Environmental disclosures for the year ended 31 March 2022

EPRA Sustainability Best Practice Recommendations (“sBPR”) Guidelines

Custodian REIT recognises the importance of disclosing its ESG information as it creates transparency to potential investors and sets a direction towards improving the integration of ESG into the management of the Company’s property portfolio. The Company has chosen to report in alignment with the European Public Real Estate (EPRA) guidelines to achieve this which are considered best practice and are utilised across the real estate industry, enabling a comparison against our peers and helping set clear benchmarks for the Company moving forwards.

Materiality

The scope of our EPRA sBPR data disclosure was influenced by our application of materiality.  Custodian REIT undertook a materiality assessment to review the applicability of the full set of EPRA indicators. Based on professional judgement, each indicator was assessed in terms of its impact on the Company and its importance to stakeholders.

This calculation resulted in an overall score which determined if an issue was material.

As part of our EPRA disclosures and associated materiality assessment, we have defined Custodian REIT’s organisational boundary in line with the Greenhouse Gas (GHG) Protocol.  We have taken the operational control approach and this has played a fundamental role in the materiality assessment.  Custodian REIT is an externally managed real estate investment trust which has no direct employees.  The Investment Manager is Custodian Capital Limited which has 17 employees and Custodian REIT has operational control over neither Custodian Capital nor its employees.  The Social Performance indicators determined immaterial are in relation to employees, thus they are not relevant for reporting at the Custodian REIT level.

Using this organisational boundary, our materiality assessment determined the following Sustainability Performance measures immaterial for Custodian REIT:

  • Employee gender and diversity
  • Employee gender pay ratio
  • Employee training and development
  • Employee performance appraisals
  • New hires and turnover
  • Employee health and safety

However, as Custodian REIT does have its own board, which consists of seven Non-Executive Directors, we have chosen to report on gender, diversity and the gender pay ratio of Custodian REIT’s board members, to be as transparent as possible with our stakeholders.

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Asset level reporting