TOWARDS A SUSTAINABLE FUTURE
Sustainability Report 2018
Home
TOWARDS A SUSTAINABLE FUTURE - Sustainability Report 2018

CASE STUDY : REAL ESTATE

Ardian’s sector-leading ESG framework

Real Estate is Ardian’s newest activity and from the outset we have developed a tailored ESG approach for this asset class to ensure that we achieve the highest standards in the real estate industry.

We are committed to delivering measurable improvements in ESG performance for every property in our portfolio during our holding period and to integrating ESG factors at every stage of the investment process, from due diligence to exit. Our approach places special emphasis on monitoring and improving environmental performance and energy efficiency, working to improve our tenants’ satisfaction and well-being, and achieving internationally recognized sustainability certification for every asset. We have also set out a Code of Conduct for all suppliers to our Real Estate Funds, covering areas such as employee welfare and business ethics.

We assess ESG performance against our proprietary scoring system – Ardian Real Sustain – developed especially for Real Estate investments. The results are converted into quantitative scores under seven headings, creating a baseline from which our progress in implementing an action plan during the holding period can be regularly assessed to gage progress.

In 2018, the UN PRI’s first assessment of our Real Estate ESG performance awarded Ardian an A – above the median score for the industry – demonstrating that we have implemented best-in-class ESG practices from day one.

PWC HEADQUARTERS VIA COLOMBO 80, ROME

Our first ESG assessment of the property in summer 2017 identified problems with the building’s condition, suitability for modern styles of open-plan working, energy efficiency and access to natural light. The tenant, PwC, was dissatisfied with the outdated floorplans and high running costs, and was considering vacating the property.

We consulted PwC to understand their needs and drew up a full refurbishment program with their assistance. The main changes we undertook improved both working conditions and the building’s environmental impact:

  • We redesigned the façade, allowing greater use of natural light through light shelves. This increased the internal area reached by natural light by 70% and produced savings of 46% on electricity for lighting and more than 15% on energy use for cooling during the summer;
  • Our internal refurbishment created a modern, double-height entrance lobby and flexible open-plan working spaces suited to PwC’s smart working concept;
  • We created a fitness room, i-work café and a lounge for PwC staff;
  • We certified the building to the BREEAM and LEED protocols, the industry standards in Real Estate.

As a result of our work we created 1,200sqm of additional leasable space, signed a new lease agreement with our main tenant at a rate well above our underwriting business plan, and created a unique building in Rome with an international AAA tenant on a long lease.