For assessing the sustainability of existing Swiss properties
UNIFORM ASSESSMENT APPROACH
Creates transparency and comparability
Allows for an expressive record of accomplishments
SGS as an independent verification body of the underlying self-assessment
The Swiss Sustainable Real Estate Index (SSREI) was developed to assess the sustainability of Swiss properties. SSREI supports owners (real estate funds, real estate corporations, investment foundations, insurance companies, pension funds, the public sector) in achieving compliance of their properties with the increasingly stringent sustainability requirements and ensuring their long-term value.
OBJECTIVE OF THE INDEX
SSREI was launched with the aim of mapping the sustainability profile of existing Swiss properties, standardising a corresponding assessment, enabling transparency and comparability in this regard and providing the market with an important benchmark.
POTENTIAL AND ADDED VALUE
The assessment process supports users in determining the sustainability-specific condition of their properties, scrutinising strategic approaches in a structured manner and identifying opportunities at an early stage. In this context, the SSREI portfolio assessment tool provides indications of a property’s potential for improvement, e.g. for the development of a balanced redevelopment strategy and of the investment required to achieve the next highest sustainability value (guide value). The resulting track record also serves as a transparent communication tool towards internal (management, investment committees, etc.) and external (investors, legislators, etc.) stakeholders and creates an expressive record of accomplishments. Thus, incentives are created for owners to align their properties with the increasingly stringent sustainability requirements and to lead existing Swiss properties into a sustainable future. This provides the market with an important benchmark and combines business interests with social necessity.
STRUCTURE AND CONTENT
The index is structurally based on the Swiss Sustainable Building Standard (SNBS Hochbau) – an instrument for implementing the Energy Strategy 2050. Adapted for application to existing properties, the defined indicators and requirements allow a comprehensive assessment of the condition of a property (Bottom-Up approach) in the areas of society, economy and the environment.
ASSESSMENT AND WEIGHTING
According to the SSREI assessment grid, the self-assessment of a property or an entire portfolio results in a guide value between 0.00 and 3.00. The index weighting is carried out on the basis of the guide value of the individual components, depending on the assessed square metres of main usable floor space (HNF, standard SIA 416).
IN THE CONTEXT OF THE SUSTAINABILITY STRATEGY
A holistic sustainability strategy is known to be multi-layered and influences both strategic and operational management. In this context, SSREI supports the focus on sustainability at portfolio and property level.
SUSTAINABILITY STRATEGY (ESG) FOR THE REAL ESTATE INDUSTRY
Click on the graphic to enlarge it
VERIFICATION BY SGS
A mandatory prerequisite for inclusion in the SSREI is the annual, sample-based verification (External Assurance) of the self-assessment by the Review Panel of SGS Société Générale de Surveillance SA.
In a second phase, the index family is to be expanded by SSREI Performance Indices (funds, shares). The Performance Indices bundle the index components in the respective product categories (funds, shares) and map their trend. The weighting is again carried out depending on the sustainable alignment respectively on the SSREI guide value. This opens up new comparison and investment opportunities for investors.
PORTFOLIO EVALUATION TOOL
CURRENT AS OF 30.04.21
Index value 2.09
Main use area 434’242 m²
(HNF, Norm SIA 416)
Number of Properties 144
Number of components 3
SSREI IN PRACTICE
The concept in a nutshell
The SSREI in the ESG Framework of Edmond de Rothschild Real Estate SICAV (ERRES)
General information on the index
MV Invest AG
+41 43 499 24 90
Technical information and assurance
SGS Société Générale de Surveillance SA
+41 44 445 17 17
+41 79 621 80 32