Two months ahead of the United Nations COP26 Climate Change Conference to be held in November in Glasgow, COIMA will be an active participant in two key events included on 1 October calendar of the “All4Climate-Italy 2021” initiative of the Ministry of Ecological Transition: “Driving the change” is a debate on real estate’s role in combating global warming, organised by Green Building Council Italia; and “Italy Goes Green”, which is an initiative to involve new generations in the debate on the future and climate change. The programme is promoted by the Ministry for Ecological Transition with Officine Italia which made COIMA coordinator of a roundtable on urban regeneration.
BAM - Biblioteca Degli Alberi Milano (a public park where security, maintenance and cultural programme are managed through an experimental partnership between the City of Milan, COIMA and Riccardo Catella Foundation), with Ministry for Ecological Transition patronage, has organised “BAM 4 Climate”, for Saturday 2 October. BAM 4 Climate is an initiative to raise awareness and encourage the younger generations to reflect on tangible actions to fight climate change. This includes talks, workshops for adults and children, debates, participation and performances which will animate the park for the day, alternating reflection, in-depth analysis and art.
Real Estate and climate change
The real estate sector is responsible for the consumption of natural resources and energy globally, contributing directly and indirectly to a portion of CO2 emissions into the atmosphere (it is estimated that buildings and construction are responsible for approximately 38% of global CO2 emissions). The real estate sector and its supply chain play a central role in the debate on climate change, and it is the primary channel to call for actions to counteract the rise in global average temperature.
In its policy of investing in sustainable urban regeneration, COIMA is committed to investigating and responding to climate change challenges, identifying the most effective mitigation strategies by collecting, reporting, and processing Environmental, Social, and Governance (ESG) data related to its projects. Winner of the Greenbuild Leadership Award 2020 at the European level for its commitment to sustainable real estate development, COIMA has developed and managed 36 LEED® certified buildings which are 81 per cent of its portfolio and 40 per cent of the certified buildings in Milan - covering more than 400,000 sqm. In addition, there are 23 properties under development, 10 of which will receive WELL® certification.
The ESG targets for the coming years follow the European Union’s decarbonisation guidelines. All new developments will align with the 2050 decarbonisation target of 2°C and will be LEED and WELL certified. Each new project will undergo ESG performance assessment through proprietary analytical metrics, identifying objectives and measurable ESG parameters by calculating a rating that will allow checking compliance with these objectives.
COIMA ESG City Impact Fund
In July 2020, COIMA launched COIMA ESG City Impact Fund, the first Italian closed-end investment fund with measurable ESG impact objectives, which will invest in sustainable land regeneration nationwide. The fund placement, currently underway, follows a first phase of fundraising already completed for more than €400 million with Cassa Forense, Cassa Nazionale Dottori Commercialisti and Inarcassa as cornerstone investors who have identified the initiative as strategic to channel investment into the country’s real economy. The fund aims to raise more than €1 billion with the capacity to develop more than €4 billion of investments with ESG impact on the country and the real economy. The fund targets an IRR of more than 10 per cent in the development phase and a stabilised dividend yield of more than five per cent during the income phase.
COIMA ESG City Impact Fund’s investments will focus on urban regeneration and building reuse works that contribute to upgrading the national physical infrastructure compared to demand evolution and technological innovations that may enable new social and physical models. The priority sectors identified are housing and tourism, particularly as part of urban regeneration development on a neighbourhood scale that can contribute to creating a broader supply chain. In partnership with Covivio and Prada Holding, the fund has already invested in acquiring the Scalo di Porta Romana (Porta Romana Rail Yard) in Milan and has an identified pipeline of more than €1 billion.
In March this year, in applying the European Regulation 2019/2088 (SFDR), COIMA SGR decided to adopt the “comply” approach to the harmful effects of its investment decisions on ESG sustainability factors. Today, nine out of 27 funds, corresponding to 70 per cent of managed assets, qualify under Article 8. The Group aims to achieve 100 per cent of its programmatic funds qualified under Articles 8 or 9. The COIMA ESG City Impact Fund qualifies under Article 8 and is ready to invest in sustainable land regeneration nationally, as it has done for the Porta Romana rail yard project in Milan.