ESG POLICY OIM

ESG POLICY

AND INTEGRATION OF SUSTAINABILITY RISKS

Updated on December 22nd 2022

Othrys Investment Management is an investment company specializing in operating real estate.

Our unique positioning and our strong expertise in our preferred markets enable us to offer alternative investment solutions targetting performances that exceeds market expectations.

Othrys Investment Management associated with the companies of the group specialized in Asset and Property Management are thus intended to set up a dynamic management on the properties under management.

Faithful to our entrepreneurial vision of the real estate investment sector, our ambition is to achieve our financial objectives, while making a positive contribution to the economic development of the territories and placing human capital at the center of our concerns.

For several years now, the real estate sector has undergone an unprecedented transformation. The analysis of environmental and social impacts is now an integral part of risk assessment. Above all, it represents an opportunity and a key success factor for creating sustainable value.

This drastic change has led us to go beyond a pragmatic approach by adopting an ESG strategy and the integration of sustainability risks.

CONSIDERATION OF ESG CRITERIA

In addition to traditional financial criteria, Othrys IM integrates environmental, social and governance criterias (ESG criterias) into its investment and management analysis and decision-making processes.

Keen to constantly improve it, Othrys is developing an ESG policy that it declines around themes and commitments such as:

Environment

Topics: GHG emissions, energy performance, water and waste management

Othrys undertakes to include the environmental criterion in its due diligence prior to investments.
Othrys is committed to minimizing the environmental impact over the entire life cycle of the buildings in its portfolio.

The social

Topics: Occupiers health and comfort, accessibility and mobility.

Othrys is committed to its employees to promote diversity and equal opportunity. Othrys aims to enhance human capital by paying particular attention to the well-being and development of its employees.
Othrys aims to offer its users an adequate working tool and a quality environment for their employees.

Governance

Topics: Business Ethics, Tenant Relations

OIM is committed to involving its users, investors and service providers in an ESG approach.
OIM undertakes to ensure transparency vis-à-vis its investors, to fight against corruption and money laundering.

Methodology and responsibility

The founding partners of Othrys IM share the conviction that a responsible investment policy is a major issue in OIM's development strategy. Arnaud Claoué and Frédéric Dimon therefore ensures direct responsibility over ESG matters.

The analysis of ESG factors is carried out by the acquisition teams of Othrys Investment Management and Othrys Asset Management in terms of management. The management company has decided to adopt a suitable method for each fund, or even for each asset.

We have decided to classify the ESG measures implemented on the funds managed by Othrys IM into two main categories:

Standard ESG measures

Funds categorized in standard ESG measures respect the ESG positions of Othrys IM listed above and consisting mainly in the respect of regulatory measures.

Reinforced ESG measures

Funds categorized under enhanced ESG measures are subject to regular actions by the management teams in order to improve the quality of their buildings taking into account ESG criteria. The regular monitoring of assets in the context of these criteria is ensured annually, at a minimum.

Membership of a charter and certification

Othrys Investment Management does not adhere to any charter, code or label on the consideration of criteria relating to the respect of social and environmental objectives and qualities of governance.

INTEGRATION OF SUSTAINABILITY RISK

Sustainability risks can affect the performance of investment funds managed by Othrys IM.

The management company therefore incorporates the potential occurrence of these sustainability risks in its investment decisions, at the level of each of the AIFs. Sustainability risks are part of the due diligence process implemented by the management company.

When assessing the sustainability risks associated with the investments of the funds managed by Othrys IM, the latter assesses the risk that the value of this investment could be materially negatively impacted by an ESG event or situation.

Within the meaning of the Disclosure Regulation, the vehicles managed by Othrys IM are classified as follows:

Article 6 : FPCI Othrys Actilog
Article 8 : OPPCI Othrys Exploitation

The documentation for the various vehicles has been supplemented, where applicable, by an appendix or a dedicated article, detailing the consideration of environmental and social characteristics in connection with their investment strategy.

Regulatory references: Decree No. 2015-1850 article 1 Article D. 533-16-1 of the Monetary and Financial Code Regulation (EU) 2019/2088 ("Disclosure" or "SFDR") Article L.533-22-1 of the Code monetary and financial.

Negative sustainability impacts

To date, Othrys IM has decided not to include the "Principal Adverse Impacts" (PAI) defined by the Secretary General of the United Nations in its investment policy. The absence of a sufficiently large panel of comparable data and sufficiently precise and stabilized regulatory texts does not currently guarantee the collection of indicators specific to taking into account the negative impacts within the meaning of the SFDR regulation.

Aware that this approach aims to help investors integrate environmental, social and governance considerations into their investment decision-making, Othrys IM is part of an approach that ultimately aims to take into account the "Principal Adverse Impacts " (PAI).

Integration of sustainability risks into the remuneration policy

Othrys IM's remuneration policy incorporates sustainability risks. In accordance with this policy, the assessments and individual objectives of Othrys IM employees must include qualitative elements related to the environmental or social characteristics of the investments and the risk in terms of sustainability of the AIFs managed (in particular compliance with the positions taken by Othrys IM in terms of ESG).