Schroder REIT has proposed amendments to its investment objective and policy, and to its investment management agreement, to include sustainability at the centre of its investment proposition.
The sustainability improvement and decarbonisation strategy will focus on adapting existing buildings in its portfolio into those that are both modern and fit for purpose, that it says is proactively responding to the UK’s Net Zero Carbon objectives and that will optimise portfolio performance and enhance total returns for shareholders.
A circular proposing amendments to the company’s investment objective and policy that reflect the strategy outlined has been published and an extraordinary general meeting will take place on 15 December 2023, at which shareholders will be asked to vote on a resolution to approve the proposed changes to the company’s investment objective and policy.
To align the manager’s compensation with the delivery of the sustainability objectives, the board and the manager have agreed to make amendments to the manager’s existing investment management agreement (IMA) to include a 5 basis points increase or decrease in the management fee depending on sustainability and income related KPIs being achieved.
The board has also agreed to amend the terms of the IMA, to be terminated on not less than 12 months’ notice, such notice not to expire prior to the second anniversary of the passing of the resolution. This was in recognition of the work undertaken by the manager in the design and implementation of the sustainability objectives.
SREI : Schroder REIT to include sustainability in investment objective