Cape Town, 19 November 2024 – Following the release of Morningstar Sustainalytics’ Environmental Social and Governance (ESG) Risk Ratings report, Equites Property Fund Limited today announced that it has received an ESG risk rating of 8.0, which places the organisation in the “Negligible Risk” category, the best achievable tier. The risk rating score reflects the level of unmanaged risk for a company, with a lower score indicating that ESG issues are less likely to have an impact on the company’s economic value.
Morningstar Sustainalytics’ data reveals that the REIT has continued to improve its rating, achieving its lowest score to date, in its 5th year of assessment, and showing a 54% improvement in its overall ESG risk rating since its first evaluation.
In comparison to all companies rated across industries globally, Equites is positioned 135th out of 15 061, placing it in the top 2nd percentile of those companies. Looking more specifically to the global real estate industry, the REIT places 38th out of 1 008, with a favourable risk rating compared to 95% of other real estate organisations rated by Morningstar Sustainalytics. In the REIT sub-industry, Equites now ranks 24th out of 427, better than 94% of other evaluated REITs.
Additionally, its management of ESG risk falls within the best possible categorisation as “Strong”. This defines how well the REIT is managing material ESG issues by assessing the robustness of the organisation’s ESG programmes, practices and policies.
Equites’ ESG efforts in practice
With its dedicated focus on ESG, Equites prioritises investments in alternative energy sources, social upliftment and robust corporate governance structures.
Morningstar Sustainalytics’ comprehensive evaluation examines the material ESG issues applicable to the organisation. These include its business ethics and practices; the integration of ESG criteria in its financial and real estate decision-making; and product governance, which involves risk mitigation through the entire property lifecycle.
The annual assessment further measures Equites’ approach to managing human resources, as well as corporate and stakeholder governance. This encapsulates the evaluation of its corporate culture and the diversity of its workforce, its Board representation and the processes and policies by which the REIT is governed, and by which its extra-financial risks and broader stakeholder relationships are managed.
Equites’ scoring across these categories reflects the REIT’s successful practical implementation of ESG principles throughout its operations.
“We are pleased that Equites has achieved the Morningstar Sustainalytics ESG Top-Rated Companies List accolade for 2024, for both the Regional and Industry categories. The most recent rating points to our continued commitment to sustainability and our alignment with global best practice,” shares Irshaad Wadvalla, ESG Officer at Equites.
Additional insights can be obtained in Equites’ 2024 Sustainability Report or via www.equites.co.za.
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About Equites
Equites Property Fund Limited Equites Property Fund Limited is a best-in-class prime logistics facilities developer and landowner, with a footprint in South Africa and the United Kingdom. Further, Equites is the only specialist REIT listed on the JSE. Equites listed on the JSE on 18 June 2014 with a portfolio value of R1 billion and has since grown to a portfolio value of R28.3 billion at 31 August 2024.
The REIT provides shareholder value through its high-calibre property portfolio, leased to AAA-grade tenants on long-dated, full repairing and maintaining leases. Combined with its disciplined financial management, this allows Equites to consistently deliver returns above inflation.
For more information, visit www.equites.co.za.
About Morningstar Sustainalytics
For more information on Morningstar Sustainalytics, a leading independent ESG and corporate governance research, ratings and analytics firm, visit www.sustainalytics.com.
