Emission reduction on real estate is a key element of ESG work by OP real estate funds, and by OP Real Estate Asset Management which manages clients’ direct real estate investments. OP Real Estate Asset Management’s goals are carbon neutral energy use by 2030 and carbon neutral construction by 2050.
In addition, OP Real Estate Asset Management has joined the Net Zero Asset Managers Initiative. The company engaged in Global Real Estate Sustainability Benchmark reporting for the first time in 2021.
- ESG work is the new normal in real estate investment. Among other measures, we have drawn up a carbon neutral roadmap, a summary of concrete steps towards achieving our carbon neutrality goals, says Markku Mäkiaho, Managing Director of OP Real Estate Asset Management.
Our long-term emission-reduction work shows, for example, in the record amount of renewable energy generated on properties held by OP Real Estate Asset Management. In 2021, 25 of them used geothermal heating plants, while 40 generated solar energy.
OP Real Estate Asset Management also promotes emission reduction in construction — favouring wood as a building material is one means of achieving this. Our building stock includes 42 wooden buildings, such as daycare centres, care homes and residential apartment buildings.
EU regulations are playing a growing role in ESG work associated with asset management. OP Real Estate Asset Management has classified most of its funds directly investing in real estate as Article 8 and Article 9 investment products (under the Sustainable Finance Disclosure Regulation): so-called light green and dark green funds.