Environmental, Social & Governance Policy Statement

Part 1 – Environmental, Social and Governance Policy

Fundamentum Property Advisers Limited (FPAL) is an Investment Advisor on many aspects of UK real-estate investments. One of our main objectives is to help tackle the shortage of social housing in the UK, with a current focus on supported housing for vulnerable adults.

FPAL is committed to continuous improvement in our approach to Environmental Social Governance (ESG) integration into our investment processes. We will closely monitor this Policy and will review on an annual basis.

Part 2 – Our Impact Goals

FPAL is committed to increasing the provision of high-quality social and care-based community housing that delivers positive social outcomes. We aim to integrate social impact and ESG considerations into all stages of the investment process.

The following Impact Goals underpin our business model:

Increase the supply of Specialist Supported Housing (SSH)

This will be achieved through continued investment in the sector and evidenced by our Annual/Quarterly Reporting of acquisitions.

Improve the quality of SSH

By acquiring and refurbishing properties and purchasing new build properties, we will improve the quality of SSH. We will report the amount invested in property refurbishment and the number of new build properties acquired on an annual basis.

Improve well-being outcomes for tenants

We will only select Registered Providers, Registered Charities, Community Interest Companies and Community Benefit Society’s that act as Housing Associations (HA’s). We work with them to improve care, living conditions and outcomes for tenants. We will seek evidence of the social impact our investments are making through quarterly reporting, which will be undertaken by each HA we work with.

Improve environmental conditions

We have integrated environmental considerations into our investment processes and will work to improve EPC ratings and CO2 emissions of the properties we acquire. Our Annual ESG Impact Reporting will highlight the environmental improvements our investments have made to properties in the portfolio.

Part 3 – Investing for Social Impact

SSH allows vulnerable adults with a range of care needs to live in a safe, secure, and homely environment, creating the opportunity for independent living with appropriate levels of care and support.

SSH also allows for growth in teamwork, self-development, and skill progression as often tenants share communal space. Our quarterly ESG reporting highlights the positive impact our investment strategy is having on the tenants, whilst also allowing us to work with our partners to improve the outcome for the individual and society.

Part 4 – Governance

We believe strong corporate governance is at the foundation of delivering our investment objectives. We will carry out in-depth due diligence of the governance structure and management team of all potential partner HA’s. The governance approaches adopted by our counterparties are critically important for us to ensure the best outcomes are delivered for society, and as early adopters of The Sustainability Reporting Standard for Social Housing, it is our responsibility to ensure we assess and monitor the viability, social impact, and governance of our counterparties.

Part 5 – ESG Intergration, Measurement and Reporting

ESG integration is the clear inclusion of ESG factors in our investment decisions and we aim to integrate social impact and ESG considerations into all stages of the investment process. We recently became an adopter of The Equity Impact Project, which has been developed by The Good Economy and Big Society Capital. We have made a commitment to adopt and test the impact framework and reporting expectations from September 2021.

In addition to this, we will also produce an annual ESG Impact Report to outline our performance in relation to our Impact Goals and to highlight the investments made to the portfolio.

Part 6 – Further committments to building an ESG Culture

FPAL is a signatory to the UN Principles of Responsible Investment and the UK Sustainable Investment and Finance Association. FPAL has pledged to meet the criteria to reflect the standards of both these parties.