Environmental, Social & Governance
Cloud Capital aims to be a responsible investment firm that creates sustainable long-term value for our investors and wider stakeholder groups.
We recognize and take on our responsibility to conduct our investment business in a responsible way and, to the best of our ability and in line with our fiduciary duties, we aim to deliver superior investment returns whilst minimizing the cost to society and to the environment as far as possible.
As part of our aims for sustainable and ethical business practices, we have reviewed and set objectives across the three pillars of ESG.
Environment: We are committed to measuring and monitoring our greenhouse gas (GHG) emissions, with a target to achieve Net Zero by 2040 and will aim to complete a full GHG inventory for non-tenant operated sites and set a science-aligned net zero target by 2026. In addition, we plan to integrate climate-related risks and opportunities as part of our financial planning. This includes conducting environmental due diligence for portfolio acquisitions and updating risk management frameworks with relevant climate change risks by the end of 2025.
Social: We aim to ensure the highest standards of health and safety for employees, contractors, and visitors, with annual health and safety training and seek to foster a diverse, equitable, and inclusive workforce, aiming for a 10% increase in the representation of women in leadership roles by 2030.
Governance: We promote high standards of business ethics, ensuring transparency and accountability. This includes providing a grievance mechanism by 2025, achieving 100% completion of anti-bribery and corruption training annually, and implementing a comprehensive risk management framework by 2027.
Our responsible investment approach is informed by the UN Principles for Responsible Investments and our policy is reviewed at least annually.
Aligned to our overall sustainability strategy, Cloud Capital has also established a Green Finance Framework to govern the issuance of green finance instruments, including green bonds, green loans, green asset-backed securities (ABS) and green tranches of ABS. Our framework is aligned to the four core components of the International Capital Market Association’s Green Bond Principles and the Green Loan Principles.
Environmental data: We measure and monitor environmental data at all our assets
GHG emissions: Most of Cloud’s emissions are scope 3 emissions (around 98%) and we have begun work to set net zero targets to reduce our emissions in the next 12 months.
Environmental due diligence on portfolio acquisitions
Improving asset’s environmental performance through a tailored framework to identify improvement opportunities
Conservation of biodiversity during construction
Climate Risk Awareness survey conducted in 2023, as part of efforts to improve our climate risk governance and overall climate strategy.
Green certifications: Three of our assets are LEED Gold certified.
Employee wellbeing program addressing health and safety matters for its employees.
Employee satisfaction: In 2023, we conducted our first annual employee satisfaction survey.
Professional development: We conduct annual performance reviews for all employees, and provide them with training and development opportunities.
Tenant Engagement: Cloud continues to develop its tenant engagement programme
Tenants have ambitious sustainability commitments
Responsible Vendor strategy
Policies including:
- Code of Ethics
- Whistleblower
- Financial crime
Committee Structure including:
- Investment
- ESG
- Governance
- IT Risk & Information Security
ESG training: management and employees engage in annual ESG awareness training.
Cybersecurity and Information Security programme which is overseen and reviewed annually by external cybersecurity consultants.
Signatory to the Principles for the Responsible Investment since 2022
Cloud Capital made its first submittal to GRESB in 2023 determining to use the output as a base line for ongoing improvements to meet investor standards
In 2023, Anthesis, the dedicated sustainability consultancy, was engaged to identify and implement ESG performance improvement actions.