Sustainability

Responsible entrepreneurial activity and sustainable corporate management determine Allreal’s strategy and operation. The company is aware of and assumes its responsibility toward the environment and the society.

The Code of Conduct applying to the entire Allreal Group describes the expected behaviour of employees, contractors and suppliers, thereby defining guidelines to be respected and observed without exceptions and limitations. Observance of high ethical standards of behaviour characterised by personal responsibility and strict adherence to all legislation of significance to the company represents the basis of all entrepreneurial activity.

Economic responsibility

Allreal endeavours to provide its shareholders with a regular return comparable to a direct investment in real estate and thus allowing shareholders to participate in the company’s economic success. The business model combines a stable-income real-estate portfolio with the activities of a general contractor. Generally, up to 80% of the earnings resulting from the operating business are distributed to shareholders.

Thanks to the clear strategy, considerate handling of risk, sound financing and the high earnings power, Allreal provides the best conditions for a continuous increase in shareholder value.

Ecological responsibility

While impact on the environment may be minimised when constructing or operating real estate, it cannot be eliminated completely. Efforts to minimise environmental pollution usually lead to higher production costs. They are usually more than compensated for in the short to medium term by means of lower operating and maintenance expenses and a longer life expectancy. When taking into consideration the entire life of a building, it shows that projects that are planned and realised sensitive to the ecology and easy on the environment can be considered profitable in the long term and by all means consistent with economic interests.

At Allreal, development, planning and realisation of all projects are based on the principle of careful use of resources and minimum disruption of the environment. The company thus ensures to consistently comply with all provisions of environmental law, careful use of non-renewable sources of energy and implementation of energy-saving measures during realisation and operation of real estate. As a consequence, projects for third parties, for residential ownership and for the company’s own portfolio are balanced both in terms of ecology and the economy.

In this connection, Allreal has made a name for itself as a pioneer and pathbreaker in the development, planning and implementation of ecologically exemplary projects. The company has realised more than 88 Minergie buildings since the year 2000, including the zero-heating-energy Eulachhof complex in Winterthur, which was granted the Swiss Solar Award and the Watt d’Or Award. Moreover, Allreal implemented Switzerland’s first building complex – Richti Wallisellen – which complies with the requirements of the 2000-watt society and in Mönchaltorf one of the first residential complexes in canton Zurich to comply with the Minergie standard A.

Energy balance of yield-producing real estate

In terms of operating and maintaining its own yield-producing real estate, Allreal endeavours to keep the strain on the environment as low as possible. For its yield-producing properties, the company measures and analyses energy consumption, water consumption and CO2 emission based on the internationally accepted recommendations of the European Public Real Estate Association EPRA. The data systematically gathered for the first time in 2012 provides an inventory of the current status, and a multi-year comparison is of relevance for the definition, implementation and control of sustainable measures taken in order to lower energy consumption and the connected reduction of pollutant emission.

The calculation of energy and water consumption takes into consideration yield-producing properties for which the necessary information is available across a twelve-month accounting period. In the 2014 financial year, this applies to 16 residential complexes at a total market value of CHF 490 million and 38 commercial buildings at a total market value of CHF 1 821 million (2013: 15 residential/39 commercial buildings). Comparability is, however, restricted as both the composition of the portfolio and the parameters differ from year to year.

Total energy consumption (electricity and heating) of the surveyed properties in the year under review amounted to 61.3 million kilowatt-hours corresponding to an average consumption per building included in the survey of about 1.14 million kilowatt-hours. These values correspond to a CO2 equivalent of 16 718 tons or an average of some 310 tons (2013: 19 000 t / 350 t). The main reasons for the lower energy consumption are seen in relatively mild winter temperatures and the lower average age of the included properties.

Water consumption of the surveyed properties amounted to 332 783 cubic metres corresponding to an average consumption per property of 6 163 cubic metres. The higher water consumption (in total and per property) follows the fully consolidated registration of industrial (mainly Escher-Wyss-Areal) and trade consumption (mainly Center Eleven).

Total energy consumption

Average water consumption of the buildings included

Society and social responsibility

Efficient, capable and experienced employees are of major importance concerning successful long-term business activity. That is why Allreal attaches great significance to the systematic ongoing and further training of its staff at all hierarchical levels and in all areas of activity. In 2014, annual expenses of internal and external ongoing and further training amounted to CHF 840 per employee (2013: CHF 780). Moreover, Allreal offers young people the opportunity to enter working life through an apprenticeship or a trainee programme, which was taken advantage of by eight apprentices and trainees on the cut-off date.

An employee survey carried out twice a year ensures that conflict potential is recognised early and corresponding measures are defined and implemented on time.

The PAQ management system introduced in 2013 has been enhanced and further optimised in the year under review. In 2014, Allreal successfully passed an audit based on PAQ and carried out by the Swiss Association for Quality and Management Systems SQS.

Moreover, Allreal attaches high priority to clear and unambiguous definitions concerning all aspects relating to occupational safety and safety on the construction site. Adherence to applicable safety regulations is being regularly monitored.

Prevailing pressure on price and deadlines experienced in the construction industry increases the risk of wage undercutting and other violations of labour and social-security regulations. This is connected with a considerable danger of failing to reach the required quality standards, especially in cases of work being awarded to subcontractors, which is then completed by untrained tradespeople often not employed in conformity with the law. In order to ensure that the quality level of contracts awarded to subcontractors is being maintained and liability and reputation risks thus minimised, Allreal has defined and implemented a series of measures in the period under review. These measures include deeper verification of Allreal’s subcontractors and, in turn, their subcontractors with regard to maintaining applicable labour and social-security regulations, stricter inspections of construction sites, the duty for tradesmen on large construction sites to identify themselves, adjustment of contractual agreements with contractors, and a restriction on the number of their subcontractors.

Allreal cultivates ongoing communications with various stakeholders, maintains contact and exchanges ideas with representatives of politics, the authorities, political parties and associations based on open and transparent communications with all dialogue partners.

In addition, Allreal supports cultural and social organisations within the framework of long-term agreements, such as the International Opera Studio and support for children suffering from cancer. The company welcomes and supports volunteer work performed by its employees in their spare time. Moreover, the company demonstrates its commitment to society and to its social responsibility by membership in various non-party or politically non-partial organisations, which include Avenir Suisse, a free-market liberal Swiss think tank, and Stiftung Öffentlichkeit und Gesellschaft, an organisation affiliated to the University of Zurich championing quality in media work, both on the side of the public and the media.

A significant cultural commitment reaching out far beyond the company is Allreal’s collection of contemporary architectural photography. The photographs concern both acquisitions and commissions which, as far as possible, take into consideration young photographers and those at an early stage of their artistic career.