Our approach to corporate responsibility
At Palace Capital, we believe in conducting our business activities ethically and responsibly. With £236m invested in commercial property across the UK, our shareholders depend on us to protect their assets in a safe, secure and responsible manner.
Our approach to Environmental Social and Governance (ESG) seeks to reduce the negative impacts our operations may have on the environment and society as a whole. The current pace of technological, social and environmental change means we must continuously adapt to ensure we are meeting the needs of our tenants, our employees, the communities within which we invest, and those we work with on a day to day basis.
View our ESG policy here
We have established three key objectives which will be a focal point for the business going forward:
Future-proofing the portfolio – by understanding the environmental performance of our assets and actively seeking to reduce energy use and greenhouse gas emissions.
Fostering a culture of inclusivity and consideration of stakeholders’ interests – by promoting collaboration and input across all levels of the business and engaging with our suppliers and stakeholders.
Being a responsible business – by ensuring ethical business practices and sound risk management.
Environment
Our active asset management approach means that we are constantly assessing our portfolio and earmarking assets for refurbishment and renewal, utilising the latest technology and environmentally efficient products so that our properties are equipped to meet minimum energy efficiency standards.
We continue to review the EPC risk associated with existing assets and new purchases and implement improvement plans for any asset with an “E” rating or below.
We have improved our data collection processes to report our overall energy, greenhouse gas and water usage.
We presently disclose our Scope 1 and Scope 2 emissions and are pleased to report a 5% reduction in our Total Scope 1 and 2 emissions for the year ending 31 March 2022 when compared to the prior year. Our Scope 2 emissions are the largest contributor to this reduction as a result of our energy efficiency projects and drive towards 100% of landlord-controlled electricity supplies coming from renewal sources (currently 99%). Over the last year we also began to collect and report on Scope 3 emissions, which largely compromise occupier-controlled energy sources. This has provided us with greater coverage of our portfolio and helped us understand where to focus our efforts to reduce our carbon footprint in the years to come.
Tenants
We value our customer relationships and the property team inspect our buildings as regularly as possible, engaging with occupiers to understand their business needs. This ensures that our strategies for each property are current and flexible enough to be adapted to changing occupier demands.
During 2021, we undertook a satisfaction survey of our 200+ occupiers. We asked occupiers to rate their overall satisfaction with Palace Capital as a landlord, as well as a range of other aspects, including: the overall management of their building, their facilities and whether the building met their overall needs and expectations. We will repeat this process regularly.
We recognise that in order to meet our tenants needs and be a responsible landlord our strategy must address the accelerating industry and global challenges in the built environment. Not only will this future-proof our business and ensure we are resilient, but it will also bring greater consistency and efficiency across our portfolio management.
We continue to engage with our sustainability consultants, property managers and occupiers to implement sustainability improvements at each asset
Communities
As part of our ESG strategy we seek to partner with local charities that have a common thread of supporting young children, homelessness, and poverty in the areas within which we invest. In order to do this, we engage with our local stakeholders to better understand the community and how we can contribute positively to its growth and development.
For the year ended 31 March 2022, our charitable donations totalled £20,000.
Our Workforce
We recognise the importance of each and every employee and seek to be an ethical and progressive employer. This means encouraging a culture of openness, collaboration and continuous professional development and rewarding the effectiveness and loyalty of our employees.
We provide fair salaries with a competitive benefits package and all employees participate in the Company’s Long-Term Incentive Plan. A thorough annual appraisal process is conducted, and we regularly invest in employee’s development needs allowing them to reach their full potential.
To ensure the Board has a comprehensive understanding of the views of the workforce a formal Workforce Advisory Panel meets at least twice every year. This forum provides employees with an opportunity to discuss and debate matters across the business. Feedback from the panel is provided directly to the Board of Directors.
