Sustainability is increasingly shaping the public debate, and sustainable management in the real estate sector is particularly sought after. As the building sector is responsible for a large proportion of global CO2 emissions, the potential savings are particularly high. AM ALPHA has focussed on becoming climate-neutral at an early stage. Managing Director Martin Lemke tells us more.
Martin, we hear the catchphrase ‘sustainability’ all the time. What have you got to say about the topic?
When we talk about sustainability, it is often only in relation to ecology, i.e. its environmental aspects. However, the concept of sustainability is based on three pillars: ecology, economy and social issues, all in connection with sustainable corporate management. Only with intelligent concepts in all of these areas can we claim that we act sustainably. And long-term effects can only be achieved if all aspects are given similar attention.
As a family business, AM ALPHA thinks long-term and acts across generations. Sustainability is therefore a living part of our corporate culture and management. We accept our social responsibilities – to our employees and their families, to our fellow investors and contractors, and to the cities in which we operate and the citizens that live there. The topic of sustainability is, thus, not new to us. What is new, however, is how it is discussed or which reporting obligations have to be fulfilled.
How is sustainability reflected in your business?
By making the ESG factors a key part of our corporate culture. Our aim is to design attractive living spaces that provide answers to the big questions of our time, such as climate change, urbanization and social impact. Our brand promise is to Return Real Value!
The company has been climate neutral since mid-2022. How did you achieve this?
We try to reduce or even avoid the negative effects on the environment through clearly defined company guidelines. This means using green electricity at our locations and for our properties, avoiding business trips wherever possible, offering employee bicycles, paperless offices and optimised waste management. We continuously verify, supplement and improve all of these measures – after all, sustainability means continuous improvement.
This is why we are also a ClimatePartner-certified company. By transparently disclosing our company's climate protection strategy, including the carbon footprint, the reduction targets, the reductions implemented and the financial contribution to climate protection projects worldwide, we ensure that we continuously improve.
In addition to this we have launched projects outside of our offices through which we can make a major contribution to improving the climate. As part of the real estate industry we contribute a significant share of CO2 emissions, so we have started looking at the other end of the spectrum, namely forests. Today, we support the "Waldlife" initiative in our home region and international projects in Africa.
How else is sustainability ingrained in your business model?
Sustainability, which is primarily based on the fulfilment of defined ESG criteria, has always been part of our business model. We want to achieve the greatest possible impact with the buildings we manage - even with properties that are not top-rated energetically. The focus of our investments is on the return, but also always on the social and ecological impact that it has. This does not necessarily mean sacrificing returns; instead it gives the capital added importance.
We also want to create value from an ESG point of view. There are many properties on the market that can make a positive contribution - precisely because they still need smart concepts, such as retro fitting. In our opinion this is a very powerful lever to make sustainable progress with ESG factors.
We act sustainably. And long-term effects can only be achieved if all aspects are given similar attention.
Martin Lemke
We have talked a lot about the E in ESG. What about the S and the G?
As I said, it is always about the combination of ecology, economy and social issues; the E cannot stand alone without the S and G. Sustainability requires a holistic approach and only then can it be effective.
In a company like AM ALPHA, present in the major cities of Europe and Asia with a multicultural workforce, diversity is essential. Neither gender nor orientation have ever been relevant to us. We have always understood something much more important, namely that the motivation of our employees is the decisive element to our success. And how is one motivated? Through personal responsibility, independent decision-making and action. If someone is to develop, they need space to do so. We give our people this space and the security of never being alone. We are proud of being a super-functioning team with flat hierarchies. This creates something that forms a crucial part of the S: satisfaction. And we nurture this feeling of satisfaction with incentives such as company bicycles or subsidies for day care centres and creches to make it a little easier to combine family and work.
And your social responsibility?
This is also something we take very seriously. We work in a very privileged environment which makes us all the more responsible for future generations. It does not matter whether we are talking about the design of attractive living spaces or the respectful handling of historical heritage, social contribution is an indispensable part of our work. It crystallizes in our efforts to help the particular city look forward in line with the megatrends in urbanisation, clean energy, mobility and district-oriented infrastructure.
How will your sustainability efforts continue?
Climate change is one of the most pressing problems of the 21st century and all of us who work in the real estate industry are particularly challenged in this respect. The goals of the Paris Climate Agreement are gradually being implemented by the EU Commission with new regulatory frameworks. The entire value chain in the real estate industry will be directly or indirectly affected. Institutional investors expect new investment strategies from us that meet future sustainability requirements.
We have therefore also signed up to the Principles for Responsible Investment (PRI) and are formally committed to the six principles for responsible investment of the initiative supported by the United Nations. This commitment reflects our dedication to incorporating environmental, social and corporate culture factors into our investment and decision-making processes. This way formally ensures that ESG aspects guide our company.