Our ESG strategy for Euro Carbone, a non-traded SCPI
Each real estate asset included in PERIAL Euro Carbone 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.
Cette démarche présente toutefois certaines limites puisque l’atteinte des objectifs est subordonnée à la qualité et à la complétude des données collectées, au montant des dépenses d’investissement nécessaires pour atteindre ces objectifs et à l’engagement en matière ESG des différentes parties impliquées dans l’utilisation de l’immeuble (locataires, prestataires immobiliers…).
These ESG 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 will likely affect the performance of the real estate assets and thus the fund’s performance:
- The effects of climate change can expose the assets to physical risks (heatwaves, floods, droughts). PERIAL AM has therefore developed climate risk management procedures with the assistance of tenants and the property managers for the buildings. Changes in national and international regulations on greenhouse gas emissions related to the energy consumption of real estate assets could also possibly affect the potential investment budgets needed to upgrade the buildings.
- The protection and improvement of local biodiversity helps reduce the effects of extreme weather events on buildings and can also improve tenants’ comfort and health, thus improving the asset’s value.
PERIAL Euro Carbone has adopted a low-carbon strategy for its investments and management, which contributes to climate change mitigation. For each asset in the portfolio, the fund seeks to reduce greenhouse gas emissions linked to the energy consumption of buildings in the fund (common and private spaces) as much as possible. A carbon footprint assessment for the entire fund (on scopes 1 and 2) is conducted annually in accordance with the GHG Protocol, and verified by an external third party.
Irreducible emissions are offset by funding projects approved by investors at the General Meeting. In order to cut down on irreducible emissions as much as possible, a plan for reducing carbon emissions is defined as soon as an asset is acquired. Initiatives to improve the use, management and operation of the assets are prioritized in order to reduce GHG emissions. Levers for improving building stock can be used as needed.
The consulting firm Carbone 4 assisted PERIAL AM in establishing a real estate strategy that is compatible with the European targets in keeping with the Paris Agreement signed in 2015 during COP 21. This agreement expresses the desire of the signatory countries to keep global warming below +2°C compared to pre-industrial levels and, if possible, below +1.5°C. The countries convey their support through Nationally Determined Contributions (NDCs), which they review regularly. In France, this has taken the form of a National Low-Carbon Strategy, which defines carbon budgets to be complied with per sector in order to reach net zero emission targets by 2050.
Carbone 4 studied the NDCs for the target countries for PERIAL Euro Carbone assets: France, Germany, Belgium and the Netherlands. The firm developed consumption reduction scenarios compatible with reaching the EU targets based on the host countries and types of assets, and summarized them to create a tool PERIAL AM teams can use to manage the technical and environmental aspects of PERIAL Euro Carbone buildings. This tool is used during the pre-acquisition period for buildings and throughout their entire lives in the fund.
The PERIAL Euro Carbone non-traded SCPI is classified according to Article 9 of the Disclosure Regulation.
PERIAL Positive 2030
For more information on how PERIAL AM takes into account the reciprocal impact of real estate and key environmental, social and governance principles, please see the PERIAL Positive 2030 page and the appendix to the regulatory document on product sustainability.