Mission Statement:
AEW is one of the world’s largest real estate asset managers* and offers a wide range of real estate investment products. AEW is committed to developing an ambitious Environmental, Social, Governance and Resilience (ESG+R) strategy aimed at making future-focused investment decisions that benefit our clients, our people and our global communities. AEW UK REIT’s Investment Manager, AEW UK Investment Management LLP (AEW UK IM), has adopted a systematic approach to improve the operating metrics of its investments by ESG+R elements into its asset analysis, including due diligence and asset management.
Overview of ESG+R Strategy:
Having signed up to the Principles of Responsible Investing (PRI) in 2009, the Investment Manager continues to be committed to creating long-term value for shareholders and adheres to a policy of sustainable and responsible investment (‘SRI’).
In collaboration with its Investment Manager and agents, the Company will:
- Continually seek to minimise its environmental impact via energy, GHG emissions and waste reduction strategies.
- Embed ESG considerations into all facets of the Company’s operations.
- Seek opportunities to increase usage of low carbon and renewable energy sources.
- Routinely communicate ESG+R best practices to our property managers, leasing agents and tenants, thereby supporting their sustainability.
- Create healthy work environments for AEW’s employees and tenants at our buildings, where possible, that stimulate productivity and promote sustainable communities.
- Demonstrate transparency and accountability to our investors through regular disclosure of ESG+R practices and performance in reporting frameworks such as GRESB, TCFD and EPRA.
- Maintain robust corporate governance processes that incorporate best practices in accordance with the relevant codes and frameworks. Further information about our approach to corporate governance can be found here.
To learn more about the Company’s approach to ESG+R, including a full list of objectives & targets, performance, and notable case studies, see the flyer here.
2024 Targets:
- Enhance the investment process so that it incorporates climate resilience into existing ESG due diligence.
- Seek improvement of GRESB scores.
- Ensure all units in all assets across the portfolio have a valid EPC in place.
- Increase engagement with local communities and volunteering amongst our property managers, tenants and employees.
- Promote green leases on all new leasing opportunities.
- Enhance the transparency and regularity of the Company’s ESG+R initiatives and performance via improving disclosures in relation to frameworks such as GRESB, TCFD and EPRA.
Mangham Road Case Study – Lease Renewal and MEES Improvement
Asset Management in Action
- New 10 year lease to Senior Architectural Systems.
- Rent of £410,000 per annum, equating to £5 per sq ft, 49% increase.
- Landlord completed refurbishment and roof/insulation works.
- EPC score improved from C67 to B44 – 2030 MEES requirement achieved and building’s energy performance enhanced.
- Green covenants in lease – AMR (automatic meter reader) to be installed.
- Purchase price of £2.175m (April 2007).
- Valuation after letting of £5.4m (Dec 2022).
*Source: Institutional Real Estate Inc., Global Investment Managers 2023 Special Report.