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Responsible Investing

Governance

KingSett’s Management Committee and Sustainability & Impact Committee are dedicated to strong governance practices that prioritize transparency and accountability and promote integrity and ethics while delivering sustainable premium risk-weighted returns. Our Values inform our decision-making and underpin our approach to governance.

 

Oversight and accountability of sustainability risks and opportunities associated with the ownership, development and management of real estate across an asset’s lifecycle is a top priority. KingSett’s governance framework ensures representation from all relevant business functions.

Responsible-Governance

Our Approach

Our approach to governance is composed of:​

  • Potential conflicts of interest are mitigated through a number of independent Advisory Boards

  • Engagement of professional firms to provide insight and advice across the business

  • Engagement of property management firms and joint venture or third-party partners to operate our properties and execute the strategy

  • Independent audits of the financial statements and sustainability metrics

  • Incorporating third-party standards such as SASB, TCFD, SBTi and PRI

  • Robust internal governance policies and corporate controls

  • Regular and transparent investor reporting, including sustainability performance

  • Active risk and asset management

  • Strong alignment with KingSett principals and employees

The Management Committee is responsible for and has oversight over all day-to-day operational matters relating to KingSett, including KingSett’s Sustainability program. The Committee is comprised of senior executives, including;

  • Chief Executive Officer

  • Chief Investment Officer

  • Chief Financial Officer

  • Chief Capital Officer

  • Chief Asset Management Officer

  • Chief Legal Officer and President

  • Mortgage Operations

The oversight of sustainability and social impact of this committee is facilitated through the Sustainability Committee which is made up of senior members from the Asset Management, Strategic Capital, Mortgages and Finance teams.

Stakeholder Engagement

We aim to build strong relationships with our stakeholders to fulfill our commitments and create shared value.

 

KingSett engages stakeholders with respect, integrity, transparency, and honesty. Effective communication and collaboration are key.

 

Our engagement programs at both corporate and property levels help generate ideas, solicit feedback, identify best practices, and assess our impact. Diverse feedback ensures our programs meet community needs and improve asset performance.

 

Our stakeholders include employees, tenants, property managers, partners, investors, communities, industry associations, and customers, whom we engage in a variety of ways.

A professional panel discussion in a modern event space. Six speakers sit on stage, facing an attentive audience. Blue lighting and large screens decorate the room.

  • Property and asset managers review asset-specific sustainability dashboards prior to and during budget planning

  • Social media posts highlight key corporate and asset achievements across all portfolios.

  • Our annual Sustainability & Impact Report and sustainability website provide an in-depth review on sustainability throughout the organization and holds us accountable for the commitments we make.

  • Our Management Committee and Advisory Boards receive quarterly sustainability updates that include Portfolio case studies, progress and highlights on sustainability issues and trends. Joint Venture and Fund investor partners receive quarterly and annual updates on sustainability related issues and trends directly impacting their investments.

  • We survey our tenants and employees to help guide our efforts to increase satisfaction, communication and well-being.

  • We continuously engage within our government and industry, sharing best practices, new ideas and thought leadership.

  • We participate in a number of industry and community associations as members and board of directors to share best practices, ideas and guidance.

  • Our talent managers and social committee members initiate a variety of new and ongoing social and employee development programs throughout the year.

  • CREIF investors and other stakeholders receive regular updates on progress towards achieving our targets.

  • Our property teams engage with asset managers, tenants and communities in their day-to-day functions and hold tenant and community events throughout the year.

Risk Management

We take an active role in identifying and mitigating risks associated with owning, developing and managing real estate in Canada.

Our process for identifying and assessing risks and opportunities, including sustainability and climate-related risks, is embedded into our day-to-day business operations. We take action to mitigate and monitor risks, particularly those that could significantly affect KingSett’s reputation, financial performance or business operations.

 

Sustainability risks, in particular climate risks, continue to be a growing concern for investors and stakeholders. We proactively take steps to improve the climate resilience and energy efficiency of our assets and manage the physical and transition risks of climate change.

Curved white apartment building with multiple floors and balconies, surrounded by lush green trees and neatly landscaped gardens lining a driveway.

This includes:​

  • Collaboration with our stakeholders to ensure alignment and support on priorities

  • Participation in industry associations and committees to ensure we are identifying and mitigating risks before they materialize

  • Remediation of high-to-extreme risks in capital planning when major systems are due for renewal

  • Capitalizing on opportunities within the properties when major work or capital is occurring to address as many risk mitigating opportunities as possible

  • Development of asset and fund strategic plans that unlock the most value for our stakeholders while ensuring they will meet long-term resilience needs

  • Significant ESG risks are escalated to the Management Committee and evaluated to determine capital allocation to address these risks

Our approach to managing risk at the property-level follows the basic principles of ISO 14001.

  • We establish policies and measure and analyze performance data through management systems, assessments, real-time monitoring, surveys and target setting.

  • We develop and execute these plans, including conservation measures, replacing existing systems and installing products with environmentally friendly alternatives.

  • We monitor the impacts of projects and actions through energy audits, commissioning, follow-up assessments and real-time monitoring.

  • The results of these steps inform our strategies on the effectiveness of our actions, influences our policies and helps us achieve our targets.

UN Principles for Responsible Investment

The Principles for Responsible Investment (“PRI”) is the most widely adopted sustainability integration standard that enables asset owners and managers to publicly demonstrate a commitment to responsible investment and contribute towards building a more sustainable financial system.
 
In 2024, KingSett achieved high scores across all four modules required for submission, exceeding the PRI Median scores in each module. In the Direct – Fixed Income – Private Debt module, our score increased by 49%, from 61 to 91. This improvement reflects the expanded ESG programming that has been integrated into the mortgage business. Some of these initiatives included:

95/100

Policy, Governance and Strategy

91/100

Direct – Fixed Income – Private Debt

81/100

Direct – Real Estate

87/100

Confidence Building Measures

  • ESG surveying of loans

  • Ranking of loans under ESG criteria (low/medium/high)

  • Incorporating material ESG factors across the business

  • Review of ESG factors in due diligence

  • Negative and positive screening

KingSett will utilize the PRI standard to identify additional areas of focus and generate value for stakeholders across all business functions.

Our PRI Assessment Report

Climate-Related Disclosures

Task Force on Climate-Related Financial Disclosures ("TCFD")

KingSett is committed to being transparent about our climate-related risks and environmental performance. To do so, we align our disclosures with the TCFD recommendations.  In December 2024, the Canadian Sustainability Disclosure Standards (“CSDS”) were released, which incorporate and expand upon the recommendations of the TCFD.

SASB & Data Assurance

As part of our commitment to transparency and sustainability, KingSett provides disclosures informed by the Sustainability Accounting Standards Board (“SASB”) Real Estate Standard for consumptions and the Greenhouse Gas (“GHG”) Protocol for emissions. In addition to the Key Performance Indicators linked in the Data Assurance and Opinion section, our SASB table can be viewed via the link below. This document outlines key sustainability metrics relevant to our industry, including energy management, water usage, tenant engagement and climate change adaptation.

Data Assurance and Opinion

KingSett has obtained independent limited assurance for select performance metrics in accordance with the requirements of Canadian Standard on Assurance Engagements (“CSAE”) 3000, Attestation Engagements Other Than Audits or Reviews of Historical Financial Information and CSAE 3410, Assurance Engagements on Greenhouse Gas Statements.

Key Performance Indicators

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