Environmental, Social & Governance
We aspire to be South Africa’s leading REIT and are driven by our purpose of unlocking the potential of space.
Living in, not off, society
ESG is a core strategic priority for the Fund. Our objective is to create financial and social value that positively impacts our planet, acts as an enabler of ESG within our tenants’ businesses and improves the lives of the communities in which we operate.
Aligning with global goals
We want to lead in delivering sustainable value to our stakeholders. We’ve therefore aligned with the United Nation’s Sustainable Development Goals (SDGs). Moreover, we’ve developed roadmaps with ambitious targets to ensure we can tangibly report on our progress.
The Fund achieved a milestone for the REIT sector by becoming the first REIT to issue an unsecured sustainability-linked bond.
This issuance speaks to the underlying synergies within our assets and their alignment with the broader ESG priorities entrenched in the Fund.
Aligning with global goals
We focused on identifying those areas, or goals, where we can make the most significant impact through our daily activities. The goals identified will serve as a guide in prioritising our resources and commitments to maximise our impact in creating sustainable value for all our stakeholders.
Our primary SDGs, listed below, are those most relevant to our business – taking into account broader industry considerations and the unique contexts of the regions in which we invest.
The Fund will align with the following SDGs and commits to showing progress in our contribution to these goals.
Through these endeavours, we will achieve tangible value for our stakeholders
In April 2021, IPF became the first South African REIT to issue a sustainability-linked bond. This was a milestone event for the sector. The issuance of the note reflects the Fund’s direct commitment to ESG principles.
The three-year issuance raised R800 million of unsecured bonds in a widely subscribed offer at a competitive coupon rate (3m JIBAR + 190bps), providing an opportunity to reduce the percentage of encumbered assets on the balance sheet. Furthermore, in line with the bond’s green credentials, the Fund will benefit from a reduction in the coupon of 10 basis points from its initial margin. This benefit will be realised when certain pre-agreed performance objectives, linked to the rollout of green building and renewable energy targets, are achieved by 30 June 2022.
Our sustainability-linked bond demonstrates the Fund’s commitment to ESG principles and our efforts to promote good corporate citizenship.
Environmental stewardship is one of our critical focus areas. Good progress has been made to date in achieving renewable energy targets and investing in green buildings. In addition, we’ve committed to measuring our performance against defined targets and actively seeking to reduce the Fund’s environmental footprint.
In line with our Environmental Policy and Climate Change Statement we are committed to:
An assessment of our climate-related risks and opportunities is also underway, in line with the recommendations of the Task Force on Climate-related Financial Disclosures.
Moving forward, there will be a heightened focus on working with tenants in both South Africa and Europe to align with the Fund’s ESG goals.
Our properties are embedded in communities. We recognise that inclusive economic growth and societal transformation are vital in supporting the Fund's sustainability and delivering value for all our stakeholders.
Our commitment to our people
Our people have always been at the heart of our business. However, supporting those who serve the Fund has received heightened focus in the current context. We have continually adjusted our approach in responding to the needs emerging from the pandemic.
Investing in long-term partnerships
Our purpose is to unlock the potential of space. We work together with our stakeholders to create positive change, aligning our efforts across the portfolio to focus on sustainability and building long-term partnerships.
Our approach to transformation includes a focus on supplier and enterprise development, procurement, and economic and socioeconomic development.
We recognise that sound corporate governance is as essential in creating value as it is in protecting against value erosion.
Together, the Board and its committees are responsible for assessing and managing risk and ensuring that appropriate risk management policies and procedures are in place. Operating in terms of a formal Board Charter, the Board’s primary objective is to secure the Fund’s long-term sustainability, growth and profitability.