Dramatic events that interrupt the smooth flow of history always generate change, and are also opportunities to speed up the rate of evolution. The pandemic followed by the global effects of the war between Russia and Ukraine has sharply interrupted a period of widespread prosperity, supported by particularly favourable macroeconomic conditions. The benefits of globalisation have been apparent for decades, but in this historic period its fragility has also been revealed, and a revaluation of cultural and economic models has become necessary.
Care for the environment and the community as a precondition for collective survival is a priority which, as we now see even more clearly, can no longer be postponed, and is a key structural factor in economic and financial performance. With a sense of responsibility and a passion for making a positive contribution to a balance between our species and nature and between people, we intend to drive our organisation firmly in this direction. We are well aware that, like every transformation, this one will require major efforts, and we know that innovating also means sometimes getting things wrong, but with humility and determination, we are pursuing this path unhesitatingly. 2021 was a year where we achieved major milestones and established solid foundations for building COIMA’s future, although we know we still have far to go to reach the goals we set ourselves, to evolve into an impact corporation with first and foremost a substantial approach, measurable goals and a culture and expertise shared by every member of our team.
During 2021, all COIMA SGR and COIMA REM shareholders agreed on consolidating a greater degree of alignment by creating the COIMA group, through the transfer of their respective stakes to COIMA Holding. As well as rationalising the corporate structure, this change is fundamental for the integration of all the organisation’s financial and technical competences and for building a close-knit team for the achievement of the company’s objectives and the development of a unified ESG approach. The over 200 professionals grouped together with a common identity and shared planning are the competitive factor to which our business plan is anchored. 2021 saw major regulatory changes, with the coming into force of the “Sustainable Finance Disclosure Regulation” (SFDR), addressed to financial market participants, and the “EU Taxonomy”, which establishes the framework for the identification of sustainable economic activities.
These new directives have required market players to implement rules on the sale of financial products with environmental and/or social sustainability goals and increase the transparency and market comparability of financial products in the market. During the last financial year, COIMA promptly moved into line with the regulatory requirements of the SFDR, and especially with Art. 4 of the Regulation, by deciding to adopt the “comply” approach to the consideration of the adverse impacts of its investment decisions on sustainability factors, and it published its “Policy for the Integration of Sustainability Risk into Investment Processes”.
It also formally defined the status of the Sustainable Innovation Committee, founded in 2016, by completing its integration into the corporate model, reviewing its processes and adding procedures to improve the monitoring and disclosure of ESG topics. We are continuing the evolution of our organisation at the governance and management level, especially with reference to ESG, technology and digitalization skills.
We have set ourselves the goals, by 2030, of aligning 100% of our portfolio with the decarbonization objectives set at EU level, continuing the adoption of LEED® and WELL® certifications with the activation of major community management projects in our district-scale urban developments, proposing innovative public-private partnerships such as that established at the BAM (Biblioteca degli Alberi Milano) park in Porta Nuova, and manage just funds under art. 8 or 9 of the SFDR. Our COIMA ESG City Impact Fund, which invests in urban regeneration projects, promotes environmental and social sustainability characteristics (in accordance with art. 8, SFDR) and at the end of 2021 it had attracted almost 500 mln€ of capital from Italian institutional investors, confirming the strong interest in sustainable real estate investments. This Fund aims to promote the sustainable redevelopment of the existing building stock and the territory, the creation of closeknit, resilient communities, health and wellbeing in buildings and the community, and culture and education.
In fact, our ambition is to create a positive impact on the environment and the community while simultaneously generating market-rate economic returns for our investors. Impressive results were achieved in the GRESB (Global Real Estate Sustainability Benchmark) Rating, as the COIMA Opportunity Fund II (95/100) and Porta Nuova Garibaldi (83/100) funds were positioned amongst Europe’s best Real Estate Funds. We have launched the marketing of the first three real estate Alternative Investment Funds (AIF) under Art. 8 SFDR: COIMA ESG City Impact Fund, COIMA Lampugnano Regeneration Fund and COIMA Evergreen, the first two already operational and the third currently raising capital. More than 80% of the managed real estate portfolio is certified or pre-certified under the LEED® (Leadership in Energy and Environmental Design) certification scheme, and a decarbonisation plan has been drawn up for over 50% of the portfolio.
This report’s environmental data reporting boundaries have been further extended to include both Funds’ direct emissions (Scopes 1 and 2) and emissions deriving from tenants’ energy use (Scope 3), so that 70% of GAV is now within the boundaries. Some managed portfolio environmental data are particularly significant: the marginal use of fossil fuels, which account for only 2% of total emissions, and the use of 64% renewable electricity.
To conclude, looking to the future we are convinced that structural change is underway in both economic and social terms, and that the companies best able to respond to these changes through innovation and sustainability will be able to strengthen their corporate culture and their market position. During 2022, we are reviewing our Sustainability Policy, with our long-term goals even more closely focused, and with the creation of a “Transition to Impact” plan identifying the tools, actions and responsibilities for every action needed to achieve them through ongoing planning.
We are pursuing this path with passion and determination, and this report is an opportunity for sharing, engaging and also listening along the way.
Enjoy.
Manfredi Catella
Founder &CEO
COIMA