GNRE Core Plus Open-Ended Fund Achieves Alignment with the EU Taxonomy

We are excited to announce the exceptional progress of our GNRE Core Plus Open-Ended fund, which has achieved a Taxonomy alignment of 68.2%, covering the share of the market value of Taxonomy-aligned real estate assets over the total market value of the real estate assets. This achievement is a result of our steadfast commitment and strategic focus on ESG matters.

Out of the seven properties in the fund, six have passed the EU Taxonomy technical screening criteria for substantial contribution and do no significant harm under Activity 7.7 in the Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139) Annex I. Furthermore, to complete the alignment assessment, Genesta is proud to have met the EU Taxonomy’s Minimum Safeguard requirements.

One of the Fund’s ESG targets states that 100% of the real estate assets will undergo an EU Taxonomy gap assessment. Based on the results of the gap assessment, an alignment action plan will be established to address any gaps to achieve alignment with the EU Taxonomy. Due to the gap analysis and alignment plans, it has been clear what actions Genesta should take to improve the alignment of the Fund. The following key actions were taken during 2023 to achieve 68.2% EU Taxonomy alignment:

Minimum Safeguards: Meeting the requirements of the EU Taxonomy’s Minimum Safeguards ensures that a company not only supports environmental goals, but also adheres to international human rights and labour rights standards and guidelines. Genesta finalized actions that needed to be in place to fully align its processes and procedures to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. The actions include the implementation of a grievance mechanism and implementation of a human rights due diligence to identify and manage adverse human rights impacts in Genesta’s operations and value chain.

Do No Significant Harm (DNSH): For an asset to pass the DNSH criteria for Climate Change Adaptation, a climate risk and vulnerability assessment (CVRA) needs to be conducted in line with the stated methodology requirements. Genesta has implemented a Taxonomy-aligned CVRA tool, in which each property has been screened for physical climate risks. The integration of physical climate risks in the Risk Management Policy aims to ensure ongoing alignment with the CVRA requirements, as well as mitigation of any identified risks.

Substantial contribution: Genesta has undertaken several efforts to achieve the substantial contribution criteria for each building, in alignment with the asset’s business plans. To meet the substantial contribution criteria for 6 out of 7 buildings, Genesta has taken measures to improve the energy performance, installed energy management systems, conducted LCAs, as well as air-tightness and thermal integrity tests.

Our commitment to continuous improvement is evident in the ongoing efforts and processes we have in place. Genesta is dedicated to fostering sustainability and responsible business practices, and we look forward to further advancements in our ESG initiatives.

The EU Taxonomy alignment assessment information has been independently assured by KPMG Luxembourg.