ESG commitments

Good governance is key to managing business risks and opportunities, whether ESG-related or otherwise. As a result, we have robust structures and processes in place, as outlined in this section.

Sustainability is a key priority for us and is incorporated into everything we do. Our Director of Sustainability, Neil Menzies, is a member of the Senior Management Team, reporting to the Sustainability Committee and the Board. He is responsible for the Sustainability Team that oversees delivery of our sustainability targets and ambitions across the business, with input and support as required from other team members.

Sustainability Governance Framework

Sustainability Statement of Intent

  • Become a net zero carbon and climate-resilient business by 2030
  • Provide spaces that prioritise the environment
  • Create long-term positive social impact through our operations
  • Sustainability Policy
  • Net Zero Carbon Pathway
  • Sustainable Development Brief
  • Supplier Code of Conduct
  • Community Engagement Charter
  • ISO 14001 Environmental Management System
  • ISO 45001 Occupational Health and Safety System
  • WELL Health-Safety Rating
  • LEED/WELL certification

Ongoing

  • Sustainability performance dashboard
  • Realtime monitoring system
  • Occupier meetings

Monthly

  • Building Managers meeting on energy performance

Quarterly

  • Sustainability Committee
  • Executive Committees
  • Energy performance reports
  • Occupier sustainability newsletters
  • Occupier sustainability working groups

Annually

  • Sustainability Report
  • ISO audits
  • ESG reporting
  • Occupier surveys
  • Employee surveys

The Board

The Board has ultimate oversight of all aspects of the business, including sustainability and risk management. The Board’s role is to ensure the long-term sustainable success of the Group for the benefit of all stakeholders.

The Board delegates certain sustainability oversight matters to its
Executive Committees

The Chief Executive and Senior Management Team

Responsibility for the development and implementation of the
Group’s strategy.

Executive Committees

Sustainability Committee

Chaired by the Chief Executive and responsible for the day-to-day oversight of sustainability and climate-related issues. Reports to the Board periodically, at least every quarter.

Risk & compliance Commitee

Responsible for all risk oversight. Comprises the Chief Executive, the rest of the Senior Management Team, the Director of Sustainability and the Risk Manager.

Investment Committee

Considers the sustainability credentials of acquisitions, disposals and valuations.

Development Committee

Reviews net zero carbon credentials of new developments as well as other sustainability requirements.

Asset Management Committee

Reviews energy, water and waste performance as well as sustainability improvements of existing assets.

Finance Committee

Considers financing of energy improvement initiatives and certain ESG reporting requirements as well as the carbon reduction fund.

Climate-related risks

As a signatory to the Better Building Partnership's Climate Commitment, the following definitions underpin how we think about climate related governance, strategy, risk management, metrics and targets:
1. Mitigate the worst impacts of climate change by becoming 'net zero' carbon before 2050
2. Adapt to operating in a world in which climate-driven disruption is more frequent and severe
3. Disclose climate related information to investors, regulators and other stakeholders in a useful and timely way
In addition to reporting to industry benchmarks such as GRESB and CDP, we are committed to aligning with the recommendations of the TCFD, providing stakeholders with transparent information on our climate-related risks and opportunities. We strive to understand and assess our climate related risks and opportunities, and using tools including a scenario analysis exercise, built a clear picture of what is needed to establish long-term resilience in our business strategy. 

Short term: 2020-2029

Market demand shifts

Demand within the market and among our occupiers for low carbon, climate resilient assets could lead to a green premium for high-performing assets or, conversely, a brown discount for assets that do not meet contemporary standards. Shifts in market dynamics could also create difficulties for our occupiers.

  • Impacts on asset valuations and rental values
  • Increased cost of financial capital
  • Occupier default risk

Energy transition

As the shift away from fossil fuels to renewable energy accelerates, and uptake and demand for low-carbon technologies increase, energy inefficient or fossil fuel-powered assets could fall into underperformance. Carbon taxation and increased energy demand could increase assets’ operating costs.

  • Increased cost of energy; costs of carbon taxation
  • Impacts on asset values and rental values for inefficient assets
  • Potential to miss opportunities to harness government subsidy mechanisms

Regulation and policy

To meet its 2050 net zero carbon target, and to begin embedding climate adaptation into the economy, we expect the Irish Government to enhance climate policy in the coming years, partly by targeting the built environment.

  • Fines, void periods or reputational damage from non-compliance
  • Capital cost to meet new standards

Supply chain disruption

Our business and our occupiers are reliant on global supply chains. Both the decarbonisation transition and physical climate impacts could disrupt our ability to operate efficiently

  • Business interruptions; loss of income
  • Increased development costs; delayed development timelines
  • Occupier default risk

Medium term: 2030-2049

River flooding

Our assets’ Dublin locations means that river flooding could pose a risk to our assets in the medium term. This could include issues with the wider area around our assets, even if physical damage to assets is avoided.

  • Business disruption for Hibernia and occupiers; loss of income
  • Reduced asset values or stranded asset risk for at-risk assets
  • Capital costs of installing resilience measures
  • Clean-up and repair costs

Long term: 2050 and beyond

Coastal flooding

We expect the main impacts of coastal flooding to be long term, but our Dublin location, near both coast and rivers, is important for us to consider in mitigation planning.

  • Business disruption for Hibernia and occupiers; loss of income
  • Reduced asset values or stranded asset risk for at-risk assets
  • Capital costs for installing resilience measures
  • Clean-up and repair costs