EU Sustainable Finance Disclosures
Article 3: Sustainability Risks in Investment Decision Making Castleforge Policy on Integrating Sustainability Risks into Investment Decision Making
As real estate investment manager, Castleforge recognises the importance of ensuring that sustainability risks are identified, assessed, and where possible and appropriate, managed and mitigated during the investment decision making process. Sustainability risks are defined as “materially negative impacts resulting from environmental, social or governance events or conditions that could cause actual or potential material negative impact on the value of the investment. These can be generated as a result of changing regulatory and stakeholder requirements in addition to physical, social, and transitional climate related issues”.
We strive to ensure sustainability risks and opportunities are understood at a corporate, fund and asset level, and throughout each stage of the ownership cycle to identify and, if appropriate, manage and mitigate, sustainability risks. As a responsible manager of real estate assets, Castleforge identifies and manages the short, mid and long-term risks associated with changing regulatory and stakeholder requirements, as well as physical, social and transitional climate change resilience related risks. Through our Building Sustainability Audit due diligence process sustainability risks are evaluated for all proposed acquisitions. This due diligence process incorporates sustainability reviews to evaluate the sustainability risks relevant to real estate. Results may lead to a decision not to progress with acquisition, progression or progression with implementation of remediation controls. Implementation of controls identified through due diligence are progressed through objectives set out within Asset Management Plans following acquisition.
Further information on Castleforge’s ESG policies can be obtained from: info@castleforge.com
Article 4: Principal adverse impacts
Castleforge believes that the incorporation of sustainability performance into both long-term strategies and day-to-day operational management has the potential to enhance risk-adjusted returns and strengthen the investment process.
Castleforge does not currently consider the principal adverse impacts of investment decisions on sustainability factors within the meaning prescribed by the EU Sustainable Finance Disclosure Regulation (2019/2088) (SFDR). However, Castleforge will give due consideration to, and conduct a thorough evaluation of, the underlying rules contained within the delayed regulatory technical standards once they are made available, to enhance future reporting requirements.
Article 5: Remuneration policies in relation to sustainability risk
Performance objectives are set out within Castleforge employee performance and development reviews and reviewed annually to consider performance of risk management for all staff members. This includes the requirement to follow sustainability policies and procedures.
Performance of overall duties (including those relating to sustainability) is used to inform remuneration decisions. However, this does not separate sustainability performance at this stage.
This policy will be reviewed annually (and more frequently if required).