LIP Invest, leading investment manager for Logistics Real Estate in Germany, improved its ESG performance in the GRESB Rating 2021
GRESB (Global Real Estate Sustainability Benchmark) is an internationally recognized rating system for measuring the sustainability performance of real estate companies as well as real estate funds. With the ratings, the sustainability of portfolios can be quantified and transparently identified and presented.
The LIP Logistics Fund I increased its GRESB score by 21 points compared to the previous year. With the total result of 71 points, the fund scored above the peer group average (consisting of Germany, Industrial: Distribution Warehouse, Non-listed, Core, Tenant Controlled). The LIP Logistics Fund II achieved a very good result of 65 points in the initial evaluation. 1,520 funds with more than 117,000 assets took part in this year’s GRESB assessment. Among the core logistics funds in Germany, the LIP funds came in second and third place with their ESG performance.
“With our Logistics Fund I, we have participated in the GRESB assessment for the second year in a row. Thanks to the results, we can clearly see in which areas our strategy leads to successful results and where there are further opportunities for improvement. In addition, the GRESB rating allows our investors to see that we are making significant progress with our measures. We are very pleased with the good performance of our funds”, summarizes Natalie Weber, Authorized Signatory and Head of Fund Management at LIP Invest.
The LIP funds have been recognized as Green Stars and performed very well, especially in the coverage of consumption data. For example, the data coverage for energy consumption in Fund I is at 93 percent. That is foremost an expression of the close cooperation with the tenants of the logistics properties, who supply the consumption data at asset level. Regular communication with the tenants and a satisfaction survey are part of the strategy.
LIP invests exclusively in logistics properties in Germany. The investment strategy is designed for both new and existing properties. In addition to the investment strategy and objectives, the influence of risk indicators, including sustainability risks, are considered in every purchase process. As part of a quantification of the risks, the sustainability risks are also assessed and related to other purchase factors, such as the purchase price or the expected return. An ESG due diligence is carried out, which analyses criteria such as natural risks and resilience, resource efficiency or mobility and well-being.