Sustainability is a widely discussed topic – but what does it actually mean in practice? There is no universally accepted definition. In the real estate sector, a clear description is still missing regarding which aspects sustainability encompasses, how it is measured, and how the individual components are weighted in assessments.
Amidst the jungle of numerous indices, benchmarks and labels in the Swiss real estate market, we have developed our own approach: a Sustainability Rating that reflects and makes measurable our perspective on sustainable investing in the real estate sector.
With this rating, we can assess the sustainability of all real estate investment vehicles available on the market.
Applications of the Sustainability Rating:
1. Essential Component of Due Diligence at the Vehicle Level
-
Every analysis of an indirect real estate investment vehicle conducted by us includes, alongside the traditional financial analysis, a sustainability assessment. The vehicle’s specific sustainability rating provides an additional input regarding the risk profile of that investment vehicle.
Operationalization
Certification (GRESB / SSREI / Labels)
Progress Mgmt.-Assessment
Evaluation and Analysis MV Invest
-
2. Determining the sustainability of an indirect real estate portfolio
We prepare customized sustainability reports for indirect real estate portfolios. These reports provide a clear and transparent basis for internal communication with the board of trustees and beneficiaries, as well as for external communication with investors and partners. This allows you to position your sustainability strategy professionally and effectively.
-
3. Basis for an investment product that incorporates sustainability in the investment process
Sustainability is one of the key risk factors in the real estate investment sector. In view of Switzerland’s commitment to meeting its climate targets in line with the Paris Climate Act by 2050, the real estate sector is subject to increased scrutiny from society, policymakers and regulators.
For this reason, sustainability criteria are systematically incorporated throughout the investment and monitoring process in the asset management of the Immoterra Fund. To ensure this, the current sustainability situation (footprint) of each target investment vehicle, as well as the vehicle’s ability to respond to changes in its environment (agility), are periodically assessed and monitored.
A proprietary sustainability rating model is used for this purpose. A regularly published sustainability report provides a consolidated overview of the Fund’s sustainability performance and, in particular, of how the Fund’s sustainability performance develops over time.
