Sustainable business practices

at Institutional Investment Partners

Our Beliefs

Since the company was founded, the core value proposition for investors and employees of Institutional Investment Partners (‘2IP’)* and its group of companies has been based on giving sustainability factors a central role in all our actions and services.

Driven by the market position we have achieved and the resulting increase in our social responsibility – as well as by broader societal developments – it is our fundamental aim to utilise our sphere of influence to make a significant corporate contribution towards a sustainable environment and society.

For this reason, 2IP has translated the general principles of sustainable corporate governance into its own company-specific sustainability strategy, which makes sustainable conduct within and through our company binding and also takes into account any adverse impacts on sustainability factors when making investment decisions.

*Institutional Investment Partners GmbH, Frankfurt am Main, and Institutional Investment Partners S.à.r.l., Mertert (Luxembourg)

Key principles underpinning our sustainable approach

The key elements and cornerstones of our approach are:

  • Supporting impact fund projects (so-called ‘Article 9 funds’ under EU Regulation 2019/2088), which are committed to pursuing sustainability objectives that are at least on a par with return objectives.
  • Promoting responsible and sustainable practices amongst our property management partners by embedding codes of conduct within our business relationships.
  • Promoting investment and management initiatives in property that have a positive impact on
    • reduce CO₂ emissions and
    • lower the overall burden on tenants through reduced heating and service charges.
  • Promoting the responsible use of resources.
  • Promoting information technology and processes designed to
    • make the consumption of resources by the fund’s properties transparent and
    • make sustainable practices measurable

    .

  • Imposing sanctions on behaviour intended to breach key sustainability principles.

Codes and Memberships

Principles for Responsible Investment (PRI) – Signatory

The Institutional Investment Group, together with all its subsidiaries, is a signatory to the Principles for Responsible Investment (PRI), an initiative supported by the United Nations. This network of international investors is committed to establishing and putting the principles of responsible investment into practice. The PRI were developed by the investment community and reflect the view that environmental, social and governance (ESG) issues can influence the performance of investment portfolios and must therefore be given due consideration by investors if they are to fulfil their social responsibilities. By implementing the Principles, signatories contribute to the development of a more sustainable global financial system.

Launched in 2006 by the UNEP Finance Initiative and the UN Global Compact, the PRI provide a voluntary framework enabling all investors to incorporate ESG considerations into their decision-making and ownership practices, thereby better aligning their objectives with those of society as a whole.

The 6 Principles for Responsible Investment

  1. Principle 1:

    We will integrate ESG issues into our investment analysis and decision-making processes.

  2. Principle 2:

    We will be active shareholders and take ESG issues into account in our investment policies and practices.

  3. Principle 3:

    We will encourage the companies and organisations in which we invest to provide appropriate disclosure regarding ESG issues.

  4. Principle 4:

    We will promote the acceptance and implementation of the Principles within the investment industry.

  5. Principle 5:

    We will work together to enhance our effectiveness in implementing the Principles.

  6. Principle 6:

    We will report on our activities and progress in implementing the Principles.

UN Global Compact

The UN Global Compact is the world’s largest and most important initiative for responsible business conduct. It is based on 10 universal principles in the areas of

  • human rights,
  • labour standards,
  • environmental protection and
  • anti-corruption

and, through the 17 Sustainable Development Goals (SDGs), also pursues the vision of an inclusive and sustainable global economy for the benefit of all people, communities and markets.

The 17 Sustainable Development Goals are as follows:

  • Nachhaltiges Entwicklungsziel 1
  • Nachhaltiges Entwicklungsziel 2
  • Nachhaltiges Entwicklungsziel 3
  • Nachhaltiges Entwicklungsziel 4
  • Nachhaltiges Entwicklungsziel 5
  • Nachhaltiges Entwicklungsziel 6
  • Nachhaltiges Entwicklungsziel 7
  • Nachhaltiges Entwicklungsziel 8
  • Nachhaltiges Entwicklungsziel 9
  • Nachhaltiges Entwicklungsziel 10
  • Nachhaltiges Entwicklungsziel 11
  • Nachhaltiges Entwicklungsziel 12
  • Nachhaltiges Entwicklungsziel 13
  • Nachhaltiges Entwicklungsziel 14
  • Nachhaltiges Entwicklungsziel 15
  • Nachhaltiges Entwicklungsziel 16
  • Nachhaltiges Entwicklungsziel 17
  • SDG-Farbrad

Taking sustainability risks into account in investment decisions

Sustainability risks are events or conditions relating to the environment, social issues or corporate governance, the occurrence of which could have, or is likely to have, a material adverse impact on the value of an investment.

As part of our investment decision-making process, sustainability risks are identified and assessed through our Adverse Sustainable Screening. In this process, we examine an investment against defined ESG criteria to identify events or conditions that could have a material adverse effect on its value. The results of this screening are factored into the final investment decision. If the identified sustainability risks exceed the materiality thresholds we have set, this may lead to the investment being rejected on sustainability grounds.

Systematic consideration of adverse sustainability impacts

Investment proposals are specifically assessed for significant adverse sustainability impacts and sustainability indicators as part of our Adverse Sustainability Screening:

  • Environment & Biodiversity

    Indications of inadequate compliance with environmental standards or of failure to prevent or remedy contamination

  • Greenhouse gases with no phase-out plan

    Indications of direct support for the production or distribution of ozone-depleting gases without a phase-out plan

  • Controversial weapons / armaments

    Indications of direct support for the production or distribution of controversial weapons (cluster bombs, anti-personnel mines) or relevant system components

  • Human and labour rights

    Indications of inadequate handling of breaches of international human rights conventions or the ILO’s core labour standards (child labour, forced labour, discrimination, freedom of assembly)

  • Anti-money laundering

    Indications of inadequate handling of screening procedures or incidents relating to money laundering

  • Corruption prevention

    Indications of inadequate handling during screening or in relation to incidents of corruption and bribery

In our Principal Adverse Impact Statement, we focus on the following three indicators: (i) fossil fuels, (ii) energy efficiency and (iii) energy intensity. Our strategies for identifying and weighting these sustainability indicators are described in the statement.

The results of the Adverse Sustainable Screening are factored into the final investment decision and, should materiality thresholds be exceeded, lead to us exercising our veto on sustainability grounds.

Stewardship

Driven by the market position we have achieved and the resulting increase in our social responsibility – as well as by broader societal developments – it is our fundamental aim to utilise our sphere of influence to make a significant corporate contribution to a sustainable environment and society.

This includes exercising our influence (stewardship) over third parties to optimise long-term total value, including shared economic, social and environmental values, on which the returns and interests of investors and beneficiaries depend.

The following guideline sets out how we, as an Institutional Investment Group, intend to exercise our influence responsibly in the interests of sustainability:

Stewardship Policy.

Sustainability in Remuneration Policy

Our sustainability principles have been a central pillar of our remuneration policy since the company was founded. This applies in particular to employees with a variable remuneration component, as adherence to our sustainability principles forms part of their annual individual targets. In the event of sustainability breaches, variable remuneration components are not granted, within the limits permitted by employment law and depending on the severity of the breaches; in this respect, sustainability breaches are subject to financial penalties. In addition, individual bonuses are sometimes agreed for achieving positively defined sustainability targets. In this way, we aim to recognise significant sustainable actions financially.

Change history

Below we explain changes to the content of the information published on this website in accordance with Articles 3, 5 and 10 of Regulation (EU) 2019/2088. Purely editorial changes that do not affect the content are not listed separately.

14 August 2024 – Consideration of adverse sustainability impacts

Information has been added regarding the sustainability indicators set out in the Principal Adverse Impact Statement, as well as the strategies for identifying and weighting them.

20 July 2026 – Strategies for incorporating sustainability risks

The presentation of the strategies for incorporating sustainability risks has been amended by listing them as a separate section entitled ‘Incorporation of sustainability risks into investment decisions’.