Bolagsstyrning

In addition to sustainability-related risks based on environmental, social, and economic factors, SBF also identifies and manages governance risks and traditional risks. Read more here. 

Through SBF’s unique structure, where the funds’ assets are managed by in-house personnel, SBF has good insight, governance, and control over how these assets are handled. This provides access to strong expertise in property management as well as potential sustainability risks. The proximity between decision-making and action, as well as the good visibility in the business, from investment to property operations and tenant contact, simplifies SBF’s ability to ensure appropriate governance and control.

Summary of the Policy:

Sustainability Risks in the Investment Process

• SBF shall provide disclosures to investors about sustainability risks in accordance with applicable rules and recommendations.
• SBF shall conduct an analysis of sustainability risks for each investment opportunity prior to potential acquisition as part of the due diligence process. All risks shall be categorized based on whether they are assessed to have an actual or potential material negative impact on the investment’s value over time if the risk materializes. The results of the risk assessment shall be included as a parameter when deciding whether to proceed with an investment.
• SBF shall regularly evaluate sustainability risks in the existing portfolio. This shall typically be done annually as part of the ordinary business planning, but individual sustainability risks may be analyzed less frequently if new data is not available at that frequency or if it is unlikely that the risk has changed during the period. Any necessary measures shall be planned in the respective property plan, including decisions on whether a property should be divested due to such sustainability risks.
• Responsibility for considering sustainability within the various operational areas and tasks is detailed in the Company’s processes, which are available in SBF’s management system.
• The sustainability framework for risk assessment is based on sustainability risks identified through external and internal data as well as prevailing industry recommendations.
  Environmental and climate-related risks are considered the most alarming and represent the highest risks also from a financial risk analysis perspective for SBF.

Adverse Impacts of Investments on Sustainability
Adverse impacts on sustainability factors refer to factors that may negatively affect sustainable development.

• SBF shall consider principal adverse impacts on sustainability factors prior to potential acquisitions as part of the due diligence process.
• SBF shall publish a Principal Adverse Impact (PAI) statement and annually report on the follow-up of identified PAI factors in accordance with applicable regulations and recommendations.
• SBF shall regularly evaluate the adverse impacts of investments on sustainability in the existing portfolio. The frequency of analysis depends on the availability of new data regarding each potential sustainability risk and previously assessed effects of sustainability factors. Measures shall be planned in the respective property plan.
• SBF’s analysis framework is based on SFDR requirements and is applied with support from recommendations and industry standards from, for example, the Swedish Property Federation and the Swedish Environmental Research Institute (IVL). The analysis includes both external and internal data as well as information obtained from site visits and dialogue with potential sellers.
• SBF employs three methods to manage adverse impacts on sustainability in the investment process:
  • Include
  • SBF chooses to invest in properties with the greatest potential to become economically profitable investments. Selecting investment opportunities with the potential for sustainability improvements is generally a good economic investment. Therefore, SBF may invest in properties that do not currently meet SBF’s sustainability standards in order to improve and develop the property over time, thus transitioning the property to achieve a lower long-term climate footprint.
  • Exclude
  • SBF excludes investments in properties if it assesses that there are adverse impacts on sustainability factors that cannot be managed responsibly.
  • Influence
  • Active influence is an effective tool to contribute to change. In certain cases, SBF exercises influence through its stakeholders or suppliers and advocates for selected issues itself.

Extent to Which Financial Products Are Sustainable
The Taxonomy Regulation is a classification system that sets criteria for when an economic activity can be considered environmentally sustainable. To be classified as environmentally sustainable, the activity must substantially contribute to one or more of the established environmental objectives and must not cause significant harm to any of the other objectives. The assessment is made using established technical screening criteria. A financial product may promote environmental or social characteristics (Article 8 fund) without being classified as sustainable under the Taxonomy Regulation. SBF has not established any requirements that a specific share of investments must be sustainable according to the Taxonomy Regulation.