Environment

Energy efficient assets have lower operating costs, more resilient rental income, lower risk and potentially tighter yields. This contributes to higher risk-adjusted returns for investors.

Energy efficient, green assets as a share of Slättö's portfolios is the key metric for us. We define this based on the green criteria of the EU Taxonomy, the most important standard in EU countries.

We integrate energy efficiency in our investment process, from due diligence at transaction where we look at the potential to bring the assets to modern standard, to asset management where we implement profitable energy upgrades. 

Taxonomy alignment:

• 49% across Slättö's portfolio in 2025. An increase of 15% from 2024.

Energy efficient assets:

• 63% across Slättö's portfolio in 2025.
• These assets are in line with the energy criteria of the EU Taxonomy - top 30% in the country’s building stock.

Renewable energy production in buildings lowers operating costs. It also makes the income from the assets more resilient to energy price increases, as well as reducing emissions.  

Our key metrics are the share of project developments and cash flow assets with on-site renewable energy, and the share of assets purchasing renewable energy.

Slättö works with renewable energy in two main ways: we install on-site renewables in developments and we roll out renewable energy solutions in existing assets. The main examples are converting assets from district heating to on-site geothermal, and installing rooftop solar panels. 

Project development:

• Of the projects completed in 2025, 43% of assets by area are equipped with solar panels or geothermal heating, compared to 73% in 2024.
• The decrease is due to project-specific conditions, for example not all municipalities allow geothermal.

Cashflow assets:

• 100% of cash flow assets in Slättö's portfolio purchased renewable energy.
• 35% had on-site renewable energy production.

Renewable energy:

• Reached a total installed solar capacity of 6 671 kW, a 4x increase from 2022. 

A warmer climate will increase flooding, fires, and extreme temperatures, which can damage real estate assets. Proactive measures can reduce future costs.

Our key portfolio metric is share of assets where physical climate risks are managed in line with  the EU Taxonomy. 

We apply a step-by-step process together with a large engineering consultancy, to assess each asset’s exposure, vulnerability and materiality against the climate-related hazards listed in the EU Taxonomy, define relevant adaptation measures, and integrate these actions into the asset plans for implementation.

In 2025, 49% of assets in Slättö’s portfolio across funds were Taxonomy aligned. Earlier years, this share was 34% and 55% in 2024 and 2023 respectively. The lower 2024 share compared to 2023 reflected acquisitions of standing assets. We will continue to increase this share.

While regulators are setting mandatory carbon limits, the Nordic real estate market has already adopted voluntary ones. By reducing embodied carbon, our developments are regulation ready and more attractive, thus future-proofing our investors' portfolio and helping them decarbonise real estate.

Slättö has science-based climate targets to ensure we future proof our portfolios. The most widely used global standard, Science Based Targets initiative (SBTi), has approved our targets. The key metric is CO₂ per sqm in construction projects.

We reduce embodied carbon from construction, by setting requirements in tenders and contracts with general contractors. Greener materials, for example lower-carbon concrete and recycled steel, are used in our projects. 

Across our development portfolio, we continued to implement lower embodied carbon solutions – demonstrating that emission reductions can be achieved without compromising financial returns. 

Green and biodiverse spaces make assets and neighbourhoods more attractive to tenants and help meet municipalities’ requirements. Protecting and enhancing biodiversity is also part of reducing environmental impacts.

Our main biodiversity target is to implement biodiversity action plans in all larger development projects.

Slättö's biodiversity measures in large development projects focus on local species, habitat conditions and water systems. We have also installed bee hives on rooftops of our logistics and light industrial assets to improve pollination. A part of Slättö’s residential portfolio has green roofs, which lead to temperature regulation and stormwater management.

We have continued to integrate biodiversity into our investment process, with biodiversity measures in large development projects.

A strong environmental certification is a core requirement in Slättö’s project development. It is part of the business plan for development projects, in order to capture a prime-standard premium at exit.

We target a strong environmental certification in all development projects. 

The certification depends on asset type. For logistics and light industrial developments, Slättö uses BREEAM Excellent or Sweden Green Building Council’s Miljöbyggnad Silver. For residential projects, we target Miljöbyggnad Silver. In-use certification for cash flow assets is used selectively, where relevant.

In 2025, certifications covered 100% of projects, unchanged from 2023 and 2024. Certified cash flow assets accounted for around 29%.