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Sustainability

We believe in integrating environmental, social and governance (ESG) practices into all aspects of our operations. Sound and sustainable strategies throughout the whole life-cycle of our investments deliver high risk-adjusted returns to our investors and modern and efficient workspaces for our tenants.

The ESG Report 2023

At Genesta, we have remained steadfast in our commitment to sustainability, understanding that it is both a responsibility and an opportunity to make a positive difference.

In 2023 we jointly achieved several significant milestones with our environmental and social initiatives, that help us actively embraced sustainability in the real estate sector through a comprehensive understanding of our impacts – not only within our own operations but also throughout the entire value chain.

We report in accordance with the GRI standards and achieved a limited assurance to further substantiate our sustainability performance. The report is aligned with the principles of the UN Global Compact, INREV recommendations, and the SFTR.

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Property is about People

Sustainability at Genesta

At Genesta, our approach is turning brown to green, as we invest in properties where our expertise improves the sustainable performance of each asset, benefiting the environment, our tenants, their employees, and other stakeholders such as suppliers and the local community. We believe that creating societal value also yields value for our investors.

We understand that the path to a resilient future demands action against climate-related risks. Guided by a rigorous approach, we future-proof our investments -from early acquisition and investment decisions to hands-on asset management. Sustainability is intertwined into every facet of the investment management process.

Managing Sustainability

Genesta is committed to upholding the highest standards of business ethics, integrity, and transparency. We have a zero-tolerance policy towards corruption and bribery, and we employ a robust risk management process to detect, measure and manage risks in our operations. We follow the precautionary principle in terms of ecological responsibility, and we regularly conduct Sustainability and Health & Safety (H&S) risk assessments on our properties. Further information on how we manage sustainability-related topics can be found in our ESG Report 2023.

Our Responsible Investment Policy reflects our holistic approach to ESG matters and is our key method to manage investments in a sustainable way.

Our Code of Conduct serves as a guide for Genesta’s business relationships’ actions and interactions. Being the foundation of our company’s policies and processes, it describes what we stand for and how we do business, helping us ensure that we make the right decisions every day.

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SFDR Disclosure

Read our SFDR Disclosures
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As an Alternative Investment Fund Manager (AIFM) Genesta has embraced the requirements of the EU Sustainable Finance Disclosure Regulation (SFDR) and the associated EU taxonomy and has commenced to formally implement these two regulations into our fund and investment management practices.

The adverse impact of investment decisions on sustainability factors is one of the main categories of the SFDR disclosures, along with the disclosure of sustainability risks and information. Genesta considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is our consolidated statement on principal adverse impacts on sustainability factors for the reference period from 01 January – 31 December 2022. At Genesta, we are committed to upholding the highest standards of transparency and to continuously enhance our ESG performance and disclosures. In 2023, we therefore had KPMG Audit S.á.r.l. perform independent limited assurance of our ESG data used to calculate our adverse sustainability indicators, which was concluded in September 2023. To reflect the recommendations from the independent limited assurance, we have implemented several amendments and issued a second version of our consolidated statement on principal adverse impacts on sustainability factors. In addition, Genesta wants to recognize that as the SFDR and its implementing provisions RTS have only been in effect since 10 March 2021 and 1 January 2023, respectively, uncertainties remain regarding the interpretation of the regulation and its disclosure requirements. Therefore, we will continuously monitor the issuance of additional guidance on the SFDR and its disclosure requirements and apply it where relevant.
Read our Statement on Principal Adverse Impacts on Investment Decisions on Sustainability Factors

Managing Climate Change Related Risks

As a real estate investor, we have a direct impact on the environment through property development and management. By acquiring properties and extending their lifecycle by improving their efficiency and overall condition, we contribute to the targets set in the Paris Agreement. One of our main objectives is to align with the targets set out in the agreement by reducing emissions from all the properties in our funds. During 2022 we took a significant step by committing to establish long-term science-based emissions reduction targets in accordance with The Science Based Targets initiative (SBTi) method.

Genesta’s approach to climate change related risk management and value generation is incorporated into our everyday practices and decision-making processes. We recognize that an effective approach to climate change mitigation not only reduces risks but also generates value. To actively address climate change, we’ve adopted the Carbon Risk Real Estate Monitor (CRREM) on both property and fund level. The framework helps us form a roadmap for reaching our climate targets and establishing a baseline.
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Responsibility Starts with Us

At Genesta, we aim to deliver strong, sustainable returns through sound investment and responsible management practices. We are committed to upholding our values and adhering to the highest standards of corporate governance and ethical business behavior.

By staying true to these principles, we strive to prevent corruption in all its forms and ensure the long-term success of our investments. We commit to internationally agreed principles for Responsible Business Conduct (RBC), as outlined in our Responsible Business Conduct (RBC) Policy.

Genesta is a signatory to the UN’s Principles for Responsible Investment (PRI), pledging to commit to the six principles reflecting responsible investment practices. Explore our Assessment report for the year 2023. Additionally, the UN PRI Public Transparency Report 2023 is available here.

Genesta has adopted an Exclusion Policy for business relationships. The exclusion of certain business relationships, such as primary contractors and tenants, is the act of limiting companies from doing business with Genesta, its managed funds and its subsidiaries due to their involvement in business activities that are deemed unethical, harmful to society or in breach of laws or regulations.

Human Rights Due Diligence and Whistleblowing

Genesta has implemented a human rights due diligence process. In 2023, we conducted a comprehensive Group-wide Human Rights Impact Assessment (HRIA), in strict adherence to the specifications of the UNGPs and the OECD Guidelines. The assessment revealed potentially salient human rights issues within Genesta’s value chain, particularly concerning construction workers and end-users/tenants.

The outcome of the assessment has led to the integration of the ESG Screening Tool for new investments in Genesta’s due diligence process as well as further development of the human rights due diligence process to mitigate all identified impacts. To follow up on the assessment and Genesta’s impacts, the Risk Manager will review the HRIA annually and update it as required.

Additionally, we have introduced a new online whistleblowing system. The platform – the Integrity Line - is designed to empower the reporting of issues related to responsible business conduct, ethical dilemmas, misconduct, or any other grievances by all internal and external stakeholders. This new platform ensures that all concerned stakeholders including employees, business partners, or tenants, can report concerns, without fear of retaliation. It offers a straightforward and confidential channel for individuals to voice concerns and can be easily accessed directly here.

230922 Genesta wistle blower sign mockup
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Sustainable Landlord

We offer more than just attractive and functional spaces. Choosing our building means enhancing your company’s environmental impact and your own. Greenesta is a concept to inspire and enable our tenants to act in a more sustainable way. It signifies a joint commitment from both Genesta and our tenants to collaborate for improved environmental performance. Our ultimate goal is to offer only green leases in the future. When tenants sign a lease with us, they sign up to co-operate with us towards better sustainability performance.

If you are interested, feel free to reach out to us to learn about our green lease option, available for existing tenants too.
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GRESB Performance

Genesta’s GNRE Fund II participated in the Global Real Estate Sustainability Benchmark (GRESB) for the seventh time in 2022, covering fund management and performance disclosures for 2021. The results were published during Q3 2022. The fund reached 80 points (out of 100), four stars and a Green Star designation. The GRESB average score was 74 points, and peer group’s average was also 74 points. The fund achieved fifth place out of eleven in its predominant peer group. The fund scored full points in the ESG breakdown with regards to social aspects. The strengths of Genesta’s GNRE Fund II in the GRESB Assessment were leadership, risk management, stakeholder engagement, targets and tenants & community.

GNRE Fund III participated in the Global Real Estate Sustainability Benchmark (GRESB) for the second time in 2022, covering fund management and performance disclosures for 2021. The results were published during Q3 2022. The fund reached 74 points (out of 100), three stars and a Green Star designation. The GRESB average score was also 74 points, and peer group’s average was as well 74 points. The fund achieved sixth place out of eleven in its predominant peer group. The fund scored full points in the ESG breakdown with regards to social aspects and above-average in the governance section. The strengths of Genesta’s GNRE Fund III in the GRESB Assessment were leadership, risk management and stakeholder engagement, reporting, targets and tenants & community, as well as waste.
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Documents

Responsible Investment Policy Responsible Business Conduct (RBC) Policy Excluded Business Relationships Policy The Code of Conduct
ESG Report 2023 ESG Report 2022 ESG Report 2021 ESG Report 2020 ESG Report 2019 ESG Report 2018
Genesta Entity Level GNRE Fund II GNRE Fund III GNRE Core Plus GNRE Core Plus Open Ended

Genesta Memberships and Employees' Position of Responsibility

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Scandinavian International Property Association
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REPORTING AND TAXING COMMITTEE
INREV (European Association for Investors in Non-Listed Real Estate Vehicles)
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IPD / MSCI Property Indices (Investment Property Databank)
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FULL MEMBER
GRESB (Global Real Estate Sustainability Benchmark)
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CARBON NEUTRAL BUILDINGS COMMITTEE
Finnish Green Building Council
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APPOINTED DELEGATE
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Helsinki Region Chamber of Commerce
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FELLOW (FRICS)
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The Principles for Responsible Investment by the UN
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MANAGEMENT TEAM, COMERCIAL AND PUBLIC PROPERTIES, INVESTMENT AND FINANCE COMMITTEE
The Finnish Association of Building Owners and Construction Clients