ESG strategy

ARETE Group considers responsible investing as one of its key priorities.

The ARETE INDUSTRIAL fund belongs to the category of "light green" funds.

We believe that the implementation of a sustainability policy and the support of ESG factors will bring higher returns for our investors in the long term. This approach not only benefits our investors, but also the environment and the society.

As a participant in the financial market, we follow the European SFDR directive, and according to Article 8, the ARETE INDUSTRIAL fund became a so-called "light green fund" on October 1, 2023, which claims to support the policy of permanent sustainability. We are one of the first real estate investment funds in the Czech Republic that implemented ESG strategy according to the legislation mentioned above.

Pillars of our ESG strategy:

E (Environment)

Respect for the environment is essential for us. We aim to promote a sustainable and environmentally friendly approach during construction and operation of buildings. We are constantly looking for additional ways to minimize impact of our business on the environment.

Environmental goals

We reduce energy demand of buildings and their carbon footprint

At least 80 percent of the ARETE INDUSTRIAL fund portfolio buildings must have BREEAM certification with a "Very Good" rating.
We will install photovoltaic panels on all eligible roofs in our portfolio.
We will achieve zero electricity consumption from fossil fuels by no later than the end of 2050.
We are committed to reducing so-called direct emissions of greenhouse gases. The ARETE Group aims to achieve zero emissions by the end of 2050 at the latest.

We support biodiversity

As a group we will continue long-term cooperation and support of organizations dealing with biodiversity protection. The Group's support for these organizations consists mainly of providing financial contributions for their activities, cooperation, and consultations during the implementation of new development.
As a Group we have committed to planting one tree for every 500 m2 of newly developed rental space.
We will advocate for the protection of protected areas and endangered animal species.

Water resource protection and waste management

For a long time, we have been working within the fund to reduce and recycle waste generated during building construction.
At least 60% of the waste from the Group's new building construction will be recycled.

S (Social)

Our ongoing endeavouris to develop strong, sustainable and prosperous local communities. We are always focused on health and safety above all else. Simultaneously, our priority is to ensure satisfaction of our suppliers, tenants, business partners, and employees.

Social goals:

We take care of the health, safety, and well-being of employees and our tenants

We regularly communicate with property tenants and Group employees regarding their satisfaction with internal workplace environment including. Suitability of lighting, air circulation, filtration, breakout areas suffciency. We also cooperate on monitoring and reducing CO2 emissions.
We conduct satisfaction survey of ARETE Group tenants and employees once a year.
We provide sufficient breakout areas in all ARETE Group spaces.
Within the Group, we promote long-term collaboration with tenants. For ARETE INDUSTRIAL, the fund's goal is to enter into long-term lease agreements for a period of five years or more and to maintain an occupancy rate of a minimum of 90% within the fund's portfolio.

We support local communities

We have been supporting local communities and non-profit organizations constantly. In the past year, we supported the Olympia football club in Zdice by donating one hundred thousand Czech crowns. We also provided the town of Zdice with a financial donation of half a million Czech crowns for the development of the town. We similarly supported the city of Rokycany and local societes, with a total amount of one hundred and sixty thousand Czech crowns.
Our employees regularly participate in environmental volunteer activities, such as tree planting or waste cleanup.
We support charitable companies: the Czech Ski School Of Amputees (CSSA), which supports people with lower limb amputations, was among the companies we supported in the last fiscal year. We also made contributions to ALSA, Nedoklubko, and the Nadační fond šance onkoláčkům during a charitable beach volleyball tournament.

G (Governance)

All business activity of the ARETE Group is based on ethical standards and moral values. It is essential for us to apply these values in relation to our suppliers, tenants, employees, and business partners.

Administrative Goals:

We promote ethical values in management and governance:

As a Group, we commit to adhering to an ethical code and whistleblowing rules in management and governance. We have established a robust governance policy witkin the Group. In the future, we will collaborate only with suppliers who meet the Group's Ethical Code. We regularly inform and educate company employees about the policies and rules mentioned above, including the ESG strategy, its implementation, and the subsequent adherence to individual criteria.

We apply gender equality and ethical values

As a Group, we have been promoting and supporting gender equality policy for a long time. We fill job positions primarily from the point of view of assessing candidates necessary experience, skills, and abilities. Values and work habits of candidates that align with our corporate culture and ethical code also play a role in the selection process. The Group has implemented a fair and non-discriminatory compensation policy, to ensure that the eliminate gender pay gap.