ESG

OUR RESPONSIBILITY

We can only be successful if we take social concerns into account and act fairly. This belief is embedded in our core policies, which guide all DLE employees worldwide in their daily work.

The DLE Code of Conduct contains principles for dealing with conflicts of interest, confidential and personal data, the prevention of money laundering and corruption, and competitive behaviour. Our social responsibility is reflected in our commitment to comply with tax laws and the UN Convention on Human Rights. DLE is also guided by the ILO Core Labour Standards, which prohibit child labour, forced labour and discrimination, and guarantee the right to freedom of association and collective bargaining.

Our ESG Policy summarises in one page our understanding of sustainability and the key principles that guide us in our day-to-day business. We recognise our responsibilities to our employees, the environment and society, and are challenging ourselves to develop a robust roadmap to achieve carbon neutrality by 2045.

At a product level, our Responsible Investment Policy outlines DLE’s approach to responsible investment. It requires all fund products to conduct an ESG risk analysis to identify and rank material risks and opportunities related to sustainability issues. New funds are expected to put in place binding mechanisms to take ESG characteristics into account, while older funds take discretionary action based on the results of the ESG risk analysis, always with the aim of preserving and enhancing value.

Sustainability Management

At executive board level, the Chief Executive Officer is responsible for ESG. The ESG department coordinates all activities relating to the sustainable orientation of the company and supports the respective departments and subsidiaries in their implementation. Measures are implemented based on a risk and materiality analysis.

As a signatory to the Principles for Responsible Investment (PRI), we aim to combine attractive returns with social and environmental value in all our businesses. In the real estate sector, sustainability risks and opportunities arise from the large environmental footprint and from the social relevance of buildings, which shape our homes and workplaces and influence the socio-cultural fabric of neighbourhoods.

DLE identifies and manages these sector-specific sustainability risks and opportunities in the investment process to avoid loss of value, maximize value creation, and ensure the marketability and sustainability of assets. The scorecards allow the sustainability profiles of assets to be quantified and compared prior to any acquisition. They also facilitate the development and documentation of the sustainability performance of assets over the investment period.

In addition to the impact of ESG risks on an investment, the ESG scorecards also consider the opposite perspective, namely the potential negative or positive impact of the investment on the environment and society (double materiality). This helps to manage reputational risks and ensure the social acceptability of investments.

DLE initiates and advises investment funds managed by external investment fund managers (AIFM). All funds systematically assess the ESG risks of their investments. ESG funds also have binding ESG criteria embedded in their investment strategy. The sustainability fund designed by DLE Capital has a climate target.

6 ESG funds (Art. 8)

1 Sustainability fund (Art. 9)

4 Mainstream funds (Art. 6)

Sustainability disclosure

As initiator and advisor of closed-end alternative investment funds, DLE Group and its subsidiaries are not directly affected by the disclosure requirements of the EU Sustainable Finance Disclosure Regulation. The relevant information can be found in the offering memorandum of the funds, regular fund reports, and on the website of the respective AIFM.