Focus and performance
Focus and
performance
2024 CERTIFICATE OF ACHIEVING
ESG Risk rated by Sustainalytics as Negligible, in August 2024 review
AAA ESG rating "leader" industry
Prime Label Corporate Responsibility awarded by ISS ESG
CDP B-
CDP Climate Change B List (score on scale A to D-)
Taking coordinated management on climate issues
GRESB 5-Star Rating Achievement *
5-Star rating from GRESB (Global Real Estate Sustainability Benchmark), reaffirming the commitment to environmental, social, and governance (ESG) excellence, reflecting dedication to responsible investment and operational practices, demonstrating leadership in shaping a sustainable future for real estate.
* The rating is affiliated with standing investment. GRESB is the Global ESG benchmark for financial markets. It provides methodology and framework to measure the ESG performance of assets portfolios. It publishes the global benchmark data each year showing the state of ESG in the industry.
Environmental, Social and Governance rating
ESG Risk rated as Negligible (7.8/100) by Sustainalytics, a leading independent global provider of ESG ratings.
The company is at negligible risk of experiencing material financial impacts from ESG factors, due to its low exposure and strong management of material ESG issues. The company is noted for its strong corporate governance performance, which is reducing its overall risk. Furthermore, the company has not experienced significant controversies.
NEPI Rockcastle was also included in the FTSE4Good index (founded by FTSE Russell) measuring the performance of companies demonstrating strong ESG.
ESG approach revolves around the following:
- strong focus on corporate governance through compliance with the King IV Report on Corporate Governance in South Africa, and voluntarily implements selected principles recommended in the UK and Dutch codes
- relevant supporter and developer of the communities where it operates
- commitment to achieve the highest standards of sustainability and act as a responsible corporate citizen
- consistent application and continuous improvement of the ESG approach
Key sustainability metrics in 2023
18
average annual carbon intensity kg CO2e/m2
91%
assets equipped with highly efficient LED lighting (by GLA)
78%
share of renewable electricity in total electricity
97%
of the properties are BREEAM Certified
27
photovoltaic installations in Romania
88
assets accessible via public transportation
Key sustainability progress compared to 2022
-19%
CO2 emissions
-3%
energy use
+11%
share of renewable electricity
-6%
energy intensity
-2%
waste recycling rate
-11%
water intensity / 1000 visitors
Sustainability Approach
NEPI Rockcastle strongly believes in its duty to be a responsible corporate citizen and achieve the highest standards of sustainability. Under the guidance of the Board of Directors and the permanent coordination from the Social and Ethics Committee, the Group embraces this approach as a driving force of its strategic objectives, influencing significantly its stakeholders relationship management and allowing one unified approach towards customers, local communities, staff, suppliers, investors, analysts, local and central government, peers and non-governmental organizations.
Sustainability Commitments
NEPI Rockcastle is committed to leading the change to a better future by continuously increasing the sustainability efforts and intends that the Group’s business partners to join that effort and share similar ambitions around positive environmental impact, circularity, dialogue and all the ESG pillars respectively. The sustainability commitment with NEPI Rockcastle’s business partners is one of the steps to join efforts for the ambitious points which the Group has to reduce the environmental impact of the building’s operations, as well as in maintaining and improving the existing environmental performance of the buildings. To this extent, the Group directs its efforts on reducing the carbon footprint of its property portfolio.
NEPI Rockcastle has aligned its reduction emissions targets with the latest scientific research and these have been validated by the Science Based Targets initiative (SBTi). Through rigorous analysis and adherence to SBTi criteria, we ensure that our targets are ambitious, credible, and contribute effectively to global efforts in combating climate change. Our commitment to SBTi empowers us to make meaningful strides towards a more sustainable future.
Green and Sustainability-Linked Financing
€1 billion green bonds have been issued under the Green Finance Framework (€500 million in July 2020, and another €500 million in January 2022) and a green loan agreement concluded with the IFC in June 2021. The Company has committed to use proceeds from green bonds and green loans to finance or refinance existing and future projects which improve the environmental performance of the Group’s property portfolio.
Moreover, NEPI Rockcastle has established a robust Sustainability-Linked Financing Framework SLFF) to guide its future funding initiatives. This framework incorporates Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) that are intricately linked to our commitment to reduce greenhouse gas emissions and enhance energy efficiency across all our operations. Under the Sustainability-Linked Financing Framework the following unsecured loan facilities have been concluded:
• €445 million loan with IFC, a member of the World Bank
• €200 million revolving credit facility with Raiffeisen Bank International and Erste Group
• €150 million revolving credit facility with a club of 3 banks (Citi, Deutsche Bank and HSBC)
Apart from the two revolving credit facilities that are concluded based on the SLFF of the Group, two more revolving credit facilities are linked to the stainability rating provided by Sustainalytics.
Sustainability-Linked Financing Framework
Green Financing Framework
Green Finance Reports
Climate Change Risks And Opportunities Report
The Task Force on Climate-related Financial Disclosures (TCFD) report is a framework developed to help companies disclose climate-related risks and opportunities in a consistent and transparent manner. It provides guidance on how NEPI Rockcastle assesses and discloses climate-related financial information across four key areas: governance, strategy, risk management, and metrics/targets. The TCFD report aims to enhance the understanding of climate-related risks and opportunities, facilitating informed decision-making and promoting the transition to a more sustainable, low-carbon economy.
Green Buildings
BREEAM is the world’s leading environmental assessment method and rating system. Buildings that obtain BREEAM recognition have achieved the highest corporate, organisational and environmental objectives, and enhance the continuous improvement capability for sustainable design, construction and operation.
The BREEAM ‘In Use’ certification policy ensures that biodiversity issues are well addressed and promoted to achieve high standards. Once the project has been built and delivered, the Group’s operating management team, particularly the on-site teams that manage each asset, are responsible for maintaining and monitoring biodiversity.
The Group continues to monitor its buildings, to certify or re-certify them, as a measure of its commitment to long-term sustainability. BREEAM certification is a continuous process, where all buildings requiring review and re-certification are analyzed timely by independent authorized consultants.
BREEAM certified assets as at 31 March 2024*
Property | Country | Property Type |
|---|---|---|
* 97% BREEAM certified eligible portfolio without strip malls and industrial | ||
Alfa Centrum Bialystok | Poland | Retail |
Arena Centar and Retail Park | Croatia | Retail |
Arena Mall | Hungary | Retail |
Atrium Copernicus | Poland | Retail |
Aupark Kosice Mall | Slovakia | Retail |
Aupark Kosice Tower | Slovakia | Office |
Aupark Shopping Center Piestany | Slovakia | Retail |
Aupark Zilina | Slovakia | Retail |
Aura Centrum | Poland | Retail |
Bonarka City Center | Poland | Retail |
Braila Mall | Romania | Retail |
City Park | Romania | Retail |
Focus Mall Piotrkow Trybunalski | Poland | Retail |
Focus Mall Zielona Gora | Poland | Retail |
Forum Gdańsk | Poland | Retail |
Forum Liberec Shopping Centre | Czech Republic | Retail |
Forum Ústí nad Labem | Czech Republic | Retail |
Galeria Mlyny | Slovakia | Retail |
Galeria Tomaszow | Poland | Retail |
Galeria Warminska | Poland | Retail |
Galeria Wolomin | Poland | Retail |
Iris Titan Shopping Center | Romania | Retail |
Karolinka Shopping Centre | Poland | Retail |
Korzo Shopping Centrum | Slovakia | Retail |
Mega Mall | Romania | Retail |
Ozas Shopping and Entertainment Centre | Lithuania | Retail |
Paradise Center | Bulgaria | Retail |
Pitesti Retail Park | Romania | Retail |
Platan Shopping Centre | Poland | Retail |
Ploiesti Shopping City | Romania | Retail |
Pogoria Shopping Centre | Poland | Retail |
Promenada Mall | Romania | Retail |
Promenada Novi Sad | Serbia | Retail |
Promenada Sibiu | Romania | Retail |
Serdika Center | Bulgaria | Retail |
Serdika Office | Bulgaria | Office |
Severin Shopping Center | Romania | Retail |
Shopping City Buzau | Romania | Retail |
Shopping City Deva | Romania | Retail |
Shopping City Galati | Romania | Excellent |
Shopping City Piatra Neamt | Romania | Retail |
Shopping City Râmnicu Vâlcea | Romania | Retail |
Shopping City Satu Mare | Romania | Retail |
Shopping City Sibiu | Romania | Retail |
Shopping City Targu Mures | Romania | Retail |
Shopping City Timisoara | Romania | Retail |
Solaris Shopping Centre | Romania | Retail |
Vulcan Value Centre | Romania | Retail |
Priorities of the Community Engagement strategy
The Group focused on three main pillars that are contributing altogether to more healthy and responsible ecosystems, thus improving people’s lives and lifestyles:
- Social and Health
NEPI Rockcastle increased the impact of its social and health education programs by developing a series of scalable projects across its network. It focused on rigorously selected community needs that tackled education and health support, from prevention to intervention. NEPI Rockcastle believes a community should be well informed, well connected with its relevant bodies, with strong networks within the respective community, becoming an engaged, responsible and active part of the society. The Group believes it is its role to support community growth and development, and it chooses to do that in ways that are collaborative, encourage engagement amongst community players, authorities and people. The Group brings all parties together and acts as a facilitator of sustainable engagement.
- Environment
Climate change and environment protection are not just global priorities and top policy concerns in Europe, but also local and community issues. Tackling environmental matters starts at the level of each person and the community as a whole. The Group believes that it should also be a practice in everyday life of companies and people to bring their contribution. In this respect, environment responsible actions have been implemented across all countries. Moreover, the Group continuously engages with the tenants and business partners to encourage them to join in this initiative, build awareness and boost support.
- Educating communities
NEPI Rockcastle invested in educational programs for children and parents, as it is the belief of the Group that education is the most powerful tool that one can use to truly create positive impact and change the world to a better place in the long run. The Group aligned educational topics with the local communities, bringing them relevant information from various fields of interest: science, parenting, technology, road safety, safeguarding and keeping traditions.
Sustainability Communication
At NEPI Rockcastle we value transparent communication with our stakeholders, therefore inquiries, issues, complaints or innovative ideas concerning Environmental, Social and Governance (ESG) matters can now be addressed via a dedicated communication channel. The insights and feedback are invaluable as we continually strive to enhance our sustainability efforts and uphold the highest ethical standards.
Kindly reach out to us via [email protected]. Together, let us cultivate a culture of sustainability, transparency, and positive impact at NEPI Rockcastle and throughout our broader community.
