Net zero strategy

A net zero strategy has as target to completely negate the amount of greenhouse gases (GHG) produced by human activity, to be achieved by reducing emissions and implementing methods of absorbing carbon dioxide from the atmosphere. Blue Colibri Capital (BCC) understands how important it is to decrease the carbon footprint, in particular within the real estate industry.

By not buying brand new properties, BCC already participates to the effort as we repurpose existing structures.

In this context, BCC believes that it has a role to play. As a value-add investor, when renovating a property, BCC will analyse the potential improvement of its investments in terms of CO2 and GHG and integrate it within its capex plans. When investments do not require significant renovations that could improve significantly the environmental performance of a property, it will review initiatives that could help mitigate the adverse environmental externalities caused by the Real Estate.

The general principles underlying our net zero philosophy are the following :

1. Determine at the acquisition stage, an estimate of the CO2/GHG emissions of the property (theoretical and/or real). This stage can require resources such as MSCI climate/transition risk change or external advisors.

2. Evaluate the results to determine how the property fares versus its market (creation of benchmarks ongoing).

3. Evaluate if measures to significantly reduce CO2/GHG are feasible and financially viable;

4. If yes, finalize the business/capex plan with such measures.

5. Implement business/capex plan and target certifications.

6. Compensate on a yearly basis the CO2 excess.

There are challenges. Gathering reliable data when acquiring older properties or investing in special situations can be very hard.

How the property is used is also of the utmost importance. By surrounding ourselves with leading sustainability experts, implementing green clauses in leases and creating engagement plans with our tenants, we strongly believe that a collective effort can help us achieve our objectives.

This is an evolving process that is meant to improve over time and the evolution of our journey shall be visible from our SFDR disclosures section on our website and our annual ESG report (available to our investors).