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Corestate flips green power switch as ESG gets tougher

Investment manager Corestate Capital Holding is to convert the entire €17 billion portfolio it manages in Germany to green electricity during the next few months.

Changes that it has already made will save 104,000 tonnes of CO2 by the end of 2024. The company’s commercial property, which comprises €3.5 bn assets under management, was recently switched to green energy and all metering is now done digitally.

Photo: Karsten Würth, Unsplash

The entire German commercial portfolio can now be monitored continuously in real time which Corestate said enables it to implement optimisation options effectively.

“The conversion of our portfolio to a CO2-neutral energy supply in conjunction with digital access to real-time data represents an important step with which we are further expanding our pioneering ESG role,” said Corestate’s CEO Lars Schnidrig.

The company will publish its new, fully digitalised ESG report later this month which will explain how the overall strategy is to be implemented, as well as detailing group-wide measures and Corestate’s new environmental, social and governance objectives.

Corestate said in a statement that the move anticipates increasingly strict requirements from both investors and regulators. Ecological and social factors are becoming more important in real estate asset management it said, and as ecological footprint becomes a focus of investment, both regulators and investors are now placing greater emphasis on quantitative records of the components of sustainability.

Corestate commissioned operating costs consultant Westbridge Advisory to restructure and optimise the German property portfolio sustainably. Energy provider Stadtwerke Düsseldorf has been contracted to supply Corestate’s commercial portfolio.

Corestate has just announced that it is to exhibit at the REALX virtual property show which is being launched in September.