Environmental · Social · Governance

ESG Report 2026

Responsible stewardship is not a compliance exercise — it is how we protect and grow asset value for the long term. This report covers our ESG commitments, data, and progress across our active portfolio.

Reporting period: 1 January – 31 December 2025  ·  Published: June 2026  ·  agso Inc.
E
Environmental

We reduce the embodied carbon footprint of distressed assets through fabric-first retrofits, efficient building systems, and responsible material sourcing. Our goal is EPC 'B' or above across all stabilised assets by 2028.

S
Social

Revitalising underutilised properties creates tangible community benefit — local employment during construction, safer neighbourhoods, and improved housing or commercial stock for end occupiers.

G
Governance

agso maintains rigorous internal controls, transparent reporting, zero-tolerance policies on bribery and corruption, and full compliance with AML/KYC obligations across all jurisdictions in which we operate.

34%
Average energy intensity reduction post-repositioning
210+
Local construction & trade jobs supported in 2025
0
Bribery, sanctions, or regulatory violations recorded
100%
Portfolio assets with ESG improvement plan in place
01 · Environmental

Building better,
not just bigger

The built environment accounts for approximately 40% of global energy consumption. Every asset we acquire represents an opportunity to meaningfully reduce that footprint. Rather than demolish and rebuild, our fabric-first approach retains embodied carbon while upgrading performance to modern standards.

Energy Efficiency

All repositioning projects undergo an energy performance certificate (EPC) assessment pre- and post-works. We target a minimum two-band improvement per asset, with a portfolio-wide goal of EPC 'B' or better by 2028.

Low-Carbon Materials

We prioritise reclaimed and low-embodied-carbon materials in fit-outs and structural repairs. Contractors are required to provide a material sustainability statement as part of procurement.

Carbon Tracking

We track operational carbon (Scope 1 and 2) across stabilised assets and are developing a methodology to report construction-phase embodied carbon (Scope 3) by end of 2026.

Green Building Standards

Where asset scale and jurisdiction allow, we target third-party green building certification (BREEAM, LEED, or local equivalent). Two assets are currently under BREEAM assessment.

Renewable Energy

Solar PV has been installed on three portfolio assets. We assess rooftop and facade solar potential as a standard item in all pre-acquisition technical due diligence from 2025 onwards.

Water & Waste

Construction waste diversion rates are tracked per project. In 2025, we achieved an average of 76% diversion from landfill. All new fits include water-efficient fixtures rated to relevant local standards.

Energy Performance — Portfolio Progress

Park Avenue Residence, New York — EPC target B 82%
Innere Stadt Wohnpalais, Vienna — EPC target B 67%
Tower in Business Bay, Dubai — Estidama Pearl 2 target 91%

02 · Social

Value for places,
not just portfolios

Distressed assets are often found in areas of underinvestment. Our work is inherently regenerative — we return abandoned or deteriorated buildings to productive use, creating jobs, improving streetscapes, and delivering better quality space to end users.

"We measure our social impact not just in IRR but in the streets we leave better than we found them."

Robert A. Sterling  ·  Chief Executive Officer
Metric 2024 2025 Target 2027
Local construction jobs supported 148 214 300+
Local sub-contractors used (% of value) 61% 68% 75%
Units / spaces returned to active use 34 52 80+
Average vacancy duration of acquired assets (months) 38 41 N/A
Health & safety incidents (LTI) 1 0 0
Contractor H&S induction compliance 94% 100% 100%
Health & Safety

Zero lost-time injuries in 2025 across all active construction sites. All principal contractors are required to hold ISO 45001 or an equivalent certified management system.

Community Engagement

We conduct pre-works community consultation on all projects in residential neighbourhoods, and maintain a named contact for neighbour liaison throughout the construction phase.

Supply Chain Standards

Suppliers above €50,000 contract value are required to complete a due diligence questionnaire covering labour standards, health and safety, and environmental management before engagement.


03 · Governance

Accountable at every
level of the business

Good governance is the foundation on which our environmental and social commitments rest. Our policies, controls, and reporting structures ensure that ESG is embedded into investment decision-making — not bolted on after the fact.

ESG Oversight
Board-Level Accountability

ESG matters are reviewed at board level on a quarterly basis. The CEO holds ultimate accountability for ESG performance, with day-to-day oversight delegated to the Head of European Markets who chairs the ESG working group.

Investment Process
ESG in Due Diligence

Every acquisition undergoes an ESG pre-screening prior to investment committee approval. Red-flag issues — including contamination, heritage risks, and social displacement risks — must be addressed before a deal can proceed.

Compliance
Anti-Bribery & Corruption

agso operates a zero-tolerance policy on bribery and corruption in compliance with the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act 2010. All employees complete annual ABC training. Zero incidents recorded to date.

Financial Crime
AML & Sanctions

Robust AML/KYC procedures are applied to all counterparties. Screening against OFAC, UN, EU, and OFSI sanctions lists is conducted at onboarding and on a periodic basis. No sanctions breaches or suspicious activity reports filed in 2025.

Transparency
Reporting & Disclosure

This ESG report is published annually. We are developing alignment with the TCFD (Task Force on Climate-related Financial Disclosures) framework and intend to publish our first TCFD-aligned climate disclosure by end of 2027.

Speak Up
Whistleblowing

agso operates a confidential whistleblowing channel accessible to employees, contractors, and supply chain partners. Reports can be made to legal@agso-estate.com. No retaliation against any reporter is tolerated.


04 · Framework Alignment

How we align to
global standards

We benchmark our approach against established international frameworks. As a private company with a focused portfolio, we apply these proportionately — adopting the principles that are material to our business and disclosing where we fall short.

Framework Relevance Status
UN Sustainable Development Goals (SDGs) SDG 11 (Sustainable Cities), SDG 13 (Climate Action), SDG 8 (Decent Work) Aligned — referenced in investment thesis
TCFD (Climate-related Financial Disclosures) Physical and transition climate risk in portfolio In development — full disclosure target 2027
GRESB (Real Estate Assessment) Real estate ESG benchmarking Under evaluation for 2027 reporting cycle
GRI (Global Reporting Initiative) Standardised ESG disclosure Partial alignment — key GRI indicators tracked
EPBD / EPC Regulations EU Energy Performance of Buildings Directive Fully applied — EPC assessments on all EU assets
SFDR (Sustainable Finance Disclosure Regulation) EU fund-level ESG classification Not applicable — agso is not a regulated fund manager

05 · Targets & Commitments

Where we are going

The following commitments have been approved at board level and will be reported against annually.

Commitment Target Year Progress
All stabilised assets to achieve EPC 'B' or equivalent 2028 On track — 2 of 3 active assets within one band
Publish TCFD-aligned climate risk disclosure 2027 Scoping in progress
Solar PV assessment on 100% of new acquisitions 2025 (achieved) Completed — embedded in acquisition due diligence
Scope 1 & 2 carbon baseline established for all stabilised assets 2026 In progress — methodology finalised Q1 2026
Local sub-contractor spend ≥ 75% of construction value 2027 68% achieved in 2025
Zero lost-time injuries across all active sites Ongoing Achieved in 2025 — zero LTIs recorded
First GRESB submission 2027 Under evaluation

Contact
ESG enquiries: esg@agso-estate.com
agso Inc., 16192 Coastal Highway, Lewes, DE 19958, United States

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