Built infrastructure plays a central role in urban dynamics. Design trends, material selection and constructive methods can positively or negatively affect operational costs, availability of products and natural resources. Hence, sustainable infrastructure becomes fundamental to quality of life and protecting our natural environment.
FUNO has 63.4% of its portfolio as triple net leases, which indirectly incentivizes tenants to become more efficient as they have to pay all O&M costs.
In addition, the company has urban-site investment programs which allows us to benefit from demographic trends, favoring denser walkable urban communities and urban properties near transportation hubs, by investing in urban infill redevelopments and mixed-use properties.
Architectural and structural design greatly impact the life cycle of a building, having implications on water and energy consumption, environmental footprint and financial consequences. Therefore, at FUNO we strive to make investment decisions with their operational costs and eco-efficient potential in mind.
Likewise, we are well aware that location is a decisive factor intensifying energy expenditures, transportation and other related resources; increasing our fossil fuel consumption, unnecessary employee commuting and greater impact on our operations.
Hence, our office and retail estates are in privileged locations; whenever possible and economically feasible, we certified them LEED. It represents a higher initial investment but we are convinced it will benefit us in the long run; having better environmental and energy efficiency with effective operational standards leads to less expenses for our tenants and more comfort for our guests.
Our environmental strategy focuses on:
- Increasing operational profits through water and energy savings.
- Reducing operational and maintenance costs.
- Improve tenant confort.
- Reduce emissions.
- Strengthen our leadership in the Real Estate Market.
Environmental management at FUNO follows the same structure as all other sustainability issues. However, our Operations Vicepresident and the Director of Maintenance play a relevant role in executing initiatives.
Some general guidelines we have set for the appropriate environmental management of our portfolios are:
Due diligence process before acquiring any property; with an external auditing team.
All relevant remodeling, renovations or structural changes shall include resource efficiency.
We conduct internal audits annually to our sustainability processes.
In general, as an organization, we strive to prevent more than remediate environmental impacts; our prevention mechanism spreads across maintenance activities, investing in eco-friendly technologies and acquiring materials with environmental criteria in mind.
Whenever there are threats of severe or irreversible environmental damage which may be the result of our operations, FUNO shall try to employ effective measures at reasonable costs to mitigate environmental degradation.
When we have found polluted soils as part of the acquisition due diligence process during environmental audits, FUNO has requested the seller to remediate all damage before acquiring the property.