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.