Sustainability

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.

Codices and memberships

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.

Codices and memberships

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:

Systematic consideration of adverse sustainability impacts

Investment proposals are specifically screened for key negative sustainability impacts and sustainability indicators as part of our Adverse Sustainable Screening (ASS):

Environment & BiodiversitySigns of poor handling in the compliance with environmental standards or the prevention or remediation of contamination

Emission of gases responsible for the greenhouse effectEvidence of direct support for production or distribution of ozone-depleting gases without a phase-out scenario.

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

Human & workers rightsSigns of poor handling of violations of international human rights conventions or ILO core labour standards (child labour, forced labour, discrimination, freedom of association)

Money Laundering PreventionSigns of poor handling in screening or money laundering incidents

Corruption preventionSigns of poor handling of screening or corruption and bribery incidents

The results of the Adverse Sustainable Screening are incorporated into the final investment decision and, if materiality thresholds are exceeded, lead to our veto on sustainability grounds.

Sustainability in the remuneration policy

Our sustainability beliefs have been a central component of our remuneration policy since the company was founded. This is especially true for employees with variable remuneration components, as compliance with our sustainability convictions becomes part of the annual individual targets. Variable remuneration components are not granted in the event of sustainability violations to the extent possible under labour law and depending on the significance of the violations; to this extent, sustainability violations are sanctioned monetarily. In addition, individual bonuses are sometimes agreed upon for the achievement of positively defined sustainability goals. In this way, we also want to give monetary value to significant sustainable action.