Areas of action and objectives
Our areas of action are based on the six capitals of the International Integrated Reporting Council (IIRC)’s Integrated Reporting Framework. To create value, priorities are determined for the areas of action in the value creation model.
Our group objectives are based on the six areas of action and the corresponding material issues. We have defined medium-term objectives for each area of action and we monitor the progress continuously based on defined parameters. As part of the business plan and budgeting process, group objectives and their metrics are broken down into the individual group companies. The group companies can then define additional objectives and measures and assign them to the relevant areas of action. These individual objectives also contribute towards achieving the overall group objectives. The current group objectives are shown in the following table.
We protect the environment and conserve natural resources – be it in our own day-to-day operations, when investing in development or when managing properties for others. We aim to achieve climate neutrality in the operation of our real estate portfolio by 2040. To achieve this goal, we are taking targeted measures to increase energy efficiency and investing in renewable energy. The focus is on the part of the property portfolio that is largely responsible for resource consumption and emissions, which is where the capital employed will have the greatest impact. The sustainability-oriented procurement policy imposes ecological criteria and supports circular-economy approaches wherever possible. Within the «ecology» area of action, it is primarily the material issues of «reducing CO2 emissions during operation and construction» and «circular economy» that play a role. Other overarching objectives with significant ecological aspects are the continuous improvement of the GRESB rating (Management, Performance and Development score) and the comprehensive certification strategy.
Measures: The target achievement rate is shown by the formulated CO2 reduction pathway. In addition, exclusion and sustainability criteria is defined in procurement, as is the proportion of cradle-to-cradle building materials.
Key stakeholder groups in Swiss Prime Site’s value creation model include customers, tenants, investors, rating agencies, suppliers and employees. We therefore invest heavily in maintaining these relationships. Regular communication with our key stakeholders is a core element of our forward-looking management. The challenges, needs and expectations identified from this dialogue are taken into account when developing and optimising business activities in line with the corporate strategy. Commercial tenants are our most significant customer group. They generate around 90 percent of operating income. Within the «stakeholders» area of action, value creation is primarily influenced in the material issue of «customer and market orientation».
Measures: For this area of action, we have set ourselves the objective of increasing customer satisfaction to above 80 percent in the medium term. On the way to achieving this goal, we and our group companies regularly survey the satisfaction of our customers. The findings serve to identify measures for increasing customer satisfaction and reducing negative effects.
Swiss Prime Site’s infrastructure comprises our own property portfolio, as well as all the resources that are used to provide our other real estate-related services. Optimising the property portfolio and making its real estate-related services customer-centric are fundamental to our business operations. Our portfolio of first-class, attractive properties with good value retention is currently worth over CHF 13 billion.
The relevant aspects of the «infrastructure» area of action are located in the material issues of «quality in investment properties and services», «prime portfolio with flexible use» and «socially beneficial and environmentally friendly properties and development projects».
Measures: The Global Real Estate Sustainability Benchmark GRESB assesses the sustainability performance of real estate assets in the portfolio and for developments globally. Because sustainability is a key element of our business model, the GRESB scores (Standing Investments and Development) are anchored in the Executive Board’s objectives as ESG goals to be achieved and thus have a direct influence on the compensation paid annually to management. We consider the GRESB scores to be a suitable metric for assessing the quality of the management, the performance of the property portfolio (Standing Investments) and the sustainable orientation of the development activities (Development). We aim to achieve outstanding GRESB scores and rank among the leading real estate companies.
We rely on continuous corporate development through the internal expansion of knowledge and an open innovation approach to profitably employ intangible assets, culture, know-how and technologies for the purpose of value creation. Social, scientific, technological and environmental developments, as well as trends, are analysed across all business fields and corresponding findings are taken into account in the development of the business model. For example, we regularly use innovative solutions originating from our structured innovation screening for existing properties and in development projects (e.g. sustainable materials or digital services for improving tenant satisfaction). We also use the skills of employees from various group companies and areas to develop user-centred services that can help resolve social, environmental and economic social challenges. At Swiss Prime Site, innovation is relevant in two respects in particular. Firstly, as an «output» (in the material issue of customer and market orientation). Secondly, as part of the corporate culture and thus as a foundation for the development of the Company and its products and services.
Measures: We see ourselves as part of a widespread innovation network. We have therefore set ourselves the goal of establishing relevant partnerships and investing in start-ups, with the aim of promoting the development of innovative companies while also innovating within our own business model. To identify innovations that are relevant for our business model, we hold regular innovation workshops and conduct start-up accelerator programmes.
The long-term success of our business largely depends on how well we manage to attract and retain qualified employees and promote and expand their skills. We regularly conduct surveys to establish the requirements of our employees. Within the «employees» area of action, the issues of «employee satisfaction», «diversity and equal opportunity» and «customer and market orientation» are of particular importance.
Measures: We have set ourselves the goal of increasing employee satisfaction in all group companies to more than 80 percent. We also invest in training and development where possible and necessary.
Stable, resilient and future-oriented companies are based on financially sustainable management. This is why we have created new capital management principles in 2021. These include:
- Optimising the equity and borrowed capital ratios (LTV)
- Increasing financial flexibility
- Ensuring the homogeneity of financing sources
- Reducing refinancing risks and minimising financing costs
Detailed information on the financial management of the Swiss Prime Site Group can be found on SPS.SWISS > INVESTORS.
Target: Our key financial figures are:
- Operating income
- Equity and debt ratio
- Payout ratio
- Proportion of group financing linked to sustainability criteria
The targets for the group companies’ financial figures are based on each core business. From a sustainability perspective, group financing linked to sustainability criteria is particularly relevant among the key financial figures. The medium-term target for this is a proportion of more than 75%.
Measures: Within the «Finance» area of action, the proportion of group financing relating to sustainability criteria (ESG) serves as a metric. In addition, our financial and non-financial reporting is transparent.