Sustainable Investing through Real Estate Switzerland

We believe that sustainable real estate investments and long-term returns are directly related. For this reason, our corporate policy is focused on increasing the value of our investments for our investors and tenants and ensuring that our funds can continue to generate an appropriate return in the future.

Overview

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Philosophy

Real estate Switzerland is convinced that optimal performance is only possible through sustainable management in the long term whereby social, economic and environmental criteria is taken into account in our decision making.

At a time of climate change and steadily tightening regulation we see a need for strategically based sustainability management.

Based on the Brundtland definition of sustainability, we organize our activities so we already begin to think about tomorrow in the present time and consider future generations. Sustainability plays a key role in our decision making at a normative, strategic and operational level – regardless of whether in relation to the properties, the funds or the further development of the organization.

Goals / Target Matrix

With the "Adding Value through Appreciation" approach we can ensure that our funds remain profitable in the future. To do that, economic, social and environmental aspects have to form part of our decision-making process. Sustainability is a key trait of successful real estate management, and by adopting the United Nations' Sustainable Development Goals we can make a positive contribution to environment and society.

Enabling healthy lives and well-being for people of all ages

Promoting satisfaction and well-being
Analysis and consideration of the needs of our employees

Ensuring sustainable water management

Reduction of water consumption
Installation of energy- and water-efficient appliances

Ensuring access to affordable, reliable and sustainable energy

Promotion of solar power
Centralized energy purchasing
Efficiency measures

Supporting resilient infrastructure and innovation

Use of new technologies
Promotion of digital communication channels
Promotion of modern mobility concepts

Making cities resilient and sustainable

Sustainable settlement planning
Access to housing for the general population
Promotion of sustainable mobility

Ensuring sustainable consumption and production patterns

Use of existing buildings and fewer new buildings
Durable and future-oriented construction
Promotion of life cycle assessment

Tackling climate change and its impacts

Successive replacement of fossil heating systems
Reduction of embodied energy in construction projects
Resilience to climate-related risks

Protecting, restoring terrestrial ecosystems and promoting their sustainable use

Promoting near-natural environmental design to preserve biodiversity and increase the quality of life
Promotion of green spaces to reduce heat

Fostering partnerships for sustainable development

Integrating net zero into investment planning
Build networks with partners who share the same goals and values

United Nations: Sustainable Development Goals

Target matrix

The sustainable investment policy is implemented by integrating sustainability criteria into investment decisions, and in managing the properties, especially in relation to resource conservation and climate protection. An internal sustainability assessment is used as part of the process of purchasing properties and for investment properties. Criteria such as ecological quality, building structure, physical environmental risks, efficiency measures in operations and security are taken into consideration. Real Estate Switzerland has determined the following sustainability objectives (“target matrix”) for the Real Estate Fund:

CO₂ emissions (kg CO₂e/m² ERA*/year): -50% by 2030 (basis 2019)***
Energy consumption (kWh**/m² ERA/year): -30% by 2040 (basis 2019)***
Renewable energy sources (share as a % of the portfolio): at least 50% by 2040
Building labels (including energy certificates) for properties: at least 90% by 2030
Portfolio’s climate neutrality (net zero CO₂ target): 100% by 2050***
Coverage rate data: 100% by 2030***

* ERA = energy reference areas

** kWh = kilowatt hour

*** Fluctuations of up to 5% can occur for short-term transactions

Dimensions

Environmental responsibility

We protect and preserve our environment by acting in a way that is environmentally friendly. Our sustainability strategy concentrates on making careful use of resources and expanding renewable energies. We have already implemented selected projects in this area. We measure our progress using sustainability scorecards and consistent targets out to 2025.

Economic responsibility

Our sustainability is helping to make our real estate portfolio fit for the future and creating long-term value. We concentrate on good locations, optimized lifecycle costs and building structures that are in long-term demand.

Social responsibility

As a company we impinge on peoples’ lives every day: investors, contractors, tenants and employees. We are therefore particularly aware of our social responsibility.

Success stories

New construction in Zürich-Wiedikon (UBS Direct Urban)

SGNI Gold certification. The property has a PV system and a brine water heat pump as well as electric charging stations.

New construction in Nyon (UBS «Foncipars»)

UBS «Foncipars» has incorporated green elements on the flat roof and the facade of a property on Rue de la Morâche in Nyon. The property is certified according to Minergie® standard and has a PV system.

Benchmarking GRESB

GRESB is the environmental, social and governance (ESG) benchmark for real assets and provides standardized and validated ESG data to capital markets. Every year GRESB reviews participants’ energy and resource efficiency and sustainability strategy and monitoring measures. GRESB has certified the good performance of the sustainability strategy of Real Estate Switzerland, which is implemented equally by all participating real estate products.

2024 GRESB results

Since 2018, Real Estate Switzerland has published a comprehensive sustainability report every year. In addition, the individual real estate funds publish detailed fund-specific information on the topic of sustainability in their annual reports.

Sustainability