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CCLA

PRI reporting framework 2019

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Post-investment (monitoring and active ownership)

Overview

PR 08. ESG issues in post-investment activities

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.

          
        

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

BNPPRE, as our managing agents, are responsible for post- investment activity. Property Managers, as part of their role, are expected to implement BNPPRE's integrated strategy into their day to day activities. They are supported by a dedicated Sustainability Team who assist to identify opportunities/risks, provide advice and quality assure any potential initiatives. Sustainability Action Plans are developed for specific properties to include (where appropriate) energy/carbon, water, waste, green transport, biodiversity. The Facilities Management service includes wider community interaction as part of considerations. BNPPRE, as our third party agents, monitor ESG performance in our supply chain.

During the reporting year, we have appointed an ESG Coordinator as a fully outsourced ESG function that covers the full property lifecycle. This aims to enhance ESG performance across all of our property funds through the proactive interpretation of existing and new environmental legislation, the development, promotion and adoption of leading ESG standards and performance, and through ensuring that relevant stakeholders are engaged and informed.


Property monitoring and management

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

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
          Demonstrate Increased Recycling Rates
        
          Continue Energy Use Improvements
        
          
        
          Achieved at 4 priority properties
        
          Achieved
        
          
        
Target/KPI
Progress Achieved
          Conduct ESG engagement with all tenants of our properties.
        
          Conduct ESG engagement with all of the Local Authorities in whose areas we own properties
        
          
        
          We wrote to all self-managed properties detailing support for managing the properties' ESG performance. This supplemented BNPs ongoing management of our multi-occupant buildings.
        
          We wrote to all of the local authorities, within which we own properties, stressing our desire to co-operate on ESG issues.
        
          
        
Target/KPI
Progress Achieved
          Improve Communication of ESG Issues
        
          Increase Responsible Property Investment Resource
        
          Improve Governance of Responsible Property Investment
        
          We have included Responsible Property Investment in advertising material, scheme particulars and enhanced reporting regime on sustainability updates
        
          We have entered into an arrangement with our third-party managing agents BNP Paribas to assist with the incorporation of ESG issues
        
          This has been achieved by embedding ESG into our property manager’s job descriptions/investment procedures and developing a formal RPI Committee comprising the Head of Property,
        

09.3. Additional information. [Optional]

Through the establishment of the Responsible Investment and Property Committee, we created an ESG decision-making body which convenes on a quarterly basis at the Responsible Investment and Property Governance meeting to review ESG performance. The outsourced ESG Coordinator acts as Secretariat to the quarterly Responsible Investment and Property Committee.

BNPPRE collect, monitor and attempt to improve environmental performance data for all properties managed for CCLA. This includes water and electricity use. The use and take-up of green leases clauses within standard leases are actively tracked.

We have continued to drive improvements in the ESG performance of our largest properties. Following increased resource, this will be extended to more assets in our portfolio in the coming year.

We increased our tenant and community engagement programmes. Each local authority (within which we own properties) and tenant recieved at least one communication about CCLA's commitment to ESG issues during the year. This stressed our desire to work collaboratively to improve our buildings responsible investment performance.


PR 10. Certification schemes, ratings and benchmarks (Private)


Property developments and major renovations

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

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.

          Encourage general improvements in practice. ESG requirements of suppliers are included in the appointment/selection process.
        

11.3. Additional information. [Optional]

A key part of our property investment strategy is to acquire ‘non-trophy’ grade A assets, usually well-located buildings. These can be improved (both socially and environmentally), through refurbishment, delivering a substantial uplift in their value and increase their yield. Sustainability criteria is a key component of this approach. We recognise that improving sustainability standards can often be done with relatively little investment, cuts the running costs, can be more appealing to prospective tenants, and improves the potential rental income. For this reason, it is a core part of our approach.

During the reporting year we conducted three, qualifying, refurbishments at properties in London, Glasgow and Leeds. Steps taken included fitting, energy efficient lighting, improving the air quality and creating an attractive environment around the property.


Occupier engagement

PR 12. Proportion of property occupiers that were engaged with

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]

CCLA seeks to be an active owner of our property assets. Our approach ranges from taking general steps to improve the performance of our buildings to concentrating on specific assets where we have identified key issues.

Sustainability information is included in occupier handbooks that are distributed at our multi-let properties and sustainability is a standing agenda item for all occupier meetings. It is our hope that this will gradually improve the day to day performance of our buildings.

In addition to the above we have set an explicit target to reduce the footprint of the largest assets within our portfolio. This has required targeted interventions and detailed dialogue with occupiers. We also identified a specific issue in regards to water use at a building in London. We worked with one occupier to reduce the amount of water used; this rectified issues for all other tenants and reduced the overall usage in the building.  


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

13.1. Indicate the proportion of all leases signed during the reporting year that used green leases or the proportion of Memoranda of Understandings (MoUs) with reference to ESG issues.

(in terms of number of leases or MoUs)

13.2. Additional information.


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.

During the year CCLA wrote to all 78 Local Authorities within which we owned buildings. The aim of the letter was to express our desire to work collaboratively to improve the ESG performance of our buildings and to reduce our negative footprint in the local community. We have recieved a number of positive responses to this mailing and look forward to working with the councils in the near future.


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