Environmental Social Governance

The Moorfield Approach to ESG factors

Moorfield has an objective to manage performance of our investments in a way that minimises the environmental impact of both the construction and operation of our buildings whilst maximising the wider social impact our investments have, both in terms of our tenants as well as the wider community and environment. We do this with a view not to compromise financial returns and in fact we think it enhances them. We consider this to be a truly sustainable approach.

We will accomplish this by achieving the highest levels of performance in energy and water efficiency, waste management, tenant engagement, supply chain sustainability, green building certifications, materials selection and community involvement.

Our sustainability programmes incorporate Social, Governance and Environmental aspects of all our operations. In summary we commit to:

Environmental

Adopting energy efficiency, consider renewables, implement water efficiency, engage with tenants, develop waste strategies, consider certification, assess improvements including EV charging, develop biodiversity plans, enhance controls, data collection and resilience - at existing buildings.

Reducing the use of single use plastics across our business and fund investments

Incorporating innovative technologies, and green building certifications (including but not limited to BREEAM) into new developments

Engaging with industry through a variety of methods including this CSR report, direct investor disclosures and participating in GRESB. We will also aim to engage through participation at appropriate industry events

Setting appropriate environmental performance targets and reporting on progress

Social

Adopting Health & Wellbeing best practice, both at Moorfield and in the buildings we develope and manage

Establishing a mechanism for measuring social impact and managing Moorfield’s contribution to social value

Maintaining best practice in recruitment

Maintaining a coordinated approach to philanthropy and charitable giving and develop a portfolio of social impact investments

Employee engagement

Governance

Maintaining appropriate Corporate Governance Structures including our main Board, an Investment Committee, an Operational Board and an Independent Advisor Board with sub-committees to cover: - Audit and risk management - CSR - Compliance/Regulatory - Equal Opportunities - Remuneration

Further developing and communicating of our ‘Ethics Policy’ (as detailed in our 2017 report)

Maintaining of an employee Whistle-blower mechanism

Reviewing ethical sourcing of funds and investment

Ongoing Compliance with governance requirements

Our Objectives

Below, we set out progress against our objectives.

Objective

Progress

Objective

Utilise the tenant satisfaction survey to inform sustainability development

Progress

We completed a tenant survey in 2017. Results were reviewed and used to inform improvement planning.

Complete

Objective

Complete an employee satisfaction survey

Progress

This was completed in 2018. Results have been used to inform development of employee engagement programmes and internal communications

Complete

Objective

Progress supply chain management initiatives through ongoing development on sustainable procurement guidelines

Progress

Our EMS contains guidelines. Furthermore, we have completed analysis of our support chain to give confidence that we are not inadvertently supporting modern slavery

Complete

Objective

Report on charitable activities

Progress

Our report on charitable activity is included below

Complete

Objective

Maintain portfolio risk reviews

Progress

Completed in 2018. Asset level risks are reviewed periodically and further supported by analysis that is completed in preparation for GRESB submissions

Complete

Objective

Collate and report landlord controlled environmental performance on an annual basis

Progress

Complete for 2018

Complete

Objective

Participate in GRESB and improve MREF III rating

Progress

Complete and ongoing. In 2018 MREF III and MAREF participated. In 2019, we intend for MREF IV to participate for the first time (this will be completed under GRESB’s Grace period)

Complete

Objective

Consider implementation of enhanced improvement programmes at targeted assets

Progress

Complete and ongoing across various assets. Sustainability audits in place for operationally stable assets.

Complete

Objective

Produce an annual Corporate CSR Report

Progress

Complete for 2018

Complete

Objective

Review ESG requirements in agreements and contracts with our appointed Property Management teams

Progress

In 2018, we reviewed the approaches used to implement sustainability

Complete

Objective

Collate head office performance and consider opportunities for improvement

Progress

We took occupation of our new office in March 2017. We will report on progress in next year’s report – when a minimum of 24 months energy data is available

Complete

Objective

-12% Reduce like-for-like energy consumption by 12% 
on a 2016 baseline by 2020

Progress

-13% overall to date

Complete

Objective

-5% Reduce like-for-like water consumption by 5% 
on a 2016 baseline by 2020

Progress

-1% overall Water demand has seen a drop which is positive, but not on track with our target. However, our reporting mechanisms have evolved. This year 24% of the water data was estimated, due to the nature of water billing and metering across our estate. Next year, more actual data should be available

Complete

Objective

Monitor all waste performance with an objective of achieving zero waste to landfill

Progress

Where available, waste management data is reported. Information is presented within this report

Complete

Objective

Incorporate corporate level energy and environmental improvement plans to reduce direct environmental impact

Progress

On track. Updated annually

Complete