ESG Questionnaire

General:

How does your ESG approach differ from that of other fund providers?

We invest in real estate, which creates long term value. Our investment philosophy implies that we must conduct a thorough analysis of all ESG factors as part of our investment decision-making. We believe that properties that exemplify sustainable development will gain a competitive advantage over time.

You are committed to sustainable value creation, but how exactly do you differentiate yourself from other fund providers, and is not everyone promoting a focus on sustainability these days?

Our investment strategy is to invest in already existing buildings, and through early identification and certification (BREEAM in- use) we will set goals to improve the building and achieve a better level of sustainability using the measures through the BREEAM classification for all our investments. We are not focused on buying new green buildings, as we strongly believe that the most sustainable buildings are the ones that are already built and that we should focus on maintaining and improving these buildings.

We also donate 5% of our annual net profit to organizations that contribute to the UN Sustainability Developments Goals and thus make a direct contribution to society.

Do you do anything else in the area of ESG that goes beyond the minimum required?

We do not view ESG only as a formal requirement that we must meet to check a box with our clients. At REQ Alternative Investments, ESG is a natural consequence of our investment strategy, as we place great emphasis on sustainable growth in our investments. Sustainability is growth and we will not settle for minimum criteria in our investments. We will also donate 5% of our annual net profit to organizations that contribute to the UN Sustainability Developments Goals

ESG reporting:

Do you use third party data to assess your ESG score?

We will report through GRESB, the world’s leading sustainability assessment method for buildings, when our portfolio is established.

Will you publish a separate ESG report on your investments?

We will report on all relevant ESG data as required by the EU taxonomy regulations.

With your ESG focus, why don’t you provide an Article 9 fund (dark green) according to Sustainable Finance Disclosure Regulation (SFDR)?

Article 9 funds according to SFDR require that the fund has “…sustainable investment as its objective or a reduction in carbon emission as its objective...” we believe in adopting a commonsense approach and taking care of and improving existing buildings to make them last longer and contributing to a more sustainable real estate industry.

Real Estate specific:

How are climate change related risks incorporated into your investment process and engagements?

As part of the investment analysis, the assessment of climate change, including the risk of flooding, wind, landslides, etc. climate change considerations are an important part of the framework that REQ AI will follow, as “Miljøfyrtårn" and as a part of the UN Sustainable Development Goals.

How does your organisation include ESG issues in your selection of third-party property managers, and how those managers contribute to managing ESG issues in your real estate investments?

ISS has been chosen as property and facility manager. As a global actor with a leading market position, focusing on «people, places and planet» we found our preferred property manager. Through ISSs “Green Management” the building's technical facilities are connected to the ISS Eco Centre central which monitor, report, and support for operational operations.

At which BREEAM- level will the properties in the fund’s properties be required to be at?

We will not set a requirement for BREEAM level when we enter a project/ investment, but we will, based on property level analysis and actions, make improvements during our investment period to make the property more sustainable.

ESG integration in investment decisions:

How do you integrate ESG in your investment decisions?

Before any investment, we conduct a thorough analysis of a predefined set of ESG criteria. This is part of our investment analysis. The ESG analysis is the same for all investments.

REQ Contribution:

What types of organizations will REQ Capital support with 5%?

The first organization we support through REQ Contribution is the Norwegian non-profit organization EAT. EAT works to transform our global food system, and connects partners with organizations across science, policy, business, and civil society to achieve five urgent and radical transformations by 2050.

How do you ensure that these organizations contribute to the UN sustainability goals?

On a regular basis we have meetings with management of EAT to get insight into the activities of EAT and how these activities contribute to the UN sustainability goals. EAT will challenge us on our sustainable investment policy and help us understand ESG-risks in our portfolios better.