Sustainability

The information below is taken from the annual report for 2020.

There are three mainstays of the sustainability programme: the long-term approach, satisfaction and pride. Gladsheim is committed to being a long-term property company with stable cash flows that make investments in properties and our people possible. This in turn generates satisfied and happy tenants and employees who want to stay with Gladsheim. Our tenants should be happy with us not only because their homes meet high standards, but also because the properties are developed with focus on sustainability. We are working hard to make tenants and employees proud of Gladsheim’s contributions to sustainable development.

Gladsheim reviews its policies and guidelines every year. In so doing, we ensure that our policies and guidelines remain relevant and fit for purpose. All sustainability and ESG efforts at Gladsheim are based on our sustainability and ESG policy established by the board of directors.

Gladsheim’s sustainability policy is based on the UN Agenda and the Paris Agreement. We have accordingly evaluated how Gladsheim’s business can further the global agenda in the optimal way and have identified several commitments in areas where can do the greatest good from a sustainability perspective. We have identified the sustainability goals in the UN Agenda that are particularly important to Gladsheim. These goals are: 5, 7, 8, 10, 11, 12, 13 and 15.

The sustainability perspective is integrated throughout the company and is a factor in all decisions and all work with governance, strategy, operations and objectives. The three pillars of Gladsheim’s sustainability programme are: environmental, social and economic sustainability. A focused and goal-oriented sustainability programme will enable Gladsheim to grow on the strength of quality.

Environmental sustainability

Gladsheim’s impact on the environment is an area where we have a huge opportunity to make a difference. By running the business in a resource-efficient way and applying the most low-energy solutions possible, we are creating value for ourselves, our tenants, society and the environment. We have four focal points for our environmental work:

• Reduce Scope 1 emissions: Direct combustion of oil and gas and use of service vehicles, company cars and pool cars.
• Reduce Scope 2 emissions: Indirect emissions from energy, such as district heating and electricity. To be accomplished by improving energy efficiency in apartments and implementing water-saving measures in connection with renovations.
• Select sustainable materials for use in renovations.
• Contribute to greater biodiversity by limiting the use of environmentally hazardous products.

Energy savings

We are fully focused on saving energy, improving energy efficiency, producing and sharing energy aimed at being the preferred alternative for tenants, increasing cash flow, increasing property value and lowering financing costs.

We believe our properties can serve as an active component of a sustainable energy system. Sweden has an output shortage rather than an energy shortage, which means flexibility is becoming increasingly important. In these efforts, we are taking advantage of technology to make our properties an integrated component of a smart and sustainable society. We are working with energy/demand measurement, smart control and operational monitoring that provide further potential for climate-smart solutions. It is important to be aware not only of one’s energy consumption, but also one’s power demand. We know that the cost of demand is going to increase for both heating and electricity, and we are already preparing for this. We are also digitalising water consumption metering while removing over-dimensioned water meters. Smart monitoring of our water consumption saves money while giving us early indications of leaks so that we can take fast action.

We have developed the value-add model in our energy saving programme based on an overall view of our properties. Our sustainability programme, in which we take a systematic approach with clearly defined steps towards improving the environmental sustainability of buildings, is a central component of the model.

• Identify
• Operational optimisation
• Energy efficiency improvement
• Produce and distribute

 Identify

Gladsheim applies data-driven monitoring of tariff- based costs for heat, electricity and water to enable swift and early identification and response to anomalies and benchmarking to identify areas of improvement. The work covers everything from inventorying subscriptions to mapping operating hours for technical building systems. Each building is inventoried and its climate status established while ensuring compliance with all legal requirements.

Operational optimisation

The next step is to execute the most climate-effective and cost-effective measures. Connecting all buildings to a main system that complies with a documented control standard provides a good snapshot and ensures that everything is working as it should by means including alarms if anything goes wrong. We are successively implementing automated control of indoor temperatures, which also makes it possible to use IMD (Individual Metering and Debiting) to give tenants control over their cost of living and an opportunity to embrace a more sustainable lifestyle. Gladsheim’s digitalisation strategy gives operating personnel the opportunity to work proactively to optimise building operations instead of spending considerable time on inspections and reactive measures. The method saves time and gives us greater flexibility, allowing us, for example, to instead balance loads and phases and lower demand peaks.

 Energy efficiency improvement

Once the buildings have been identified and operations optimised, more resource-intensive actions are studied and carried out based on property conditions. We clarified and defined our sustainability programme in 2022 as an integrated aspect of property management and project development. Focus is currently aimed at energy optimisation, where we can track the environmental and economic profitability of every measure taken.

Produce and distribute

Gladsheim continuously evaluates new technology and methods, which are implemented continuously based on the conditions at each property. Gladsheim currently has a couple of solar power installations and is now evaluating new technology for metering electricity so that we can not only identify the building’s needs but also how we can offer cost-effective EV charging to our tenants. Combined with the electricity supply agreements we have entered into, this gives our tenants fossil-free alternatives and the opportunity to live sustainably.

Apartment renovations

Gladsheim’s work with apartment renovations is a central aspect of the sustainability programme. Gladsheim applies three apartment categories and adapts renovations to the condition of the apartments. Retaining equipment and fixtures that are still fit for purpose is important to us. When apartments are in good condition, we rent them as they are and do not renovate. In some apartments, some interior elements are in good condition and others need to be replaced. By taking this approach, we are able to retain and continue using equipment that works. How renovations are designed and executed is also guided by sustainability aspects. For example, we install more energy-efficient appliances and low-flow taps to save water. Apartments are also renovated with a view to reducing required maintenance over time. This includes laying tile at the entrance to the apartment to reduce wear and tear on high-traffic surfaces. All walls are also painted instead of papered, which makes it easier to maintain individual surfaces and walls and reduces the use of materials in maintenance, resulting in lower emissions and more cost-effective maintenance.

Suppliers

Selecting responsible suppliers is another key component of the sustainability and ESG programme and it is important that our suppliers are also committed to responsible business. Entering into centralised agreements whenever possible is one aspect of that effort. This creates volume advantages and facilitates reduced environmental impact due to co-shipping. Centralised agreements also makes it easier for us to review our suppliers and, in so doing, ensure that our suppliers accept responsibility for the environment and for their employees. To the extent possible, Gladsheim also uses local suppliers. This not only reduces transport and the associated emissions, but supports a vibrant local business community.

Minimise transports

Reducing travel and transport of materials are the main thrust of our efforts to reduce carbon emissions. This includes encouraging employees to travel by train whenever possible. Otherwise, carpooling is a high priority. Transports also refer to day-to-day property management and tasks are planned based on geographical locations so that property managers do not travel to different parts of the town in question every day, but instead plan to carry out management of properties that are near each other, which saves time and reduces emissions. The total cost is always the focus of the choice of materials/purchasing based on the following areas: price, quality, service, the environment and logistics. Environmental impact is a key component of the product selection process.

Solar panel installation, Finspång

Social sustainability

Gladsheim’s social sustainability work is based on four key points:

• Improve social conditions for tenants by creating a sense of well-being and peace of mind in and around the property.
• Prevent discrimination and ensure unbiased tenant selection.
• Ensure that our employees enjoy their jobs and benefit from good health and safety practices.
• Create an equal opportunity organisation whose diversity reflects the community and our society.

Gladsheim’s goal is that people should perceive our properties and their immediate surroundings as nice places to be. It is also important to us that our employees are happy and have a good work environment. Our work with social sustainability thus involves social sustainability for our employees, our tenants, and the communities in which we do business.

Employees at the heart of it all

Our people are essential to Gladsheim and to our customers. Our employees are the ones who make sure our properties are inviting places and our tenants are satisfied. Gladsheim’s employees should be proud of their workplace, so it is very important that our employees enjoy working for Gladsheim and feel empowered and happy with us. The board of directors adopted a number of policies related to HR matters during the year and efforts with workplace-related issues continued in 2022 to ensure that Gladsheim is and remains a popular workplace. You can read more about our efforts related to employee satisfaction later in this article.

Peace of mind for our tenants

Gladsheim is committed to improving social conditions for our tenants. Being readily available and engaging in ongoing dialogue with tenants are central to this effort. It is easy for our tenants to get in touch with us and they can find answers to frequently asked questions on our website, where tenants can submit service requests around the clock. Gladsheim also has a main phone number that accepts calls every weekday and an out-of-hours number for weekends and evenings. Gladsheim is also accessible via several different social media platforms. It is important that tenants can easily contact us when they need help so that they feel safe and secure in their homes.

Gladsheim is working continuously to increase tenant satisfaction and peace of mind. We put high priority on safety and a pleasant atmosphere in shared spaces at the properties and carried out several renovations of common areas during the year. A design manual is followed in all renovations of indoor and outdoor common areas. Produced in partnership with a firm of architects, the design manual is intended to make the look and feel of all Gladsheim properties more consistent. When we renovated the stairwells, we also offered our tenants the option of having new soundproofed security doors installed. Keypad door locks to building entryways have been installed in everal locations to enhance safety and peace of mind. We have also inspected and upgraded outdoor lighting around our properties so that all tenants can feel safe near their homes at all times. We are also working to create natural gathering places for our tenants.

Peace and well-being everywhere

Gladsheim is committed to contributing to progress in the neighbourhoods and communities surrounding our properties by creating a sense of well-being and peace of mind for our tenants. With that in mind, Gladsheim participated in several meetings with local representatives in the towns where we operate. We have engaged in dialogue with municipal representatives and the police so that we will be able to continue active efforts in the future to improve well-being and peace of mind.

Gladsheim is also a member of property networks with other property owners, business representatives, politicians and public officials in our operating locations. The networks hold regular meetings to deal with issues of community development, local business, crime prevention, safety and actions to promote social sustainability. Gladsheim is also committed to a professional and objective selection process for our tenants in which there is no place for discrimination or unequal treatment, which we have assured through the established letting policy. Tenant selection must be based on an unbiased assessment and it is important that no one is disadvantaged in the selection process based on ethnicity, religion, gender, transgender identity, sexual orientation, disability or age. To prevent such discrimination, Gladsheim uses a queue system in which applications are put on the waiting list in the order in which they are received.

Economic sustainability

Gladsheim has identified six areas in the sustainability policy as the basis for our efforts to ensure long-term economic sustainability:

• Create growing income from property management by offering attractive homes and efficient management.
• Ensure high customer satisfaction by being present and easily available in all locations where we hold portfolios.
• Apply a carefully designed scoring model to ensure acquisition of the right properties.
• Carry out renovations that enhance customer value and promote value growth in the portfolio.
• Maintain low financial risk that enables value growth and attractive returns for shareholders.
• The business must be characterised by high business ethics and active effort to prevent corruption.

Gladsheim is committed to generating good property investment outcomes through efficient property management. Satisfied customers, who continue living in Gladsheim’s properties are essential to long-term economic sustainability. Ensuring economic sustainability thus becomes also a matter of ensuring that our tenants remain satisfied and are happy with us as a landlord. Ensuring that our tenants are satisfied and happy with us is fundamental to achieving sustainable finances. Consequently, it is essential that Gladsheim is present and easy to reach in all locations, providing fast and expert service. Gladsheim has its own personnel in the majority of our locations and is aiming to have its own personnel to the greatest extent possible.

We ensure that our tenants have satisfactory payment capacity through customary credit checks before a rental agreement is signed.

Making the right acquisitions is a key aspect of maintaining stable finances. We review multiple factors to make sure we make the right acquisitions. Gladsheim uses a scoring model to assess interesting locations. The model assesses several factors including demographic and economic conditions, the property market and the business climate. Each potential investment is thereafter analysed individually, based on how well the portfolio fits the Gladsheim model. Aimed at ensuring economic sustainability, Gladsheim also has a target of maintaining a loan-to-value ratio that does not exceed 60 percent over the long term.

Anders

Employees

It is important that the company has the capacity to recruit and retain employees with the right skills. Gladsheim is working non-stop to ensure that the company is an attractive workplace employees want to stay with.

Gladsheim’s employees are the core of the business and make-or-break for the company’s continued progress and customer satisfaction. Good working conditions and a pleasant work environment are prerequisites for our employees to feel job satisfaction, have the courage to take initiative and feel personal responsibility for their individual career development as well as for the company as a whole. Gladsheim values the varied experiences and characteristics of our employees and recognises that they are a huge asset to the company. Equal opportunity and diversity are crucial to Gladsheim.

As employee health and well-being is a top priority, and all employees are offered fitness and wellness benefits to give them favourable conditions for staying healthy. In addition, we have insurance coverage, including medical insurance, available to all Gladsheim employees, as well as retirement savings plans.

It is important to us at Gladsheim that people can maintain a good balance between work and family life. Based on where they work, employees are given considerable influence over their working hours. This allows every employee to work from home or at the office in the way that suits them best. Gladsheim is also very understanding of employees’ needs to adapt their working hours at times to achieve balance in their personal lives. Everyone with managerial responsibility therefore works actively with their colleagues to make sure the individual employee achieves an optimal work/life balance.

Gladsheim must be a place where people grow and develop. That is why it is important that all employees are given scope for skills development, not only to ensure that our employees have the right skills but to ensure that they can progress within the company. Accordingly, employee participation in seminars and various work-related training is a high priority for the management. Annual performance appraisals are also carried out, at which each employee meets with their line manager to discuss their personal development goals for the next year and what Gladsheim can do as an employer to help them achieve them. The annual performance appraisal also gives employees the opportunity to share their ideas and preferences and otherwise address issues that concern their work situation or Gladsheim as a whole.

Gladsheim is committed to offering a good work environment to all employees and all forms of harassment, discrimination and bullying are prohibited. Gladsheim defends employees’ freedom of expression and right to union activities. There were no incidences of discrimination, bullying, or harassment reported during the year.