Environmental, Social & Governance (ESG) Policy
In the last 12 months, the Board of Urban Logistics has discussed extensively the REIT’s ESG policy, in the context of a plc that acquires, owns, develops and disposes of real estate assets, but where management of the business is entirely contracted to an external manager. Our investment focus is on ‘last mile logistics’, delivered through small to medium-sized, logistics-oriented industrial CRE. Management of the company and its assets is externalised, in the hands of PCP2 Ltd. This business model brings clarity, and also means we work in partnership with PCP2 Ltd to put suitable policies and controls in place to influence the environmental and societal impact of our assets.
Urban Logistics is committed to creating lasting value in our business. The way we consider and assess value includes:
- how we contribute to addressing the environmental challenges facing the world;
- achieving exemplary standards of governance; and
- creating financial and wider value in our business, for our shareholders and for our wider stakeholders.
In 2020, the Board formed a Steering Group to review progress in key aspects of ESG in the last five years, and to consider next steps for the business. The Steering Group noted a steady improvement in and widening of our contribution on sustainability factors, particularly in relation to our environmental impact, including in relation to:
- EPC rating Improvements
- Energy data collection and monitoring
- EPRA sustainability benchmarking
- Committing to our first Sustainable Green debt facility
- Introduction of green clauses in all new lease contracts
This review reinforced the company’s commitment to safeguarding the utility and quality of our assets by building a REIT that creates a positive impact for its investors, its occupiers, and the broader community. Our investors expect their funds to be invested in a sustainable way, to make a positive impact. Urban Logistics sees the proper consideration of environmental and social issues as core to our long-term future. To that end, the Steering Group recommended to the Board that a dedicated ESG Committee be formed to advise on strategy and targets for the Company’s approach to ESG, and to monitor and scrutinise progress against them.
Our ESG Committee, established in August 2021, will take a strategic approach, identifying and pursuing the sustainability issues where the company has optimal capacity to make a meaningful impact is being driven. In the next 12-24 months, the approach will focus on: