Economic Pillar

Cromwell’s Economic Pillar objective is to provide securityholders with an attractive combination of stable long-term cash flows, demonstrated asset enhancement capabilities and transactional profits, and low risk exposure to International capital flows and European economic growth.

In 2018 Cromwell released its ‘Invest to Manage’ strategy. The Invest to Manage strategy prioritises investments where returns can be leveraged from additional management revenues to build value. The strategy uses existing balance sheet liquidity and asset recycling to fund a range of initiatives that build enterprise value, adding to medium-term earnings, generating a higher total shareholder return.

Material topics identified for management and disclosure in 2020 and 2021:

TopicDescription
    
Economic Performance
 
To ensure we can continue to provide our investors with secure, growing distributions derived from sustainable business practices.
 
    
Rapidly Evolving Marketplace
 
​We operate in a rapidly evolving marketplace, with changing expectations for the services provided by our built environment. This is driven by urbanisation, the emergence of megacities, and changing demographics. We must position our business to predict and capitalise on future opportunities, and build and enable a built environment to meet the needs of current and future generations.​
 
    
Business Model Innovation
 
​To ensure we can keep up with rapidly changing market conditions, we need to continuously monitor the market and consider global and local trends. Understanding the risks and opportunities of these trends will allow us to innovate and re-evaluate our strategies and, potentially, our business model.​​
 
    
Accessing Sustainable Finance
 
Investigating opportunities to utilise sustainable finance tools, such as green finance and bonds, to grow our business. Demonstrate strong ESG performance to secure our ability to access finance. Risk of not meeting ESG minimum criteria set by the providers o​f financial capital (e.g. le​nding).​
 
    
Transitioning to a Zero Carbon Future
 
We operate in a rapidly evolving marketplace, with changing expectations for the services provided by our built environment. This is driven by urbanisation, the emergence of mega-cities, and changing demographics. We must position our business to predict and capitalise on future opportunities, and build and enable a built environment to meet the needs of current and future generations.