PERIAL Positive 2030
In order to accomplish this, PERIAL AM has developed a methodology and tools to structure its Environmental, Social and Governance (ESG) approach. Each real estate asset receives a score out of 100, which takes into account 60 ESG criteria. This score is calculated during the pre-acquisition period and updated annually.
These criteria include:
- 11 related to the greenhouse gas emissions responsible for climate change
- 11 related to users’ health and comfort
- 5 related to biodiversity
- 2 related to the climate resilience of the region
These issues are also identified in the risk mapping, which is established and updated on an annual basis by the management company, since they can potentially affect the performance of the property assets.
Worldwide, the building and construction sector is responsible for 39% of energy-related CO2 emissions – source: International Energy Agency
PERIAL AM analyzes the criteria related to greenhouse gas (GHG) emissions for technical equipment and the French energy performance diagnosis (DPE). Improvement actions are identified to reduce GHG emissions as soon as the asset is acquired, in accordance with the objectives defined for the fund and asset.
Health and comfort
90% of our time is spent inside buildings, which have an effect on our physical, mental and social health – source: IWBI - International WELL Building Institute
Several criteria related to tenants’ health and comfort are analyzed to measure the health quality and comfort of the buildings. The objectives established by the PERIAL Positive 2030 program in this area aim to improve the measured and perceived health and comfort levels.
The current biodiversity loss and species extinction rate is estimated between 100 and 1,000 higher than the natural rate of extinction - source: IPBES - The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
To promote biodiversity, an analysis of the plot’s planted area is conducted. Other aspects of the site are also studied, such as the presence of local biodiversity initiatives, the existence of an environmental analysis or responsible maintenance contract, and biodiversity-related labels or certification. As part of the PERIAL Positive 2030 program, PERIAL AM set the objective of improving the contribution of its real estate holdings to local biodiversity by 2030.
The annual average damage caused by earthquakes, tsunamis, tropical storms and floods is estimated at $100 billion – source: Green Building Observatory (OID)
PERIAL AM systematically analyzes the physical risks linked to climate change for each real estate asset in mainland France during the pre-acquisition period using the Bat-Adapt’ tool developed by the Green Building Observatory (OID). This analysis reveals the means required to limit the assets’ vulnerability to climate risks. The Property Managers then act on behalf of PERIAL AM to take steps relating to the organization, renovation, operation and communication of the properties in order to reduce the impact of these climate risks.
Asset by asset assessment
In order to achieve these non-financial objectives for the funds, annual action plans are established for each building, featuring initiatives that promote environmental performance.
Energy and water consumption is recorded in common and private spaces, with the tenants’ assistance. This data is consolidated on a digital platform. If the data cannot be obtained, extrapolations are made based on good practices in the sector, such as place benchmarks (Green Building Observatory-OID), or on data from previous years.
The limits of this ESG approach
Our approach is dependent on the quality of the consumption data collected by the tenants at our buildings and our service providers. Their commitment to the action plans is therefore essential. The cost of the work required to improve the energy performance is calculated during the pre-acquisition phase. This budget must be compatible with the fund’s financial objectives.
A dedicated team
A team of fifteen experts work for PERIAL Asset Management to verify, validate and analyze the data collected from the field in order to adjust the responsible management strategies for each building and fund.
Since all PERIAL AM staff are committed to achieving the PERIAL Positive 2030 objectives, the current compensation policy is in keeping with the management company’s approach to sustainability risks, which refers to external environmental, social and governance risks, by discouraging excessive risk-taking.
Non-financial objectives have been established for certain staff members in the real estate division (asset managers, managers, technicians, sustainable development managers, investment officers, portfolio managers), with an impact on their fixed and/or variable compensation. These types of objectives are gradually being integrated into other departments through annual assessment campaigns. Finally, all staff members were tested on their knowledge of ESG issues during the last annual assessment campaign.
PERIAL AM complies with all the codes of responsible corporate behavior and applies the international standards in terms of due diligence and transparency. These rules are part of the company’s code of ethics and are passed on to service providers by means of the ESG commitment charter.