Environmental, social and governance (ESG) policy
Victory believes that on a global scale everyone has a responsibility to be conscious of ESG
(environmental, social and governance) matters. We believe that appropriate consideration of ESG
factors is part of a sound investment program and that incorporating ESG information into our
decision making enables us to better understand and assess the investments we make and to
positively impact ESG matters where possible. Our ESG commitments are overseen by the Board
and managed by Simon Norris (Partner), who is responsible for ESG within the firm and is responsible
for enacting our ESG commitments in our day-to-day work as well as recording our ESG progress,
reporting and recording.
Approach
Victory’s approach to responsible investment is designed to more than just meet industry best
practices. Victory believes that the approach adopted is appropriate in light of the company’s specific
investment activities. This policy has been informed by consulting the United Nations Global
Compact and the United Nations Principles for Responsible Investment of which Victory is in the
process of becoming a signatory.
Furthermore, Victory will remain informed about ESG developments within relevant industries and
the countries in which it operates. It will actively seek to optimise the sustainable performance of the
company and the investments where it is possible to do so whilst still observing its fiduciary
responsibilities to investors to optimise financial returns. ESG issues are considered in specific asset
underwriting, as part of our annual strategy meetings, as well as being reviewed on weekly
investment committees and company meetings as required.
Victory understands its ESG responsibilities extend further than the company or its investments. As
such, where practical, we will seek to review the ESG performance of contracted parties and
suppliers as part of the selection and management process within the relevant part of a project/
investment.
Victory Foundation
As well as the various points and examples set out below, Victory has also taken steps to set up the
Victory Foundation. This foundation has been set up with ESG in mind and looks to add to Victory’s
overall contributions to ESG matters – in some cases these may be related directly with the
investments (e.g. helping to fund the provision of emergency defibrillators to the benefit of a local
community around at asset), whilst others are related to more overarching goals of Victory (e.g.
funding sporting achievements for participants who would otherwise be unable to compete).
Environmental
Victory recognises its responsibility to minimise negative impacts on the environment though its
business operations and those of its investments. We understand the major role that real estate has
in delivering sustainability and protecting the environment. Accordingly, we consider the impact that
our activities have on the environment and, where feasible, we harness opportunities to actively
enhance the environmental performance of an asset in which we invest as part of our investment
process.
Where it is possible, and commercially appropriate to do so, we seek to achieve standards and deliver
outcomes which are ahead of minimum legal requirements, especially where this is deemed likely to
make a positive contribution to capital values, NOI and/or a reduced risk premium. Historically, this
has led Victory to refurbish rather than demolish real estate, for example, saving significant amounts
of carbon emissions in the process. In addition, where possible Victory has increased the BREEAM
rating of buildings in which it has invested. Specifically, this has resulted in improved BREEAM ratings
for more than 300,000 sqm of prime mixed-use real estate, in numerous cases to the “Excellent”
rating. This provides an example of what has been done historically and may be considered in the
future.
Victory has also endeavoured to reuse, repurpose or rehabilitate given the significant benefits of this
approach. We will continue to consider modern, cutting edge and appropriate methods for
incorporating sustainability in our projects.
The environmental criteria towards which attention is focused includes, but is not limited to energy
efficiency, carbon reduction, pollution and waste management.
Social
The construction, use and management of commercial real estate impacts on communities and
societies in a variety of ways, not least though the relationships and reputation fostered with people
and institutions in the communities in which Victory does business. Victory seeks to ensure that
negative social impacts are avoided, whilst opportunities to deliver public benefits are identified and
harnessed by recognising that our investments do not exist in a vacuum and that we operate within a
wider society. Standards highlighted in the UN PRI form a further important tenet of our social
policies.
In addition to the social effects of Victory’s activities, we also recognise that the buildings in which we
invest can play an important role in the lives of the people who work in or visit them. They can have a
significant bearing on their sense of well-being, on their physical and mental health and on their
economic productivity. To provide a further historic example, we are proud of the market-leading
office ecosystems created by Icon Real Estate and are confident that these have improved the daily
work experiences of their occupants.
While governed by our fund and investment horizons, we take an approach that favours long-term
stewardship – considering the impact our projects have on tenants, local residents and neighbours
(particularly in redevelopment projects). We believe our legacy is important as demonstrated by the
association currently being created in collaboration with our key stakeholders to positively impact
the lives of those living in the local community surrounding a major real estate investment project (e.g.
law firms providing pro bono work, scholarships for top ranked business school for individuals from
local area)
The above are good examples of our commitment to social issues, and the type of responses we may
consider in the future.
The social criteria towards which particular attention is focused includes, but is not limited to human
rights, impact on local communities, equality and health and safety. These criteria are vital to our work
with our assets but also for our staff on a day-to-day basis, ensuring a business that upholds the
highest standards of professional and ethical behavior as well as fostering a work environment that
encourages diversity.
Governance
Victory is committed to the highest standards of corporate governance and we believe that such
standards form an essential component of our commitment to investors. We recognise that
transparent governance processes at both corporate and fund level are critical to the alignment
between us and those who entrust us with their investments, as well as to the overall integrity and
performance of our business.
Victory is committed to continuing to build its business and reputation through a consistent track
record of acting with integrity, accountability and responsibility towards all relevant stakeholders,
including investors, employees, tenants, potential sellers, potential buyers, other business partners,
government bodies and the community at large.
The governance criteria towards which attention is focused includes, but is not limited to director
training, management structure, anti-money laundering and conflicts of interest.
Other policies
This policy is in addition to all other Victory policies and guidelines.
Implementation of the policy
Simon Norris at Victory is responsible for administering this policy under the guidance of the Board
and may adopt such reasonable procedures as are deemed necessary or desirable to implement this
policy, including training Victory’s employees with respect to this policy.
Resources and further reading:
United Nations Principles for Responsible Investment: https://www.unpri.org/pri/an-introduction-
to-responsible-investment/what-are-the-principles-for-responsible-investment
UN Global Compact: https://www.unglobalcompact.org/what-is-gc/mission/principles
