At Schroders we believe it is our responsibility as real estate investors to identify, understand and manage environmental, social and economic impacts, positive and negative, to deliver resilient investment returns for the long term and manage exposure to impacts of financial and non-financial risks.
At Schroder Real Estate understanding these issues and their impacts is integral to our investment process and applies to all aspects of real estate investment including acquisition due diligence, asset management, property management provided by third parties, refurbishments and developments. Understanding and improving the impacts of real estate investment to the environment and society sits alongside our priority to maximise returns for our clients in a manner consistent with our funds’ risk profiles.
Our sustainability approach ”Real Estate with Impact” is founded on four pillars of impact – People, Planet, Place and Prosperity. These pillars are referenced to the UN Sustainable Development Goals: 8 Decent Work and Economic Growth; 11 Sustainable Cities and Communities; 13 Climate Action, recognising the contribution of the built environment and our responsibilities as real estate investors to society, the environment and economies.
We believe an investment programme which is sustainable should deliver enhanced returns to investors, improved business performance to tenants and tangible positive impacts to local communities, the environment and wider society for the long term.
Schroder Real Estate maintains an Environmental Management System certified to ISO 14001 to manage the deliverable actions derived from our Real Estate with Impact approach. The system applies to all aspects of direct real estate investment including acquisition due diligence, asset management, refurbishment and development as well as services provided by third parties.
Schroders participates in the Global Real Estate Sustainability Benchmark “GRESB” which is the global standard for real estate funds and companies. Schroder Real Estate is also a GRESB Participant Member and a member of the Better Buildings Partnership.
Schroder Real Estate’s Net Zero Carbon Commitment
Schroder Real Estate has committed to Net Zero Carbon by 2050. See what net zero means for our real estate activities and view our Net Zero Carbon Pathway on our website.
More details on Schroders Real Estate with Impact approach are available on the internet site:
This fund does not have the objective of sustainable investment or binding environmental or social characteristics as defined by the Sustainable Finance Disclosure Regulation (SFDR). Any references to the integration of sustainability considerations are made in relation to the processes of the investment manager or the Schroders group and are not specific to the fund.
GRESB is the global sustainability benchmark for real assets. Schroders has participated in the annual GRESB survey since 2011. SREIT has participated since 2016. Schroders submitted ten funds in 2021, achieving Green Stars for all ten. A Green Star is awarded where scores of 50 or more are achieved in both of the two principal dimensions of Management and Performance.
The Trust has achieved a Green Star rating for the past four consecutive years and this year was awarded a 3 Star Rating and came second in its peer group.
Schroder Real Estate has signed up to the Better Building Partnership Climate Change Commitment to deliver net zero carbon real estate portfolios by 2050.
Please see the Sustainability Guide below for more details.
Source: logo images sourced from Schroders, European Public Real Estate, and GRESB.
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Headingley Central is a 125,000 sq ft multi-let hotel, retail, leisure and office property located in a densely populated suburb of Leeds. Sustainability and impact reviews form a key part of major capital expenditure projects. At Headingley Central, 24,000 sq ft of office accommodation was converted into a shell and core configuration suited to use by a gym operator, providing additional amenity to the local community and complementary to the other occupiers on‑ site including retail, restaurants, office and hotel uses. This project incorporated various works to enhance the sustainability of the unit and neighbouring parts of the property. These included:
– Energy efficiency: Insulation to thermal elements, including the external walls and roof, was upgraded to a level that surpassed the requirements of current building regulations. Where replaced, external lighting comprise sensor controlled LED fixtures.
– Recycling: During the removal of the previous tenant’s fit-out by the landlord, a deliberate focus was maintained on correctly segregating materials for recycling, to minimise waste sent to landfill.
– Water efficiency: The works provided an opportunity in which inefficient water pumps serving the adjoining office accommodation were replaced with modern, lower consumption units.
– Repurposing and ethically sourcing: Where possible, components, such as timber joists, were repurposed for use on-site and all new timber specified was PEFC labelled, to help ensure sourcing from environmentally well managed forests.
– Promoting green behaviours: A dozen electric vehicle charging points have been introduced to the outdoor car park.
Click here to learn more about this asset's sustainability initiatives
The Promenade is a 32,500 sq ft multi-let office located in a prime location in Cheltenham town centre. Understanding the needs and expectations of existing and prospective tenants is essential to maintaining occupiers and attracting higher rental levels. A comprehensive review focusing on sustainability credentials has been undertaken. The review included building efficiencies in terms of electricity and water usage, ventilation and tenant facilities. Identified improvements have been implemented including:
– Promoting green behaviours: new shower facilities to promote green and active travel.
– Energy efficiency: The decommissioning of two existing large floor standing boilers which were oversized for the requirement and downsizing to correctly sized efficient boilers and point-of-use solutions. Replacements and upgrades to the boiler and hot water systems are estimated to produce savings in excess of 25% on energy consumption. In addition, passive infrared sensors (‘PIR’) for lighting and ventilation and new LED fittings are being installed throughout the toilet areas and to the new showers to reduce electricity consumption.
– Water efficiency: non-concussive basin taps, dual toilet flushing systems, solenoid water shut-off values and PIR sensor urinals with flushing linked to usage to increase water usage efficiency.
– Disability facilities: revamped disabled access WC to improve the facilities and accessibility. We continue to develop our understanding of the tenants’ sustainability experience to further improve the efficiency of the building and sustainability credentials.
Investments in real estate are relatively illiquid and more difficult to realise than equities or bonds.
Yields may vary and are not guaranteed.
The use of gearing is likely to lead to volatility in the Net Asset Value ("NAV") meaning that a relatively small movement either down or up in the value of the Company's total assets will result in a magnified movement in the same direction of that NAV.
There is no guarantee that the market price of shares in a UK Real Estate Investment Trust such as SREIT will fully reflect their underlying NAV.
The value of real estate is a matter of a valuer's opinion rather than fact.
This UK Real Estate Investment Trust should be considered only as part of a balanced portfolio, of which it should not form a disproportionate part.
Schroders is a world-class asset manager operating from 37 locations across Europe, the Americas, Asia, the Middle East and Africa.