Sustainability-related disclosures
Sustainability risks
Sustainability risks are managed in the company's annual risk management process, which aims to identify significant risks throughout the business and value chain, ensure governance and take measures to manage exposure to the risks. The company's instruction for risk management is the internal steering document that regulates risk management. The sustainability risks that are identified as significant for the company are further managed in the process of preparing documentation for investment decisions.
Slättö has made a decision to exclude investments in real estate assets intended for activities that are not in line with the company's sustainability ambitions and thus constitute a significant risk for the investment. According to the decision, investments are not made in real estate assets intended for the extraction, storage, transportation or sale of fossil fuels.
The same applies to property assets that are intended for activities in the production, storage, sale or transportation of alcohol, tobacco and illegal drugs, weapons and war materials, commercial gambling activities, activities that violate international standards and conventions or activities that have a significant negative impact on the environment and climate by not taking into account current legislation. Exemptions can be accepted by Slättö's management in connection with the adoption of an action plan to change the intended activities in the property asset, which means that exemptions can apply during a transitional period provided that a conversion plan exists.
Slättö's identified sustainability risks concern regulatory compliance, climate change, lack of environmentally certified properties, health and safety, supply chain, lack of life cycle analysis, financing and pollution. An assessment is made for each investment decision and measures are taken for identified material sustainability risks. In this way, Slättö ensures that risk exposure is kept within the given framework for the company and the funds managed by the company.
Remuneration policy
When assessing variable remuneration, it should be ensured that variable remuneration is not based on actions that entail excessive risk exposure.
Negative impacts on sustainable development
Slättö Förvaltning AB, LEI no. 894500GBUVMFIJU64210, and the company's managed funds and thereby managed subsidiaries, take into account the main negative consequences for sustainable development when making investment decisions. Implementation of the consideration, in accordance with the description of the main negative consequences below, takes place from March 10, 2021, full disclosure of the result of the consideration will be made in the reporting for the financial year 2022.
The funds' assets are held in companies that are directly or indirectly owned by the funds. These companies will be included in the accounts and will not be disclosed separately.
Investment decisions take into account the main negative impacts on sustainable development. Indicators from the technical standard developed by ESMA for investments in real estate assets are included in investment decisions. The company's materiality analysis of the sustainability area is the basis for identification and prioritization. Investment decisions take into account (i) the intended purpose of the real estate asset, (ii) energy performance and source, (iii) greenhouse gas emissions, (iv) waste management during the operational phase of the real estate asset, (v) climate calculation of projects for new construction and major renovations, (vi) consideration of biodiversity and ecosystems, and (vii) land contamination.
An annual assessment of the sustainability aspects of investment decisions will be carried out to ensure proper identification and prioritization of management and measures, processes and procedures.
Slättö's Investment Committee makes decisions on investments in the funds managed by the company. The Investment Committee is appointed by the company's Board of Directors. Slättö's Investment Committee Policy clarifies the basis on which investment decisions are to be made. An account of external technical and/or environmental due diligence, where applicable, and how and in what way the ESG criteria have been taken into account, shall be included in the documentation. The ESG criteria include i) adopted sustainability goals based on the materiality analysis carried out, ii) significant sustainability risks, iii) type of investment to be excluded as it is not in line with the company's sustainability strategy, iv) and sustainability criteria based partly on the technical standard proposed so far and partly on indicators that Slättö has identified as prioritized through materiality analysis.
When identifying the main negative impacts on sustainable development, measures are taken to minimize the risks and thus the negative impacts on sustainable development.
Promotion of environmental and social characteristics
Slättö Core Plus and Slättö Value Add I promotes environmental and social characteristics by taking sustainability aspects, both environmental and social, into account in investment decisions. This is done by i) considering and taking measures to improve energy efficiency and promote the use of renewable energy, ii) reducing emissions for the property asset (also in projects and new production), iii) striving for and thereby increasing the proportion of property assets that are environmentally certified and iv) ensuring safe and inclusive workplaces, also in development projects where Slättö is the client.
Investments in real estate assets intended for activities that conflict with the company's sustainability and risk management are excluded.
This takes place and is ensured through i) internal policy documents that stipulate how and what is to be taken into account and included in investment decisions, ii) requirements for data collection for measurement and follow-up in order to achieve better sustainability performance over time, and iii) through external requirements, primarily for contractors, as the company believes that the Fund has a major responsibility as a client. In procurement and purchasing, high sustainability performance is rewarded. The Fund shall ensure compliance with laws and regulations both internally and externally by clarifying requirements and internal policy documents.