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Alvarium Social Housing Advisors Ltd

PRI reporting framework 2020

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

Post-investment (monitoring and active ownership)


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.

As investment manager to HLIF, we identify the cost of any required improvements to assets, either to protect the future quality of the relevant asset or as a result of statutory interventions and ensure that these are properly reflected in individual asset plans.  We monitor the emerging impact of sustainability-related issues on property values and will amend performance projections and offers for future transactions in the light of hard evidence as it emerges. 
We recognise that greenhouse gases are a major contributor to climate change and controlling CO2 emissions from properties under management is therefore an essential part of HLIF's environmental strategy.  Where data is available, we endeavour to calculate emissions from each property in HLIF's ownership and, where data is unavailable, make reasonable estimates as the basis for setting targets for future reductions.  We will also endeavour to calculate the “Carbon Intensity” (tonnes of CO2 per £m invested) of HLIF's portfolio and, over time, seek to reduce the total volume of CO2 emitted by these properties. This may be achieved through encouraging HLIF's tenants to adopt more sustainable property management and/or through the physical improvement of selected assets. 
Due to the leasing structure of the fund, HLIF does not have direct control over the way that energy is used by its tenants as responsibility for buildings has been devolved to the tenants. However, HLIF engages with its tenants to encourage the more efficient use of energy, the use of water-saving measures and the recycling of waste.  HLIF encourages the sustainable management of areas under its tenants' direct control and, where appropriate, prepares high level “sustainable design guides” for tenants’ reference in preparing plans for fit outs and periodic refurbishments.

HLIF identifies tenants whose businesses are most influenced by sustainability-related issues and who have the most advanced Environmental Policies and explore ways in which tenants’ aspirations to reduce carbon emissions can be supported and encouraged.

We recognise that some properties may be at risk of flooding and that, in some locations, the risk of flooding may worsen over time as a result of climate change-related issues. We identify which assets are at risk from flooding and forecast the extent to which values may be compromised. We can then ensure that HLIF's exposure is consistent with its overall approach to risk.  

We recognise that the largest impact we can make on the environment is through influencing the behaviour of others, for example staff, agents, contractors, suppliers and tenants.  We ensure that all of our employees are aware of HLIF's ESG policy, objectives and targets and that relevant individuals have the knowledge and skills necessary to implement the strategy in their day-to-day roles. 


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

Progress Achieved
          We identify which (if any) of HLIF's assets are at a greater risk from flooding and monitor any such risks.
          We identify those properties where the EPC rating can be improved in order to lessen the environmental impact of the property.
          No properties owned by HLIF have been flooded and insurance has been acquired on normal commercial terms.
          A number of HLIF's properties have undergone or are undergoing refurbishment and retrofitting to improve energy efficienty and EPC ratings.
Progress Achieved
          HLIF is dedicated to fighting homelessness in the UK by investing in high quality homeless shelters.
          Rents are set at a level which seeks to provide value for money to local authorities.
          Each bed provided in HLIF's assets provides a safe and stable environment for a vulnerable adult.
          On a comparison with the cost of the average bed and breakfast  in the UK, HLIF calculates that its assets offer a 67% saving.
Progress Achieved
          Tenants of all portfolio assets to have appropriate governance structures in place
          Tenants are either charities, community benefit societies/ CICs or registered providers of social housing regulated by the FCA or an equivalent appropriate body

09.3. Additional information. [Optional]

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.

11.3. Additional information. [Optional]

HLIF always carries out environmental due diligence on proposed property acquisitions and will not acquire a property if the minimum standards set out in its ESG policy and investment criteria are not met. As part of any refurbishment or development programme, HLIF engages with its developer counterparties at the design stage to ensure that energy and water efficiency requirements are considered, areas for improvement are identified with strategies developed to implement such improvements and contractors are selected who can adhere to sustainability guidelines. Throughout the development, HLIF receives regular updates from its developer counterparties as to progress of the development and the implementation of the considerations listed above. 

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]

In addition to the practices selected above, HLIF also issues sustainability guidelines to its housing association tenants and encourages them to engage with occupiers and operators at HLIF's properties to promote energy efficiency, recycling, minimisation of waste and other sustainable practices.

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