Longevity Partners’ Transaction experts assist clients in acquisitions and disposals, both for asset-level and portfolio deals. Our teams can assist you in ensuring ESG matters are screened against your fund’s ESG strategy, hence quantifying risk against SFDR, Taxonomy, Net-Zero or climate alignment, amongst other. During a disposal, our team can help maximise ESG credentials and reduce exposure to repricing.
What is Sustainability Due Diligence?
Sustainability Due Diligence refers to the process of identifying, evaluating, and managing actual and potential ESG risks of a portfolio or individual asset. The approach taken to ESG risk can affect a portfolio’s long-term valuation and is therefore a key consideration during acquisition, asset management and disposal.
Why engage in Sustainability Due Diligence?
With today’s rapidly evolving regulatory landscape and the increasing attention placed on sustainability by investors and developers alike, performing sustainability due diligence can ensure assets remain ahead of policy and investor demands.
Our team can deliver Sustainability Due Diligence reports to give you the knowledge needed for making ESG-aligned and future-proofed decisions.
How does Sustainability Due Diligence benefit your business?
Our due diligence reports offer two key benefits:
- Risk management:Ensure alignment to overall fund strategy and address regulatory risk. Reduce exposure to “stranded” assets, climate risk and future repricing at exit.
- Value creation:Ensure opportunities for ESG improvements are delivered through the business plan and holding period, setting basis for quality occupier and future investor targeting
A Sustainability Due Diligence report can be a useful tool at many stages of the investment timeline:
- During acquisition: Our reports can be used to flag potential ESG benefits or risks, and to build a budget to bring the asset in line with your fund’s ESG strategy
- During the operational phase: Implement the action plan and improve your asset’s ESG performance through deeper audits
- At disposal: Encourage ensurance of an explicit ESG strategy for the fund. Establish ESG progress, targets and action plans to convey future opportunity to the buyer
How can Longevity help you?
Longevity Partners’ Sustainability Due Diligence team can provide you with key services to address all your Sustainability Due Diligence needs:
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Longevity assess the building’s current environmental performance to identify opportunities to generate improvements. We use a framework based on benchmarks and standards from leading environmental agencies, including the Build Better Partnership, BREEAM, LEED, WELL, LETI, RIBA and CIBSE. We look at 13 different ESG themes, covering issues such as carbon risk, regulation, water use, and biodiversity.
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We conduct a thorough onsite investigation of the mechanical services and equipment in the building, as well as existing on-site practices, which enables a sustainability asset plan to be produced at the onset of the investment, ensuring risks are mitigated against and opportunities realised early on in the asset management process.
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We identify significant risks, which could impact negatively on the property’s value in the future. Detailed responses and recommendations are provided to guide possible improvements. We also provide capex estimation and a roadmap for all recommendations given within the report, and timelines over which spending could be expected.
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We review the extent of occupier commitment to sustainability and the opportunities to improve tenant engagement, as a means of improving tenant retention and drive rental growth.
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We assess alignment to international programmes, such as GRESB and the EU Taxonomy, and advise on current alignment as well as how to improve the performance within these schemes.
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As well as investigating the asset’s impact on the wider environment, we also assess the environmental impact on the assets. We evaluate physical climate risks and are able to model the effects of a changing climate on the building over various emissions scenarios.
Sustainability Due Diligence can be a useful tool at many stages of the investment timeline. Get in touch with our team today to find out more.
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