We believe that proper governance helps us develop our business in an ethical and profitable manner. Being a transparent and sustainable organization equipped to manage risk and make the right decisions is a cornerstone of our philosophy.
As an owner and operator of real estate, we know that we and the funds we manage have an impact on the environment through our choice of energy sources, type and focus of our renovation works, selection of construction materials and daily operating practices. That is why we are committed to minimizing the environmental impact of the properties we manage through sustainable practices. Genesta’s ESG (Environmental, Social and corporate Governance) policies are, where appropriate, extended to our suppliers. We work hard to monitor and ensure active compliance with the spirit of the law, our high ethical standards and our ESG-policies.
Our ESG-policies goes straight to the heart of the business, into the mindset of every employee and on the agenda of all stakeholders.
Decision Making and Social Responsibility
Genesta is a vertically integrated fund manager based in Luxembourg regulated by CSSF (Commission de Surveillance du Secteur Financier). Investment decisions are subject for review by a Finance & Investment committee and an independent board with non-executive board members assisted by the Audit & Risk committee, a risk & compliance manager and a sustainability manager. Genesta is 100% owned by its employees, enabling Genesta to align its strategic objectives tightly with those of its clients.
- Genesta was the first Nordic manager to receive approval for its AIFM application
- The implementation of the AIFMD (Alternative Investment Fund Manager Directive) provides greater transparency to our partners and investors
- Genesta has an independent risk and compliance management function
- Genesta has sustainability and health & safety integrated into all aspects of our business
- Genesta and its employees are active members of Nordic, European and international real estate associations
Genesta Memberships and Genesta Employees’ Positions of Responsibility:
Responsible Investments and Environmental Practices
- All investments Genesta undertakes has ESG-targets integrated in the business plans
- Genesta’s business plans include targets for choice of energy sources, type and focus of renovation works, selection of construction material, daily operating practices and targets for reduction of the properties environmental impact
We use active tenant communication to further reduce the properties’ environmental impact
Examples of Environmental Practices as Standard Procedure:
- Green parking spaces – Electric car charging and preferred parking for green cars
- Energy measurements are installed and energy usage is communicated to tenants via screens in common areas and tenant spaces
- Waste management – All the assets Genesta acquires adopts sophisticated waste management systems
- Green lease – Tenants are offered to go one step further and sign a Genesta Sustainable lease
- Lobby and tenant info screens – Sharing sustainable information and increasing awareness about sustainability measures at the property
Reporting, Stakeholder Engagement and Benchmarking
We aim to provide clear guidance on our mission, strategy and activities. This is limited only by corporate confidentiality and our need to protect present and future investment performance. Our goal is to provide information to all our stakeholders that will continue to enhance our reputation of being amongst the best fund managers in the Nordic region.
We provide our investors with quarterly and annual reports, financial statements, monthly newsletters, sustainability reports, special updates on major events and more. Our reporting follows INREV, IFRS and GRI 4 standards. These documents are available per request or can be retrieved at all time in a Genesta Fund Reporting Data Room. Examples of what the reports include:
- Key Figures, for example:
- NAV (INREV, IFRS)
- Performance of the Fund
- Debt Ratios
- Portfolio Analyses
- Asset Management
- Updates on Acquisitions and Disposals
- Sustainability Management
- Sustainability Guidelines and Policies
- Energy and Environmental Efficiency
- Genesta believes in active stakeholder engagement. Staying connected with our stakeholders reinsures us that we can identify important issues, garner opinions and attitudes and make sure that our ESG-activities evolves and focuses on the right areas. We conduct yearly stakeholder surveys to make sure that all our stakeholders can express their opinions and whishes
- The result of the survey is integrated into Genesta’s decision-making and becomes an inherent part of how we develop our business. Some of the comments received during 2015 stakeholder survey focused on:
- Energy efficiency at Genesta properties
- Health and safety at Genesta properties
- Ensuring a good work-life balance for our employees
- Promoting sustainability
- Solid governance practices
- We outperformed our IPD benchmark. Our economic performance is assessed annually against the IPD Nordic Property Index
- We are committed to transparent communication of our sustainability performance through annual reporting to GRESB
- GNBRE Fund I has been participating in the survey since 2013 and in 2015 the fund achieved the Green Star award and reached the best ranking amongst its peer group of Nordic value add diversified funds
- GNRE Fund II has reported to GRESB since its inception.
Process & Knowledge Management and Innovation
- Genesta has invested in a proactive and transparent best practice management system with clear guidance on our policies, processes and best practices
- Best practice management system is available online and updated by all Genesta employees. Ownership is clearly assigned and an interactive blog supports knowledge sharing. We monitor the use closely
- Genesta has active training programs for employees and service providers
Genesta was the first Nordic manager to receive approval for its AIFM application.
The biggest impact of AIFMD implementation is on risk management. As a result, we hired a Risk and Compliance Officer who will report to the board on the major risks which Genesta and its funds face and how it intends to mitigate these risks
Other results of the implementation of the AIFM-directive:
- Greater transparency
- Financial soundness stress testing
- The AIFMD has focused on liquidity and the implementation of stress tests will reinforce this
- Increased predictability and follow up