• Following the announcement of its fiscal year 2022 results, the company has presented its first ESG report and unveiled its 2025 ESG strategic plan, focusing on eight key sustainable development goals
• 83% of Castellana Properties' shopping centres now use certified renewable energy and 67% boast their own renewable energy generation facilities
• In calendar year 2021, Castellana Properties became the first company in the Spanish property sector to secure ‘Great Place to Work’ certification with a Trust Index score of 87%, outperforming the retail sector average by 14%
• The Company has reaffirmed its commitment to complying with ethical principles and good governance, putting a corporate governance action plan in place, formalising a Code of Ethics and Criminal Risk Prevention Handbook and setting up a Whistleblower Channel.
Castellana Properties, the specialist listed retail property firm, has today released its first ESG report after recently publishing its results for the last fiscal year, covering the period from 1 April 2021 to 31 March 2022. The company posted net profit of €46 million and registered a 4.5% increase in the value of its portfolio in like-for-like terms to €1,091 million at 31 March 2022.
Having secured Investment Grade long-term credit rating of BBB- with a stable outlook from Fitch in February, the company has outlined a 2025 ESG Strategic Plan, which is structured around 8 of the 17 Sustainable Development Goals (SDGs) laid out in the UN's 2030 Agenda. This ESG report, which details the initiatives undertaken to date and the goals set for the years ahead, is a clear reflection of Castellana Properties' commitment to sustainability and protecting the environment, publicly reporting its EPRA sBPR and GRESB (Global Real Estate Sustainability Benchmark) data for the first time.
Castellana Properties' environmental goals
Over the next three years, the company is committed to procuring renewable energy supplies across 100% of the portfolio, rolling out an ISO 50001-compliant energy management system, setting up self-consumption renewable energy facilities at 75% of its shopping centres and implementing a range of energy efficiency measures (SDG 7).
In relation to the goals on industry, innovation and infrastructure (SDG 9) and on sustainable cities and communities (SDG 11), the company has now secured BREEAM certification for 100% of its shopping centres, most of which were rated either “outstanding” or “excellent”. Castellana Properties will also strive to help build a more sustainable, inclusive business landscape by ensuring that all facilities have UNE 17001 Universal Access certification, and covering its own energy and water use for 70% of the floor area of its portfolio by tax year 2025. Currently, 83% of Castellana Properties' shopping centres use certified renewable energy and 67% boast their own renewable energy generation facilities.
Another key initiative outlined in the ESG report is the installation of more than 300 electric vehicle charging points through a strategic partnership over the course of the 2023 fiscal year.
Castellana Properties has also set clear goals in relation to SDG 12 on Sustainable Consumption and Production and SDG 13 on Climate Action. The company will be bringing in a circular economy management strategy and performing waste and water management audits to inform further measures in this area, as well as reporting its carbon footprint to Spain's Ministry for the Ecological Transition (MITECO) to design a decarbonisation plan using the Carbon Risk Real Estate Monitor (CRREM).
Social initiatives by Castellana Properties
As part of its efforts to ensure Decent Work and Economic Growth (SDG 8), the company is now ‘Great Place to Work’- certified after it became the first company in the Spanish property sector to secure this prestigious recognition in the calendar year 2021. It was awarded a Trust Index score of 87%, outperforming the retail sector average by 14%. The company has also deployed a range of measures under its Work-Life Balance Policy, including a hybrid working model and flexible hours.
Castellana Properties has also rolled out a number of initiatives to help towards achieving SDG 11 (Sustainable Cities and Communities) and SDG 17 (Partnerships for the Goals). The launch of the No lo Sigas campaign across all its shopping centres particularly deserves a mention. This campaign, designed to raise awareness around the issue of bullying at school and online, earned the Company the widely-recognised Chupete award, as well as the award for the best CSR campaign from the Spanish Shopping Centre Association.
Also, as part of its commitment to safer shopping, Castellana Properties became the first company in Spain to open a Red Cross station in a shopping centre. A pioneering project in Spain, offering first aid for any customers in need, and also serving as a venue for training courses in a variety of areas – including careers and job seeking – as well as offering many other community-based social initiatives. Castellana Properties also set up several charitable aid stations to provide help and support to the people of Ukraine across several of its shopping centres.
Code of ethics and good governance
The company also stepped up its efforts in Corporate Governance in fiscal year 2022, designing initiatives to contribute to SDG 16 on Peace, Justice and Strong Institutions. Castellana Properties has reaffirmed its unwavering commitment to complying with ethical principles and good governance, putting a corporate governance action plan in place, formalising a Code of Ethics and Criminal Risk Prevention Handbook and setting up a Whistleblower Channel. And, the Company has also achieved an EPRA Best Practices Recommendations (BPR) Gold Award in its third year of taking part in the scheme, in a ringing endorsement of its sound management and transparent financial reporting.
This last year has also seen Castellana create the ESG Committee – a committee comprising the heads of the Company’s main areas and tasked with incorporating ESG criteria across the entire Company – and approve its ESG Policy which sets out the ESG Strategy’s principles and commitments.
Castellana Properties CEO Alfonso Brunet said: “In the years ahead, we will continue to apply our retail-focused active management philosophy with an emphasis on ESG and innovation, while remaining fully committed to supporting the local communities in which our shopping centres provide such a crucial public service.”