PAI Statement

PAI Statement 2023

Financial market participant - Storton Fund Management Ltd [LEI 984500999A540457B545]

Summary

Storton Fund Management Ltd [LEI 984500999A540457B545] considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is the consolidated statement on principal adverse impacts on sustainability factors of Storton Fund Management Ltd. This statement on principal adverse impacts on sustainability factors covers the reference period from 1 January 2023 to 31 December 2023.

Storton Fund Management Ltd [LEI S84500SSSA540457B545] berücksichtigt die wichtigsten negativen Auswirkungen seiner Anlageentscheidungen auf Nachhaltigkeitsfaktoren. Die vorliegende Erklärung ist die konsolidierte Erklärung zu den wichtigsten negativen Auswirkungen auf Nachhaltigkeitsfaktoren von Storton Fund Management Ltd. Diese Erklärung zu den wichtigsten negativen Auswirkungen auf Nachhaltigkeitsfaktoren deckt den Referenzzeitraum vom 1. Januar 2023 bis zum 31. Dezember 2023 ab.

Storton Fund Management Ltd [LEI S84500SSSA540457B545] considère les principaux impacts négatifs de ses décisions d'investissement sur les facteurs de durabilité. Le présent rapport est le rapport consolidé sur les principaux impacts négatifs sur les facteurs de durabilité de Storton Fund Management Ltd. Cette déclaration sur les principaux impacts négatifs sur les facteurs de durabilité couvre la période de référence du 1er janvier 2023 au 31 décembre 2023.

Storton Fund Management Ltd [LEI S84500SSSA540457B545] considera los principales impactos adversos de sus decisiones de inversión en los factores de sostenibilidad. La presente declaración es la declaración consolidada sobre los principales impactos adversos en los factores de sostenibilidad de Storton Fund Management Ltd. Esta declaración sobre los principales impactos adversos en los factores de sostenibilidad cubre el período de referencia del 1 de enero de 2023 al 31 de diciembre de 2023.

Description of the principal adverse impacts on sustainability factors
Indicators applicable to investments in investee companies
Adverse sustainability indicator		Metric	Impact 2023	Impact 2022	Explanation	Actions taken, and actions planned and targets set for the next reference period
CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS
Greenhouse gas emissions	1. GHG emissions	Scope 1 GHG emissions	0	0	N/A	N/A
Scope 2 GHG emissions	0	0	N/A	N/A
Scope 3 GHG emissions	0	0	N/A	N/A
Total GHG emissions	0	0	N/A	N/A
2. Carbon footprint	Carbon footprint	0	0	N/A	N/A
3. GHG intensity of investee companies	GHG intensity of investee companies	0	0	N/A	N/A
4. Exposure to companies active in the fossil fuel sector	Share of investments in companies active in the fossil fuel sector	0%	0%	N/A	N/A
5. Share of non-renewable energy consumption and production	Share of non-renewable energy consumption and non-renewable energy production of investee companies from non-renewable energy sources compared to renewable energy sources, expressed as a percentage of total energy sources	0%	0%	N/A	N/A
6. Energy consumption intensity per high impact climate sector	Energy consumption in GWh per million EUR of revenue of investee companies, per high impact climate sector	0%	0%	N/A	N/A
Biodiversity	7. Activities negatively affecting biodiversity-sensitive areas	Share of investments in investee companies with sites/operations located in or near to biodiversity- sensitive areas where activities of those investee companies negatively affect those areas	0%	0%	N/A	N/A
Water	8. Emissions to water	Tonnes of emissions to water generated by investee companies permillionEURinvested, expressed as a weighted average	0	0	N/A	N/A
Waste	9. Hazardous waste and radioactive waste ratio	Tonnes of hazardous waste and radioactive waste generated by investee companies per million EUR invested, expressed as a weighted average	0	0	N/A	N/A
INDICATORS FOR SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTI-BRIBERY MATTERS
Social and employee matters	10. Violations of UN Global Compact principles and Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises	Share of investments in investee companies that have been involved in violations of the UNGC principles or OECD Guidelines for Multinational Enterprises	0%	0%	N/A	N/A
11. Lack of processes and compliance mechanisms to monitor compliance with UN Global Compact principles and OECD Guidelines for Multinational Enterprises	Share of investments in investee companies without policies to monitor compliance with the UNGC principles or OECD Guidelines for Multinational Enterprises or grievance /complaints handling mechanisms to address violations of the UNGC principles or OECD Guidelines for Multinational Enterprises	0%	0%	N/A	N/A
12. Unadjusted gender pay gap	Average unadjusted gender pay gap of investee companies	0%	0%	N/A	N/A
13. Board gender diversity	Average ratio of female to male board members in investee companies,expressedasa percentage of all board members	0%	0%	N/A	N/A
14. Exposure to controversial weapons (anti- personnel mines, cluster munitions, chemical weapons and biological weapons)	Share of investments in investee companies involved in the manufacture or selling of controversial weapons	0%	0%	N/A	N/A
Indicators applicable to investments in sovereigns and supranationals
Environmental	15. GHG intensity	GHG intensity of investee countries	0	0	N/A	N/A
Social	16. Investee countries subject to social violations	Number of investee countries subject to social violations (absolute number and relative number divided by all investee countries), as referred to in international treaties and conventions, United Nations principles and, where applicable, national law	0	0	N/A	N/A
Indicators applicable to investments in real estate assets
Fossil fuels	17. Exposure to fossil fuels through real estate assets	Share of investments in real estate assets involved in the extraction, storage, transport or manufacture of fossil fuels	0%	N/A	LRC does not own assets involved in the extraction, storage, transport or manufacture of fossil fuels.	N/A
Energy efficiency	18. Exposure to energy-inefficient real estate assets	Share of investments in energy- inefficient real estate assets	83%	N/A	This indicator has been calculated in accordance with the relevant formula using EPC/BER certificates and year end 2023 asset valuations.	We have set a target of improving the EPC scores of 5% of our assets per annum from 2024 onwards.
Other indicators for principal adverse impacts on sustainability factors
Greenhouse gas emissions	19. GHG emissionss	Scope 1 GHG emissions generated by real estate assets	28.37 tCO2e	N/A	We used 3rd party ESG specialists to assess and compile our 2023 GHG emissions data.	As this was the first time we had compiled our annual GHG emissions we are concentrating on refining our data collection systems whilst also reviewing the feasability of various GHG reduction initiatives.
Scope 2 GHG emissions generated by real estate assets	4007.76 tCO2e	N/A
Scope 3 GHG emissions generated by real estate assets	15,778.44 tCO2e	N/A
Total GHG emissions generated by real estate assets	19,814.56 tCO2e	N/A
Waste	20. Waste production in operations	Share of real estate assets not equipped with facilities for waste sorting and not covered by a waste recovery or recycling contract	20%	N/A	Calculated on an asset by asset basis and then compiled	For 2024, assess the possibility of implementing recycling where not already present
Biodiversity	21. Land artificialisation	Share of non-vegetated surface area (surfaces that have not been vegetated in ground, as well as on roofs, terraces and walls) compared to the total surface area of the plots of all assets	92%	N/A	Calculated on an asset by asset basis and then compiled	For 2024, assess the possibility of increasing the share of vegetated surface area.

Description of policies to identify and prioritise principal adverse impacts on sustainability factors

LRC has a Responsible Investment Policy that was initially drafted in 2023 and approved in 2024, which outlines our responsible investment principles and sets out how these are to be incorporated into our requirements for investment activities and ownership practices. This policy is reviewed and approved at least annually.

addition, we have implemented various policies and procedures including risk matrices/models to manage principal adverse impacts on an ongoing basis. We have identified specific principal adverse impact indicators which align with our responsible investment.

We report on the mandatory indicators applicable to investments in real estate assets in Table 1 in Annex I Supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council. We also report on three additional climate and other environment-related indicators applicable to investments in real estate assets from Table 2 in Annex I supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council. The impact on the mandatory and additional indicators is reported by collecting and aggregating data from the real estate investments in our portfolio.

We do not report on additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery matters in Table 3 in Annex I supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council as there are no indicators applicable to investments in real estate assets.

QWe incorporate ESG aspects into the investment life cycle from the earliest stages of asset identification, through acquisition, into holding and then to disposal. All prospective acquisitions are subject to a comprehensive due diligence process including evaluation of technical and environmental performance to identify potential climate and ESG-related risks.

Ǫuantifying and assessing our principal adverse impacts is dependent on data availability and quality. We rely on multiple sources to collect data on impacts.

Effects on energy efficiency are, when available, calculated on actual consumption. Where actual data is not available, the data is based on calculated estimates.
To use actual data, this needs to be provided in a timely and accurate manner.
We are continually striving to improve our data collection systems.

Best efforts used to obtain information relating to Scope 2 emissions

For the impacts related to “Scope 2 GHG emissions” the data for several real estate investments has been partially estimated by making reasonable assumptions for one or more time periods. Our ESG data disclosure is continually improving and our aim is to continually improve the accuracy of our data and to reduce any associated margin of error.

Engagement policies

Engagement of our tenants, suppliers and service providers. We recognize the need to improve our communication and interaction with tenants and in 2024 we will conduct our first tenant survey. This survey will include several specific ESG related queries to help us better understand our tenants ESG aspirations and this feedback, once analysed, will help guide future initiatives.

We also endeavour to provide our tenants with feedback on how they can improve their sustainability performance.

Equally we also aim for a behavioural change amongst our stakeholders and business partners with whom we actively engage and promote ESG messages to and solicit feedback from.

Engagement of our staff. We recognize the need to improve our communication and interaction with colleagues and in early 2024 we conducted our first tenant survey. This survey will included several specific ESG related queries to help us better understand our colleagues ESG aspirations and this feedback, once analysed, will help guide future initiatives.

References to international standards

We submitted an application to UNPri in early 2024.

Our Scope 1, 2, and 3 emissions were calculated in line with the GHG protocol.

Our Risk Framework was drawn up, taking into account TCFD principles from its inception. We are assessing various other standards as to their suitability (GRESB and INRev).

Historical comparison

Since data for our principal adverse sustainability impacts is not available prior to 2023, this section is not applicable. A historical comparison of the period reported on with the preceding period will be included in the 2024 disclosure.