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Savills Investment Management

PRI reporting framework 2018

You are in Direct - Property » Post-investment (monitoring and active ownership)

Post-investment (monitoring and active ownership)

Overview

PR 08. ESG issues in post-investment activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

08.1. Indicate if your organisation, and/or property managers, considers ESG issues in post-investment activities relating to your property assets.

08.2. Indicate whether your organisation, and/or property managers, considers ESG issues in the following post-investment activities relating to your property assets.

          See 14.3
        

08.3. Describe how your organisation, and/or property managers, considers ESG issues in post-investment activities related to your property assets.

Savills IM considers ESG issues in monitoring and management of property investments by encouraging property managers to collect and report to our sustainability consultant on consumption, waste and water data where possible, and where we have control of energy consumption, allowing us to create improvement targets for our assets and funds.

In the context of development and refurbishments, Savills IM ensures developments are sustainable and typically delegates the implementation for doing so (via compliance with market standards and best practice) to our development partners via Development Management Agreements. In addition, specialist professional consultants are appointed to provide advice and management of the delivery of the requirements for any environmental performance compliance. In this way, all reasonable endeavours are taken to procure that any investments comply, or indeed exceed, the relevant environmental standards and the responsibility for delivering the results lies with the parties most qualified to do so. Construction works are then procured via the most appropriate route with the professional team and contractors then responsible, via building contracts, to deliver the desired completed product.

Where development and refurbishment activities takes place in Savills IM funds, sustainability and environmental issues of new residential or commercial developments are managed in line with Savills IM's ESG Policy. However, the drivers for the environmental requirements and sustainable strategies within building projects may have more physical influences such as end user requirements, economic viability and central and local government strategy.

In the case of Savills IM's Prime London Residential Development Fund I (PLRDF I), it is typical that a certain level of sustainability consideration would be a condition of any planning consent separate to the UK Building Regulation requirements (defined by statute and therefore the minimum standard for building performance). Such consent would usually include a number of specific sustainability requirements set via a requirement to achieve, say, Code 3 or Code 4 for Sustainable Homes in a residential context. The satisfaction of this condition and achieving the required standards is then monitored by an independent specialist who signs off on the performance of the completed buildings and systems. Whilst the process is similar for commercial developments, the targets and technologies involved do vary. In a commercial context, it should also be noted that institutions as tenants and ultimate landlords have considerable influence on the take up of sustainability measures as ultimately developers are unlikely to bear the full burden of cost for the inclusion of such measures, over and above those required for compliance, where no open market appetite exists.


Property monitoring and management

PR 09. Proportion of assets with ESG targets that were set and monitored

New selection options have been added to this indicator. Please review your prefilled responses carefully.

09.1. Indicate the proportion of property assets for which your organisation, and/or property managers, set and monitored ESG targets (KPIs or similar) during the reporting year.

(in terms of number of property assets)

09.2. Indicate which ESG targets your organisation and/or property managers typically set and monitor

Target/KPI Progress Achieved
          Create an action plan for a programme of Green Office initiatives in 2018
        
          
        
          
        
          At least x1 event / initiative has been scheduled per quarter for 2018, to improve environmental sustainability and enhance ESG engagement across all business functions
        
          
        
          
        
Target/KPI Progress Achieved
          Stakeholder engagement with external stakeholders on ESG; map findings in matrix against internal stakeholder engagement (took place in 2017)
        
          Carry out gap analysis of health and wellbeing GRESB module, develop action plan determining scope of H&W activity for 2018, participate in GRESB module
        
          Create ESG PR and Marketing plan to raise awareness of Savills IM ESG activities
        
          Internal stakeholder analysis completed, analysed, and results presented to board. External stakeholder identified and partially engaged.
        
          Gap analysis performed with HR and WELL accredited sustainability consultant. Action plan created for 2018. GRESB survey will be submitted 30 June 2018.
        
          Incomplete
        
Target/KPI Progress Achieved
          Gap analysis performed to align ESG reporting with INREV sustainability guidelines, where appropriate
        
          Engage GEC with ESG issues
        
          
        
          Incomplete
        
          Met with GEC representatives in Q4 2017 to report achievements over the year and establish priorities for the following year. Annual process established.
        
          
        

09.3. Additional information. [Optional]

We have corporate and fund level annual road maps which allow us to set and track the progress of specific ESG targets. These road maps have been put in place so that the we maintain a structured approach to our ESG objectives. The road map objectives target all aspects of ESG: environmental (resources, e.g. water, waste and carbon), social/ engagement/ community matters, and governance/ compliance. Road map ESG targets are SMART (specific, measurable, achievable, realistic, time-related) even where they are qualitative rather than quantitative, to allow for effective implementation and monitoring.


PR 10. Certification schemes, ratings and benchmarks

10.1. Indicate whether your property assets are assessed against certification schemes, ratings and/or benchmarks

10.2. List the certification schemes, ratings and/or benchmarks your property assets are assessed against and what proportion of your property assets they apply to.

Specify
Proportion of property assets these apply to

(in terms of number of property assets)

Specify
Proportion of property assets these apply to

(in terms of number of property assets)

Specify
Proportion of property assets these apply to

(in terms of number of property assets)

10.3. Indicate if your organisation uses property specific reporting standards to disclose information related to your property investments’ ESG performance.

10.4. Additional information.

Ensuring investment individuals are aware of the Minimum Energy Efficiency Standards (MEES) regulations ahead of 2018 was achieved, and all EPC risks identified across our UK assets.

Since 2012, we have completed the GRESB survey for up to 8 funds on an annual basis, improving the overall scores in the last reporting period (2017) by 6%, and by 99% across all funds since participation. This year we will submit the survey for 11 funds, to illustrate our growing commitment to ESG in our assets.

In 2017, we equipped investment and asset management teams with a matrix of green building certificaiton, to help them make educated decisions about the most appropriate certification to strive for on portfolio assets.

C. 2.4 million sq ft of Savills IM gloabl property assets are Green building certification accredited, with 48% of these acheiving BREEAM Very Good or better (New Construction and In Use), 20% of these acheiving Swedish Green Building Certificate, and 17% acheiving the German DGMB Gold rating.

 

 

 

 


Property developments and major renovations

PR 11. Proportion of developments and refurbishments where ESG issues were considered

New selection options have been added to this indicator. Please review your prefilled responses carefully.

11.1. Indicate the proportion of active property developments and major renovations where ESG issues have been considered.

(by number of active property developments and refurbishments)

11.2. Indicate if the following ESG considerations are typically implemented and monitored in your property developments and major renovations.

11.3. Additional information. [Optional]

Where Savills IM carries out development and refurbishment work, the primary drivers for considering ESG issues is to increase investor returns, asset value, mitigate ESG related risks and enhance environmental sustainability and resilience. Where our funds and mandates meet the criteria for the UK government Energy Savings Opportunity Scheme, portfolios have complied with regulation and carried out necessary audits. Where relevant, end user requirements, economic viability and central government strategy also motivate the consideration of ESG issues.

The fund teams carrying out development and refurbishment projects consider MEES requirements in the course of works and the EPC outcome of any development or refurbishment project. 

ESG considerations within developments and refurbishments are monitored and discussed in regular construction meetings between the mandated contractors and health and safety management systems are in place at all sites.

In 2017, a corporate pension scheme mandate managed by Savills IM with an AUM of EUR 748 million (as at 31 December 2017) committed that 100% of the new developments are targeting at least Very Good in the BREEAM New Construction certification.


Occupier engagement

PR 12. Proportion of property occupiers that were engaged with

New selection options have been added to this indicator. Please review your prefilled responses carefully.

12.1. Indicate the proportion of property occupiers your organisation, and/or your property managers, engaged with on ESG issues during the reporting year.

(in terms of number of occupiers)

12.2. Indicate if the following practises and areas are typically part of your, and/or your property managers’, occupier engagements.

12.3. Additional information. [Optional]

In relation to 12.1, during 2017 Savills IM engaged with occupiers across our managed and FRI assets held by UK Funds, by sending them ESG newsletters. 

In relation to 12.2, where quarterly reports showing tenant resource consumption data are produced and sent to our fund managers, these are sent to tenants with the view to engaging them concerning resource usage, with a view to discussing potential reduction.

 


PR 13. Proportion of green leases or MOUs referencing ESG issues (Private)


Community engagement

PR 14. Proportion of assets engaged with on community issues

14.1. Indicate what proportion of property assets your organisation, and/or your property managers, engaged with the community on ESG issues during the reporting year.

(in terms of number of property assets)

14.2. Indicate if the following areas and activities are typically part of your, and/or your property managers’, community engagement.

14.3. Additional information.

Savills IM's largest UK Fund, the Charities Property Fund commenced discussion with the Wildlife Trust charity in Shropshire during 2017, regarding a local collaboration on a site in Telford, with an adjacent land area. The Fund team are exploring the potential of this land to be used as the site of an ecology, biodiversity and local community involvement project, designed to enhance this space through social, environmental and ecological interaction. This will enable environmental engagement for local Wildlife Trust charity volunteers, whilst enhancing the natural ecological value and biodiversity ecosystems at the site. 

Community engagement in 2017 was also demonstrated by engaging with the local council, during the development a hotel building in Bath, UK, to promote apprenticeship opportunities for local residents. 

 

 

 


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