Nachhaltigkeit

Acting sustainably

at Institutional Investment Partners

Our convictions

Since its inception, the core value proposition for investors and employees of Institutional Investment Partners („2IP“)* and its group of companies has been based on placing a significant weight on sustainability factors in all actions and services.

Driven by our increased market position and social responsibility – but also by general social developments – we are committed to using our own sphere of influence to make a significant corporate contribution to a sustainable environment and society.

For this reason, 2IP has translated the general principles of sustainable corporate governance into its own corporate sustainability strategy, which makes sustainable action in and by our company binding and also takes into account any potential adverse effects on sustainability factors when making investment decisions.

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

Central cornerstones for our sustainable actions

Central contents and cornerstones of our actions are:

Promoting of impact fund projects (so-called "article 9 funds" of the EU Regulation 2019/2088), which make it their task to pursue sustainability goals with their actions at least on an equal footing with return goals.

Promoting responsible and sustainable action by our asset and property management partners by anchoring behavioural guidelines in the business relationship.

Promoting investment and management initiatives at properties that positively work towards

reducing CO₂ emissions and
decreasing the overall burden on tenants through reduced heating and ancillary costs.

Promoting responsible use of resources.

Promoting information technology and processes that are designed to make

the consumption of resources by fund properties transparent as well as
sustainable action measurable.

Sanctioning behaviour that is intended to violate key sustainability principles.

Principles and
codes of conduct

The Institutional Investment Group with its subsidiaries is a signatory to the Principles for Responsible Investment (PRI) initiative supported by the United Nations. This network of international investors is dedicated to establishing and putting into practice the principles of responsible investment. The PRI were developed by the investment community and reflect the view that environmental, social and governance (ESG) issues can affect the performance of investment portfolios and therefore need to be properly considered by investors if they are to meet 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 PRIs provide a voluntary framework through which all investors can integrate ESG considerations into their decision-making and ownership, and thus better align their objectives with those of society as a whole.

The 6 Priciples of Responsible Investment

PRINCIPLE 1:

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

PRINCIPLE 2:

We will be active owners and incorporate ESG issues into our ownership policies and practices.

PRINCIPLE 3:

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

PRINCIPLE 4:

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

PRINCIPLE 5:

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

PRINCIPLE 6:

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

UN Global Compact

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

human rights,
labour standards,
environmental protection and
prevention of corruption

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

The 17 Sustainable Development Goals are:

Incorporating Sustainability Risks into Investment Decisions

Sustainability risks are events or conditions in the areas of the environment, social issues, or corporate governance whose occurrence could have, or could potentially 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 assess 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 established, this may lead to the rejection of the investment on sustainability grounds.

Systematic consideration of adverse sustainability impacts

Investment proposals are specifically reviewed for significant negative sustainability impacts and sustainability indicators as part of our adverse sustainability screening:

Environment & Biodiversity

Signs of poor handling in the compliance with environmental standards or the prevention or remediation of contamination

Emission of gases responsible for the greenhouse effect

Evidence of direct support for production or distribution of ozone-depleting gases without a phase-out scenario.

CONTROVERSIAL WEAPONS / MILITARY EQUIPMENT

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

HUMAN RIGHTS & LABOR RIGHTS

Signs of inadequate handling of violations of international human rights conventions or the ILO’s core labor standards (child labor, forced labor, discrimination, freedom of association)

MONEY LAUNDERING PREVENTION

Signs of inadequate procedures in screening or in response to money laundering incidents

CORRUPTION PREVENTION

Signs of inadequate handling of screening processes or 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 Sustainability Screening are factored into the final investment decision and, if materiality thresholds are exceeded, lead to our veto on sustainability grounds.

Stewardship

Driven by the market position we have earned and the resulting increase in our social responsibility—as well as by broader societal trends—our primary goal is to leverage our sphere of influence to make a meaningful corporate contribution to a sustainable environment and society.

This includes exercising our influence (stewardship) over third parties to optimize 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 describes how we, as an Institutional Investment Group, intend to exercise our influence responsibly in the interest of sustainability:

Stewardship-Policy.

Sustainability in Compensation Policy

Since the company’s founding, our sustainability principles have been a central pillar of our compensation policy. This applies in particular to employees with a variable compensation component, as adherence to our sustainability principles is incorporated into their annual individual goals. In the event of sustainability violations, variable compensation components will not be granted to the extent permitted under labor law and depending on the severity of the violations; in this respect, sustainability violations are subject to financial penalties. In addition, individual bonuses are sometimes agreed upon for achieving positively defined sustainability goals. In this way, we aim to provide financial recognition for meaningful sustainable actions.

Revision 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.

August 14, 2024 – Consideration of Adverse Sustainability Impacts
Information has been added regarding the sustainability indicators listed in the Principal Adverse Impact Statement, as well as the strategies for identifying and weighting them.

July 20, 2026 – Strategies for Incorporating Sustainability Risks
The presentation of the strategies for incorporating sustainability risks has been modified by listing them as a separate section titled “Consideration of Sustainability Risks in Investment Decisions.”