Sustainability Update

Nov 8, 2022

Good morning, and welcome to our meeting. We're going to be talking about sustainability today. First one in our history, certainly not the last, but definitely an important day for us. We look forward to providing with some insights into our activities with regard to sustainability. I'd like to start with our quarterly results. And after that, I'll provide you with an overview as to what we're going to cover today. After that, I'll introduce you to our employees. Today's highlights will be a number of presentations. But of course, at lunchtime, you'll have the time to talk to employees focusing on sustainability. After my introduction And after explaining why we are presenting this green frame or the green bond framework today. Grito Grundar, our CIO, is going to explain more about our daily business, what we are doing on the asset side. Patrick Taylor, our Head of Capital Markets and Treasury, We'll tell us more about the framework of the Green Bond framework. In the Q and A, I was asked if this was a simple process and it wasn't, it was rather complicated. But because we have a clear goal, we could be successful. And I'd like to thank anyone that supported us in this, Patrick Schmidt and Moritz Menges and Robert Radmielovich are also here today. They are going to be presenting the ESG rating on behalf of the views partner, which is a core element of our framework. And with Federico Pezzolato, we have an Italian just like me today in the building. He comes from ISS Corporate Solutions and is going to be presenting the 2nd party opinion. As you can see, we have 2, one from ISS and one from UDES. And Federico is going to be presenting the ISS approach today. Agathe Bolly, who is responsible for sustainability and communications, is going to bring us After lunch, we're going to have a case study presented by Thomas Kraft, one of the more senior asset managers. He's going to be telling us more about the Herliemann site. We'll explain the history and what we do today. We're going to be doing a property tour on a tram During this tram ride, we'll see more about the properties And we intend to finish at 3:30. But let's start off with the figures. When I compiled the slide At the first well, during Q1, we were critical as to Basel. And then somewhere, we have the feeling, well, it's getting difficult in Basel. On Peter Marion, we have vacancies. And until a few weeks ago, we realized that the traction is simply not there. All of a sudden, demand for Peter Mill. Now demand is back compared to Zurich and Geneva. Basel still remains a slightly weaker market. We have a backlog of offers. We can see that it doesn't have the traction of the center of Geneva, Zurich, but we are having discussions for all of our properties with vacancies. Well, the buildings are quite modern. Now the second thing, which is also very interesting, It's a transaction market. The demand for prime assets remains intact, How this pans out in the midterm remains to be seen. Now as for the key figures, Top line, gross of 2.3%, if we Take out the COVID effect of last year, which was negative this year and positive this year. If we look at this like for like, we have a growth of 0.5%. Last year, we basically had no inflation indexation. So half of the 0.5% like for like indexation, The other half is rental. And here too, I think, of the quality of the income has substantially improved over the last years. Also looking at next year, I am optimistic that we'll have a solid top line. And despite vacancies in some buildings, we'll be able to show positive top line. Now as for Assessment profits have gone down, but it's a little less solid. Now we are focusing primarily on the operative results. This is important to have a contribution to rental, but most of the Ratings comes from the transaction business. On the cost side, we have high discipline. We see a lot of stability in the course of the year. Our goal is to have an EBITDA margin of over 80%. We're at about 82% or 83%. We saw this in the Green Bond framework, too. Now one figure that has developed positively is a financial Of course, financial costs are going to increase if interests continue this way. Now with regards to the top line, we have catch up, it's nothing worth worrying about. But of course, this directly affects the bottom line. As for the EPS, I think we're confident that we'll be able to carry on with this trend despite increasing interest. We do not believe that we won't be able to continue with these €0.05 increase. I think this also mirrors the quality of the portfolio and the activities that have been successful in the course of the last quarters. Yet, of course, we're focusing on this vacancy figure, which can be 4% or 4.5% too. It was hard to know exactly how this pans out. Like I said, this year, we're at 3.1%. Next, we will have maturity with Prime Retail Zurich. There's already a follow-up contract. The interpreters would kindly ask if we could have if we could see the image of the speakers. It's very hard for us to interpret without seeing the image. Would that be possible? Thank you very much. Once again, the interpreters are requesting to see image to be able to see the speaker and the slides. Now the biggest vacancies, well, when you look at The whole thing, all vacancies are very relevant. We're very active when it comes to bigger vacancies. The most difficult as a Volley segment set of assets. Of course, the assets are fairly good. The quality of the assets is good. But nevertheless, in this area, there's a lot of offer. It's always difficult because the right attendants do not need a lot of space. Nevertheless, we are 14 to 15 months in advance. This requires time, the organization, and that's the advantage. We saw this over the last year. We have a very compact team With our staff, we have a unit that deals with rental support. So we are very close to these maturities. But of course, we already know that tenants are going to be moving out and that we'll need to find new tenants. What we observe on the rental side, if we have an object in the center which we can renovate. And of course, we have the potential to increase rents. The potential without investments tends to be difficult, which is why like for like next year is going to be mainly driven by indexation by inflation as well as by renovations and new builds. There, we can really substantially increase the rents. Now for valuations, nothing in the Q3, but we had discussed this internally. We are currently discussing quarterly results according to the market. We'd have to have the portfolio fully assessed every quarter. More than 10 years ago, we had a waiver that in Q1 In Q3, we do not have to have a full assessment. Basically makes no sense. But what we do do is that we look property for property with regards to rental activities, whether this property could lead to a valuation difference of plus or minus €5,000,000. We did this this year, too. We had 2 rental contracts that were prolonged, but in this context, too, it wasn't clear whether this was a valuation difference of more than €5,000,000 which is why in the quarter there was no valuation difference at these individual properties, something going to be observed in the full year review. But should there be any bigger changes on the CapEx side, we'd have to let the valuators know and they will then undertake the assessment. So no evaluation differences in Q3. Now effectively, we're concentrating on the operative income and take this as a basis also for the disbursement of dividends. Now moving on quickly. Let's have a look at the balance sheet And then we'll move on with the framework. Having a look at balance For us, the key figures on not only the 2 holo equities but also to include and go to value, which is at 33% being very shock resistant. Secondly, the ICR is a low interest rate, which will add 2, which is extremely shop resilient. Now having a look at the duration Used to have duration of rather 2.5, 3 years. And we look at the from a affordable people perspective, we have Now we have a look at it. And 89, low interest rates, we have similar to rate. Just to give you an overview on what the balance sheet, how it's evolving Let's move on to the framework. And before I hand over to Peter. I'd like to ask one more question. Why are we going to talk about the green bond today? An issue that we were facing that I was also facing Personally, we used to work in a very structured way with our own And then we focused on commercial bonds to have because we didn't have any normal or green bonds, but we always And when we work with asset managers with Construction companies, we all share the same sustainable mindset. So we always try to shape our company in a sustainable way. We try to bring some things together. We thought it's time to deliver strong message On the corporate and sustainability side, on the asset side, we are pioneers Just think about the cost better tower that already is renewable energy solar power. But it's been a challenge to include it in the corporate Framework because the Green Bond Framework is very much aligned with the certificate. And we deliberately opted Not for the duplicate, but rather to focus on reducing emissions. We did appear Jason with Rodolfo Piernier and it was Everything that we wanted to adopt in Switzerland, too. So we opted to adopt The green bond framework to reflect our mindset, a sustainable approach, In our sustainability report, We already commit to sustainability And our employees, they don't change their approach. They carry on What they always used to do, just in a more committed way. So We want to be, firstly, a corporate green company. Basically, it's a mindset that always approached That was our main idea. So that anyone investing in PUP knows that they invest in a sustainable association. So if you'd like to There you go. There's a question. Unfortunately, the speaker is off mic, So the interpreter cannot hear what the person is saying. I'm a representative of the property company Innovia. You already gave insight In the cash flow and operations management and the interest rates that went up, Is this something that we should count with PSP that Not much contribution will be delivered by Indexation and lower interest rate. We'll face a different situation next year. Possibly, we'll have less yields Coming from sales, costs will remain on a stable level Between €6,000,000 €8,000,000 See how we'll deal with May I ask you something in relation to the debt? Could you give an indication On how quickly costs are going to go up now with the increased interest rate? Now we are possibly more exposed and the next On the bank side, I'll just have a look at the suggestion. And now we're focused on the capital market because of the negative interest rates that we used to have We'll compensate. Now when we have a look at the 5 years Prospect, within the next 5 years, you can say between EUR 30,000,000, EUR 40,000,000. And now we are at probably 360. And then we have a top line growth with it growth, which is still bigger than expected. Regarding the Transaction markets. Are there any larger portfolios that will be offered? In Germany, for example, many companies are trying to sell portfolios, but it's Not possible. What about larger portfolios with them? What's the situation like? We haven't seen any larger portfolios. We heard about a private but at the moment, we're not offering any larger portfolios. But maybe later on, my colleague And go more into detail regarding the current market situation. All right then. Thank you very much. We'll be available if you have more questions later on also On a one to one level. And I'll hand over to my colleague. Thank you. Thank you very much. And Giacomo, a very warm welcome from my side to General, as already mentioned, we're not doing anything differently, but we'd rather Carry on with what we used to do in the last year. My colleague will go more detail regarding 1 framework. To start with, I'd like to stress that we have a high quality portfolio with Great infrastructure, very well connected and with many commercial properties in the city centers. The portfolio profile is a profile that we worked on in the last 10 years. And based on sustainability criteria. What else can we mention regarding our sustainability strategy? We focus on measures that work where our portfolio benefits from in The long run, one example has already been mentioned, the Herleman to make sure that this building complex We'll reduce the CO2 emissions Significantly, after the lunch break, my colleague will give you some more insights regarding Then we are working with building certificate, as Joakim already mentioned. We were convinced that we should not only focus on the certificates, but they're now part of the regulation. When we have a look at the horsepower, we Deliberately did not opt for a certification even without certification. It's a very sustainable building. Thanks to the Renewable Energy Systems and Photovoltaic Systems used Like also, it's a very important point for us. Only a property that is well used can also be a sustainable property. Now with the new ESG rating of the worst partner, which Patrick Schmidt is going to be presenting to us later on, We now have a tool, a path in order to ensure that our portfolio is subject to regular and all encompassing sustainability Audits. Well, the weaknesses and the strengths of the properties thereby become visible. And with targeted measures, We can then work on improving anything that requires improvement. You can currently see the disclaimer. That doesn't apply to me. I simply thought that I present without slides because I think we'll be seeing Sufficient slides today anyway, but perhaps you could change the image away from this disclaimer. I would like to now speak about one of the most important elements in our sustainability strategy, and that's, of course, year 2 reduction. If we take a look at the buildings in Switzerland, They are, generally speaking, responsible for 40% of the energy consumption. And whatever source you want to believe, and responsible for about onethree of quarter of CO2 emissions. And if we want to achieve the overarching climate goals, then it is clear that the real estate Sector will also have to contribute towards achieving these targets. And at PSP, we have known this for a while now Since launching a sustainability program in 2010, we have consistently worked on making our buildings more environmentally friendly as much as possible, of course. At a portfolio level, there are 2 elements we focus on. On the one hand, the reduction of CO2 emissions and on the other hand, of course, being careful when using our resources. If we look back, PSP between 20102021 halved CO2 emissions from 21 kilos per square meter to 10.5 kilo per square meter rental space. That in itself is a marketable reduction, and we will continue reducing until 2,035. We want to go down to 6 kilograms per square meter rental space by 2,035. And how do we achieve the score? Generally speaking, we're replacing fossil coal and gas heatings with alternative heating systems. This could be wood or also heat pumps, for example, that come into use. And we're also buying or producing ourselves renewable electricity. We undertook great efforts in this area. And over the next years, We want to increase the capacity of our PV parks from 2 megawatts peak to over 4 megawatts peak. For this, we created a new pipeline. And thirdly, We're increasing energy efficiency through building measures, for example, by improving technology or by improving the installation of the buildings. Of course, in the city center, this is not always easy to do with properties, especially when it comes to listed properties. But we have a lot of experience and we know what measures create what effects. And this afternoon, during the tram tour, we will see that there are listed buildings in the city center that are sustainable. And then lastly, we're also becoming more efficient in our business itself. We started a campaign this summer. And of course, the best way to reduce CO2 emissions simply to consume a subject or to optimize consumption at least. The CO2 reduction is a central element in our sustainability strategy. And for this, we also have modernization measures oriented on the life cycle of buildings, but it's of course also dependent on the majority of rental contracts. So we do not simply want to implement measures without considering the rental situation. It is important to do this in a way that is beneficial for all of our stakeholders, and we found a good path for this. So in summary, it can be said But with regards to our operations, we now have a clear view as to what is the state of affairs with regards to our reduction journey and what path we'll be going down over the next years. Of course, we also have the green bond framework, which will be extremely important in this context. Allow me to say something about another topic, the built in CO2 emissions. They too are important of course because in a building cycle, it is clear This is where the most emissions are being produced, where most of the CO2 emission ensues, of course, when building an actual building. And here, too, I think we have an advantage of our existing portfolio. Our buildings have often been direct for over 100 years. It could be said that a large part of the CO2 emissions has been amortized, therefore. But of course, in our modernization efforts, we try our utmost to build environmentally friendly, to pick the right building materials. As with wood in Basel, for example, we'll be trying to recycle Building elements, of course, the key word here is the circular economy. When it comes to our new builds, this year, We analyzed the built in the Scope 3 emissions. We will do an evaluation here, and I'm sure that we're going to communicate about this in due time. But there are not that all that many new builds. So the impact will be somewhat limited. Now be it with regards to our sustainability strategy on an asset level. And I'd like to add one further point. In order to achieve all these goals, one thing is important, and that is that we need internal and external intelligence. It is important to come together, to work together on our assets and rental. I think our staff has an enormous advantage for ours. We have a diverse team of real estate experts that are in touch with each other on a daily basis and that, of course, offers a certain degree of certainty that we will be able to find the best mid- and long term solutions for every property, be it for the tenants, be it for the investor, but of course also for the environment. So do use today's opportunity to talk to each other, Ask any questions you may have. Feel free to get in touch with me, too. I am available to answer any of your questions. And without further ado, I'd like to now move on to the actual topic of today's meeting, and that is the Green Bond Framework. And I'd like to wish all of you much fun at today's event. Now I too would like to welcome you So today is Sustainability Capital Markets Day here in Zurich. I'm Patrick Taylor. And at PSP, I'm responsible for Treasury and Capital Markets. Now in this context, over the last months, I had the pleasure to accompany the Green Bond Framework here at PSP. And the center of this project is, of course, as the name suggests, the Green Bond Framework. In the course of the next minutes, I will briefly summarize The framework, I'll summarize, quite a few months of work in 10 minutes, but I'm sure you'll all be able to handle it. I'm not going to be talking about the overall PSP sustainability strategy. I'll really be focusing on a few important points of the green bond framework. Right. We're not the first ones in Switzerland We're the first ones in the real estate industry to enter the market with a green bond framework, which is why I assume that most of you know the basic idea of such a framework. We created this framework together with the Green Bond Principles, which is why I won't be insisting on every individual point. As Giacomo already mentioned, in the past, of course, we observed developments in the capital markets, and we realized that investor interest is becoming greater and greater to invest into green instruments and products. As has already been mentioned, we do not want to have different bonds, ones which are green, others which are brown or purple or whatever. For us, the product while the instrument, Green Bond, offered the possibility, together with the already mentioned green investments from the past, to actually pursue this entire transition. Now the 3 main points are to be seen on the slide, which I would like to delve into, that is the use of proceeds, the green asset portfolio approach and lastly, the green bond report. For me, of course, this is a central element of this framework because that is what The funds are being used for and that is how the funds are being mapped. In our framework, we decided to go for the category green buildings according to the green bond principles. I'd like to mention that this doesn't mean Now we aren't undertaking any efforts in area of biodiversity or energy efficiency or renewables. We, of course, do so. But we decided to put assets at the center of this framework in our portfolio, and that is why we decided to go for this. And then we have 3 subsections within it, which can be seen on the slide. These are the return properties, renovation properties and new Its categories relate to the categories of the EU taxonomy. It didn't set up our framework exactly as a taxonomy, but there are similarities in some other points. Right. For our properties, so that they are classified As green buildings, we defined 2 criteria. On the one hand, the ESG rating. And as we've already heard today, Our voice partner is providing this for us. Here, we've determined for 3.5. I'm not going to speak about this rating methodology in detail because later Patrick Smedes is going to be providing us details directly. Now the second criterion Is the CO2 emission within our operations? That's extremely important to achieve our goals and goals set in Paris. As you can see, we measure these limits in CO2 emission per square meter per year until 2,035. And as you can see, we are becoming more and more ambitious. This ensures that the portfolio of green assets becomes more and more sustainable during the duration And we managed to achieve our goals. Now in practice, this may lead So one property, which is below 12, still remains in the portfolio, but then We'll be leaving the portfolio in 2025 or 2030. And then when we invest in sustainability, they might come back. So there can be dynamic changes here. A small side comment from new builds. We, of course, already have a more ambitious goal today. 5 kilogram CO2 per square meter is the limit we at ourselves. Now of course, if a property is finished in a class of reclassification, And Bausch's criteria continue to exist. Now these two criteria and and our criteria. We decided that every property must fulfill the ESG rating goal as well as this year to emission criterion. So both have to be fulfilled. That would be it with regards to green building, first of all. When it comes to the green asset portfolio approach, it works as follows. The individual green buildings are added together. And here, I want to mention Large renovations and market adjustments weren't considered only every added franc that is invested into a property. There's no role whether this franc was invested this year or 5 years ago. What matters That's, Green Bond framework that was spent for reducing emissions in the Green Bond Framework, we also didn't mention any omitted look back period. Now on this table, you can see an overview. Where it says that today, we know pretty much exactly what property is going to be entering this portfolio in which we're not preliminary now preliminarily, because our list is only going to be published next year. And Ernst and Young is also going to be auditing this, which is why it says provisionally here. But this afternoon, we'll have an opportunity to look at one of the other property, which will most likely be entering this portfolio. Let's an overview. Dollars 3,000,000,000 green assets is what we have at the moment. And then we have a green bond portfolio of DKK1.8 billion. Now over the next few years, the goal of a green bond portfolio Is this green asset portfolio to be bigger than the green bond portfolio? Is it then going to be tested on a yearly basis by an internal community or with each new emission. We know that this approach isn't new at a European comparison level, but it definitely is in Switzerland, which is why McKinsey asked McKinsey to Provide us with a legal opinion. They told us that this reclassification can be done. CKD, the bank with whom we partnered but this is morning with the official communication. We're going to hear more about this later on Another representative is to own side and will be I already mentioned the green bond report. Back to you is an overview which you have seen on the last table on green assets and outstanding and renewable energy with renewable Properties and more information will be published. As we only have limited time, I'd like to mention only an overview if you'd like to have more detailed information. You can have a look at our website looking for the green bond framework and you can also approach us And the audience will turn us over the webcast. You can also ask questions online. If I have the time, I'll be glad to answer your questions. At our next publication in 2023, which is new green bond report. Now I'm very much looking forward to your questions. And to I'd like to say thank you to our internal and external partners and for your support throughout the last month. There was one question here. We'll just hand over the microphone. Did I understand it correctly that all green assets That all private placements would be allocated to the less sustainable Assets, I just want to make sure I understood this correctly. I cannot give any information on the cost Structure, regarding the second question. Correct. The green asset Based on the Time left and within the next month, we'll also see how all the other points can be Unfortunately, the speaker is off mic and the interpreter cannot hear the voice. That the market value is mapped to property or that an overall total amount is mentioned there? And as we used to proceed in the last years, too, our Revision department will continue. Single properties will be listed And are not relevant in this case either. We'll have detailed records regarding the emissions And the remaining portfolio will not be unveiled. Are there any accessible information regarding the rest The portfolio? Unfortunately, the speaker is of Mike and the interpreter does not have any sound. And this mark to market means this is by Paul Findmilliarden. That allocation report, Unfortunately, the speakers are still off mic and the sound is insufficient for interpretation. Thank you for the understanding. I'll try to wrap up again as soon as the speaker The interpreters are connected Remotely and do not have sufficient sound for interpretation. We'll not be linked to the green bond Are those yields that were already distributed? From a technical perspective, they are adapted, thanks to the And in the green bond framework, we have a funding and Also a refunding, which means that if we refund We don't have that many funds for future investment, But they're rather mapped with the bonds within the portfolio. We try to make sure our portfolio is becoming more and more sustainable. How can you make sure that You're being efficient because you have investment in sustainable energy. And with I'll be glad to hand over to you. Generally, we have A team of experts to monitor Efficiencies within asset management. And also we cooperate with external partners. One more question. Some of the owners include in their To make sure that the use of energy becomes more sustainable. Growth and partners Our intention was to have a green lease with And we'd like to make sure that this strategy is also implemented With other tenants, too. All right. If there are no more questions, I now have a question at the pleasure to hand over to Lal Pilari from WKB. Thank you. Good morning. My name is Ralf Ruri on Berg Investment Capital Markets with Z KB, and I have the pleasure to present our work, our role as a bond Within the next minutes, I'd like to talk about the following points. I'd like to give Insight on the green bond market, its history, its current situation. I'd like to talk about the reclassification of green bond Portfolios in the capital market. What the impacts are for the Swiss Capital Markets. You can see it on the slide on the left hand side. Capital market in Europe and in Switzerland took a little longer We tried to shape our bonds on a sustainable day. Our Sustainable bonds gained momentum. They became There was much more demand. So we asked ourselves what We are now in 22, where already every 10th Bond offers a sustainability level, so there's been a shift And the sustainability topic has gained momentum within the Swiss Capital Market. We try to communicate our efforts in Our sustainability strategy. So PSP, together with us, tried to Decided to meet the demand of the investors for most simple And not only other green bonds, but to include the whole Entire portfolio within the Green Bond strategy. And what's important here is With Chuck Bosry already mentioned an example also with 3 other European but already assessed successfully. But as Patrick Keller mentioned, this approach was then introduced in Switzerland with a reclassification That took place for the first time. Now how do we approach? So we can approach that an investor As published this morning on the stock market, the reclassification of views was communicated, which means that legally, reclassification is already to offer the green bond of sustainability flag from our bond, and we expect this data to be included within the next days. This brings me to the last point already. Now what does this mean for the capital market in Switzerland. It's exciting to see that we have a new Big green bond adapter in Switzerland was 3,000,000,000 Now the best top chapter in PSP, That's what the list looks like. 8% in all of the 7, all the available green bonds Can be invested with more than 20%, which are good news for the Swiss So much from my side. I'd now like to hand over to Patrick Schmidt from First A very good morning, ladies and gentlemen. It is my pleasure to present the ESG portfolio reporting and to go a bit deeper than what we've heard hitherto, How does this rating work and what are the most important parameters? I'll meet about 30 minutes. I'll present what sustainability means for us at WiesePartner. Then I'll speak more about the method which we applied. And then I'll talk about reporting, which we've heard more about before. And then, of course, any extensions we plan in the area of sustainability. Let me commence by saying the following, which is pleasing. And we've heard it before that things are happening in the area of sustainability, and we're very pleased that PSP and Other real estate investors and let the whole industry know that something has to happen. And we, as Vyuz partner, believe that we must contribute towards this too. And with our combination, we have consulting, we have evaluations, and we have our data. And with that, we believe that we can contribute towards making the real estate industry more sustainable and, thereby, generate sustainable added value. At Risk Partner, We have 3.50 experts in our house and 50 of them focusing on sustainability. For 14, 15 years, we've been dealing intensely with matters relating to sustainability, more about that later. Perhaps you know us from ratings. We are involved in PSP ratings, and we also do data and market analysis. And you can, of course, ask me more later on when we discuss market developments. We just said it hitherto. When it comes to sustainability, Well, about 10 years ago, sustainability also became measurable in real estate ratings. And with regards to different aspects, we also decided to introduce sustainability more deeply. We are a member of PRE, the principles of sustainable investing In German, we are a member of the Eco initiative, as you know it. In Germany, various investors came together in order to take the next step and to together set up a framework as to how ESG sustainability can be measured. And I'm sure you have this in your companies, too, and it's also the case at PSP. Well, our service offering itself It's also becoming more and more sustainable. That's our commitment. We are also obliged to also explain to our customers how to become more sustainable, but we can also make the real estate industry more sustainable. And this also includes training our employees because we believe that in the future, every employee has to have the possibility to offer consulting in the area of sustainability and what this means for ratings or for market analysis. If we take a look at our product and services, we have 4 pillars. Starting on the left hand side, These are the performance measures that exist. We have GEAG in Switzerland or GEAG Plus, which goes even a bit deeper or MINERGY is also known and all the labels with it, So energy labels that exist with regards to buildings, that too is something we offer and of course do. Different funds are GEAG certified in Switzerland. Another step is gray energy. We heard it today. That's a further point that is added to this. That too is something we offer, and we do this with our daughter or sister, partner. So we have certificates for individual properties. And here, there are different certificates and ratings that are available. I'll say more about that later. We're going to have an extension all the way to larger areas. And here too, of course, we'll be able to offer certificates. The next topic is CO2 and climate protection. We have a CO2 calculator, which we also used for the ESG rating now, where portfolios can be observed in order to see how this is going to develop over the next years until, of course, the portfolio becomes year to neutral. But other topics are also natural dangers as well as climate risks, which have an increasing effect on the portfolios and properties. And then the last thing is We are still reporting or analysis for our customers. Three success stories, if I may present these, which are also the basis for the further development of ESG ratings for Bafu, for the Federal Ministry For Environment, We conducted a study as to how to deal with an existing portfolio of properties. That's important because we have no ratings or Any aspects with regards to how it is going to work with the circular economy? That is definitely going to be one of the next topics, and we were able to look at this together with the ministry as to what the effect is here. Another topic that is very important for our future are the urban heat maps. How is this going to develop over the next years? If it becomes hotter in our cities, and this is going to be important for PSP2 and of course, it's going to influence ratings. Cities, especially in the central areas, They're going to develop. There's going to be heat spots, so they're going to be hotter than can be seen here in the future. And then we also have PAGTA. This is a module for CO2 emission calculation. Here, a 1,000,000 buildings, and this is being done every 2 years. Well, this is a module to see how much is a method in the building sector in order to then see how this is going to affect the future, what can be done in this area. Then I'd like to move on and speak about the methods, and I'm going to show you our approach now. If you take a look at traditional ESG ratings, You can see that there's 2 possibilities to tackle this. On the one hand, you have the building perspective. You could say that in Switzerland, This is the GEOG approach or the MINAGI approach where you go very deep. In BREEAM, for example, This is responsible for a lot of aspects where a lot has to be fulfilled and assembled, but it's also an individual property. And then you have the portfolio view on the other side. This is a more of a high level approach where perhaps you only measure a few aspects and have a model based approach. And that's also the first aspect you have to consider. The second topic is availability of data. With other words, do you have data to measure sustainability? Do you have data You can look at to see what the improvements are generated and are the right data also measured. And we heard it before over the last months. We worked on this project. We worked on developing a rating and this can take a lot of time. But at the end of the day, it should also be reasonable and that's why We're also ensuring that as much data as possible is measured automatically All that already available data can also be used in this context. A very important point is standardization. In Europe, we have an EU framework in different countries and there are different initiatives. And to date, there's no standardized ESG rating at a global scale or at a Swiss or European scale, which is why this framework must be set up in such a way that it's future proof and can be adjusted to any changes that will ensue and these will ensue. And then the last point relates to transparency. At the end of the day, it is important to understand how ratings work, what aspects are being considered. This is important for the investors on the one hand, but it's also important for the real estate owner, In this case, PSP, it is important for you to understand at what factors you can work on to make your portfolio more sustainable and to improve your rating. And we believe that our ESG fulfills these conditions So we're located between the overarching portfolio viewpoint as well as the individual property viewpoint, somewhere in the middle. If I look at the goals on our end, Well, we try to be transparent when we examine the portfolio with regards to sustainability. And we also try to have a compact database catalog of criteria. And then the second thing are controlling instruments, on the one hand, at a strategic level, but also at an operative level. I said this beforehand, to ensure that the owners can know, okay, where can I do something? Where am I actually going to have an effect? So for this, it is important to quantify the risks and the possibilities. And at the end of the day, We ensured that as much data that is available can be used not only now but also in the future to ensure that there's not a huge effort required every time to undertake this rating, but that instead, This is a seamless process because the data is already available. In order to do this, We took a look at different providers and offers in order to see, okay, how can they be collided into one rating to ensure that as many criteria are fulfilled as possible. How do we do this? Well, we optimized all of this. At first, Indicators were such based on our in house analysis. We try to have an objective overarching view with a different weighting of indicators that all of these are also in the public eye. You can read up on this, what indicators are used at what wage. And then we also try to optimize the whole thing as much as possible to ensure that it also becomes usable in the future but can also be adjusted if need be. Briefly speaking, this is the ESG rating. Of course, this can be looked at more detailed, but starting on the right hand side, 3 quarter of the data is collected quantitatively. We did a scaling of the results ranging from 1 to 5. I think this is important too. In all of the ratings we use, we have a scale of 1 to 5. 1 is the lowest scale and 5 is the best value that can be achieved. That allows us to be comparable to other ratings. And if you take a look at the weighting, the 3 topics ESG, well, the E, so the environment As a 40% weighting, this is also linked to the fact that we can simply see The impact on the property, on the value is still highest when it comes to the environment and the social and government areas are perhaps a little less heavy and weighting. Of course, we have CO2. We have renewable energies here. And then we have the overall consumption. On the government side, we have the business process. So for example, what do the processes look like? Then perhaps the life cycle costs are also a part of this. And then where is the property located, what's the usage and what about health and security. At the end of the day, we have 10 criteria, and I'll say more about what this means. We have 23 indicators and 76 parameters we measure in order to get to the CSG rating. Let's move on to the catalog of criteria. For you to be able to understand this better, we have the SDG goals, the sustainable development goals of the UN. You perhaps know the 17 goals that have been set here grouped into the 3 ESG topics, so environment, social and governance. And on top of that, the further goals that have been added to this, and that is the consumption of resources, social integration as well as transparency and participation. And here we can see What aspects should be measured in order to be able to do the CSG rating? And you can see that on the environmental side, there are many topics with regards to energy, materials, matter, water consumption, but also mobility and transport topics are important here. The city climate plays a role here. Then we have social integration. So infrastructure, how easily it is to reach the building and the usage flexibility that is provided by a building and then also the external area. And last but not least, where the building fulfills all of the health and security requirements. For example, you won't have to fall down the stairs. And then there's the governance issues too, which have to do with the provider themselves, but it also relates to what is being done in it, trade possibilities, possibilities to rent out the place, all of these topics relate to governance. That's what it looks like if we divide this up. And you can see the 3 topics and the 10 criteria contained herein. And then we move down to the sub criteria. If I take environment as an example, we take the greenhouse gases And then we have the CO2 consumption. We have energy topics here. For example, the energy demand from a building, and then we have the share of renewable energies, Then we have the consumption. We have, on the one hand, the density, the usage density contained within it, but as well water consumption, I. E, how much water consumption applies to a specific property. And then of course, the question is also can this be proven? Is this even being measured? And these are topics which, of course, need to be observed in the future too. Perhaps some of them aren't being measured yet today. Then we have the social aspects. And here PSP with its central locations are certainly On the right hand, we also have the social economical structure, I. E, how diverse As all of this, how many different offers are there? Then we have the usage, that's accessibility of a property on the one hand and the flexibility within it. And then we also have the internal and exterior areas, what possibilities exist to meet and then well-being and safety that too is an important area. These are the external emissions, So transport, for example, how loud is a certain location? Then we have internal security and then, of course, all matters relating to the environment are playing an important role here. Now with regards to government, We look at the company processes. We take a look at what is happening within the buildings, whether surveys are going are being conducted, Do you ensure that sustainability is done together with the tenant? All of these 2 are topics that play a role here. And then regional economy also plays a role in this context. So life cycle costs, for example, or the tradability of a property. We heard this beforehand And an object that is tradable and isn't vacant will also have a positive aspect on sustainability. And then last but not least, A site location is also on topic here. And we have environmental Factors. Let's have a look at both at some of the criteria. Regarding the different energy supply, oil, gas and and how the portfolio is going to evolve in the future. And something which is going to gain importance such as the project at the Bergtum, we'll also have Chance to compare your portfolio with comparable other portfolio to see We have a look at the heating, the heat map. This is something that the owner can Have an impact on, for example, if you have green area on the roof And if such measures improve the situation, of course, also influences the rating. Now another curious public transport, How long do I have to walk, get to the next bus stop? To create offers such as car sharing, With a roof which is not green but with green areas that surround the building which also has an impact On the rating, of course. Let me just figure out how the Location, a very important criteria. The macro and macro location, first of all, where is it located within Switzerland, which municipality And then the micro location within the municipality, is it located? Mentally, 1st, on one hand, you see how the Living quality performed all related to PSP on the right hand side, which stands for office use, more breadth, the better quality Which also has an impact on the rating. And then the topic of well-being and safety, road and rail noise, Day and night, for example, and then distance and Amazon tour lines Traffic, noise. One example from our data A hazard because of the things that may occur in the special areas, something that May not have been observed very frequently, such as some earthquakes, flooding and so on and so In the Netherlands, for example, the situation of different differently when you know you are Below sea level, the hazards are a lot different than when you compare Switzerland. And then the corporate process, which is an extract here from the survey that Our aim was not to have different ratings, but to have an interface of ruling criteria. Now this is what the reporting looks like. We have A scale from 1 very bad to 5, which would be excellent. With that property in Banno's Platts, and we compared it with the overall portfolio And also, we compared it with selected KPIs to know What the performance looks like in comparison with other portfolios. Now let's have a look at pre fall. This Property that's called 3.8 and we have an average Portfolio grade of 2.6, which means that we perform above average Yes. Which is also an important criteria of PSP Properties. Now you may ask yourself 3.6% or 3.8% is a good result. Does it mean that the Property sustainable? Yes, indeed. F5 would be the very best property in the very best And it should not have any noise pollution at all and being at the main station So it's really a challenge to compare different properties here. So this is why even a 3.8 or 3.6 scoring is an excellent We received a 5 point deal for a very modern heating system, It's also a challenge when you renovate So not every property is allowed to use water from a lake or to use district Heating or to use a water pump or to use solar energy, the different challenges involved here. Then we also concluded the topic of water efficiency, But it's very difficult to be measured. So it's difficult to have evidence based results there. As you can see that we have properties with excellent scorings and criteria that we involved could There'll be improved and some criteria cannot really be met because of the location, because of Preservation, Monument preservation, historic preservation regulations. I'll wrap up now. And if you have any questions, I'll be glad to answer them later on. But of course, my colleague, Robert, will be able to give some much more detailed insight. The property landscape is still changing with regards to sustainability. More topics are being included such as EU taxonomy, Harmonization within the EU taxonomy or conformity with EU taxonomy. Then scope 3, such as green, And such properties do not see any ratings anymore like stranded asset Analysis and biodiversity, standard reporting and circular construction. We know that the market is evolving and we So even the rating as a future perspective is rather Let me conclude with a few references. It's not the first right thing that we conducted regarding This is Skol and also regarding standardization. We contacted such ratings with other portfolios too and to tell this important client in Germany. Switzerland has very sustainable properties in many places we appear new. Switzerland still lagging is Regarding the ESG report, So the step that we took and that PSP took was a very important one Speaker of Mike? Now what about the Green Bond framework? I don't think it's Strange that the environmental topics only reflect a 40% Of the whole framework? Shouldn't it be a higher percentage? Unfortunately, the other speaker is off mic again. Please apologize. Wrapping up, we need much more commitment and Transparency in the future. Unfortunately, the sound is too poor to be interpreted. The interpreter apologizes. Thank you for your understanding. The trouble problem of many ESG systems is the average Because At 3, at the moment, it will probably go up in the next years. Or are there any measures to make sure that the average will remain at I mean, now data in Switzerland, No one has none of companies offer any average properties any further anymore. How can we deal with 2 aspects. There are properties that do not meet and those criteria even though it may not We communicated very openly, but it's true that competitors evolve And something that's standard today will not remain standard in a few years from now. You can see this with the example number with the CO2. A few years ago, The properties wouldn't have met today's standards. So we wanted to make sure that both scorings were independent. So we assessed the CO2 performance and PSP. On that side also We should use the state of the art heating as young as they still Function, if I have heating that may still work for another 30 years, but that's not classified as Sustainable. This is a question of Blue Grey Energy and aspects that have to be taken into account. So from a sustainable approach, you might see you'd like to take off the heating, but then you have a holistic approach. Rather want to make the heating run as long as it's still functioning. Not use more resources than needed. The average How do they perform? Do you have any? We're currently working on the benchmark Systems also in relation to the property price, but it's something that We have a lot of data Score around 3 in average. And volumes are very Dynamic. So when we go up with mobility When we compare PSP portfolio with the rest of the properties in Switzerland, We usually have very good locations, which is an important criteria. At current, In relation to sustainability, we made important investments In the last years, So I think that the portfolio our portfolio scores Much better in terms of sustainability compared to other portfolios. So With the location being a very important factor here. In that case, I'd like to say thank you very much and see you soon. Good morning, everyone. Well, almost Good afternoon for the British Standards, but thank you very much for having me here today. Okay. Here we are. So thank you very much for having me here. My name is Federico Pezzolato. I'm responsible for the business development ICS, sustainable finance services in the EMEA and APAC region. We had the pleasure to work with the PSP team on the for provision of the 2nd party opinion on their Green Bond Framework. And indeed, Just a few overview of our organization. I represent here ISS Corporate Solutions. We have a very strict Separation between the sales activity in of advisory services and our second party opinion services From the execution of the mandates, indeed, the team in charge of delivering second party opinions is Beyond the firewall, the internal firewall, working for ISS ESG, where we have all the ESG expertise. We were born As an ESG rating agency almost 30 years ago, as Ookoma that we acquired that was an independent ESG rating agency that we acquired In 2018, and now it's part of ISS. And from the ESG rating expertise With the development of the green bond market in 2014 after the publication of the ICMA green bond principles, we started to Develop also the SPO practice. At the moment, we have a team of about 30 people around the world in different locations with different And so far, indeed, we delivered more than 500 second party opinions. There is, for clear historical reasons, a very strong legacy and presence in the DACH region and in the Continental Europe in general, but we diversified also thanks to the growth of the market as we have seen In the previous presentations, especially in the last couple of years, we enlarged our activity to a number of other countries and in many other Sectors, indeed, this diversification is mainly due to the appearance on the market of the sustainability linked structure. But our expertise, if you want, the track record reflects still very well the market the distribution of Green social bonds in the market with financial institutions, utility and real estate companies being the most important issuers on the market until so far. So in In terms of credentials, you have still here some names of the companies and institutions with which We worked including also the Swiss Confederation. We recently provided an SPO during the summer Also today, the Swiss Confederation for their green bond framework. And in many cases, we implemented the U taxonomy, depending on the requirements, the U. Green Bond standard, depending on the request of the issuer. Indeed, we are in a market, as you know very well, where There is not yet a recognized international standard. There are very good practices that are described at least at governance level by the ICMA principles and then there are different criteria, different approaches. And our role indeed is to provide independent views and assessment on the sustainability credentials of the Issuer's framework and specifically on the selection criteria of the different user proceeds categories considered by the issuer green bond or social bond framework. And therefore, our analysis are Mandated by issuers, but the main beneficiaries are probably investors that read our 2nd party opinions in order to Gator information and having building their in order to build their informed view on the eligibility of the bond according to their own Selection Investment Criteria. Now the final objective clearly Is to mitigate as much as possible the greenwashing risk and we try Serve the market delivering reports that are structured around 3 different sections. The first one is about the assessment of the framework itself, so the alignment with the international principles. And we are referencing here clearly the ICMA green bond principles, but it's possible. So there are some issues that are already touching the Green Bond standard, even if it's still a draft, we see something more like next year probably on teas. The second so this is a very, if you want, governance assessment on the respect of the market standards and the market expectations. The second section of the SPO is about the user proceeds, in this case, regarding the quality of the eligible user proceeds So the selection process, the selection criteria and effectively the due diligence that is carried out by the issuer in order to identify the eligible assets in their portfolio or to finance future assets to be included in their portfolio. And the final element, again, this is a matter of consistency and a sort of reality check on the robustness of the framework. We provide also an analysis of the ESG approach of the issuer itself. So we analyze the Link between the rationale of the framework and the overall strategy of the issuer. Regarding the first part, Clearly, we have already seen in the presentation of Patrick some references to the structure of the document. Clearly, This is about the first part, so we analyze the description of the user proceeds, Especially the criteria for the selection of the eligible assets and then also the other commitments that are required by the ICMA principles, namely The management of proceeds and more and more important, the reporting commitment. Indeed, we see that there is an increasing interest from investors not just about the Selection criteria, so the construction of the portfolio, but also the ability, the capacity of the issuer to Report regularly regarding the composition of its portfolio, not only in terms of allocation of the proceeds, But also, I would say, 1st of all, in terms of impact generated by the investments. And we have seen These increasing interest coming from investors reflected also in the increasing demands that we receive from issuers, To which now we provide also post issuance verification. So it's not just the SPO It's typically an ex ante, so a preliminary analysis on the commitments of the issuer, but we see that there are more and more issuers coming to the market, requesting also Post issuance services in order to demonstrate effectively that the portfolio is aligned with the initial commitments of their framework. Now Regarding the PSP, SPO that we provided, as you see here, the evaluation is Positive, definitely. Our evaluation is just qualitative because Since we work on basically on companies belonging to all sectors and the market guidance At the moment, it's very high level because we know that the ICMA principles do not provide any clear indication at the moment regarding the criteria to be selected to be adopted by the issuers in order to identify the eligible assets. There is still the flexibility in the market to develop specific and issue specific approaches As indeed PSP did. So our analysis in this science is to check if the framework is aligned with the market standards and with the good market This is as it is in this case. The quality overall of the eligibility criteria adopted by the issuer And then also the consistency between the rationale of the framework and the overall strategy of the issuer as an organization. And this is the overall assessment and that you will find more details in the SPOs that is public now. And regarding the SDG assessment based on our own evaluation or on our own methodology, clearly, we have been able to analyze different Criteria in the context of the overall PSP approach to sustainability, identifying a positive link with the UN SDGs 713. We know that clearly the UN SDGs have been developed in order to provide a source of overarching framework for Sovereigns, but they are commonly used also in the corporate domain in order to describe the different impacts of the Corporate activity and this has been incorporated also in our own assessment. And you see here the evaluation according to our own methodology. And secondly, the specific topics that we consider in the assessment when it comes To green buildings. So there are a list of specific KPIs that we analyze, subjects that we, According to our methodology, are significant for green buildings use of proceeds. And there are site selection, health and safety, The environmental aspects of construction, water use, safety of users and conservation and biodiversity management. And we analyze these elements considering a variety of different sources. Clearly, first of all, the framework of the issuers, But then also the corporate policies, so all the information that the company has in terms of Environmental and ESG Management Systems, more in general, but also national legislation. So This is also a useful reference when available to incorporate also this kind of information. And we combine all these elements in order to issue our to analyze the framework of the issuer and to issue our SPO. Regarding the process, well, this is the process that is described here Is the, I would say, the standard one. Regarding PSP, it was a bit longer because we were in the middle of the summer. So there were No. Some delays in the process, but typically, yes, it takes about 4 weeks starting from the initial evaluation of the So we provide our initial comments. In some cases, there are also some preliminary discussions before The official launch of the mandate. So we received the framework. We provide our commitment our comments. We recast Some additional information. So in this case, clearly, we went through the methodology developed by BSP with diverse partners. And we exchange continuously information. The objective is to deliver the draft SPO usually in 3 weeks' time and then discuss about the content of the documents to clarify Further elements and finalize it in the following 1 or 2 weeks. So this is, as I say, the standard process. In this case, it was a bit longer, but typically, this is what is doable for a user proceeds structure. So I hope that I have provided you with an overview of the process and the content of the SPO. You will find more details in the SPO that is public, as I said, both on the PSP website and our website. And in case of any questions, You can ask now or you have also my contacts here. No problem for that. A warm welcome from my side 2. I can tell you already So I'll try to speak slowly. I'm speaking here on behalf of the West Management So I'd like to share with you the Conflicts that arose within this topic. Many of these questions Now we are wondering how can we how we can manage to reduce How can we make sure that our employees We have How can we improve biodiversity? These are topics that are our priority. This is what we derive our data from. Some rate agency and governments help with this topic. So you can see that some of the top Regarding energy efficiencies And have generated data where we cooperate with other partners in order to Generate data. We do not work with EPCs. Also, we produce special waste. Has not been part of our data yet because the question is whether we can influence This sector, which is why the out for the moment. Then rating agency and the topic of human rights. And then data of minority. So the question is, Do we actually want to gather this data? I'm sometimes wondering whether we are being able to focus on what's important. Taking one step back. What's I sometimes wonder about the efficient Despite of this, we To a lot of benchmark and rating, we are also part of new We've reached the golden standard. Years ago, We carried out different analysis. We are also part of those initiatives to know how we perform in comparison to others and where we can still improve We also are aware of the limits of such benchmarks and ratings. I compare with other peers, we perform a lot better. At the waste management, there's still real room for improvement. We accept this, but we also think that within the in order to analyze the portfolio in a detailed way. And as this has been conducted by an external partner, this is also a strong message that we Next year, we will probably continue to deal with this rating. As my colleague already explained, we tried to reduce our deal to Emissions investing in heating more sustainable and our affordable tech systems. While diversity is a topic that's becoming increasingly important, Involving our tenants in our efforts, be it Thanks to exchange with them. In May, we all received a green bond report that will probably create more Conferency. I am starting to get pretty hungry. So I'd like to conclude now. I don't know if you have any time for questions now or If you'd like to start. We're all going to be starving, so The speaker is of Mike. Unfortunately, The interpreter is not receiving any sound. I think we managed To give the importance to the topic that if you heard something that We have to embed this topic as a tool to make sure that we approach it in the right manner. But as I mentioned, this is something that we've always been working on. So what we achieved today is involving our employees and parents I'd like to mention the employees To engage with them if you like. I'd also like to say thank you to my colleague, Mr. Koleson, So it's great to have this operation of trust. So Martin Heck, management, We had the great place to work survey. And then we had Energy and Facility Management, the driver of this company, Stefan Kaufmann, Business Development Asset Manager. Mr. Walliser, who's been working in Construction Management for many years. Markus? Yes, I did. All right. So thank you very much for your attention. And I hope that we'll be able to So have a look at the example of brewery. Back then, they tried to use the CO reduce CO2 emissions. For distillery purposes. The location Became very famous due to the excellent water quality. So many people used to go there and what they saw was very successful and sustainable. On the left hand side of the brewery's building, You could see how the beer was produced and the company was running well. And of course, Our aim is to be appreciated by our tenants. And the former building is well adapted to do the They have a spa area under the roof. We're very close to the main location, the main station, the central station. It's very well connected with transport. We do have parking lots, But most of the people who get there come there by public transport or they just go and walk there. So we decided to support her in her vision and also to Klein asked us whether we were fine with them these devices and Absolutely fine. We wanted to make the best use of the roof. So now we can generate Electricity that can be used by our tenants. Energy consumption. Nowadays, we see that some monuments are being demolished and others who have Nowadays, we have a commercial area, Offices in the boiler house, So the purpose of this unit was? It is distributed to buildings. We also have pumps that are integrated in the system. It makes the system more environmentally friendly, And it also makes it more honorable, Technical problems. Until 2017, our CO2 emissions Most significantly, which was because we had to change some of Our technical team, we were able to find the source of the error But of course, in 2020, the lower COP2 emissions were also due to When you take 2019 as reference, you see that you have More or less 1100 tons CO2 that were emitted. And the heat supply, crude significantly now that we're using. Heat boilers, It was important to proceed in a coordinated manner to reach Heat with gas but also using the groundwater or aqui water supplies To be in total, 5% of the heating is provided by the environment, 45% That comes from Gas and Mining. Our target was to implement because we like the idea of sustainability despite of the heavy investments that had to meet So part of the client's full with a very high energy consumption. We try to optimize the energy Consumption and weak foundation. The contracts we signed And now we have different conference. The E set And we were able to cover 90% of the heating supply. 10% for the peaks will still be covered by gas. We could so we have excellent results here. The system is very simple. The water of the lake is guided towards the buildings in order to reach cooling. Systems, for example, for heat pumps and so on, planned in the long run. So some of the investments are Very. So we're able to deliver affordable energy and at the same time Become more environmentally friendly. We use 90% green energy supplies also for heating. A further project I'd like to talk about Some of the rooftop projects we also already talked about, monument preservation. Some of the monument are under legal Reservation measures. So now thanks to a new regulation, we are Able to install photovoltaic systems even on those preserved historic buildings with more than 400 kilowatt peak with roundabout Electricity and also we can also sell the surplus energy to others and we expect A surplus of 5% only for this project. That's what we respect in return. And we plan to implement this project next year. In places where energy can be produced very efficiently, We also make want to make sure that people benefit from the system. In the long after procedure, we try to adapt our systems and to improve the efficiency of Where there's still room for more efficiency And of course, it depends on the tenant. We plan to Improve our systems in 2024. We also plan to Innovate the whole building and to implement those measures in a coordinated manner to make sure that Building can be used or it's not too much time out of use. Thank you very much. You can already ask your questions now if you'd like or Unfortunately, the speaker is off. Apparently, there's been a question regarding the rooftops of the buildings There's not too much space left to install Systems for Renewable Energies. Fortunately, there is no space And as you Where no photovoltaic system can be installed, we expect to cover Between 15% 16% of the energy. Thank you. Thank you Very much. Before we proceed, unfortunately, the speaker is off Mike. The interpreter Regarding Green bond framework are between 800 around about 800,000 400,000, between 80,000 and 100,000. The appreciation of our employees, the commitment And regarding the impact report, We want to make sure that all of this 170 per 180 per portfolio are included. You can have a look at it virtually. We have drones We'd like to include those data, and we want to make sure that this is a commitment to environment, to our employees All these properties that you can have a look at in person. And on the way back, it will stop at Pararepa and then we'll say We decided to do Thomas' presentation now to make sure that If you have any questions, feel free to approach me or To approach any of my colleagues, thank you very much to our team. We still have a few minutes left