Sustainability and climate-related risks

Sustainability risks refer to risks directly or indirectly associated with environmental risks, climate change, the Code of Conduct and liability risks.













17. Operational environmental risks
Environmental risks directly related to Castellum’s operations can include the physical environment that impacts people and properties, as well as prices for natural resources in the form of materials and energy. Castellum estimates that risks related to rising raw materials prices owing to potential resource shortages will increase over the long term. With new construction, extensions and reconstructions there is also a risk that the materials and methods being used could subsequently prove hazardous in the future.
In addition, political decisions and general opinion on specific environmental issues could impact Castellum.


  • Environmentally certify all new constructions.
  • Develop green relationships with customers.
  • Require more efficient use of resources.
  • Prioritise environmental aspects in all parts of operations.
  • Monitor developments in laws and ordinances.


Inadequate management of the work on environmental risks could affect Castellum’s brand, legal compliance, and direct costs. Castellum works with environmental certification and environmental inventory to reduce environmental and health risks. 39% of the property portfolio is certified and 81% has undergone environmental inventory. Efficient property management focusing on decreased use of resources reduces the risk of high costs and environmental and health impacts, as well as providing customers with a healthy working environment. Since 2007, energy consumption has been reduced by 37% per square metre and carbon dioxide emissions by 85% per square metre.








18. Risks attributable to climate change
Climate change poses a great risk to humanity from a global perspective. From a corporate perspective, climate change implies a risk of property damage caused by weather conditions changing over time, higher water levels and other changes in the physical environment that impact properties. Castellum estimates these risks will potentially increase over the long term. This could mean increased need for investment in properties located in vulnerable areas, so that objects do not become obsolete. In addition, environmental policy decisions could impact Castellum, especially in the form of increased taxes or necessary investments.


  • All investment issues are to be reviewed from a climate perspective in order to assess a property’s sensitivity to climate change.
  • Environmentally certify all new constructions.
  • Prioritise environmental aspects in all parts of operations.
  • Monitor developments in laws and ordinances.
  • Environmental inventory of existing portfolio and when acquiring properties, in order to identify and address environmental and health risks.
  • Climate scenario analyses were prepared in 2019 and reviewed in 2020. They will be updated annually to provide Castellum with tools and knowledge of how climate change could affect its operations.


Inadequate efforts in analysing climate risks can lead to extensive unforeseen costs for Castellum in the form of emergency measures or obsolete properties, and thus lost rental income. Climate change could also entail increased operating costs. Investments in the wrong kind of measures in our properties could result in a risk of unprofitable investments, if climate change is not taken into account. Castellum is currently reviewing every investment issue from a climate perspective; we also work with environmental certification to reduce climate risks.








19. Breach of the Code of Conduct
For a major player in the construction and property industry, there are risks pertaining to working environment, corruption and human rights. These risks can be found within the company, but also among suppliers and partners working on assignments for Castellum.
This corporate responsibility risk can cause significant damage to Castellum’s operations and brand.


  • Mandatory training for Castellum employees on the internal Code of Conduct.
  • Castellum’s Code of Conduct for suppliers to be incorporated into contracts.
  • Compliance function works systematically with monitoring and management.
  • Whistleblower function.
  • Comply with standards and documentation requirements.


Risk of breaches of the Code of Conduct may exist internally as well as among engaged suppliers. Through properly integrated codes of conduct in the form of procurement requirements, mandatory training for all Castellum employees, an active compliance function and a whistleblower function, the risk of a breach is considered low.








20. Liability risks
All ownership entails responsibility. For Castellum, the properties could be destroyed by fire, water, theft or other damage. Moreover, through negligence Castellum could cause personal injury or property damage and cause environmental damage for which it will be held liable.


  • Preventive measures to minimise the risk of damage to property, persons or the environment.
  • Unlimited cover insurance on all properties.
  • Insurance coverage for liability and property damage.
  • Environmental inventory of existing portfolio and when acquiring properties, in order to identify and address environmental and health risks.


Inadequate insurance coverage may result in unforeseen costs for Castellum. The obligation to pay compensation for damage caused can also arise for personal injury and damage to the property of another, as well as for remediation of environmental damage.






Reduced focus on risk area since previous year





Unchanged focus on risk area since previous year





Increased focus on risk area since previous year