Why is this....?
We believe that it is our responsibility as lenders and investors in real estate to understand and manage the environmental, social and economic (ESG) impact of our investment behaviour whilst maximising risk-adjusted returns for our investors. Imperial Blue is committed to operating in a sustainable and responsible manner long term driven by high standards of governance and investment behaviour. Imperial Blue analyses ESG factors on every scheme underwritten.
What is our ESG strategy?
The real estate industry is responsible for around 35-40% of global CO2 emissions and 25% of global water usage. Including building performance and construction the real estate industry makes up nearly half of global carbon emissions - around 12% of emissions come from construction alone. In order to hit net zero by 2030 emissions would need to fall by 50%, meaning we all have a part to play in improving efficiency across the sector. We are very keen to identify and fund schemes with a strong emphasis on ESG factors, especially in light of the Future Homes Standard coming into force from 2025.
Targeting schemes of Environmental Excellence
● Which contribute to net zero carbon targets, lower gas emissions and maximise energy efficiency
● With sustainable water consumption and waste management
● Are focused on recycling and resource efficiency (steel for example can be replaced by scrap based steel which creates far fewer emissions)
● That have enhanced construction and building performance, ensuring properties utilise as little energy as possible
● Utilise ventilation heat recovery facilities and utilising electric heat pumps
● Utilise LED or other suitable technology (lighting is often one of the main energy consumers in a home)
● That have sensor systems to monitor/adjust environmental conditions
● Focused on cutting down on waste - build greener supply chains, consolidate suppliers, buy materials from local sources etc
● That install demand-based fresh air distribution system
Social Impact
We aim to invest and lend into schemes that maximise positive social outcomes for the community and wider society, that identify health and safety risk and support occupier positive well being. We are equally keen to support schemes that have a positive and meaningful impact on society, creating neighbourhoods that can not only thrive but are equally sustainable in the long term. There is evidence where health and wellbeing have been at the heart of design considerations physical and mental wellbeing significantly benefits.
We have long seen it as standard to ensure developments we support have disability access and connections to public transport but increasingly see schemes suitable for charging stations for electric cars, storage for bikes, gyms and co-living areas.
ESG efforts help to create a strong relationship with local communities reducing opposition to real estate proposals and investments due to considerations for the wider communit
Governance
● Responsible social behaviour within the company itself in a diverse and inclusive way
● Workplace health and safety being of the utmost importance
● Compliance with regulations
● Staff diversity and retention policy
● Governance to strengthen internal and external accountability, operational controls and transparency
● Research to evaluate, mitigate, implement and foresee industry trends and evolving ESG management needs
As lenders and investors we take our duty to act in the best long-term interests of our beneficiaries seriously and commit to the UN supported Principles for Responsible Investment (PRI):
● Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
● Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
● Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
● Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
● Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
● Principle 6: We will each report on our activities and progress towards implementing the Principles
