Each project is conceived from the outset to incorporate environmental or social characteristics.
A. 1st axis for promoting E and S characteristics: our HAPPINESS PERFORMANCE DASHBOARD
We have developed a dashboard (HPD, Happiness Performance Dashboard) to help us monitor and track the performance of our projects in terms of environmental and societal aspects. This HPD grid consists of a series of E and/or S ambitions, which the project team selects as priority axes of work, and for which “innovative” or “above-market” solutions must be studied and implemented. Each asset thus has the opportunity to be innovative or performant on at least three of the following characteristics:
a. Environmental aspects:
i. Preserving nature and biodiversity
ii. Minimizing energy consumption and producing renewable energy
iii. Promoting efficient water management
iv. Offering access to public transportation and alternative mobility
v. Using responsible and sustainable materials and managing waste (construction and maintenance)
b. Societal aspects:
i. Preserving health (air quality, brightness, thermal and acoustic comfort)
ii. Promoting well-being (quality indoor and outdoor spaces, communities)
iii. Integrating aesthetics, heritage, culture, and education
iv. Being inclusive (functional mix, social and intergenerational mix, accessibility) and offering services and space management
It is important to note that our internal approach does not exclude any criteria; and depending on the relevance for the project in its context, priority may be given to energy, nature, culture, or inclusion. Environmental or societal dimensions are equally important, and we strive to create maximum synergies so that an innovative solution can address multiple ambitions simultaneously, in a circular logic.
B. INTERNAL LABEL (HPL)
This grid results in the labeling of each project.
C. 2nd axis for promoting E and S characteristics: PORTFOLIO-LEVEL INDICATORS
A second axis for monitoring characteristics is applied at the scale of the Duodev 2 Fund(*) as a whole. These quantifiable indicators allow for the assessment of the fund’s performance by addressing both financial materiality elements and impact materiality elements.
>>>>> SUSTAINABILITY RISKS subject to annual reporting:
- Preserving biodiversity and limiting urban sprawl by minimizing soil sealing.
- Moving towards an energy mix increasingly composed of renewable sources.
- Installing water-efficient systems in buildings to enable reasonable consumption of potable water.
- Prioritizing occupants based on social criteria:
- For residential spaces
- For commercial spaces
- Enhancing comfort and well-being of occupants through communal spaces.
- Promoting the availability of amenities near real estate assets.
- Repurposing obsolete and vacant buildings by changing their use.
>>>>> IMPACT RISKS subject to annual reporting: to control the negative impact that Duodev 2 investments may have, Principle Adverse Impact (PAI) indicators are also calculated annually.
- Exposure to fossil fuels through real estate assets.
- Exposure to inefficient energy assets.
- Biodiversity: soil sealing.
D. Another axis for promoting E and S characteristics: external certifications
Beyond Equilis’ internal process, obtaining external certifications such as Breeam, DGNB, etc., is strongly encouraged as they contribute to creating better projects and value for future occupants. We believe that these two approaches are complementary and converge towards each other.
E. INVESTMENT STRATEGY
The investment strategy focuses on different types of real estate development projects (retail, residential, office) across six (6) European countries (Belgium, France, Poland, Spain, Germany, and the Netherlands), particularly targeting the rehabilitation of obsolete sites or buildings. In addition to restructuring industrial and commercial brownfields, Equilis has primarily developed mixed-use projects. Current challenges are oriented towards multi-purpose usage and move away from the single-use of a building or operation. Equilis continues this strategy and aims to expand, restructure, renovate, or improve the performance of neglected sites or buildings to revitalize and modernize the city.
The ESG ambitions of each investment opportunity are defined at the acquisition stage of the investment by the board of directors.
At this stage, four (4) elements are taken into consideration:
- Analysis of the site’s potential on 3 levels (terrain typology/proximity to transportation modes/services nearby)
- The 3 priority E and S pillars (from the Happiness Performance Dashboard or HPD)
- The level of envisaged certification ambition (HPL)
- The targeted certifications
F. GOVERNANCE
Good governance practices are monitored throughout the development process. The strategy is reviewed and validated by the HPC (Happiness Performance Circle) at each key stage of the project (preliminary design/permit application, start of construction, and delivery). The HPD (Happiness Performance Dashboard) of a project evolves over its lifecycle; it becomes its sustainability reference and incorporates new solutions (innovative or above-market) or eliminates them based on in-depth analyses that have resulted from it.
Aesthetic as a guiding principle
Since 2013, in addition to our efforts in innovation and sustainability, Equilis has had an internal Aesthetic Committee. As the name suggests, this committee focuses on enhancing the design of projects, but not only that. By emphasizing aesthetics, Equilis aims primarily to improve the quality of its developments and provide more well-being to their occupants. At Equilis, the aesthetic aspect of projects has always been a focal point. The beauty of a place is not only pleasing to the eye but also contributes significantly to the well-being of its inhabitants and users. Factors such as brightness, outdoor layouts, and materials are, for example, elements that contribute to feeling comfortable in a place. Like most real estate developers, Equilis initially integrated the aesthetic dimension of its projects into a traditional operational process. This system worked but had some limitations, which is why the company established an Aesthetic Committee solely dedicated to this dimension in 2013. Since then, each project has been enriched in consultation with this team composed of various international managers from Equilis and Carl Mestdagh, founder and Executive Chairman.