The restructuring and extension project of the 100 Avenue des Champs Elysées in Paris, mixed office-retail building part of the architecture and dynamism of the avenue des Champs Elysées for more than a century was carried out with a strong environmental ambition aiming for three certifications:
HQE BD 2016 v2: High Performance level
BREEAM IRFO 2015: Very Good level
OSMOZ: Ready to Osmoz
The 100 Avenue des Champs Elysées obtained the CircoLab - Pilot operation Label in February 2022. This process helps to reduce the carbon footprint in buildings by avoiding more than 25 tons kg CO2 eq. In addition, the project helped build a benchmark that allows reuse to be included at the heart of construction and renovation projects.
Generali Real Estate is a founding member of CircoLab.
In the Generali Green Bond, assets are included, which fulfill particular high ESG criteria, like high-level certification for newly acquired buildings (i.e. LEED Gold, BREEAM Very Good or plus), energy monitoring, optimization of energy efficiency improvement >30% for retrofitting.
NET-ZERO ASSET OWNER ALLIANCE
The Net-Zero Asset Owner Alliance was launched in September 2019 by the United Nations, since asset owners have a key role in driving the decarbonization of the economy through their investments. As a member of the Net-Zero Asset Owner Alliance, Generali is committed to gradually decarbonizing its investment portfolio in order to reach its carbon neutrality by 2050. Generali has set specific decarbonization targets for 2025 for the direct investments portfolio; for real estate in particular, on average the selected portfolio will be aligned with the decarbonization pathway of the CRREM model, to limit global warming to 1.5° C.
GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARK (GRESB)
The Global Real Estate Sustainability Benchmark (GRESB) is the leading rating system for measuring the sustainability performance of real estate companies and real estate funds. The GRESB score weighs seven different components, such as performance indicators, stakeholder engagement and management, making a significant contribution to transparency for sustainability topics in the real estate sector, covering nearly 117,000 assets globally. Using three core competencies: assessment, measurement, and benchmarking, the GRESB assessment provides real estate managers with key information and actionable insights, thanks to its unique analytical approach, allowing to compare ESG performance, identifying areas for improvement and engaging investors.
“GRESB assesses the performance of the assets, but also considers the corporate governance of the managing entity, making cross-functional collaboration essential. Thus, it is a great example of the synergies that can be achieved when different functions work together to raise the importance of sustainability in our business. By supporting GRESB and its values, we can foster our competitiveness in convincing our third-party business partners to invest in our funds.“
Olivier Terrenoire, Global Head of Asset, Property Management and Sustainable Investing at Generali Real Estate
Our tangible and measurable commitment: a five-star portfolio.
For the ninth consecutive year, the Joint Venture (JV) between Generali France (GRE) and Norges Bank Investment Management (NBIM) participated in the Global Real Estate Sustainability Benchmark (GRESB).
In 2021, thanks to the strong commitment and effort to combine responsible management, tenant welfare and carbon footprint reduction, the JV achieved a score of 89/100, ranking 1st in its Office/Retail category in Western Europe. The JV received a five stars rating, the highest possible, placing in the top 20% of GRESB's benchmark.
Generali Real Estate, in the constant view of an increasing attention to the environment, has taken an important step to measure the buildings' consumption and CO² emission in order to optimize it, lowering the operating costs and creating a better CO² footprint.
Several studies show that increasing efficiency in buildings represents the greatest opportunity to reduce greenhouse gas emissions worldwide.
Using a data analysis algorithm, i.e. HVAC systems' energy efficiency can be optimized, also leading to reduced CO² emissions.
It is with this goal in mind that Generali Real Estate has adopted one of the most up-to-date energy monitoring platforms which allows to automatically calculate and collect consumption and monitor its evolution.
More in detail, through the mapping of buildings and meters, when the availability of data is large enough, it is possible to detect anomalies and suggest action plans to improve energy performance. Through simulation and predictive technologies, it is also possible to identify potential future issues.
Sustainability assessment is an integral part of the decision-making process for new investments at Generali Real Estate since years because it allows us to ensure the portfolio increasing by doing sustainable investments.
Next to acquisitions, this in house-assessment was done to verify the potential of the existing building portfolio for future certifications. We just launched the GREsa, our new in-house sustainability assessment, which updates and enhances the former Sustainability Due Diligence (SDD) tool and is based on the most recent BREEAM in use scheme. With this easy-to-use tool, containing a questionnaire about the main criteria, such as Health and wellbeing, building energy performance and technical equipment’s, pollution exposure risks, Generali Real Estate analyses the sustainability status and the potential improvements.
In 2020 assets with a market value of € 6.6 bln were assessed, about 25% of the AUM in scope. (Desyre sources).
The six-storey building at Via Meravigli 2 in Milan has elegant forms and is known as 'Casa Broggi', as it was originally designed by the architect Luigi Broggi and opened back in 1891.
The building, strategically located close to the city centre's focal points, shopping streets and main monuments, is now characterised by extensive connections to all means of public transport and is in the vicinity of many services that favour the mobility of users on foot.
An important goal was to certify the project according to the LEED v.4 for Core and Shell standard with a final rating level of LEED GOLD.
The LEED certification rewards not only the strategic location of the building in the urban context but also the characteristics of the project site, the efficiency of the installations, the indoor air quality, as well as the careful management of the building site through the controlled management of the waste produced and the selection of sustainable materials.
The creation of the spectacular terrace on the top floor, with a view of Milan's skyline, enhances the well-being of users who can benefit from the open space and improve the quality of their stay in the building. Highly solar reflective materials have also been installed on all the terraces and almost all the roofs, which not only improve outdoor comfort but also reduce the heat island effect. The office spaces are distributed around two internal glass courtyards, which allow natural light to enter even the innermost spaces of the complex, again promoting comfort.
During the execution of the works, however, the following activities were essential:
Collection and organisation of the information and documents necessary for the achievement of Prerequisites and Credits regarding the procurement and on-site use of products and materials with EPD (Environmental Product Declaration) certification, high percentages of pre- and post-consumer recycled content, and products with low VOC (Volatile Organic Compound) content and emissions.
Continuous monitoring of the progress of activities related to the achievement of LEED “Construction” Prerequisites and Credits.
Implementation of the activities foreseen in the LEED site documents to obtain the LEED Prerequisites and Credits.
The LEED protocol has therefore allowed to certify the sustainability of the building both during the design phase and during the construction phase, reaching the GOLD target
The Malesherbes building represents one of the best evidences of Generali Real Estate strong energy optimization initiatives and commitments.
In fact, the asset has achieved nearly 30% of both energy and GHG emissions in 2020, in line with the "Décret Tertiaire" French regulatory and taken the 3rd place on the "Certified Buildings" podium of French CUBE 2020 competition.
The energy savings were mainly obtained thanks to energy improvements and well management of technical equipment’s, closely to tenant contribution.
Palazzo Berlam, one of the Generali premises in Trieste, was built in 1900s and is known as the first skyscraper of the city.
Modernist asset identifiable for its red bricks coating was the former Generali Real Estate premises until 2017 while now, after a major refurbishment lasting 3 years, it hosts the Generali Academy.
Due to the renovation works and the technical equipment the energy saving is up to 50% and it is qualified for Green Bond II 2021.
Generali Real Estate acquires the Weidt Park Corner office project from the Hamburg DWI Group.
The eleven-storey building with around 12,600 m² of rental space is the defining landmark on Otto-Weidt-Platz, the centre of Berlin's Europacity designed as a jewellery square and offers modern office space as well as restaurant and showroom space on the ground floor.
A LEED sustainability certification in the gold category is planned when completion will be done allegedly by the end of 2021.
The said certification was confirmed by GRE in house assessment which achieved the score EXCELLENT thanks to its health and well-being potential.
Generali Real Estate has completed the acquisition of a part of the prestigious Gloria retail and office building complex located in the heart of CBD City-West Berlin.
It is composed of two buildings – a historical one and a modern one - for approximately 11,000 square meters of prime high street retail units and ultra-modern office spaces.
The assets perfectly represent Generali Real Estate’s commitment to sustainability. Both buildings in the Gloria complex are characterized by high-level wellbeing standards for the occupants, with special attention to environmental aspects, such as green areas and A-rating in international energy performance standards.
They achieved the German Sustainable Building Council (DGNB) Platinum certification, as the first and only listed building in the world to achieve this top sustainability score, thanks to its sustainable and monument-friendly renovation. Besides, the Excellent sustainability score has been confirmed by Generali Real Estate’s in-house assessment tool, based on BREEAM in-Use scheme.
In 2020 GRE acquired the Spain’s largest ( 200.000 sqm) and sustainable shopping resort which is LEED Gold certified, Puerto Venecia.
Since opening, this Mall has a very strong ESG strategy with particular emphasis and governance in place on the Environmental and Social elements. In fact a specific energy optimization system is in place and PV has an “A” energy stamp as it uses 100% renewable supply. It also promotes sustainable mobility by ensuring that onsite facilities are available and sustainable transport in order to save CO2 emissions and contribute to environment: electric skate charging parking, carsharing promoting.
There is a solidarity space, free for NGOs to carry out their charitable causes and local community importance is shown by supporting suppliers which are based on our catchment area being local development key in the decision to select the supplier. In 2021 the obtaining of the BREEAM In Use certificate and the Zero Carbon Footprint stamp are ongoing.
The Tour Saint-Gobain is a development project which achieved all the four main international environmental certifications at the highest levels.
As a testimony of this environmentally centric approach, the Tour, recently completed in La Défense and hosting the new global headquarters of Saint-Gobain, has recently achieved all the four main international environmental certifications with the highest marks in the scale.
Tour Saint-Gobain is the first, and so far the only, building in France having achieved top marks in environmental recognitions: HQE Niveau “Exceptionnel” on all the four themes Environment, Comfort, Health and Energy, High Energy Performance Label Effinergie +, LEED Platinum certification and BREEAM International (New Construction) Outstanding.
These achievements are a concrete sign of the Generali commitment to actively contribute to set new sustainability benchmarks for the real estate sector and to reduce the environmental footprint of its properties portfolio across Europe.
We reduce the environmental footprint of our assets with actions that leverage
different factors across the overall real value chain
Before acquisition, each eligible asset undergoes a proprietary sustainable assessment model, called GREsa‚ measuring its sustainability performance. The results are taken into consideration in our decision-making process.
The Generali Real Estate sustainable assessment model (GREsa) defines a set of ESG measurements on key categories (Energy, Water, Materials, Land Use & Ecology, Waste, Pollution, Transport, Health & Well-being and Management) that must be carried out on an asset during the Due Diligence process In order to define and classify its sustainabllity level according to our ESG rating system.
As of Year 2021, €20+ billion AuM of Generali Real Estate portfolio has been externally certified or assessed, based on the latest available version of the BREEAM In-Use standard.
We measure the energy consumption and greenhouse gas emissions through our data analytics system and use the data to plan maintenance actions and engage with tenants to steer their environmental impact.
As part of its environmental policy, Generali Real Estate leverages an innovative software to undertake data collection and energy consumption optimization for property portfolios. Data are automatically collected and double checked against internal and external benchmarks, and the results are used to define and implement optimization strategies in conjunction with the tenant.
As of Year 2021, 2,000+ tenants are collaborating by granting Generali Real Estate access to their consumption data.
In line with the criteria required by the incoming EU taxonomy, we integrate responsible considerations into the design and specification of major refurbishments ensuring that the most appropriate level of technology and efficiency is achieved. This will mitigate climate risk through state-of-the-art upgrades and the refurbishment of assets.
Generali Real Estate executes annually >€300 million in green CAPEX (~€1 million per day) in line with the highest sustainability standards for development and refurbishment. This includes both the capital expenditure on materials in the initial build and the implementation of technology upgrades and building management systems optimization during the refurbishment and project management stages.
INVESTORS COMMITMENT: FOCUS ON CERTIFICATIONS
Generali Real Estate focuses on buying and/or developing certified buildings – including but not limited to BREEAM, LEED, HQE and DGNB - to increase the share of certified buildings in the portfolio.
All new investments must undergo a sustainability in house assessment, in order to ensure the acquisition of assets with high sustainability certifications, to increase the portfolio credentials through certification and/or assessment. For this purpose, it has been developed and implemented an own assessment tool, related to the BREEAM® In Use scheme. This provides the possibility to have a comprehensive view on ESG quality and shows a forecast on certification opportunities. The report is part of the decision-making memorandum for new acquisitions.
HOW WE MAKE ENVIRONMENTAL MATTER
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