Echo Investment Group, one of the largest developers in Poland’s commercial and residential real estate industry, has released its sustainable development report detailing its 2023 initiatives and successes in Environmental, Social, and Governance (ESG). This report is notably the first to follow the recent standards set forth by the EU Corporate Sustainability Reporting Directive (CSRD). A new element of this report is its first inclusion of a carbon footprint analysis, which considers indirect emissions from certain categories within the Group’s value chain.
Echo Investment Group’s operations are guided by an ESG strategy that outlines its commitments to sustainable development, aiming towards the 2030 horizon. This year marks a key target for the company, focusing on the construction of zero-emission buildings.
“Our 4th ESG report highlights our advancements over the years. As we embark on ambitious projects transforming Polish urban landscapes, we are committed to providing a transparent overview of our operations, resources, and objectives to satisfy our stakeholders’ expectations. A principal environmental focus is reducing emissions from our operations and those associated with our supply chains. Consequently, this year initiates our work on a decarbonization strategy. Given its anticipated significant contribution to climate change mitigation, our foremost priority will be the decarbonization strategy for scope 3 emissions, which primarily concerns the projects we develop and the materials and technologies we use,” comments Maciej Drozd, CFO of Echo Investment.
Echo Investment Group’s reporting now incorporates what is referred to as a double materiality analysis, in line with the new standards. This approach assesses both the company’s influence on the environment and the effects of social and ecological trends on its financial health. It enables the strategic modification of the business model to address genuine challenges and meet the expectations of stakeholders.
„The understanding of a company’s operation and its interaction with the environment and stakeholders is rooted in dual materiality analysis. Over several weeks, we engaged with our employees, business partners, customers, and nonprofit organizations to discover what matters most to them through workshops, meetings, dialogue sessions, and surveys. Leveraging their insights, experiences, and expertise allowed us to evaluate the extent, scope, and permanence of our actions’ effects on the external environment. Subsequently, our internal experts in finance and investor relations examined the potential impact of sustainability issues on the company’s financial condition. This comprehensive process enabled us to identify a range of topics that are crucial not just to our stakeholders but also to the sustainable operation of our business. We have highlighted the most significant of these topics in the Group’s report,” says Anna Strożek, stock exchange and ESG manager at Echo Investment.
In 2023, Echo Investment Group achieved a significant milestone by cutting its carbon footprint by 35% in scopes 1 and 2, which include direct emissions from fossil fuel combustion or the company’s technological processes, and indirect emissions from externally sourced energy consumption. The report, for the first time, also accounts for scope 3 emissions, reflecting indirect emissions within the Group’s value chain such as business travel, employee commuting, purchased goods and services, and waste generation. It features progress on the Group’s commitment to transitioning to renewable energy sources.
On the social front, the Group concentrated efforts in 2023 on enhancing employee skills, safety (particularly on construction sites), and working conditions. There was a 4 percent reduction in the gender pay gap, with forthcoming initiatives aimed at fostering transparent pay structures based on skills, experience, responsibilities, and performance.
Echo Investment Group also undertook numerous initiatives to bolster corporate governance and organizational culture in 2023. These included training to encourage ethical conduct in business operations and efforts to disseminate the Code of Conduct among employees.
Echo Investment Group is developing new “destination” projects across Poland’s major cities. These mixed-use developments not only respect the site’s historical essence but also embrace contemporary urban trends such as ecological practices, the sharing economy, and the enhancement of public transportation, along with pedestrian and bicycle-friendly initiatives.
In Warsaw, the development of the Office House marks the first phase of the multifunctional Towarowa 22 district, while Wrocław sees the advancement of the Swobodna SPOT office project. Simultaneously, the CitySpace is expanding, aiming to provide nearly 4,000 flexible workstations nationwide. In the residential sector, Archicom is progressing with projects like Modern Mokotów in Warsaw and WITA in Kraków, with an ambitious plan to roll out up to 28 new housing projects in 2024.
Furthermore, Echo Investment has unveiled a new joint venture aimed at developing 5,000 spots in private student dormitories in Poland’s largest academic cities. Meanwhile, the Resi4Rent platform continues to grow, now featuring over 4,100 completed apartments for rent.
