Our SRI strategy

Since Primonial REIM’s creation, we have built our responsible approach around our corporate values and applied it through the investment policy adopted for our funds. We wish to make our clients’ investments meaningful by allowing them to invest in purposeful real estate funds that have a positive impact on the environment and society. At Primonial REIM, we believe that combining meaning with performance is not only possible, but absolutely necessary.

Real estate is central to many contemporary issues

Tertiary buildings are amongst the biggest producers of CO2.

The decarbonisation of real estate that is required calls for us to introduce indicators and positive actions for the environment.

THE REAL ESTATE SECTOR ALONE ACCOUNTS FOR 10 BILLION TONNES OF CO2 WORLDWIDE.

At Primonial REIM, we integrate ESG criteria in the selecting and management of our investments.

We believe that it is possible to combine the objective of generating an attractive yield with sustainable development interests within the same asset management strategy.

Primonial REIM: a Europe-wide environmental commitment

We are committed to the continuous improvement of our European real estate assets’ environmental performance. This asset base, valued at €32,4 billion of assets under management, distributed across 10 different countries, invested in 5 asset classes (offices, healthcare/education, residential, retail and hotels) and totalling more than 1,445 buildings, implies a very broad spectrum of coverage for Primonial REIM’s Environmental, Social and Governance (ESG) strategy.

Environmental criteria are managed for real estate assets through various management tools, enabling the centralisation, sharing and analysis of building data (energy and water consumption, use of buildings, condition of equipment, etc.) in order to take the necessary measures.

Our teams define action plans specific to each building in conjunction with stakeholders, of which property managers and tenants are foremost.

Primonial REIM: a pioneer in European social infrastructure investments

EUROPEAN MARKET LEADER IN EDUCATION AND HEALTHCARE REAL ESTATE

From the launching of our business, healthcare and education have seemed like obvious investment themes. Easier access to healthcare and to the acquisition of knowledge are drivers of development and progress.
These issues naturally became the pillars of our model. From being a pioneer in these sectors, we quickly became a leading player in healthcare and education real estate.

A player committed to affordable residential real estate

We are also very committed to the residential sector and have established key partnerships in order to develop an affordable housing offering. Our aim is to help make major cities more inclusive by promoting access to housing that is within the reach of as many people as possible.

Our approach

Our range of responsible real estate funds is centred on impact and SRI-certified funds.

1/ OUR IMPACT APPROACH

Primonial REIM invests in alternative real estate segments (clinics, nursing homes, retirement homes, educational establishments and nurseries) and in supported housing, otherwise known as “social infrastructure”. This type of real estate has a socially useful function and lends itself to impact measurement.

Primonial REIM’s real estate impact investing approach is based on the principles highlighted by INREV (October 2020, Impact Investing Paper):

Intentionality: investment policies focused on socially useful real estate assets, such as clinics, retirement homes, nursing homes and nurseries
Additionality: monitoring of the actions carried out by funds with regard to positive externalities (works to improve healthcare standards or environmental performances, improving of interior outfitting and the financing of the sector through outsourcing) and negative externalities (CO2 emissions and energy consumption).
Measurability: reporting of social and environmental indicators, which includes the relevant operational indicators and objectives, to prove the environmental/social impact of funds.

2/ OUR APPROACH FOR SRI-CERTIFIED FUNDS (FRENCH CERTIFICATION)

5 objectives:

reducing the final energy consumption of assets by 40% by 2030, in accordance with the objectives of the French tertiary real estate decree,
putting assets on a trajectory towards achieving carbon neutrality by 2050, in line with the objectives of the French low carbon strategy (SNBC),
improving air quality, which is fundamental to protecting employees against health crises,
establishing rules for significant construction works through a site charter integrating ESG standards,
getting tenants involved as part of a partnership-based approach embodied by an ESG appendix to new leases

Approach:

Monitoring of environmental data
ESG rating tool
Asset-by-asset ESG action plans according to ratings
Engagement policy
Reporting to investors
Risk monitoring

A structured and integrated ESG approach

Our ESG approach is fully integrated within the value-creation chain. Our investments undergo a rigorous selection process. We are gradually extending our non-financial rating process to all our acquisitions. This is based on an ESG assessment grid comprising 7 themes and 90 key criteria.

Primonial REIM is up to date with the latest advances in institutional SRI policies: energy management, SRI certification, 2-degree trajectory, UN PRI reporting, future European Disclosure Regulation, etc.

€32,4

billion
of assets under management

investment
funds

54%

individual
clients

46%

institutional
clients

Our methodology

To support our responsible investor approach, we have established multi-criteria ESG rating grids, applicable to both tertiary real estate and all our other asset classes (healthcare/education, retail, residential and hotels).
Using these tools we can assess real estate acquisitions according to non-financial information.

Local integration of buildings