As part of its bid to establish uniform ESG (Environmental, Social and Governance) standards, PATRIZIA has introduced a new, standard property management contract, incorporating coordinated sustainability clauses, compliance checks and ESG reporting. PATRIZIA aims to roll out the contract, which is harmonized on a pan-European level across all asset classes, at the start of next year.
According to the new sustainability clauses, a contractor must ensure that a property complies with a range of environmental specifications. These include the use of energy-saving lamps, ecologically safe cleaning products, and environmentally friendly materials for maintenance and repairs.
"We’re at the front of the line. Many other companies are struggling with ESG data and sustainability clauses."
Jörg Müller, Head of Asset Management ESG, PATRIZIA
The move will enable PATRIZIA to report, benchmark and hopefully optimise all of its necessary ESG data and introduce a co-ordinated approach to measuring, improving, sharing, and learning about sustainability as part of its objective to become a driver for change in the industry, says Jörg Müller, Head of Asset Management ESG.
“It’s important to gather the data on ESG – we need to report it, and nobody has known this data on a property level, until now. If you can’t measure it, you can’t manage it, so by building up a file on ESG and reporting on ESG, we’ve handled a difficult issue.”
Müller sees other benefits from the harmonized contracts for the leading global partner for pan-European real estate investment, including increased efficiency for the company and its clients, and reassurance for investors, who are increasingly concerned about ESG. “This makes us efficient, clear and reliable for our partners.”
Moreover, it places PATRIZIA ahead of its competitors, who are also keen to develop uniform ESG standards. “We’re at the front of the line. Many other companies are struggling with ESG data and sustainability clauses but aren’t ahead like we are now,” explains Müller.
PATRIZIA’s contract will now provide the basis for a market standard for those companies who belong to the so-called “Bambi German Circle of Real Estate.”
- by Lois Hoyal