Sirius believes, that environmental, social and governance matters are essential parts of long-term success and that incorporating ESG aspects in the investment activity and decision-making processes will help us to continuously improve our practices, to reduce our environmental footprint and to improve our sustainability performance. We measure and benchmark the sustainability performance of Sirius’ assets through GRESB – the global ESG benchmark for real assets (www.gresb.com).
Measures and performance
Sirius has on behalf of the funds it advises taken part in the GRESB Real Estate Assessment since 2016. In the 2020 assessment, Sirius received three stars. With the GRESB survey as one tool, we strive to continuously improve our sustainability performance and to actively work towards carbon neutrality. Sirius has assessed the transition and physical risks of its assets according to TCFD-framework** and made the decision to join the current national energy efficiency agreement designed for the real estate sector.*
Since its establishment, Sirius has been a member of Green Building Council Finland, which is part of the worldwide Green Building Council network with over 25,000 member organisations.
The construction and real estate sector play a significant role in the battle against climate change and have substantial potential for reducing their environmental impact. Sirius considers ESG-aspects in all business processes; acquisition, asset management and exit. On asset level, we focus on the environmental aspects, where the target is to reduce the environmental impact that our assets have. As a property owner we work actively towards reducing energy consumption, CO2 emissions and water consumption as well as increasing the waste recycling ratio. We encourage and enable our tenants to implement sustainable measures in their premises and to use the premises in a sustainable way.
The success of Sirius is ultimately a product of the quality and the performance of individuals in the firm working together and supported by the operations, systems and infrastructure we build. Sirius promotes an enjoyable and positive working environment with a good spirit. Sirius promotes equal opportunities for all and prohibits the discrimination in any forms. We treat and compensate our employees fairly and strive for a good balance between work and free time. As a compact team of professionals communication, learning and personal development are an integral part of working at Sirius.
Sirius currently has 4 employees. The management group establishes and enforces standards for hiring qualified individuals, with emphasis on educational background, prior work experience, past accomplishments and evidence of integrity and ethical behaviour.
Sirius is committed to doing business ethically, with the highest standards of integrity, and to maintaining a culture which reinforces and encourages this approach among its employees and business partners. We use leading advisors and service providers in ensuring our compliance with laws and regulations and monitor relevant changes to such laws and regulations in each country where we operate or where we control legal entities. We have zero tolerance for bribery of any sort in all activities, any potential situations of conflicting interests are monitored on an on-going basis and personal account dealing is clearly addressed in the governance policy.
Finland and Helsinki have set a target of being carbon neutral by 2035. For the funds Sirius advises and the assets it manages, we are committed to working towards this goal.
The fund currently advised by Sirius, Sirius Fund III SCSp, is a closed-ended fund with a fairly short lifetime. As such, it is therefore not meaningful to set long-term, asset-specific targets that go way beyond the lifetime of the fund, to a period when Sirius does not have control of the assets. Sirius as a company works with sustainability as a central factor throughout the lifecycle of the assets and thereby seeks to contribute positively to the sustainability performance of the assets also in the long term.
The largest emission reduction potential overall lies in energy renovations in old buildings as well as in new construction being energy efficient. Measures to support reaching carbon neutrality targets will be an integral part of the business plan of the assets. Examples of such measures are;
- Improving energy efficiency in the properties
- Producing zero-emission energy, eg. through installing solar panels
- Buying green and renewable energy
- Compensating remaining emissions
The fund’s sustainability performance will be disclosed to the investors on a yearly basis. The disclosure includes consumption of energy, water and waste as well as carbon emissions as well as measures taken towards reaching our sustainability goals.
Sustainability goals for the assets owned by Sirius Fund III SCSp are;
- LEED Platinum certification of the assets
- Improving energy efficiency by at least 7.5% by 2025 and adding the assets to the national energy efficiency agreement*
- Regularly assessing the transition risks and physical risks of the assets by using the TCFD-framework**
* Finland (Ministry of Employment and the Economy, the Ministry of the Environment, the Energy Authority, and RAKLI – the Finnish Association of Building Owners and Construction Clients) has created Voluntary Energy Efficiency Agreements as a tool to improve the efficient use of energy in Finland. The property and building sector has an own energy efficiency agreement currently covering the period 2017-2025.
** Task Force on Climate-Related Financial Disclosures (TCFD)
- Transition risks and physical risks have been assessed with respect to the real estate assets held by Sirius Fund III SCSp
- The risks have been evaluated on short-, medium- and long-term
- Based on the evaluation, the most significant risks have been identified and will be taken into account during the entire holding period of the asset