by Property Forum | Investment

Globe Trade Center has presented its first-ever ESG report, summarizing the group’s achievements during 25 years across its six markets. The 2020 report presents data on GTC’s engagement in sustainable development, responsible construction and asset management, collaboration with local communities and responding to stakeholders’ expectations. GTC is the first among commercial developers to present an ESG report on the CEE market.


“For 25 years, we have been successfully developing our business based on a quality offering, long-term relationships with our stakeholders and the transparency of our operations. The 2020 ESG report is a detailed reflection of our approach, demonstrating our quarter of a century growth journey across diverse and unique real estate markets of the CEE. With the foundation of GTC Group as people: our employees, tenants and investors, and the ambition to provide solutions in the real estate that improve the quality of their lives, we want to be crystal clear in reporting our impact on immediate surroundings. Therefore, I’m excited to share the first-ever Globe Trade Center’s ESG report, made with our key stakeholders’ needs and our shared responsibility for the environment in mind”, commented Yovav Carmi, President of the GTC Management Board.

The report is rich in data on GTC’s performance across all markets – Poland, Hungary, Serbia, Croatia, Bulgaria and Romania. Special attention is paid to the COVID-19 pandemic, as the year 2020 brought a real challenge of putting tenant-developer relationships through a test.  Thanks to the tenant-first approach, GTC’s key performance indicators have remained at a satisfactory level and by the end of 2020, the developer could boast a high office leasing rate. By engaging in a responsive dialogue and adjusting its operations to ever-changing pandemic realities, GTC was able to maintain high occupancy in its malls as well, with new important retail anchors willing to commit to new stores. On top of that, for the first time in the Group’s history, two entities: Globe Trade Centre S.A. and GTC Real Estate Development Hungary Zrt, received an investment rating of BBB- / with a stable outlook, respectively.

Approaching the high expectations of stakeholders and being a responsible neighbour for its communities, GTC has significantly improved its operations in terms of environmental impact. The Group has decreased its electricity consumption by 193,195 MWh, which is 10% less than in 2019 and has cut its water consumption by 36% (325,353 m3), compared to the previous year. The developer has also curbed CO2 emissions, limiting them to 108,069 tCO2e in 2020. On top of that, community engagement and development programs were implemented in 91% of properties under the operational control of GTC Group. The developers supported in total 145 public and non-public institutions and organizations in various CSR projects.

“The real estate industry has an important role to play in mitigating climate change and reducing environmental risks. We have set ourselves the goal of building and managing properties that meet the highest environmental standards, taking decisive actions to limit adverse environmental changes at all levels – strategic, financial, development. In 2020, we developed and implemented a "Green Bond Framework", which defines the guidelines for issuing green bonds by the companies of our Group. The funds raised in this way will be used to finance or refinance existing and future projects promoting sustainable solutions and the use of alternative energy sources. The first issue of ten-year bonds, under the Green Bonds Framework and rated at the Investment grade by Scope Rating Agency, completed on the Hungarian market in December 2020, totalling €110 million, was a great success. And investing in our existing properties to improve their environmental impact pays off. In 2020, our Matrix A and Matrix B office buildings in Zagreb achieved LEED certification at the highest possible Platinum level. We do not intend to stop there – we are currently obtaining certification for all buildings under construction as well as for already completed projects across all over markets in CEE”, commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

GTC Group operates in 6 European countries, managing 48 buildings and offering to its clients 752,500 sqm of premium quality commercial space, developed on the principle of respect for the people and the environment. The developer strives to minimize the impact on its immediate communities, fulfilling 10 out of 17 United Nation’s Sustainable Development Goals, including clean and affordable energy, developing sustainable cities, and ensuring responsible consumption and production, among others. All GTC new developments and, where possible, those already completed, meet the strictest ecological criteria and ensuring the highest safety standards. As a result, 84% of the properties, totally worth €1,6 billion, having LEED and BREEAM environmental certificates.