EfTEN Real Estate Fund and sustainability

EfTEN Real Estate Fund AS (the Fund) is a fund which, within the meaning of Regulation (EU) 2019/2088 (SFDR), does not formally promote environmental or social characteristics and does not have sustainable investment as its objective. In market terminology, such a fund is commonly referred to as an “Article 6 fund”. Nevertheless, the Fund’s fund manager (EfTEN Capital AS) considers sustainability-related matters to be an important part of asset management and long-term value creation.

Data collection and management

Since 2023, consumption data for all real estate investments held by the Fund and its subsidiaries has been collected systematically, including electricity, heating, gas and water consumption, as well as waste generation. The data collected is used to monitor the environmental performance of the assets, support management decisions, and plan and implement measures to reduce environmental impact, based on technically feasible and economically justified solutions.

Key environmental performance indicators for 2025:

• Energy consumption: 69,455 MWh (decreased by 2% compared with 2024)
• GHG emissions: 17,522 tonnes of CO2 equivalent (decreased by 12% compared with 2024)
• Water consumption: 177,076 m³
• Share of solar energy: 8.3% (2024: 7.8%)

In 2025, additional solar panels with a total capacity of 50 kWp were installed at the DSV logistics centre in Latvia. The amount of energy generated from solar power increased by 244 MWh year on year.

Framework and methodology

In reporting the environmental performance indicators of the Fund, the EPRA Sustainability Best Practices Recommendations (EPRA sBPR) are applied. Greenhouse gas emissions are calculated using the emission factors of the International Energy Agency (IEA).

Integration of sustainability risks into investment decisions

In accordance with the pre-contractual disclosure requirements under Article 6 of the SFDR, information is provided on how sustainability risks are integrated into the Fund’s investment decisions. Sustainability risks are assessed and managed in accordance with the sustainability risk management principles of the Fund’s fund manager.

Long-term objectives

The Fund takes into account the European Union objective of achieving carbon neutrality by 2050 and is moving in that direction, focusing on the efficiency of energy use and on improving the existing portfolio. In 2025, total GHG emissions were reduced by 12%.

Fund manager’s sustainability policies

The Fund is managed by EfTEN Capital AS, a fund manager supervised by the Estonian Financial Supervision Authority and authorised as an alternative investment fund manager (AIFM) under Directive 2011/61/EU (AIFMD). EfTEN Capital AS has integrated environmental, social and governance (ESG) aspects into the investment decision-making process and asset management of all funds under management.

• Policy on the integration of sustainability risks (SFDR Article 3)
• Consideration of principal adverse impacts on sustainability factors (SFDR Article 4)
• Remuneration policy and sustainability (SFDR Article 5)

Further information

Further information on environmental performance indicators and sustainability-related activities is available in the Fund’s consolidated annual report for 2025.