Sustainability at company level

United Nations Sustainable Development Goals

Nova Property Fund Management AG takes account of selected United Nations (UN) Sustainable Development Goals (SDGs). Of the 17 SDGs, Nova Property Fund Management AG is currently focusing on aspects of the following four objectives at corporate level, on which it can have a positive impact through its activities.

At product level, the selection of UN SDG goals is determined according to the product profile in question.

Source: https://www.eda.admin.ch/agenda2030

Material topics

Based on the dual materiality approach, Nova Property Fund Management AG has identified the following 10 key sustainability issues for the company. An assessment is made both on the “significance of sustainable development impacts” and the “significance for long-term corporate success”. The following materiality matrix was approved by the Nova Property Fund Management AG Executive Board on 22 May 2023 and is to be reviewed and updated on a regular basis.

1. Stable growth and sustainable profitability

Nova Property Fund Management AG pursues a holistic approach to sustainability by taking account of environmental, corporate and social aspects. Careful market analyses and investments at product level in sites with a future and high-quality properties ensure a sustainable return. Nova Property Fund Management AG’s individual departments work closely together and implement the strategy across the value chain, from acquisition and portfolio management to property repositioning and realignment in the managed property portfolios.

2. Reduction of carbon emissions

Nova Property Fund Management AG supports the Swiss Federal Council’s net-zero target by 2050. In this context, in 2022 it collected consumption data for the first time for four of the managed investment vehicles, which serves as the basis for assessing environmental indicators. The reduction pathway in variants for the investment vehicles was determined on the basis of these environmental indicators, and this will be finalised in 2023.

3. Integration of sustainability into the value chain

The sustainability strategy will be integrated into the value chain over the long term. During the investment decision-making process, acquisitions are reviewed in terms of their sustainability and, where possible, carbon emissions are recorded or simulated and their impact on the existing property portfolio’s carbon footprint examined. Further measures are defined based on comprehensive due diligence. In terms of portfolio management, the aim is to periodically conduct a comprehensive tenant survey for selected investment vehicles for residential uses. Regular discussions are already taking place with key commercial tenants. From demolition and refurbishment to new builds, the company strives to integrate sustainability criteria into the planning and construction processes as well as the contract system. The management of existing buildings and construction projects will also be guided by a certification strategy that strives for a balance between environmental, economic and social aspects.

4. Responsible corporate governance

The Board of Directors is responsible for overseeing the issue of sustainability and its associated risks. It defines Nova Property Fund Management AG’s sustainability strategy and sets targets in this regard together with the Executive Board. The Executive Board is responsible for the operational implementation of the sustainability strategy and the agreed measures and reports regularly to the Board of Directors. Operational implementation of the sustainability strategy is carried out by the Executive Board in cooperation with the dedicated Sustainability team and the departments involved. As part of quarterly reporting, the Head of Sustainability informs the Board of Directors and the Executive Board of the progress made in the area of sustainability at Nova Property Fund Management AG and for each investment vehicle under management.

5. Transparency

Nova Property Fund Management AG strives for comprehensible and transparent communication by informing its stakeholders at company level about sustainability objectives and measures through direct communication, via the website or other information channels on an ongoing basis. At investment vehicle level, investors are informed through press releases, sustainability reports and investor presentations, as well as through annual general meetings and investor or analyst calls.

6. Risk management

Sustainability risks are taken into account in Nova Property Fund Management AG’s risk management and internal control system and include the monitoring of legislative changes on sustainability, for instance. In addition, depending on the profile of the respective investment vehicle and its sustainability focus, other sustainability risks can be taken into account and addressed using a state-of-the-art risk process.

7. Stakeholder dialogue

Nova Property Fund Management AG is in regular contact with its stakeholders and advocates direct contact with all stakeholder groups. Nova Property Fund Management AG is committed to a proactive, open and cooperative dialogue geared towards a positive impact on long-term business success.

8. Partnerships and cooperations

Nova Property Fund Management AG works actively and closely with both its partners and external service providers. These partnerships help to identify opportunities for improvement and to implement appropriate measures in a coordinated manner. Fairness and respect underpin Nova Property Fund Management AG’s corporate culture and form the basis for all interaction with stakeholders.

9. Employee engagement

Employee surveys are carried out periodically and form the basis for improvement measures. Nova Property Fund Management AG is committed to its employees’ health and well-being and offers cutting-edge infrastructure at all sites. Events such as skiing days, team meals and summer events are held on a regular basis to promote teamwork. In addition, employees are regularly trained on individual topics and informed about business and progress in the area of sustainability during employee meetings.

10. Digitalisation and innovation

Nova Property Fund Management AG utilises new technologies as well as the opportunities offered by digitalisation along the value chain. This enables the company to optimise work processes in order to deliver even better results and to contribute to stakeholder satisfaction. In addition, Nova Property Fund Management AG is committed to innovations both at corporate level and at investment vehicle level in order to achieve competitive advantages for its investors.