Sagax AB

Sagax has not set any emissions reduction targets, despite setting a target to reduce its energy consumption by 2025. The company should develop a target that aligns with its 1.5°C pathway. This target should cover all of its property management activities. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term actions on a longer-term goal. The company should clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

Sagax only reports its floor area related to its property management activities between 2018 and 2021. Furthermore, Sagax also only started reporting its scope 3 emissions for its downstream leased assets in 2021 for two of the regions it operates in (Finland and Spain). As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance.

There is no evidence that Sagax has a low-carbon transition plan. Although Sagax aims to reduce its emissions by expanding its use of renewable energy and heating, it should establish a time-bound action plan that outlines KPIs and emissions reduction metrics that will hold the company accountable and enable it to transition to a low-carbon economy. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

Sagax’s Supplier Code of Conduct was agreed upon with its main suppliers in Sweden and the Netherlands, but it is unclear what proportion of the company’s total suppliers or procurement spend this accounts for. The company’s Supplier Code of Conduct requires a that suppliers meet all applicable environmental laws and regulations, it does not explicitly include greenhouse gas (GHG) emissions reduction requirements, nor does it outline whether the company’s suppliers are required to publicly report their GHG emissions. Furthermore, Sagax does not disclose details of any specific engagement with its clients.

Sagax has not set any emissions reduction targets, despite aiming to reduce its energy use by 30% by 2025. While Sagax is utilising funds from a green bond on green building projects, it has not developed a vision of what its business will look like in a low-carbon future.

The company does not have a low-carbon transition plan and there is no evidence it intends to develop one in the near future.

Sagax has issued one USD 87 million green bond and established a Green Finance Committee to evaluate and select assets that are in line with its Green Framework. A green bond for use in new green building projects, which must achieve specific building sustainability certification.

Sagax does not disclose sufficient emissions intensity, absolute emissions or floor area data to analyse its performance to date.

Sagax acknowledges climate change, but apart from financing green building projects and expanding its solar capacity, it is not taking much action. Sagax’s lack of targets, transition plan and emissions intensity data all suggest that the company is not yet committed to the low-carbon transition.

No evidence was found that Sagax commits  to social dialogue or engages on  the categories of stakeholders on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found that the company undertakes low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Sagax was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found that the company assesses employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Sagax identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Sagax has a grievance mechanism available to workers and external stakeholders. However, no policies or commitments of the company related to respect for other human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

Sagax commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company has no employees covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. No evidence was found that the company discloses indicators of workforce diversity. Moreover, there was no evidence to indicate that the company commits to gender equality and women’s empowerment.

Sagax has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no policies or commitments are evident that the company relates to other key ethical business topics – personal data protection, tax, and lobbying and political engagement – was found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.