EG’s responsible investment objective is to generate long-term financial and sustainable value for investors across its investment portfolio. As a fund manager, EG’s role is to utilise sound investment judgement within our social, sustainability and corporate governance framework.
It's part of our fiduciary duty to consider all factors which may impact stakeholders, the community and the environment in which we operate. EG accordingly incorporate ESG considerations throughout the investment management process. From the initial stages of investment evaluation, EG undertakes comprehensive asset due diligence to ensure that key ESG risks and opportunities are identified and managed.
EG’s due diligence checklist
EG’s due diligence checklist has a comprehensive ESG section with 14 questions covering a range of ESG risks and considerations. These questions consider, amongst other items, the environmental impacts of the asset and how initiatives can be undertaken to improve energy, water and waste efficiency. Consideration is also given to climate change risk. Social considerations are also assessed which often includes profiling tenants and "quality of place". We engage with environmental consultants during the due diligence process irrespective of the asset type or strategy to identify environmental risks and opportunities. Appropriate steps are then taken to manage the risks and take advantage of the opportunities such as improving the energy efficiency of the building.
Active Asset Management
After the acquisition of an asset, EG continues to identify and manage ESG risks and considerations on an ongoing basis. For example, EG ensures that its urban renewal and redevelopment projects are sympathetic to the environment in which EG invests and develops. This includes heritage responsibility, environmental management and engagement with the community throughout the development lifecycle.
EG incorporates the following active management tools to identify and manage ESG risks:
- NABERS environmental ratings are undertaken for applicable assets. This can often be a key feature of the asset strategy;
- performance monitoring for electricity and water consumption where possible;
- lifecycle assessments of plant and equipment to understand the current state of assets to maximize energy efficiency and reduce carbon emissions;
- site-specific environmental and WHS risk assessments; and
- encouraging high levels of tenant interaction to monitor tenant satisfaction.
EG actively engages with tenants to understand their requirements. We seek to improve wellness features in our assets, for example, natural light and quality of facilities.
EG has documented and defined processes to comply with our statutory and regulatory obligations in relation to governance, employment and WHS. We work in partnership with investors and are known for our transparency in reporting and communications. We work hard at consistent and transparent communication with investors and we take a long-term view to investing by working collaboratively with partners to ensure we're aligned in achieving a positive outcome for all.
Tenchology Enhanced Investing
EG is a leader in data-driven technology that supports risks management and decision making within real estate investments. We strive to be a leader in the responsible and ethical use of digital technologies so that our products positively impact the sector and stakeholders and we avoid operational, reputational or litigation risks as technology use grows and stakeholder needs and expectations mature.
1. Pursuing best practices in data management and privacy for our stakeholders, including the public.
2. Deploying technology that supports environmental performance improvement in buildings and well-being for occupants.
3. Developing understanding of the direct and indirect risks associated with technologies we use and being responsible for those risks including minimising e-waste and considering end-of-life environmental impacts.
Not only does EG partner with best in class external digital/tech solutions, EG has either developed in-house proptech (PRISMS) or co-founded and incubated a digital twin solution to address building data issues (Willow).
EG's PRISMS software similarly allows for a systematic approach to undertaking asset due diligence and monitoring of asset risks over time. The due diligence process therefore identifies risks and opportunities which will not only affect the financial performance of the asset but also have ESG impacts. Once these factors are identified they can be responsibly addressed. EG reports on these ESG issues in investment proposals and then provides ESG updates to investors in quarterly reports.
Willow is the digital twin for the built world. We create virtual representations of physical assets, overlaid with real-time information from devices, equipment, people and places. Our solution enables owners and operators of major portfolios and infrastructure to manage with greater environmental efficiency, drive operational improvements at scale, and provide their occupants or users with an enhanced experience.