SINGAPORE – Cromwell EREIT Management Pte. Ltd., the manager (the “Manager”) of Cromwell European Real Estate Investment Trust (“Cromwell European REIT” or “CEREIT”), released its sustainability report for the financial year ended 31 December 2021 (“FY 2021”).
The Manager’s Chief Executive Officer, Mr. Simon Garing, commented: “In our fourth year of operations, we continued to invest considerable efforts and resources to integrate ESG standards into various aspects of CEREIT’s operations, from portfolio construction to asset management, stakeholder engagement and corporate governance. This progress gave the Manager and the Board confidence to commit to the aspirational Net Zero operational carbon emissions by 2040 target early this year, endorsed by the newly-formed Board Sustainability Committee. The Manager also formed a separate sustainability committee at management level, to which the Board Sustainability Committee has delegated the identifying, setting and delivering the objectives and targets associated with all material ESG topics. All KMP of the Manager are also evaluated on specific, measurable and compensation-linked KPIs that are tied to CEREIT’s ESG targets.
In FY 2020 we set multiple short, mid and long-term targets against the 14 material topics that CEREIT is monitoring and reporting on. As you can see in the following pages, we achieved and in some cases even surpassed most of these targets. I am particularly pleased with CEREIT’s continuous improvement in GRESB’s annual Real Estate Assessment, where CEREIT most recently scored 76 points and retained “A” score for public disclosure.
We maintained high standards in transparency, disclosure and communications in our home market and CEREIT retained top 10 positions in the GIFT and SGTI rankings for the second year in a row. The win of the prestigious investor-centric SIAS Corporate Governance award in the ‘REITs and Business Trusts’ category in 2021 was undisputedly a major highlight for us.
Some of our other notable achievements include executing Singapore’s first sustainability-linked cross-currency swap with OCBC Bank and, more recently, introducing CEREIT’s first green financing framework. As CEREIT’s Unitholder base includes a sizeable number of major global debt and equity investors who increasingly expect robust sustainability targets and disclosures, CEREIT’s ESG performance is rated by many international agencies such as Sustainalytics, FTSE, and MSCI ESG. I am pleased that we are registering progress in these ratings, with a two-notch improvement in CEREIT’s MSCI ESG score and two-point risk reduction for Sustainalytics, both achieved within a year. We progressively implement SFDR requirements and aim to report, as the Manager and on behalf of CEREIT, under Article 8 by 2023. We have put in place a set of KPIs to mitigate and control principal adverse sustainability impacts in order for CEREIT to improve performance through a structured, responsible and balanced pathway to sustained success. My team and I are very focused on putting programmes and plans in place that reinforce our emerging position on the global sustainability stage.”
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