Investment in innovative new construction materials is a key part of boosting sustainability in the real estate sector, and that is leading to some interesting partnerships, says Boris van der Gijp chief executive of investor Achmea Real Estate.

“The impact side of investments is a very important part of our strategy and that shows itself in the choices we make when it comes to investments,” says Boris, in an interview ahead of October’s Expo Real property fair in Munich.

In terms of ESG, the company has made great strides in making its entire portfolio more sustainable and not just by just by selling off the unsustainable parts. “We are making thousands of homes more sustainable, together with our partners. And as part of that, we are continually looking at advances in bio-based construction materials.”

One project Boris is particularly proud of is a joint programme with the farmers’ pension fund to investigate how hemp can be used in the construction process. It is, he says, particularly appropriate given the need to make farming itself more sustainable. The hemp itself is grown in the Netherlands and used as an insulation material in housing built on behalf of the farmers’ fund.

Bio-based materials

Farmers in the Netherlands are being urged to change working practices and to focus less on livestock farming which can be heavily polluting. “Hemp is not only interesting in terms of developing more bio-based materials, but it offers a new way forward for farmers,” says Boris. “What could be better?”

Another example of innovation in construction is partly funded by PMT, the light engineering pension fund. It is focusing its efforts on timber-based construction, and Achmea and the pension fund jointly sponsor a professorship at Delft University concentrating on the potential offered by timber.

“This is where you see how pension funds and we as investors can work together,” Boris says. “They challenge us to take an extra step and we then challenge them. Of course, not every pension fund goes this far, and it is always a question of finding a balance between the social impact and the financial returns.”

Social impact

The company has also developed its own tool to measure the social impact of its portfolio so that it can take concrete steps to improve it. “The social impact monitor allows us to look at hard facts and the actual sums for each unit,” he says. “That allows us to set aside extra funds to make improvements. Take loneliness, for example. This is a big issue but it is something we can work on. We can create larger areas where people can meet each other, for example, or employ a concierge who will also organise events or help to set them up.”

The results of these efforts will then be seen in the social impact monitor, “so we can see what our investments have delivered,” he says. “We are not only looking for financial returns. Environmental and social returns are important too. This tool allows us to show our investors that we are putting their money to good use. Ultimately, of course, we are doing all this for pension funds and for people who have a pension, as well as for people who are looking for affordable housing.”

You can meet Boris van der Gijp and the rest of the Achmea team at the Holland Metropole stand at EXPO REAL (Messe München) from October 7 to 9. Hall 2, stand 130.

Photo caption. Timber is an increasingly popular construction material. Photo: Depositphotos.com