from the war in Ukraine
- Shortage of rental homes in Spain
- Lower salaries in Spain compared to the rest of Europe
- Potential impact of new housing law limiting annual rental increases
Mitigation Strategies
- Focus on low-risk investment based on middle-income real estate underlying assets
- Recurring cash flows
- Natural hedge against inflation due to correlation between inflation, salaries and rents
- Transparent communication policy
- Long-term asset management and focus on rental and expense optimisation
- Confidence that salary differences between Spain and the rest of Europe will be corrected in the future
- Belief that potential impact of new housing law will be minimal
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Sustainable Development Goals (SDGs), United Nations Global Compact