PATRIZIA opts to go green in France
As part of its sustainability drive, PATRIZIA AG has switched over to renewable energy sources in France.
Aiming for climate-neutral portfolios
PATRIZIA AG recognizes the need to utilise green energy as part of its strategy to create a climate-neutral real estate portfolio. Hence its 2017 decision to convert its entire real estate portfolio in Germany to run on renewable energy sources. This year, it’s focusing its sustainability efforts on France.
From now on, PATRIZIA will switch over to green electricity and a CO2-neutral supply in France as it reduces its carbon footprint. In addition, it will source its energy requirements from a single utility, with one contract set at a fixed price until 2023. Previously it worked with three electricity suppliers and four suppliers of natural gas.
“This is an important part of our shift to green energy to reduce CO2 levels,” said Jörg Müller, Director, Head of Asset Management ESG. “In France, we saw that we had many contracts and none of them used green energy. It made sense to bundle all existing energy contracts, thereby saving money for our tenants.”
Bundling sinks prices as well
Despite the change to renewable energy sources, the move won’t increase costs for PATRIZIA and prices on a property level will actually fall. Gas and electricity prices have increased significantly in recent years and the move enables PATRIZIA to secure attractive long-term prices. By sourcing both electricity and natural gas from a single supplier, PATRIZIA will save a total of EUR 191,584 over the next three years.
This is an important part of our shift to green energy to reduce CO2 levels
More significantly, it will cut harmful CO2 emissions by 1,700 tonnes annually. “This is a very positive move for PATRIZIA and is the first step of many,” said Vivian Bouquery, Director Asset Management, PATRIZIA France. “More and more funds are considering energy-related initiatives and as an asset manager we’re being asked to find initiatives to help tenants with their own environmental objectives.”
The initiative follows in-depth analysis of energy supply contracts across Europe. Other countries, including Italy and Denmark, may be next on the list, said Müller.