Responsible property investment policy

We believe that ESG factors will impact the future profitability of property assets. As a consequence, our responsible property investment policy applies to the selection, management and refurbishment of all property assets under our stewardship.

Prior to any purchase we consider:

• Environmental risk issues that may manifest as liabilities, for example contaminated land, flood risk, presence of hazardous substances etc;
• Environmental audit scores and risk assessments, including energy use, water consumption, greenhouse gas emissions and waste management;
• Social factors, such as the availability of public transport and the facilities available for tenants; and
• The ability to drive improvements through refurbishment.

In addition, we review all elements of the transaction to avoid issues related to corruption and bribery.

Where we have concerns, we alter the valuation that we are willing to pay for the property, develop an action plan for future refurbishments or, in extremis, abandon the proposed investment.

Once we have purchased a property, we seek to be an active owner and if we see potential value we refurbish to improve environmental and social performance.

We appoint managing agents to look after our properties on a day-today basis. As part of this work, they are tasked with:

• Monitoring and setting targets for the reduction of energy use, water consumption, waste and CO2 emissions;
• Procuring energy from renewable sources;
• Conducting pro-active occupier engagement, including tenant surveys, covering a variety of ESG factors, at least every two years;
• Minimizing health and safety incidents; and
• Monitoring of any environmental risks identified on purchase.

In order to implement this policy our third-party property manager reports regularly on progress against the targets we have established.

Next steps

Over the next 12 months we will seek to develop decarbonisation pathways for our commercial property assets.

Matthew Meaden
Fund Manager (Property)

August 2023