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ACTIAM

PRI reporting framework 2020

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Pre-investment (selection)

PR 04. Incorporating ESG issues when selecting investments

04.1. Indicate if your organisation typically incorporates ESG issues when selecting property investments.

04.2. Provide a description of your organisation`s approach to incorporating ESG issues in property investment selection.

Responsible investment is an integral part of ACTIAM's investment philosophy and investment process. ACTIAM firmly believes that better decisions can be taken on investments by taking account of environmental, social and governance (ESG) issues. ACTIAM chooses its partners carefully. If we want to enter into a property transaction or contract with service providers, tenants or buyers, we apply a customer due diligence procedure. This procedure tests the integrity and reliability of the other parties to the contract.

ACTIAM rules out in advance certain investments, parties and tenants. ACTIAM's Fundamental Investment Principles set out how it wants to approach firms, authorities, tenants and institutions that do not deal responsibly with environmental, social and governance issues. This specifically concerns human rights, fundamental labour rights, corruption, the environment, weapons, customer and product integrity and animal welfare. In addition, ACTIAM applies its Fundamental Material Drivers assessment in order to identify and categorize any parties according to capacity of management in several ESG-related drivers, from human capital development to land use impact. Tenants and institutions are screened for all these points.
Furthermore, ACTIAM strives for best management of its portfolio, so that the assets are always compliant with current laws and regulations, but also prepared for future uptake in such regulations. Finally, we have internal targets and thresholds, one example is the exclusion of investment in buildings without the highest energy efficiency label (A) or the opportunity to obtain this label within a short period of time.

04.3. Indicate which E, S and/or G issues are typically considered by your organisation in the property investment selection process, and list up to three examples per issue.

Environmental example 1, description

          The energy performance certificate is one of the mandatory building certifications in measuring a buildings promised energy performance. We only buy buildings with an A label or those where we can realize an A label in a short term.
        

Environmental example 2, description

          ACTIAM is currently investing in installation of solar panels in its core portfolio (six properties), while also investigating how to expand to the whole portfolio, i.e. exploring technical solutions for physical adaptation, in order to enable solar panels installation in all buildings.
        

Environmental example 3, description

          ACTIAM upholds the criteria that our office buildings (=90% of the portfolio) should be located near train stations and public transport hubs, for both environmental and social impacts improvement.
        

Social example 1, description [OPTIONAL]

          We stimulate active engagement between our Property Managers and our tenants to improve the dialogue and relationship. For instance, ACTIAM invests in training and educations programs to prepare our asset managers to better communicate with our tenants.
        

Social example 2, description [OPTIONAL]

          In the recent years, we invested in making our office buildings accessible for handicapped users.
        

Social example 3, description [OPTIONAL]

          ACTIAM focus on sustainable use of materials, using only wood labelled with FSC or PEFC certificates. If asbestos has been used in a building, we strive for removal shortly after the purchase.
        

Governance example 1, description

          We pre-screen our tenants in order to identify risks and avoid negative social and environmental impacts. Once a year, a review is done, screening the parties we are involved. These procedures also apply for service providers. For instance, when choosing for a provider of solar panels installation, the screening has flagged a contractor for non-compliance with ACTIAM's Fundamental Principles, which was therefore excluded.
        

Governance example 2, description

          ACTIAM uses a code of conduct for management and employees. Integrity, transparency and corporate social responsibly are our top priorities. Also, our Property Managers use a code of conduct (ISAE 3402-type2)
        

Governance example 3, description

          ACTIAM has an exclusion list. Every tenant is screened based on that list.
        

04.4. Additional information. [Optional]


PR 05. Types of ESG information considered in investment selection

05.1. Indicate what type of ESG information your organisation typically considers during your property investment selection process.

          ESG related information (by data providers) on target companies
        

05.2. Provide a brief description of how this ESG information was incorporated into your investment selection process.

When an investment opportunity arises, current and potential ESG factors are considered. Parties are screened according to ACTIAM's investment principles and companies/parties violating such principles are excluded from investment. Other considerations on ESG performance are also taken into account. For example, an investment with a low energy efficiency label and no potential to upgrade will not be approved. The ESG criteria (as stated in our investment policy) are always taken into account in each decision and more in-depth research is done in some cases. All criteria is also applied to any contractors/service providers connected to our Real Estate investments. Reviews are done annually and parties are screened to detect any possible violations during that period.

We want to invest to make real estate more sustainable. By striving for energy-neutral buildings, by reducing water consumption and waste and making as much use as possible of sustainable materials, we prepare our buildings for the future, we contribute to the sustainability of the real estate sector and we provide a better living environment. These criteria are considered in the investment selection process.

In each decision, information of our network is taken into account. That is, appraiser, brokers, real estate agents and local government. ACTIAM works together with stakeholders to improve quality of life for users of the property and surroundings. For instance, we collaborate with the local government in talks about increasing environmental performance of the buildings, transportation plans from the municipalities and general forms to allign our properties with the municipal development.

 


PR 06. ESG issues impact in selection process

06.1. Indicate if ESG issues impacted your property investment selection process during the reporting year.

06.2. Indicate how ESG issues impacted your property investment deal structuring processes during the reporting year.

06.3. Additional information.

In 2019, no purchases are done. 

 


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