DWS secures green energy across European real estate assets
DWS’s real estate business today announced it has secured green energy for landlord-controlled energy supplies across the majority of its European real estate portfolio, comprising an additional 150 buildings across 12 countries, following the execution of a centralised Green Energy Procurement programme over the past one and a half years. This brings the total number of buildings in DWS’s European portfolio supplied by green energy in common areas to almost 300. All of the energy procured is backed by Renewable Energy Guarantee of Origin (REGO) certificates and, as a result, DWS will save circa 130.000 tonnes of carbon dioxide over the respective contract terms.
DWS has centralised to one energy provider per country to improve efficiencies in both reporting and management of energy procurement. In addition, the selected suppliers are ‘digital-enabled’, allowing for seamless e-billing and the automated streaming of consumption data into ESG data platforms and benchmarks for reporting to investors.
The tender process included both electricity and natural gas supplies. The energy supply and price has been secured until the end of 2023 or 2024, dependent on each local market.
This initiative builds on a recently announced active energy management programme, the rollout of a smart energy optimisation solution across an initial portfolio of 42 commercial real estate assets held within DWS’s funds globally with the aim to reduce energy demand and associated costs. Both initiatives also contribute to DWS’s company-wide commitment to achieve net zero emissions by 2050 for our assets under management. This goal is being further supported by the rollout of a DWS Green Lease Framework at the beginning of this year, which seeks a stronger alignment between tenants and landlord regarding sustainability targets, including the procurement of green energy by tenants.
Benita Schneider, Head of Real Estate Asset Management for Europe, said: “This Green Energy Procurement programme closes the gap on our European properties that are already using green energy. Ensuring that almost all of our 300 European properties will use renewable energy in our landlord-controlled areas marks a further commitment to climate protection.” She added: “Sustainability in real estate really matters. In addition to our own programmes which combine providing risk-adjusted returns with measures that minimise environmental risks and reduce operating costs, we continue to engage with our tenants to join us. Ongoing talks as well as green lease agreements – tenancy agreements that stipulate that the tenant participates in corresponding projects – will help us to further reduce our collective carbon footprint.”
As a fiduciary investor, DWS is focused on providing ESG expertise to enable clients to invest responsibly and in a way that contributes to a sustainable future. DWS was among the early signatories of the United Nations-backed Principles for Responsible Investment (PRI) in 2008 and was the first German asset manager to join the Net Zero Asset Manager initiative in December 2020.
DWS - Real Estate
DWS has been investing in real estate assets for 50 years. As part of the Alternatives platform, the real estate business has more than 450 employees around the world and EUR 76 billion in assets under management as of December 31, 2021. Providing a diverse range of strategies and solutions across the risk/return and geographic spectrums, we offer core and value-added real estate, real estate debt, real estate securities and opportunistic real estate. The real estate investment business employs a disciplined investment approach and aims to deliver attractive long-term risk adjusted returns, preservation of capital and diversification to its investors, which include governments, corporations, insurance companies, endowments, retirement plans, and private clients worldwide.
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 902bn of assets under management (as of 31 March 2022). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 3,600 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.