Premico AIFM Ltd (the “Company”) is an alternative investment fund manager in accordance with the Act on Alternative Investment Fund Managers (162/2014), holding an alternative investment fund manager license granted by the Finnish Financial Supervisory Authority.
Integration of sustainability risks in investment decision-making
The Company takes sustainability risks into account as part of the investment decision-making process when managing alternative investment funds investing in real estate. A sustainability risk refers to an environmental, social, or governance (ESG) event or condition that, if it occurs, could have a negative impact on the value of an investment.
The assessment of sustainability risks is integrated into investment analysis and the due diligence process of the investment. The assessment considers, among other things:
- Energy efficiency and carbon footprint (energy consumption of buildings, energy class, and opportunities for improving energy efficiency)
- Sustainability of building materials and maintenance (life cycle, recyclability, and responsibility of materials used, as well as the technical condition of the building and future repair needs)
- Water efficiency and waste management (management of property water consumption, leak risks, water-saving measures, as well as the efficiency and sorting capacity of waste management)
- Impact on biodiversity (e.g., construction on green areas or proximity to protected areas)
- Social and governance factors (consideration of working conditions and occupational safety during construction and maintenance, tenant treatment, accessibility, governance practices, and transparency)
- Readiness to utilize renewable energy (e.g., solar panels), smart energy management systems.
External data sources such as energy certificates, environmental certifications, and consumption data are used to assess sustainability factors. The evaluation is also conducted in cooperation with technical experts.
Taking sustainability risks into account supports long-term value preservation and risk management but does not eliminate the possibility that events related to sustainability factors could negatively affect investment value.
No consideration of adverse impacts of investment decisions on sustainability factors
The Company does not consider the possible principal adverse impacts of its investment decisions on sustainability factors, as the funds it manages were established before the regulation came into effect, and it is not possible to retrospectively change the funds’ investment strategies.
Our goal is to consider the possible principal adverse impacts of investment decisions on sustainability factors in accordance with the Sustainable Finance Disclosure Regulation (SFDR) for any funds that may be established in the future.
Remuneration policy
The promotion of sustainability matters is one of the objectives of the Company’s remuneration policy, and sustainability risks are also taken into account in remuneration. In the Company’s employee remuneration models, fulfillment of set sustainability objectives is one of the qualitative criteria for variable remuneration and is evaluated as part of the employee’s personal performance. The Company’s remuneration principles do not encourage excessive risk-taking in relation to sustainability risks and are based on performance appropriate to the level of risk. Under no circumstances do the remuneration principles promote greenwashing.