Patron Capital

ESG

Sustainability Report 2024

At Patron, sustainability is more than a goal, it is a fundamental commitment that informs the decisions we make and drives us to create a lasting positive impact on the environment and communities we serve. The challenges we face today; climate change, resource scarcity, significant income disparity, and the need for inclusive communities require bold, forward-thinking solutions. At Patron, we see these challenges as opportunities. Over the past 25 years, our mission has been to redefine real estate investment by transforming underutilised buildings and creating developments that embody sustainability, resilience, and positive community impact.”

Keith Breslauer
Managing Director & Senior Partner

Environmental

Carbon Emissions

Patron is committed to reducing carbon emissions in its Funds through a Net Zero approach, ensuring investments in Fund VII align with 1.5°C climate targets using the CRREM pathway. This framework helps identify and manage transition risks, guiding assets towards decarbonisation in compliance with EU regulations.

Patron works with the ESG consultant Rio to measure and track emissions at the investment and operational level, using data analytics to monitor energy performance, embodied carbon, and operational emissions of its assets. By identifying ways to integrate energy efficiency upgrades, renewable energy sources, and low-carbon materials, Patron ensures assets progress toward Net Zero objectives while enhancing long-term resilience.

Improve Existing Buildings

Patron prioritises refurbishment over demolition to significantly reduce embodied carbon, which is generated from the production, transport, and disposal of building materials in new construction. By retaining and upgrading existing structures, Patron aims to minimise waste, resource consumption, and carbon emissions. Key improvements include energy-efficient retrofits with advanced insulation and sustainable material use. Refurbishment extends a building’s lifespan and operational efficiency, aligning with Patron’s Net Zero goals by delaying asset stranding dates, whilst also ensuring compliance with evolving ESG regulations in Europe. This proactive approach safeguards asset value while contributing to sustainable regeneration.

Energy Performance

Patron prioritises high operational energy performance in both retrofitted and new buildings to enhance efficiency and reduce carbon emissions. Retrofits focus on improving insulation, upgrading Heating, Ventilation and Air Condition (HVAC) systems, installing smart energy monitoring, and incorporating renewable energy sources such as solar panels. New constructions are designed to meet strict energy performance standards, by seeking to achieve Energy Performance Certificates (EPC) with a rating of A/B as a minimum for new builds, applying the EU Nearly Zero Energy Building (NZEB) principles. These measures are found to ensure lower energy consumption, reduced operational costs, and provide long-term compliance with EU energy efficiency regulations, aligning with Patron’s Net Zero strategy and ESG commitments.

Building Certifications

Patron prioritises building certifications like BREEAM, LEED, and WELL to ensure that high environmental, health, and energy performance standards. For each project, Patron seeks to understand if new developments and major refurbishments have acquired or are in the process of applying for such certifications, enhancing asset value, energy efficiency, and sustainability credibility. Certifications help prevent greenwashing, support investor demands, and align with our GRESB & SFDR commitments.

Building Innovation

Patron works closely with third parties to find ways of integrating new technologies to enhance sustainability design in construction. Such measures incorporate Photovoltaic panels for renewable energy, timber frames to reduce embodied carbon from material use, and energy-efficient insulation for better thermal performance. Smart building technologies, including real-time energy monitoring systems, to optimise resource use are also considered as part of this process. These innovations align with our Net Zero goals, reducing environmental impacts, while improving efficiency, durability, and long-term asset value.

Resource Efficiency

Patron emphasises resource efficiency through sustainable water management, recycling initiatives, responsible material sourcing, and a strong Environmental Management System (EMS) policy.

Water Management: Patron encourages its tenants to monitor water consumption, implement water-saving technologies, and promotes efficient irrigation and wastewater management in areas of high-water stress.
Recycling & Waste Reduction: Contractors are instructed to prioritises reuse and recycling in construction and refurbishment projects, reducing landfill waste and minimising embodied carbon emissions.
Sustainable Sourcing: Patron seeks to procure low-carbon materials, promote circular economy building design principles, and collaborates with suppliers adhering to high environmental standards.
EMS Policy: Patron’s Environmental Management System (EMS) ensures compliance with ISO 14001:2015, following a Plan/Do/Check/Act cycle to track and enhance sustainability performance.

Social

Healthy Buildings

Patron prioritises health and well-being across all buildings by integrating high indoor air quality, water efficiency, and sustainable materials into design and refurbishment. As part of this commitment, the WELL Certification Pilot is being implemented in select investments, providing third-party verification of health-focused building standards. This initiative underscores Patron’s dedication to occupant well-being, enhancing comfort, productivity, and sustainability.

Community Engagement

Patron is committed to engaging with local communities to ensure its developments provide social and economic benefits. This includes collaborating with local stakeholders, supporting community initiatives, and integrating public spaces into projects. Through consultations, partnerships, and charitable programmes, Patron fosters inclusive, sustainable developments that reflect local needs. Employee volunteering and outreach programmes further strengthen community ties, demonstrating Patron’s dedication to responsible investment and positive social impact.

Health, Safety & Wellbeing

Patron prioritises health, safety, and wellbeing across all projects, ensuring safe working environments for employees, contractors, and tenants. A comprehensive Health and Safety Policy enforces compliance across all building sites, mitigating risks through strict protocols, regular assessments, and staff training. Employee wellbeing initiatives include mental health support, flexible working policies, and fostering a healthy and inclusive workplace.

Diversity & Inclusion

Patron is committed to fostering a diverse and inclusive workplace, ensuring equal opportunities regardless of gender, ethnicity, age, disability, or background. The company promotes inclusive recruitment, career development, and a zero-tolerance policy on discrimination. With 18 nationalities represented and 37% female employees, Patron values a broad range of perspectives to drive innovation. Diversity training, mentorship schemes, and fair hiring practices strengthen its inclusive culture. This commitment extends to investment decisions, ensuring equitable community engagement and responsible business practices.

Charitable Initiatives

The Patron Charitable Initiatives have been central to our efforts since 1999 and continue to drive positive change and empower communities across the globe.

Nearly 25 years on, we continue to:

place charitable impact at the heart the Patron Capital business.
provide opportunities and raise awareness to help fund projects that support people tackling adversity.
work closely with local and global partners to bring together communities and expertise with the shared vision to make a difference.

Governance

Business Ethics & Compliance

Patron upholds strict business ethics and compliance standards, ensuring transparency, accountability, and sustainability across all investments. The Sustainability Committee, comprising senior leaders, oversees policy development, ESG integration, and regulatory compliance, aligning with SFDR and responsible investment principles. Robust data management, reporting, and stakeholder engagement ensure adherence to evolving standards. The committee continuously evaluates sustainability performance, risk management, and governance practices alongside long-term value creation.

Reporting & Transparency

Patron is committed to transparent and accountable ESG reporting, ensuring alignment with industry standards and investor expectations. ESG data is integrated into investment analysis, risk management, and decision-making, where ESG due diligence data are collected, aggregated and included as part of every investment committee agenda and report. Patron is engaged with regular monitoring and disclosure on the ESG performance of underlying investments and projects. Patron adheres to frameworks such as GRESB, PRI and regulations where it files yearly periodic reports in accordance with the EU Sustainable Finance Disclosure Regulation (SFDR).

Data Management & ESG Monitoring

At the fund level, Patron leverages Rio, its ESG consultant, to measure, track, and report sustainability performance across investments. Rio’s platform enables detailed carbon footprint analysis, energy consumption tracking, and ESG due diligence, ensuring compliance with the SFDR. The platform supports investment decision-making by identifying risks and assessing ESG performance. Through Rio’s audit-grade controls and data-driven insights, Patron enhances transparency, and investor reporting, ensuring each asset’s sustainability journey is accurately monitored and continuously improved.

Integration into the Investment Process

Patron embeds ESG considerations at every stage of the investment lifecycle, from screening and due diligence to asset management and exit strategies. Investments are assessed for environmental and social risks using Rio’s ESG framework, checking alignment with the SFDR, CRREM decarbonisation pathways, and EU Taxonomy Regulation. ESG metrics, certifications, and sustainability improvements are integrated into business plans, with continuous monitoring to enhance performance and risk mitigation. Patron collaborates with local partners and technical consultants to implement ESG improvements, ensuring each asset contributes to long-term sustainability, regulatory compliance, and responsible investment objectives.

Stewardship & Stakeholder Engagement

Patron has a comprehensive set of ESG policies to ensure responsible investment, regulatory compliance, and sustainable asset management. Key policies include the Responsible Investment Policy, which integrates environmental, social, and governance factors into decision-making, and the Climate Change Policy, which outlines strategies to reduce carbon emissions and mitigate climate risks. The firm also enforces strict governance frameworks, including policies on ethics, compliance, diversity, and community engagement. Additionally, Patron’s Environmental Management System (EMS) policy ensures a structured approach to monitoring and improving environmental performance.

Policies

Disclosure and Reporting

SFDR

For Fund VII, Patron have committed to investing 50% of the value of the fund in ‘Sustainable Investments’ in our SFDR disclosure. To meet this target, we have set out a series of positive characteristics and some minimum safeguards that the asset must feature. The other 50% of assets in the fund must still display some ESG characteristics. For the 2023 period disclosure 52% of the investments met the defined environmental objectives. Patron will seek to increase this percentage over the investment period for Fund VII.

GRESB

The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organisation that evaluates and benchmarks the environmental, social, and governance (ESG) performance of real assets, including both real estate and infrastructure. In our 2024 GRESB report, Patron Fund VII achieved an 89/100 rating in its first year of reporting. Fund VI scored 91 points, a significant increase from its 2023 score of 84. This is the third consecutive year of improvement for Fund VI, which has risen by 28% from a score of 71.

UN PRI

The Principles for Responsible Investment (PRI) are a global standard for responsible investing. Under the leadership of the United Nations, the PRI guides investors in incorporating environmental, social, and governance (ESG) factors into their investment decisions and active ownership. Patron is a member of the UN PRI and joined in 2020. In Patron’s first year of receiving a score (2023) from the UN PRI we were ranked significantly above peer averages across all categories, in the top 10 percentile for ‘direct real estate’ and scored 100% on our ‘confidence building measures’.

We are committed to staying ahead of evolving regulations and leading by example in sustainable real estate investment. A key pillar of our strategy is the measurement and reduction of embodied carbon in our construction projects. By prioritising the refurbishment of existing buildings, we actively reduce the carbon footprint of aging European real estate—avoiding the emissions and landfill waste associated with demolition.

This approach not only minimises transition risks but also aligns with the EU Taxonomy, reinforcing our dedication to responsible investment. Our progress would not be possible without the commitment of Patron’s investment teams and local partners, whose collaboration is essential in delivering meaningful and lasting environmental impact.”

Emilio Cereijo
Senior Partner Sustainability & DEI, Development Director

WHAT WE OFFER

ESG Team

Emilio Cereijo

Senior Partner Sustainability & DEI, Development Director

Daniel Cohn

Senior Adviser

Florence Goldring

Investor Relations and ESG Specialist

ESG

Sustainability Report 2024

Keith Breslauer
Managing Director & Senior Partner

Environmental

Social

Governance

Disclosure and Reporting

WHAT WE OFFER

Reports

Responsible Investment Policy

Physical Risk Policy

Transition Risk Policy

Climate Change Policy

EMS-O - Compliance Manual

EMS-2 - Environmental

EMS-4 - Objectives

Community Policy

Employee Wellbeing Policy

Health and Safety

MIFIDPRU 8 – Public Disclosure

ESG Team

Emilio Cereijo

Daniel Cohn

Florence Goldring

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ESG

Keith Breslauer Managing Director & Senior Partner

Environmental

Social

Governance

Disclosure and Reporting

WHAT WE OFFER

Reports

ESG Team

Emilio Cereijo

Daniel Cohn

Florence Goldring

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Keith Breslauer
Managing Director & Senior Partner