Peach Property Group AG: Sustainability Report for 2022 published

[ Report ]

Zürich (pta006/22.05.2023/07:00) - Corporate news for the stock market

* Peach Property Group publishes for the first time a Sustainability Report in accordance with Global Reporting Initiative (GRI) standards for the financial year 2022
* Decarbonization of real estate portfolio further driven forward in 2022, new record level of refurbished residential units achieved
* Tenant satisfaction further increased
* Health and working conditions for employees further developed
* Improvements in corporate governance achieved
* Sustainability efforts recognized by rating agencies: ESG risk rating by Sustainalytics in category "low"; ESG rating upgraded to "A" by MSCI

Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, today published for the first time a sustainability report for the financial year 2022 in accordance with the guidelines of the Global Reporting Initiative (GRI). Together with further sustainability measures that were implemented in the financial year 2022, the company has thus reached significant milestones in its sustainability efforts.

The Sustainability Report transparently discloses information on the key impacts of the company's business activities based on the five dimensions of environment, tenants, employees, governance and business performance. On this basis, Peach Property Group can define targeted measures and achieve its ambitious sustainability goals. In addition to developing the ESG strategy, the company's Sustainability Committee, which was established in 2022, is responsible for monitoring the achievement of these targets.

Decarbonization of the portfolio advanced

In the environmental area, the focus in the reporting year 2022 was particularly on the progressive decarbonization of the real estate portfolio by continuously switching to a climate-neutral heat supply, where possible, and improving building insulation, for example by renewing or replacing heating systems, insulating facades or replacing windows. With around 2 000 refurbished units in 2022, the company achieved a new record in the process.

For Peach Property Group, these are important steps on the way to a climate-neutral portfolio by 2050. As a first interim target, the CO2 intensity of the portfolio is to be reduced from currently around 34 kg CO2e/m²a to below 30 kg CO2e/m²a by 2030 - a reduction of approximately 60 000 tons of CO2 emissions.

Tenant satisfaction further improved

Tenant satisfaction is a further important pillar of Peach Property Group's sustainability strategy. At 78 percent, satisfaction with handling tenant requests in the reporting year 2022 was around 8 percentage points higher than in the previous year. At the same time, the response time to resolve tenant queries was further reduced to an average of 18 hours compared to around 27 hours in the previous year. After the pandemic-enforced break, activities for tenants at Peach locations could be resumed for the first time, such as one of the traditional tenant festivals in Kaiserslautern. Peach Property Group also continued to invest in the quality of stay of the surroundings of their properties such as playgrounds and sports grounds.

Peach Property Group is committed to offering affordable rents at its locations as part of its business model. Tenants were faced with rising living costs during the reporting period. In cases of hardship, quick and individual solutions were found thanks to the tenant-centric service model with 15 Peach Points. In addition, Peach Property Group avoided a significant increase in utility costs for many tenants through early hedging transactions. The Peach Group offered support to people who fled Ukraine due to the Russian war of aggression and helped more than 50 families to find a new home.

Good working conditions for employees

Peach Property Group offers attractive and modern working conditions and supports its employees individually. All employees receive a performance review and career development at least once a year. In the 2022 reporting period, the company took an important step towards supporting the health and safety of its employees by appointing a company doctor and a specialist for occupational safety. Employee turnover and absence due to sickness were again below the German average.

Focus on responsible corporate governance

As part of Peach Property Group's corporate social responsibility, the company launched a separate Code of Conduct for Business Partners in 2022, which defines Peach Property Group's requirements for its business partners in terms of ethics, integrity, labor standards and environmental protection. Suspected violations of responsible business practices can be reported to the whistleblower portal newly created in the reporting year.

ESG ratings

In the reporting year, Peach Property Group received its first rating from an ESG rating agency and was assigned an ESG risk rating in the category "low risk" by Morningstar Sustainalytics. This ESG risk rating places the company in the top four percent of the more than 15 400 rated companies worldwide. In addition, the financial services provider MSCI upgraded Peach Property Group AG's ESG rating to "A".

Sustainability efforts to continue in 2023

Despite a reduced capex budget for the financial year 2023, Peach Property Group will continue to take further steps in its decarbonization strategy this year, such as the creation of concrete renovation roadmaps for properties with poor energy efficiency. In addition, the smart metering infrastructure in the portfolio will be improved and expanded. This will allow tenants to view their consumption and be actively involved in energy-saving efforts.

Thorsten Arsan, CFO and chairman of the Sustainability Committee, commented:

"With the publication of our first sustainability report in accordance with the well-known and widely used GRI standards, we succeeded in reaching another milestone in the implementation of our sustainability strategy. This is both a pleasure and an incentive – in the coming years, we want to focus on the measures defined in the report to prevent the negative impacts of our business activities and promote the positive ones even further. This will help us achieve our ambitious sustainability goals."

The full, separate Sustainability Report for the 2022 financial year can be accessed through the following link: https://www.peachproperty.com/wp-content/uploads/2023/05/Peach-Property-Sustainability-Report-2022_final.pdf

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Reto Garzetti, President of the Board of Directors, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman Smithfield, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

Peach Property Group is a real estate investor with an investment focus on residential real estate in Germany. The Group stands for many years of experience, competence, and quality. Innovative solutions that cater to tenants' needs, strong partnerships, and a broad value chain round off the profile while digitalization and sustainability underpin the operational activities. The portfolio consists of high-yield properties, typically in German Tier II cities in the commuter belt of metropolitan areas. The activities, therefore, span the entire value chain, from location evaluation and acquisition to active asset management and the letting or sale of properties.

In addition, the Group develops selected properties in Switzerland to be sold as condominiums, of which the "Peninsula Wädenswil" development project is the final such development project.

Peach Property Group AG has its registered office in Zurich and the Group is headquartered in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer,
Dr. Christian De Prati, Kurt Hardt and Klaus Schmitz.

More information at https://peachproperty.com/en/

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