Background & Rational
Trebuchet General Partners (“TREBUCHET”) is the international real estate investment management platform of Trebuchet Capital Partners (“Trebuchet”). We implement and develop private equity real estate investment strategies for a global market and client base.
Our private equity investments are structured as open-ended and close-ended funds, and single-client accounts. On behalf of retail and institutional investors, Trebuchet invests primarily in real estate. Trebuchet’s portfolio companies concentrate in building materials where vertical integration opportunities exist for investors and operate under individual ESG and our SRI Policy Private Equity Real Estate policies where appropriate. Our foremost obligation is to maximize our clients’ investment returns over the near and long-term within the constraints of investment criteria found within the applicable management agreements and fund offering documents. At TREBUCHET, we believe the ESG framework may distort long-term performance if executed blindly.
Due to this, we are particularly attentive in how these matters are managed on behalf of our clients. Socially responsible investment (“SRI”) has been the subject of a global discourse for over a decade, but its emergence in the real estate investment sphere is comparatively recent. A consensus has yet to be reached on ESG factors most relevant to real estate which can be suitably incorporated into the real estate investment process. As such, we appreciate that many of our investor clients share our interest in exploring procedures and practices that are both consistent with current ESG philosophy and our ongoing fiduciary responsibilities. In turn, we are dedicated to adhering to our current practices, which already exhibit a variety of ESG policies, while considering how to best incorporate other evolving ESG issues into our asset management practices and investment decision-making process.
Our goal is to favorable risk-adjusted returns to our investors while pursuing efforts to provide environmentally sensible real estate investments. We have adopted an SRI guide to make both our business and investments more environmentally-friendly. We aim to avoid or reduce the identifiable detrimental effects of our actions on natural resources, and take proactive measures to improve the efficiency of our owned, operated and managed assets, real estate properties, and other related investment activities. These measures consider environmental best-practices across the world ranging from individual to international initiatives. By applying responsible strategies when possible, we believe we enhance both our investment performance as well as our environmental performance. Our pursuit of better environmental practices produces opportunities to identify new efficiencies and lower our perceived footprint while augmenting real value for investors. In light of this important nexus, we look to continually examine and improve our sustainable initiatives. Our buildings and developments, when applicable, are submitted to voluntary certifications such as LEED, Energy Star, CASBEE, DGNB, BREEAM, DUIS, HQE and other green certification platforms. If applicable, we provide reports to NGOs such as the Investor Network for Climate Risk, and the U.S. Green Building Council. We also seek to involve our service providers, tenants and partners in our pursuit of a reduced pollution impact. We aim partner with fellow stakeholders in considering the benefits of responsible practices or commending subsequent successes. We all benefit from a healthy environment.
We have formed a Pollution Committee to develop pollution footprint reduction strategies for our properties. To the extent in which they are consistent with the Fund’s investment goals, Trebuchet will continue to consider mixed-use, transit-friendly, and urban infill plans. We will aim to benchmark energy use in our properties and identify new investment opportunities where performance can be economically improved and add density to urban areas. TREBUCHET will maintain a dialogue with experts and thought leaders to continuously act accountably to our investors while making our portfolios less polluting, when applicable.
We aim to make business decisions, in part, based on thoughtful deliberation of the impact of our ventures on internal and external stakeholders and good corporate citizenship. Many of our investment implementations and strategies result in benefits to the communities where we invest. Though the construction contractors and sub-contractors used in our investment properties are typically out of our control, we have conceived a responsible sub-contracting policy developed to support the consideration of union-labour at our properties and jobsites. We seek to necessitate that the contractor complies with all applicable labour and work safety laws to the extent we are a privy to a construction contract. In North America, our assets where applicable, provide accessibility to the disabled. The health and safety of tenants is made a priority by requiring building evacuation plans for our buildings and providing exercise facilities in our residential properties.
TREBUCHET’s goal to make financially-attractive investments around the world that and, where possible, also enable positive interactions with local communities and cultures. TREBUCHET’s responsibility to the communities it serves is strongly observed. As part of its culture, Trebuchet and all its subsidiaries aim to increase human potential and self-sufficiency by delivering financial resources, volunteer time and appropriate business expertise. TREBUCHET encourages employee involvement in good corporate citizenship through the Trebuchet Foundation’s matching gift program where we will match eligible employee gifts up to $5,000 per employee annually and an annual paid volunteer day with the foundation of his/her choice. Within Trebuchet, we strive to cultivate the professional growth of all associates while nurturing a positive, diverse and respectful environment free of harassment and prejudice.
Corporate & Fund Governance
To ensure all Trebuchet subsidiaries adopt corporate accountability, fairness, responsibility and transparency, we adopted a set of checks and balances through procedures, policies and practices. We are governed by internal and external requirements to integrate ESG considerations in the operation of our funds.
Governed through a committee structure: The Corporate Governance and Business Ethics Committee oversee Trebuchet’s corporate governance practices and procedures. Other relevant ESG-related committees include the Audit Committee, the Compensation Committee and the Community Resources Oversight Committee. In addition, our Code, we have conceived and executed a comprehensive set of policies, values and procedures to:
- Comply with applicable laws in the countries in which we operate;
- Consider adopting ESG policy in the wider context of investment management; and
Seek to reduce and mitigate conflicts of interest, if any. Any ESG issues are addressed in the following policies: our SRI Policy; our Responsible Sub-contracting Policy, and our Allocation and Conflict of Interest Policies found within fund offering documents. We also comply with TREBUCHET’s stringent anti-money laundering and anti-corruption policies. Asset managers, Portfolio managers, and other professionals are trained on many of the above guidelines and policies. With regards to fund governance, we have endorsed the ILPA’s Private Equity Principles, Version 3.0, for intuitional funds, we comply with many of these principles. Our funds have Investment Committees to allow for LP input, and published investment criteria and investment restrictions intended to shelter investors within those fund documents.
ESG issues are an important part of TREBUCHET’s investment framework, decision making and property management (PM) practices. At the point of acquisition activities, TREBUCHET contemplates a vigorous and demanding underwriting regime, risk management eval and sanction process. The lifecycle includes due diligence (DD) encompassing the fit of the investment itself, but additional matters such as anti-money laundering concerns, environmental risks and natural hazards. This method necessitates us to reconsider the possibility of development and contemplate possible certifications such as LEED. With our legal team, we partake in a regulatory review to confirm potential acquisitions comply with all local and national laws, including sustainability standards we adhere to. Walk-ability scores and easy access to public transportation are of prime consideration for urban investments. As part of the asset maximisation protocol, the policies being implemented are to reduce energy use in our builds, these properties will be bench-marked for energy use and assessments made to examine how to build more efficient buildings and balance cost.
Disclosure & Reporting on Progress
We are dedicated to the implementation of this SRI Policy for Private Equity Real Estate with institutional funds and will be transparent about the process. Given that the thinking on SRI in real estate is evolving, we expect to continue to build on our existing policies to the extent consistent with our fiduciary duties and to describe our findings through the reports described below
Major reports may include:
- United Nations Principles of Responsible Investment (UN PRI) Reporting and Assessment Survey: As a potential signatory to the UN PRI, we would be required to report annually on our progress in accordance with UN PRI, including SRI Policy metrics when appropriate. We would undertake the corresponding annual Reporting and Assessment Survey, which should permit our stakeholders and clients to review our progress in implementing SRI principles involving ESG issues.
- Trebuchet Community Resources Annual Report: Our parent company, Trebuchet Capital Partners, reports annually on its social responsibility practices along with related accomplishments. The report would focus on initiatives and activities of Trebuchet’s Corporate Social Responsibility Committee, including “The Trebuchet Foundation”, “Social Investments” and “Local Initiatives”. The Trebuchet Foundation and the Social Investment unit aim to increase employment opportunities, quality of life and economic growth through international investments. The Local Initiatives unit encourages employee volunteer engagement to steward strong relationships with TREBUCHET and local communities.
- TREBUCHET’s Annual Sustainability Report: Our annual Sustainability Report would highlight our environmentally-conscious private equity real estate investments and sustainable business efforts worldwide and ongoing efforts to update our SRI policy for private equity real estate.
Not withstanding the foregoing, the Board has the inherent jurisdiction to initiate and approve changes to this Charter semi-annually.
(d) Any Member who is neither a Director nor an Officer shall be entitled to be indemnified by the corporation in accordance with the standard indemnification agreement provided to Directors and Officers of the Corporation, mutatis mutandis, and this shall constitute sufficient authority for doing so.
Initiated January 2018, updated January 28th, 2021