Sustainability-related disclosures

We are committed to responsible investment

As an asset manager with over 40 years of experience in the real estate sector, the HANNOVER LEASING Group is guided by the United Nations Principles for Responsible Investment (UNPRI¹):

"Responsible investing is an approach to investing that aims to incorporate environmental, social and governance (ESG) factors into investment decisions in order to achieve better risk management and sustainable, long-term returns."

Sustainable and profitable business relationships are a key component of the HANNOVER LEASING Group's success. The Group fulfills its responsibility towards the environment, society, all stakeholders and employees through a long-term, clearly defined ESG strategy that is not only anchored in operations but also integrated into the investment cycle.

In dialog with investors, HL will ensure compliance with high standards of ESG management, including through: 

• The performance of ESG due diligence reviews for new acquisitions.
• The formalization of ESG action plans for assets under management. This includes the analysis of the technical conditions of the buildings and the preparation of a long-term modernization plan (technical and financial) in order to achieve the climate targets.
• The consideration of ESG criteria in new construction or modernization measures.
• Regular reporting(s) on the ESG performance of the respective properties or portfolios.

This is intended to promote responsible investing in cooperation with investors. In line with political requirements, the overarching goal is to achieve climate neutrality for the assets managed by 2050.

The ESG due diligence process for new real estate acquisitions was established in 2022. As part of this due diligence process, physical climate risks from extreme weather events and transition risks are determined by external partners for each new acquisition. In this way, the compatibility of a building's performance in various scenarios with the EU's Green Deal target, i.e. achieving _{carbon neutrality} by 2050 at the latest, is analysed . In addition to the assessment of new acquisitions, regular ESG due diligence reviews are also carried out for existing assets - if requested by investors - in order to prioritize any necessary improvements and modernizations.

The overarching ESG investment strategy is based on the EU regulatory standards for sustainable products, including the Sustainable Financial Disclosure Regulation (SFDR) and the EU taxonomy. This enabled the third AIF to be launched in 2022 that complies with the requirements of Article 8 SFDR. The ESG investment strategy is reviewed at certain intervals.

The HANNOVER LEASING Group maintains a corporate organization that functionally supports the consideration of sustainability risks and compliance with the processes.

Employees are a key factor in achieving the ESG goals that have been set. Almost every department is entrusted with ESG issues. Employees therefore receive regular training in this area.

Responsibility for the business and risk strategy, including with regard to sustainability risks, lies with the HANNOVER LEASING Management Board. The Management Board is supported by Risk Management and the Compliance department with regard to sustainability risks.

¹ UN Principles for Responsible Investment