French listed property group Covivio has announced plans to align its financing policy with its ESG goals by launching the conversion of some of its bonds into Green Bonds, allowing Covivio to have a 100% green bond portfolio.
Covivio will seek approval from the holders of bonds maturing in October 2024, June 2027, February 2028 and June 2030 worth €1.7 bn to have their bonds reclassified as Green Bonds. The first general meeting of bondholders will be held on 20th June 2022.
Covivio announced new environmental targets at the end of 2021 with the aim to achieve a 40% reduction in greenhouse gas emissions by 2030. This target, which encompasses scopes 1, 2 and 3, covers the full range of activities in Europe and the entire asset life cycle: construction, remodelling, materials and operation. Covivio is also targeting a net zero carbon contribution from 2030 onwards for scopes 1 and 2.
In pursuing these goals, Covivio continues to increase the share of certified portfolio. At the end of 2021, 91% of Covivio’s portfolio is covered by HQE, BREEAM, LEED or equivalent certification, for operation and/or construction. Close to its target of 100%, Covivio is now aiming to improve the levels of certification obtained. The Group is also working on aligning its assets with the green criteria of the EU taxonomy.
Eligible assets must hold minimum HQE Excellent, BREEAM Excellent (“Very Good” in the case of assets already delivered), LEED or DGNB Gold certification;be located less than 500 m from a public transport; provide environmental annexes or clauses on leases in France and new leases in Italy and Germany.
Office assets worth €4.7 bn are already eligible for this, with the the Group planning to increase the eligible share of its assets mainly by continuously improving portfolio quality with a focus on redevelopment and improvements in existing portfolio buildings such as Monceau and Anjou in Paris. These projects are now also covered by the Sustainable Bond Framework.
