TH Real Estate recognises that Property Managers play a central role in the managemeent of ESG issues for its property investments. At the selection process, clear ESG criteria are included within RFPs and wider tender documents to ensure that prospective property managers provide a detailed outline of their ESG management credentials for thorough review. The responses are reviewed by the Head of Sustainability and a preference is given to those Property Managers that have a track record in the effective management of ESG issues.
At appointment phase, clear ESG service level requirements are articulated within core contractual documents such as the Property Management Agreements. These requirements cover the breadth of the Tomorrow's World Sustainability Property Management programme, including effective Environmental Management Systems, compliance with ESG-type regulations, and effective systems in place to meet portfolio and asset-level ESG benchmark performance.
For TH Real Estate Europe and APAC, performance is monitored through regular meetings/checks betwen property managers and the sustainability team/asset managers where portfolio level ESG performance is reviewed. This review includes a status report on an agreed checklist of key ESG initiatives which are expected to be delivered accross the portfolio and performance against ESG targets (notably energy reduction). In addition, as part of this meeting, a report is reviewed on the quality and timeliness of energy, water and waste data to ensure that property managers are playing their important role in ensuring that critical environmental reporting flows are in tact. Performance is also monitroed via the Greenstone SupplierPortal platform which requires property managers to provide annual attestations that they have in place the resources required to meet the ESG delivery standards outlined within the Property Management Agreements.
In TH Real Estate Americas, a Property Manager's compliance with the Property Management Governance Policies & Procedures (which includes Sustainability) is monitored by the Asset Manager assigned to that specific investment property, as well as by the TH Real Estate Americas Property Management Governance team, which conducts periodic operational reviews, training sessions, and semi-annual scorecard updates to track compliance with the Policies & Procedures. Bi-monthly Property Manager update calls are conducted as a forum for 360° review of performance metrics, changes to Policies & Procedures, and discussions on matters of concern and importance, including ESG performance and Sustainability program updates.