AXA Real Estate Investment Managers is pleased to announce the publication of its 2011-2012 Sustainable Development Report.
The report explores AXA Real Estate’s three key drivers to action – Engage, Measure and Explore – that form the basis of its ongoing active commitment to sustainable development. It demonstrates how the adoption of sustainability into every day working and investment practices has created tangible value on behalf of clients.
In adherence to its commitment to sustainability, 100% of buildings acquired by AXA Real Estate in 2011 were subject to a Green Rating audit as part of the due diligence process. The audit looks to rate the environmental performance of the building; if the building does not meet AXA Real Estate’s minimum technical requirement, it will look to provide solutions to bring the building up to the required high standard. In those buildings where this cannot be achieved, the investment cannot go ahead.
Alongside AXA Real Estate’s own efforts to improve its commitment to sustainable development, sustainability has moved on from a more theoretical discussion topic for investors, to one which helps them form their investment criteria and make their investment decisions. During 2011, AXA Real Estate received a significant number of requests for proposals from institutional investors that included a detailed Environmental, Social and Governance (“ESG”) questionnaire, representing up to 15% of the total investor’s assessment grid. AXA Real Estate now foresees a time in the near future when these will be included as standard.
Tenants are also increasingly looking at sustainability issues when deciding on which space they wish to occupy. In its efforts to ingrain sustainability into its everyday actions with tenants, AXA Real Estate introduced green leases during the year to all its new commercial lettings in Germany and maintained its effort to include similar clauses in lettings in France. As a part of these green leases, regular meetings with tenants are arranged which focus on sustainability, specific sustainability action plans are drawn up and energy performance data is shared between tenants and landlord.
Furthermore, during 2011, AXA Real Estate committed to installing automated meter reading (“AMR”) and energy management into an additional 250 key properties. This goal was surpassed and, as of February 2012, 90% of retail assets under management in the UK and 64% of AXA Real Estate’s French office portfolio are installed with smart meters and put under energy monitoring.
The effect of accurate and real time consumption data alongside the tailored advice of energy managers has had tangible and value creating results. 51 key properties in the UK, across the retail, office and industrial sectors, were installed with smart readers in 2010 which has led to a reduction in overall gas and electricity consumption of 21% in 2011, virtually without any additional capital expenditure.
AXA Real Estate believes that a collaborative approach is essential progressing sustainability throughout the real estate industry; as such it contributed to establish the Green Rating Alliance (“GRA”) in 2011. Under the chairmanship of Pierre Vaquier, CEO of AXA Real Estate, solid foundations for the GRA have been cast and the association now contains 19 members. The aim of the GRA is to work collaboratively to exchange best practices and bring concrete solutions on sustainability to the property industry. Central to the scheme is the Green RatingTM, a decision-making tool for assessing, benchmarking and, importantly, improving the environmental performance of existing buildings and portfolios through practical recommendations.
The full Sustainable Development Report is available on the Company’s website at www.axa-realestate.com.
Jean-Francois Le Teno, Global Head of Sustainable Development at AXA Real Estate, commented: “2011 has been an excellent year of progress in our commitment to sustainability and our efforts to shape progress on this important issue with all participants in the sector. Over the year, sustainability has come to increasingly influence not only our investment decisions but also our day-to-day asset management activities. We have been especially pleased with the encouraging results from the implementation of AMR’s and energy managers. We hope that by communicating the tangible benefits that a focus on sustainability can bring, we can advance it from a speciality subject to the ‘new normal’ for the industry.”
