With climate change, increasing legislation and changing occupier demands we believe that a sustainable portfolio will have the effect of reducing environmental impact and risk of obsolescence, lowering operating costs, and enhancing tenant retention, therefore improving investment performance of our portfolios. Consequently, our strategy focuses on understanding the impact of these issues on future value and minimising the risk to our portfolios. Therefore, integrating ESG considerations into our investment process and timeline from pre-acquisition to disposal is critical to our approach to RPI, while operating within the context of our clients’ financial objectives.
Our strategy follows a proportional cost-benefit led approach; this does not mean that all initiatives must be self-financing or indeed that there must be a proven economic reward but means that we will consider the relationship between the financial cost of any investment or activity and our evaluation of ESG rewards. Importantly we will also consider our portfolios in the context of market best practice and ‘peer group’ properties to guard against depreciation risk and obsolescence (referred to as ‘future proofing of investments’).
Furthermore, we are committed to fostering the right culture and appropriate training to enable all employees and third parties to understand the objectives of our responsible investment policy as well as relevant legislation and best practices.
DTZ Investors has created the following ‘five core pillars of ESG’ to further embed ESG throughout our organisation, from our investment decisions to our employees and our impact on society. The below outlines our pillars and what they stand for, for DTZ Investors:
- Leadership & Governance: To work with the government, our industry and other collaborators on key ESG issues and promotion of Responsible Property Investment in the real-estate sector.
- Benchmarking & Disclosure: Inform our internal and external stakeholders of our performance and objectives; benchmarking against our peers an, identifying opportunities for improvement and action.
- Compliance: Stay at the forefront of regulation and compliance requirements to minimise organisational risks.
- Stakeholder Engagement: Inform, consult, involve, collaborate and empower stakeholders on ESG issues to enable effective decision-making and action.
- Asset Improvement: Prioritise ESG opportunities at an asset level, from acquisition through to disposal, embedding climate resilience in our decision making and investment timeline
To maintain coordination and leadership, we have established a committee of experts representative of our fund management, energy& sustainability and property management teams. This committee is responsible for the development of procedures and targets set out in our RPI policy, and for overseeing its implementation, reporting on results and future modifications. The RPI policy is applicable to all of our discretionary managed property portfolios and to our advisory mandates in so far as concerns the scope of our contractual services and ability to influence the management of portfolios. These policies are designed to be specific and measurable so that we may evaluate and report on their success and implementation in future years.
Throughout the investment cycle of the assets we manage and in our own operations, DTZ Investors aims to drive environmental and social impact in following areas:
- Climate Change risk (i.e. Flood risk management)
- Carbon Emissions (Green House Gas Emissions Scope 1 – 3)
- Energy Usage & Intensity
- Water Usage & Intensity
- Waste Production and Disposal
- Stakeholder Health & Wellbeing
- Air quality management (Externally and Internally)
- Sustainable Procurement (e.g. M&E, cleaning, landscaping)
- Renewable Energy
- Responsible and ethical material sourcing
- Biodiversity & Habitat
- Transport (Including EV Charging infrastructure)
- Stakeholder Engagement (i.e. Employees, Occupiers, Local Communities)
- Occupier Satisfaction
- Health & Safety procedure
- Fair Labour practices
- Inclusion and diversity