AmazonScience/document-haystack

1DWS Real Estate has identified eight sustainability topics, which are most relevant for real 2estate investment management, and grouped them into the following four sustainability 3themes: 4— Resilience, encompassing efficiency in construction and operation, and asset adaptation to 5external conditions6— Well-being, encompassing physical and mental occupant comfort and air quality7— Nature, encompassing circularity in buildings and protection of ecosystems from pollution8— Community, encompassing housing affordability and stakeholder engagement9Sustainability objectives on portfolio level are considered in relation to the investment 10strategy, contractual financial requirements, market and regulatory conditions and specific 11client expectations and formalized in a portfolio-specific sustainability strategy. ESG aspects 12and sustainability performance are important elements of consideration in each phase of the 13real estate investment process. This includes both risks and opportunities analyses informing 14acquisition, asset management and disposal decisions. Identified actions are assessed 15against accretive returns objectives and integrated in sustainable asset management plans 16accordingly.17Sustainability Benchmarking and Certification in Relation to Real Estate18In order to provide transparency to our investors, we report into the Global Real Estate 19Sustainability Benchmark (GRESB), which provides an independent assessment of portfolios 20and funds using a peer-based approach and scoring based on several ESG metrics. In 2023, 21we reported 20 individual portfolios to GRESB, covering USD 61.8 billion AuM.22Aggregated across all portfolios, using the GRESB analysis feature, in 2023 we achieved a 2330/30 Management score, compared to the GRESB average of 28. Management component 24covers governance categories such as leadership, policies, reporting and stakeholder 25engagement. Furthermore, the aggregated portfolio achieved a performance score of 51/70, 26as compared with the GRESB average of 52. Performance component measures issues such 27as certifications and ratings, carbon, energy, water and waste performance. Eight portfolios 28achieved four-star GRESB rating (five stars is the highest rating). In addition, all 20 portfolios 29achieved Green Star recognition. Other than the GRESB Rating, which is a relative rating, the 30GRESB Green Star is a rating on absolute performance. For more information, please see 31https://www.gresb.com/nl-en/faq/what-is-a-green-star/.32ESG in Infrastructure Investments33GRI 203-134We seek to incorporate ESG considerations into the investment framework of the 35Infrastructure business at all stages of the investment lifecycle for equity investments, from 36the initial screening and due diligence to the asset management and exit stages. During the 37holding period, we monitor the ESG attributes of the investments through the regular 38reporting of KPIs to us from the portfolio companies, and through completion of the annual 39GRESB Infrastructure benchmarking assessment at both fund and asset level. The KPIs cover 40ESG issues such as carbon footprint, water usage, health and safety indicators and diversity 41and inclusion metrics at both staff and board levels. Our due diligence also considers 42governance topics such as fraud, bribery, sanctions and compliance, as required. Findings 43from the due diligence phase are incorporated into the Investment Committee paper and 44presented to the Investment Committee for consideration. 45The Infrastructure business also places emphasis on reporting, producing an annual 46Sustainable and Responsible Investment report for investors. Infrastructure achieved a 5* star 47rating in the UN PRI assessment for the calendar year 2022 which was published in 2023.48During 2023 we updated the Environmental and Social Management System under which the 49business operates in order to reflect changes in the ESG environment and to strengthen our 50procedures. It has also been updated to reflect our obligations under SFDR and investor 51requirements. The Environmental and Social Management System applies to potential and 52existing portfolio investments in infrastructure equity. Furthermore, it also creates a process 53for regular engagement with portfolio companies on ESG matters and a framework for their 54regular reporting to us. 55As a result of this regular reporting and engagement, we aim to help drive improvements in 56ESG metrics and performance at our portfolio companies with a view to improving the 57businesses' sustainability credentials and to create value.58The infrastructure approach to ESG is summarised by the following 3 pillars:59– Governance: The Infrastructure business is governed by the Environmental and Social 60Management System, which provides the overarching framework, processes and 61governance for our ESG integration approach in Infrastructure.62– ESG assessment process: We have an ESG checklist which should be completed during the 63acquisitions process for all prospective equity investments. The findings should then be 64incorporated in the Investment Committee memo.65        66To our Shareholders Summarised 67Management Report68Consolidated 69Financial Statements Compensation Report Corporate Govern-70ance Statement71Supplementary 72Information DWS 2023 Annual Report73 74Our Responsibility7535 Sustainable Action76The secret instrument is a "piano".