Whilst the ASR DSPF 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.
The strategic objectives mentioned above are part of the Fund’s Impact policy and are monitored at portfolio level. This Impact policy has been drawn up under the responsibility of the management of the Fund and is part of the Three Year Business Plan (TYBP). This plan is updated and approved on a yearly basis by the Meeting of Investors, which represents all participants in the Fund. The management of the Fund is responsible for implementing the Fund’s strategic objectives as set forth above and for reporting on its deployment on a quarterly and yearly basis. The most important ESG impacts are taken into account by following and monitoring the Impact policy.
Integrating sustainability objectives in investment decisions
As an integral part of its strategy, all of the Fund’s activities must comply with its Impact policy. Investments and divestments are made 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 investment proposals. The Fund’s Impact objectives set out above and the accompanying impacts of investments/divestments are included in the investment proposals as far as possible. Such investment 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.
The ASR DSPF 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
Above all, and as mentioned above, the most important impacts of investments and divestments in this area are managed by following and monitoring the Impact policy.
All of the material Fund’s 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, compliance and risk officers. Above a certain threshold value specified in the Fund governance, investment/divestment proposals will be submitted to the Investment Committee of the Fund 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. For further information with respect to the risk factors please see the Fund Prospectus.
Finally, CSR and sustainability in particular are rapidly 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 ASR DSPF.