Energy & Carbon
We are committed to aligning our portfolio to a Paris-compliant decarbonisation trajectory and striving towards net-zero.
1. Our commitment to decarbonisation
NSI is using the Carbon Risk Real Estate Monitor’s (CRREM) decarbonisation pathways as a point of reference to set energy reduction targets for our portfolio. CRREM is the leading global initiative for operational decarbonisation of real estate assets in order to avoid stranding risk, address transition risk and comply with climate-science and Paris-aligned decarbonisation targets. CRREM establishes country and asset-specific energy and GHG reduction pathways.
According to CRREM, for Dutch offices to be compliant with the 1.5c Paris scenario, buildings must achieve 85 kWh/m2/year by 2034, as per the pathway below. At year-end 2022 the total (tenant + building-related) average energy consumption of our portfolio was 131 kWh/m2 /year. While this is well above the 85 kWh/m2 / Dutch office CRREM year target, NSI is far below the Dutch office CRREM target for 2022, of 164 kWh/m2 /year. Based on this starting point, if we were to take no further action, NSI’s overall intensity would no longer comply with the CRREM pathway by 2026.
In 2023 we will start executing our Paris-alignment investment plan. The total investment for the first 32 assets (ca. 70% of assets by value) is ca. € 58m over the next 10 years. On completion these assets should see their energy intensity reduce significantly, from 116 kWh/m2 /year to 80 kWh/m2 /year, well below the CRREM target.
2. 100% of procured electricity should come from renewable sources
All electricity procured by NSI is 100% green, procured from renewable sources (European wind) . The total average share of renewable energy used is 57.7% (European wind grid energy + solar panel generation of electricity + geothermal energy).
3. Offset remaining carbon
We will offset remaining carbon emissions only after all other financially viable measures have been exhausted. We aim to reduce our carbon footprint through an increase in energy efficiency and the procurement, where possible, of energy from renewable sources. Offsets are therefore only a measure of last resort, after all other solutions have been exhausted. Currently, natural gas procurement is fully compensated using Gold Standards CO2 .
Future-proof buildings
We aim to own buildings that are resilient, adaptative and aligned with the EU Taxonomy.
1. Own assets that are aligned with the EU taxonomy of sustainable activities, now or in time
We aim to own assets that are aligned, now or in time, with the EU taxonomy, the classification system that translates the EU’s climate and environmental objectives into criteria for specific economic activities for investment purposes. In order to determine alignment to the EU Taxonomy, the economic activity of the company must first be eligible. If the activity is not defined in the screening criteria, it is not eligible under the EU Taxonomy and therefore, it cannot be considered as environmentally sustainable. Once the economic activity has been deemed eligible, it must be determined that it makes a substantial contribution to at least one of the EU’s climate and environmental objectives, while at the same time not significantly harming (DNSH – do no significant harm) any of the other objectives and meeting minimum social safeguards.
The taxonomy defines 6 environmental objectives: climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystem.
2. Minimum BREEAM rating for assets is “Very Good”
We view sustainability not only as a responsibility but ultimately as a driver of value creation. BREEAM seeks to improve the operational performance of buildings through sustainable improvements. The BREEAM assessment method involves nine areas: management, health, energy, transport, water, materials, waste, land use, ecology and pollution. 96% of the assets in NSI’s portfolio now have a BREEAM certificate vs 89% in 2021.
3. Focus on climate resilience
Assessing and mitigating climate change and the associated risks are an integral part of our approach towards a future-proof portfolio. A further analysis was not only required in view of complying with the EU taxonomy (DNSH assessment), it also increasingly weighs on investment and portfolio decisions. NSI performed an assessment of the net risks of climate change related heat stress and flooding of its portfolio, also taking individual asset characteristics into consideration. The assessment included which measures can be taken to mitigate these risks. This assessment identified that from its 49 assets 9 assets are potentially exposed to a higher risk of heat stress and 12 assets to a higher risk of flooding. Measures to mitigate these risks have been integrated in the asset plans, and will be executed in the coming years.
4. Incorporate biodiversity strategy
In line with sustainability best practices, NSI aims to establish a comprehensive biodiversity strategy in 2023 to accompany our sustainability efforts.
Social Engagement
We strive to be a long-term positive influence on our customers, employees and communities.
1. Make health and wellbeing a priority
For our customers
NSI actively engages with customers through a yearly customer satisfaction survey. In 2022, NSI achieved a Net Promoter Score (NPS) of + 10.3 from its tenants, down from + 20.3 a year ago. HNK’s NPS was 19.9 vs 23.7 in 2021. The NPS measures customer experience and predicts business growth. The NPS is calculated using the answer to a key question, using a 0-10 scale e.g. “How likely is it that you would recommend NSI to a friend or colleague?”. NSI’s score of + 10.3 is a positive score which means that there are more promoters than detractors. With sustainability also being a key concern for our clients, we have rolled out a communications program to better engage with our customers on this topic. Initiatives, air quality and improvements are shared through narrow casting screens, the Office App and newsletter.
For our employees
NSI actively engages with employees through a employee satisfaction survey. NSI currently performs an employee engagement survey every two years. The result is an eNPS (employee Net Promotor Score), which measures staff engagement and involves asking employees “How likely would you be to recommend (score 0-10) us as an employer?”. NSI’s most recent eNPS score was 29.3 (2021), which qualifies as a high score. Furthermore, we performed a Leesman Workplace Survey in 2022.
2. Strive to have a diverse and inclusive workforce
NSI is committed to fostering a fair and inclusive working environment. Our culture is based on the principles of mutual respect and non-discrimination irrespective of nationality, age, disability, gender, religion or sexual orientation. At NSI we currently have 48% male and 52% female workforce. In 2023 NSI will establish a diversity and inclusion policy.
3. Giving back to our communities
Creating a positive socio-economic impact in local communities in and around our assets is important to us. We aim to play an active role in our communities by building lasting relationships with local stakeholders and by supporting organizations with a social purpose.