Sustainable Finance Disclosure Regulation a.s.r. real estate

As a real estate investment manager, a.s.r. real estate acknowledges its extensive responsibility in contributing to the liveability and sustainability of buildings, cities and the environment.

We have a strong focus on quality, believing that quality retains its value. On behalf of our clients we therefore invest continuously in maintenance, good-quality materials and sustainability of buildings and promote sustainable land use. By doing so we aim to have a positive impact on the built environment, rural areas, biodiversity and energy transition – for now, and for future generations.

In this statement we explain our approach to sustainability and how we have embedded sustainability in our strategy and in our investment decisions and thus adhere to the EU Sustainable Finance Disclosure Regulation (SFDR).

a.s.r. real estate as AIF Manager

a.s.r. real estate is an AIF Manager under the AIFMD for the following funds:
• ASR Dutch Prime Retail Fund (ASR DPRF)
• ASR Dutch Core Residential Fund (ASR DCRF)
• ASR Dutch Mobility Office Fund (ASR DMOF)
• ASR Dutch Science Park Fund (ASR DSPF)
• ASR Dutch Farmland Fund (ASR DFLF)
• ASR Property Fund (ASR PF)

We provide asset management, property management and fund management for these funds and for ASR Nederland N.V. The department Investment Partners of a.s.r. real estate also manages separate mandates for external clients.

All funds managed by a.s.r. real estate qualify in accordance with Article 8 of the SFDR. That means they promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics. Contrary to the other funds mentioned, the asset management of the ASR Property Fund portfolio is outsourced. The CSR objectives of the ASR Property Fund, among other objectives, are part of the selection and evaluation process of the external asset manager(s). The specific information relevant to Article 8 is set out in the SFDR statements of the respective funds, these can be found here

Sustainability policies

a.s.r. real estate is part of the a.s.r. group headed by ASR Nederland N.V. ASR Nederland N.V. has group-wide sustainability, remuneration, tax and procurement policies. a.s.r. real estate applies these policies also with a view to sustainable business operations. The remuneration policy https://www.asrnl.com/about-asr/governance-and-organization/policy-and-guidelines/remuneration-policy sets out how this policy is aligned with the integration of sustainability risks policy.

a.s.r. real estate has drawn up its own Corporate Social Responsibility (CSR) policy, in addition to the group-wide sustainability policy. This CSR policy comprises criteria, standards and procedures on different ESG topics and aims to control and mitigate sustainability risks that could have an actual or potential material negative impact on the environment and the value of the investments.

Additionally, all funds managed by a.s.r. real estate have their own CSR policy, in line with the a.s.r. real estate CSR policy and the group-wide sustainability policy, which sets out its specific sustainability objectives. These policies are also published on the website of a.s.r. real estate. The CSR objectives are evaluated yearly in our CSR annual reports. The CSR policies are updated every year.

a.s.r. real estate’s vision of CSR is to accommodate the interests of tenants and investors in the best possible way by creating and maintaining assets, on behalf of its clients, that have long-term value from both a financial and a social perspective, and to achieve this in a sound and responsible manner with engaged and aware partners and employees. To work towards these goals, a.s.r. real estate develops a strategic CSR policy around four themes each year:

  • Planet: Contribution to environment and society
  • Property: Sustainable portfolio
  • Partners: Sustainable partners in long-term relationships
  • People: Sound business practices and healthy and satisfied employees

While each “P” focuses on a specific aspect of CSR, all four aspects must work in tandem to achieve our vision. Each theme has its own strategic objectives, which will be reported on to provide insight into progress made. The most important ESG impacts are taken into account by following and monitoring the CSR policy.

The following strategic objectives are taken into account in the management of the portfolio:

ASR Real Estate CSR Objectives 2021 2023

Figure 1 Strategic objectives

Whilst a.s.r. real estate will make reasonable efforts to achieve the strategic objectives as set forth above, no guarantee can be given that the strategic objectives can be realised. Due to various risks and uncertainties, actual results may differ materially from the strategic objectives set forth above.

Integrating sustainability objectives in investment decisions

As an integral part of a.s.r. real estate’s strategy, all activities must comply with our CSR policy and the CSR policy of the specific Fund. Investments and divestments are made on behalf of our clients as part of the deployment of the strategy. All investments and divestments are subject to due diligence. The results of this process are recorded in standardised proposals. The Fund’s CSR objectives (set out in the CSR policies of the funds) and the accompanying impacts of investments and divestments are included in the investment/divestment proposals as far as possible. Such proposals will include identified environmental, social or governance events which, if they occurred, could have a material negative effect on the value of the investment.

a.s.r. real estate has identified four major climate risks, inter alia, that could have an impact on the investments. These risks are also taken into account in the decision-making process concerning the investments. The four climate risks are:

  • heat stress
  • flooding
  • drought
  • precipitation

Above all, and as mentioned above, the most important impacts of investments and divestments in this area are managed by following and monitoring the CSR policy.

All material investment/divestment proposals are discussed in the Investment Committee of a.s.r. real estate, which includes the statutory board of a.s.r. real estate and managing directors of its business lines, supported by an independent analysis by legal, tax, research, compliance and risk officers. Above a certain threshold value specified in the individual fund governance, investment/divestment proposals will be submitted to the Investment Committee of the funds for approval.

The main sustainability risks for the sustainability targets will be mitigated in accordance with the other fund objectives by an integrated risk management system based on a risk control matrix and enterprise risk management.

Adverse impacts of investment decisions

Pursuant to Article 4(1)(a) of the SFDR, the AIF Manager hereby states that it considers adverse impacts of its investment decisions on sustainability factors. a.s.r. real estate promotes various environmental and social characteristics. Each fund has its own annual Corporate Social Responsibility (CSR) policy which sets out its specific sustainability objectives. a.s.r. real estate takes adverse impacts on sustainability into account in its due diligence and investment decision procedures, but also by exclusions due to insufficient real estate labelling and insufficient certifications.

Societal impact and partnerships

Besides investing in sustainable property on behalf of our clients, we take our societal impact very seriously. On a yearly basis, we initiate tenant engagement projects, invest in neighbourhoods and set goals for a more climate-adaptive environment on behalf of our clients. Our colleagues are encouraged to utilise their full potential. By training and offering attractive employability arrangements, we ensure that everyone at a.s.r. real estate is fully engaged and aware of their own role in contributing to the CSR objectives.

Finally, CSR and sustainability in particular are fast-developing areas of expertise in the real estate sector. a.s.r. real estate actively contributes to the development of market standards, for example by contributing to platforms such as IVBN, INREV, DGBC, RICS, GRESB and Neprom. The resulting advanced insights will be incorporated into the CSR policy of a.s.r. real estate and the funds managed by a.s.r. real estate.