Global standards throughout
A holistic approach to ESG, means we unlock synergies that enhance long-term
value and ensure resilience in a rapidly evolving market, seizing opportunities and
managing risks across all areas.
change
uncertainty
transition
Global standards throughout
The strategy is built on globally recognised frameworks, commitments and memberships, from the manager level to the individual asset.
buildings
approach
leadership
Overcome challenges for long-term success
Integrating ESG contributes positively to society and the environment, enhances financial performance and creates long-term value for our stakeholders.
buildings
Sustainability-related disclosures
Heim is subject to the EU’s Sustainable Finance Disclosure Regulation (SFDR). The following documents provide mandatory disclosures under the SFDR. The disclosures will be updated as required by the regulation.
Principal adverse sustainability impacts
Integration of sustainability risk in investment decisions
Heim Global Investor AS (Heim) qualifies as a financial market participant under the Sustainable Finance Disclosure Regulation (2019/2088) (SFDR), and is therefore required to provide information about the policy on the integration of sustainability risks in Heim's investment decision‐making process.
In order for Heim to provide attractive returns to its investors, it is a prerequisite to identify and assess risks and opportunities related to potential investments, including sustainability-related risks and opportunities. Sustainability risk is defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. Heim deems such potential risks as material and weigh them equally to other potential material risks. Hence, Heim will seek to integrate and highlight potential sustainability risks in the investment decision-making process by requiring all new potential investments to undergo a thorough sustainability due diligence benchmarked against the sustainability strategy and standards adopted by each financial product. The sustainability performance of a potential investment will be summarized and presented to the investment committee across Heim’s three focus areas, 1) Decarbonization, 2) Affordability & Liveability and, 3) Efficient production. This will enable the investment committee to assess sustainability-related risks and opportunities and how a potential investment will affect the aggregate sustainability performance of the Fund.
The process is outlined in the Sustainable Investment Policy and is divided into five steps covering 1) screening, 2) analysis, 3) approval by the Investment Committee, 4) development & design, 5) construction. The process includes extensive sustainability checklists for new development projects and partners aiming to capture potential sustainability-related risks affecting the financial return. The checklists covers mandatory and additional sustainability measures including:
1) Environment & climate:
- CO2-emissions performance
- Energy efficiency performance
- Water efficiency
- Sourcing of renewable energy under and after construction
- On-site renewable energy production
- Charging infrastructure
- LCA assessments and environmental product declarations
- Climate risk analysis
- Circularity & waste
- Biodiversity initiatives
- Climate adaption
2) Social:
- Work environment & safety
- Supply chain risks
- Employment opportunities
- Equal rights and opportunities
- Compliance with the EU Taxonomy’s minimum social safeguards
3) Governance:
- Business Partner Principles
- Sanctions
- Anti-corruption
- Fraud and money laundering
- Whistleblowing
During ownership of an investment, Heim will monitor the implementation of the contractually agreed sustainability measures as a part of the general design and construction phases. If Heim holds operational assets, the sustainability performance of each asset will be tracked and reported. The information will be included in the fund specific annual sustainability report.
Remuneration Policy
Heim Global Investor AS’ (Heim) remuneration policy applies to all employees of Heim, while special requirements apply to senior executives, control functions, and employees with a material impact on the managed funds’ risk profile (Identified Staff). Under the policy, employees of Heim receive a base compensation and may, based on an assessment of several financial as well as non-financial criteria, receive a variable compensation. The policy promotes sound and effective risk management and does not encourage risk-taking which is inconsistent with the risk profile, the articles of association, the founding documents, the investment strategy or the sustainability strategy of the funds managed by Heim. Hence, the variable compensation will reward an employee integrating sustainability into the due diligence and investment process and as such reducing the sustainability-related risks that are considered to be a prerequisite in reaching the return targets for the funds managed by Heim.
Heim UKRF - Sustainability disclosure
SUMMARY
Heim UK Residential Fund, L.P (the Fund), managed by Heim Global Investor AS (Heim).
The Fund will invest in development of multi-family residential housing in the United Kingdom with demographics, macro and per capital economics driving residential demand, and regional residential supply shortages.
The Fund promotes environmental and social characteristics but does not have sustainable investments as its objective. The Fund promotes sustainability by including a wide range of sustainability-related aspects in the investment and due diligence process, including CO2-emissions performance, environmental product declarations, water efficiency, sourcing of renewable energy under and after construction, EV charging infrastructure, life-cycle assessments, climate risk analysis, circularity & waste, biodiversity, climate adaption, and compliance with internal labour and human rights standards. Heim has developed a sustainable building manual to ensure proper implementation and monitoring of the Fund’s sustainability objectives throughout the investment process. The social and environmental characteristics promoted by the fund will be measured based on best practice international standards, and, when relevant, the Fund will compare with known and standardised sustainability data sources. The Fund does not (or only exceptionally) invest in shares that are admitted to trading on a regulated market situated or operating within the EU, and therefore the Fund does not have an engagement policy.
NO SUSTAINABLE INVESTMENT OBJECTIVE
The Product promotes environmental or social characteristics, but does not have as its objective a sustainable investment.
ENVIRONMENTAL OR SOCIAL CHARACTERISTICS OF THE FINANCIAL PRODUCT
The Fund promotes more sustainable real estate by aiming to invest in energy efficient buildings integrating local production of renewable energy.
INVESTMENT STRATEGY
The Fund will invest in the development of multi-family residential housing in the United Kingdom with demographics, macro and per capital economics driving residential demand, and regional residential supply shortages. The Fund’s objective is to deliver attractive returns to investors, and in doing so, the Fund deems sustainability an essential criterion due to changing homeowner and tenant preferences and the value creation generated by building efficient residential homes future-proofed against high energy prices and stricter minimum sustainability requirements imposed by the UK.
The Fund will seek to invest in opportunities in which it, together with contractors, landowners, real estate developers, other partners, or alone, may gain control or actively influence the development, construction, positioning and management of the relevant real estate assets or businesses. To that end, the Fund will typically look to achieve at least, directly or indirectly, 25% ownership in each investment. Consequently, the Fund will have influence over governance structure, transparency and reporting. When possible, the Fund will implement Heim’s governance practices for its investments, including a board pack and a compliance program.
PROPORTION OF INVESTMENTS
All investments are expected to be aligned with the sustainability characteristics promoted by the Fund.
MONITORING OF SUSTAINABLE INVESTMENT OBJECTIVE
The environmental objectives and sustainability indicators of the Fund are monitored throughout the investment process and construction process based on the Fund’s sustainable building manual defining the criteria for investments to comply with the sustainability objectives of the Fund. The findings in the due diligence will be included in the investment proposal and in the construction process findings will be followed up by the investment team, asset management team, management, or development partner as applicable.
The Fund’s ESG Committee will convene every other month to review the investment portfolio and compliance with the sustainable investment objective.
METHODOLOGIES
Various methodologies will be used to measure how the social and environmental characteristics promoted by the Fund are met. The Fund does not commit to make any investments which qualify as environmentally sustainable under the EU Taxonomy. However, the Taxonomy's technical screening criteria defining how the construction of a new building substantially contributes to the mitigation of climate change and/or climate adaption will be used as a tool to measure the Fund's promotion of the social and environmental characteristic, including the Do No Significant Harm criteria outlined in the EU Taxonomy.
DATA SOURCES AND PROCESSING
A) Depending on the maturity of the investment, data will be provided by a potential development partner in combination with validated data from an independent engineering and consultancy company. If the Fund develops new brownfield projects, the environmental or social characteristics promoted by the Fund, will be implemented in the design phase and validated by an independent engineering and consultancy company.
B) Data will be based on known and standardised sustainability definitions such as the energy performance label of an asset, environmental product declarations, lifecycle assessments and water usage. Furthermore, the Fund will, when possible, certify all assets according to Homes Quality Mark and BREEAM In-use, and document alignment with the promoted sustainability characteristics.
C) Data will be processed in-house and in collaboration with independent engineering and management consultants where applicable.
D) The Fund expects only a minor proportion of data will need to be estimated such as lifetime assessments. However, all estimations will be based on best practice standards and where possible, based on UK standards.
LIMITATION TO METHODOLOGIES AND DATA
No material limitations are expected.
DUE DILIGENCE
The due diligence carried out for each potential investment will include sustainability due diligence. The sustainability due diligence is based on the focus areas outlined in the Fund’s Sustainable Investment Policy.
As part of the commercial and confirmatory due diligence, the investment team in collaboration with independent engineering and management consultants will validate if a potential investment and the development partner(s) comply with the sustainability characteristics promoted by the Fund. The assessment and findings will be included in the investment proposal to the Fund’s investment committee.
ENGAGEMENT POLICIES
The Fund will not (or only exceptionally) invest in shares that are admitted to trading on a regulated market situated or operating within the EU, and therefore the Fund does not have an engagement policy. However, the Fund, will monitor and track all investments to ensure alignment with the sustainability characteristics it promotes. The Fund will carry out onsite inspections and if there is reason to believe an investment or partner does not comply with the agreed sustainability measures, the Fund will engage to ensure compliance.
DESIGNATED REFERENCE BENCHMARK
The Fund will not use a reference benchmark.
Heim UKRF - Transparency of the promotion of environmental or social characteristics
Heim ERDF - Sustainability disclosure
SUMMARY
Financial product: Heim European Residential Development Fund (the Fund), managed by Heim Global Investor AS (Heim).
The Fund will invest in development of multi-family residential housing in Northern-European countries with demographics, macro and per capita economics driving residential demand, and regional residential supply shortages.
The Fund promotes environmental and social characteristics but does not have sustainable investments as its objective. The Fund promotes sustainability by including a wide range of sustainability-related aspects in the investment and due diligence process, including CO2-emissions performance, environmental product declarations, water efficiency, sourcing of renewable energy under and after construction, charging infrastructure, life-cycle assessments, climate risk analysis,
circularity & waste, biodiversity, climate adaption, and compliance with internal labour and human rights standards. Heim has developed a sustainable building manual to ensure proper implementation and monitoring of the Fund’s sustainability objectives throughout the investment process. The social and environmental characteristics promoted by the fund will be measured based on best practice international standards, and, when relevant, the Fund will compare with known and standardised sustainability data sources. The Fund does not (or only exceptionally) invest in shares that are admitted to trading on a regulated market situated or operating within the EU, and therefore the Fund does not have an engagement policy.
NO SUSTAINABLE INVESTMENT OBJECTIVE
The product promotes environmental or social characteristics, but does not have as its objective a sustainable investment.
ENVIRONMENTAL OR SOCIAL CHARACTERISTICS OF THE FINANCIAL PRODUCT
The Fund promotes more sustainable real estate by aiming to invest in energy efficient buildings integrating local production of renewable energy.
INVESTMENT STRATEGY
The Fund will invest in the development of multi-family residential housing in Northern-European countries with demographics, macro and per capita economics driving residential demand, and regional residential supply shortages. The Fund’s objective is to deliver attractive returns to investors, and in doing so, the Fund deems sustainability an essential criterion due to changing homeowner and tenant preferences and the value creation generated by building efficient residential homes future- proofed against high energy prices and stricter minimum sustainability requirements imposed by the EU and the countries targeted by the Fund.
The Fund will seek to invest in opportunities in which it, alone or together with contractors, landowners, real estate developers, or other partners, controls or actively influences the development, construction, positioning and management of the relevant real estate assets or businesses. To that end, the Fund will typically look to achieve at least, directly or indirectly, 25% ownership in each investment. Consequently, the Fund will have influence over governance structure, transparency and reporting. The Fund will implement Heim’s governance practices for its investments.
PROPORTION OF INVESTMENTS
All investments are expected to be aligned with the sustainability characteristics promoted by the Fund.
MONITORING OF SUSTAINABLE INVESTMENT OBJECTIVE
The environmental objectives and sustainability indicators of the Fund are monitored throughout the investment process and construction process based on Heim’s sustainable building manual defining the criteria for investments to comply with the sustainability objectives of the Fund. The findings in the due diligence will be included in the investment proposal and in the construction process findings will be followed up by the investment team, asset management team, management, or development partner as applicable.
Heim’s ESG Committee will convene each quarter to review the investment portfolio and compliance with the sustainable investment objective.
METHODOLOGIES
Various methodologies will be used to measure how the social and environmental characteristics promoted by the Fund are met. The Fund does not commit to make any investments which qualify as environmentally sustainable under the EU Taxonomy. However, the Taxonomy's technical screening criteria defining how the construction of a new building substantially contributes to the mitigation of climate change and/or climate adaption will be used as a tool to measure the Fund's promotion of the social and environmental characteristic, including the Do No Significant Harm criteria outlined in the Taxonomy.
DATA SOURCES AND PROCESSING
A) Depending on the maturity of the investment, data will be provided by a potential development partner in combination with validated data from an independent engineering and consultancy company. If the Fund develops new brownfield projects, the environmental or social characteristics promoted by the Fund, will be implemented in the design phase and validated by an independent engineering and consultancy company.
B) Data will be based on known and standardised sustainability definitions such as the energy performance label of an asset, environmental product declarations, lifecycle assessments and water usage. Furthermore, the Fund will, when possible, certify all assets according to independent national certification schemes, and document alignment with the promoted sustainability characteristics.
C) Data will be processed in-house and in collaboration with independent engineering and management consultants where applicable.
D) The Fund expects only a minor proportion of data will need to be estimated such as lifetime assessments. However, all estimations will be based on best practice standards and where possible, based on national standards.
LIMITATION TO METHODOLOGIES AND DATA
No material limitations are expected.
DUE DILIGENCE
The due diligence carried out for each potential investment will include sustainability due diligence. The sustainability due diligence is based on the focus areas outlined in Heim’s Sustainable Investment Policy.
As part of the commercial and confirmatory due diligence, the investment team and asset management team in collaboration with independent consultants will validate if a potential investment and the development partner(s) comply with the sustainability characteristics promoted by the Fund. The assessment and findings will be included in the investment proposal to Heim’s investment committee.
ENGAGEMENT POLICIES
The Fund will not (or only exceptionally) invest in shares that are admitted to trading on a regulated market situated or operating within the EU, and therefore the Fund does not have an engagement policy. However, the Fund, will monitor and track all investments to ensure alignment with the sustainability characteristics it promotes. The Fund will carry out onsite inspections and if there is reason to believe an investment or partner does not comply with the agreed sustainability measures, the Fund will engage to ensure compliance.
DESIGNATED REFERENCE BENCHMARK
The Fund will not use a reference benchmark.