Sustainability
The AIF manager (external alternative investment fund manager GEN II MANAGEMENT COMPANY (LUXEMBOURG) S.à r.l.) and the investment adviser (IAD Investments, správ.spol., a.s.) do not take into account the adverse effects of their investment decisions on sustainability factors at the product level of the IAD IRF sub-fund due to the nature of the investments in the IAD IRF sub-fund (commercial real estate).
The IAD IRF sub-fund acquires directly or indirectly individual or a portfolio of existing buildings (or the relevant share or participation in such buildings) as its investments, while the investment policy of the IAD IRF sub-fund does not set any mandatory sustainability criteria for such investments (although such criteria are taken into account in the process investment decisions and compliance with sustainability is the long-term investment goal of the IAD IRF sub-fund. Therefore, a comprehensive and thorough measurement of such criteria is not possible.
The IAD IRF sub-fund has not determined any index as a reference benchmark to take into account environmental, social and management aspects in the investment decision-making process, and therefore has not developed any methodology for assessing the adverse effects of investment decisions on sustainability factors, nor is such a methodology relevant to it.
The investment objective of the IAD IRF sub-fund is also to invest in real estate assets that support environmental and sustainable standards in the respective real estate markets. Part of the long-term investment goal of the IAD IRF sub-fund is to have at least 75% of real estate in its investment portfolio with a sustainability certificate – BREEAM, LEED or similar or higher standards. The principle “do not cause significant damage” applies only to those underlying investments of the financial product that take into account the EU criteria for environmentally sustainable economic activities. Investments, which are the underlying instrument of the remaining part of this financial product, do not take into account the EU criteria for environmentally sustainable economic activities.
In addition to the investment objectives described above, the IAD IRF sub-fund seeks to improve the environmental, social and governance aspects of its investments as part of its good and green governance strategy.
When making investment decisions, the IAD IRF sub-fund carefully considers not only the risk/return profile of potential investments, but also environmental standards, as well as taking into account the effects on environmental factors, social factors and governance factors, which consists of the following processes:
- ongoing analysis of the energy efficiency of its real estate in order to identify the need to carry out possible maintenance measures as soon as possible;
- sharing knowledge and educating all stakeholders on how to make better use of a workspace that supports the responsible behavior of its users;
- creating workspaces that allow their users to grow and reach their full potential;
- as a long-term ambition, building permanent relationships with local communities around the real estate projects of the IAD Investments Fund with the aim of creating innovative ecosystems for business communities and enabling a regular exchange of ideas and inspiration; and
- including the support of environmental, social and management aspects in real estate management contracts and engaging primarily subcontractors with the same standards in the area of support of environmental, social and management aspects.
More information can be found in the annual report available on this website under Fund Documents.
