Committing
to sustainable,
responsible
growth
Passion outlines
our projects
ESG REPORT
FY24
SNAPSHOT
- 421 smart metres installed
- 67MWh renewable energy produced
- Establishment of a Sustainability Management Committee
- A clear carbon reduction roadmap
- 1 LEED Gold (O+M) certification achieved in between FY 22 and FY 25, and 3 additional initiatives for LEED certifications underway
- 84.5% employee satisfaction score
- Rs 1,3 million contributed in CSR
- 11.3% increase in employee retention
- Adequate balance of skills, expertise and experience on the Board, including 25% women
- 3 Board-level committees
- Appointment of a Data Protection Officer
- Training of Board members on anti money laundering policies
- Audit of financial statements by an external independent auditor
OUR ESG
STRATEGY
Our ESG strategy reflects our commitment to sustainability as an integral part of our property development and leasing activities, guided by international standards and aligned with both our vision and risk appetite. Far from being an optional add-on, sustainability is embedded into our values, driving us to grow responsibly while enhancing the wellbeing of our employees, communities, and the environment. Recognising the broad scope of sustainability, our material matters are shaped by close stakeholder engagement, ensuring we address the issues that create the greatest value for them, while remaining aligned with our business objectives.
Through this vision, we aim to make our buildings vibrant, community-oriented spaces that offer environmental benefits, social value and optimal returns to our shareholders.
Frameworks and methodologies that guide our strategy
Governing ESG
To ensure our ESG commitments achieve meaningful results, we have established an adequate governance structure, with the ultimate accountability resting with the Board of Directors, further supported by the Sustainability Management Committee and the Corporate Governance Committee. This oversight promotes accountability, aligns ESG priorities across the business, and creates opportunities to embed ESG deeper into our core operations and behaviours. This framework is initiating a company-wide culture shift, fostering a shared sense of responsibility for advancing our sustainability goals
OUR ENVIRONMENTAL
PERFORMANCE
Climate change is a critical focus worldwide, urging countries, businesses and individuals to step up efforts in mitigating its impacts. In Mauritius, this urgency is underscored by recent patterns of extreme rainfall and shifting heat conditions. Lavastone Properties is committed to making environmental considerations a core part of its operations—from asset acquisition and fitouts, to planned maintenance and property management. By fostering collaborative partnerships and open dialogue with stakeholders, we aim to achieve shared environmental goals and build a portfolio of energy-efficient, sustainable properties.
MATERIAL TOPICS AND STRATEGIC PILLARS
CLIMATE ACTION
- CARBON FOOTPRINT
- LEED (O+M) CERTIFICATION
WATER, WASTE AND ENERGY MANAGEMENT
SUSTAINABLE PROCUREMENT
Contribution to SDGs
CLIMATE ACTION - CARBON FOOTPRINT
Carbon reduction strategy
The property sector is inherently shaped by long-term environmental concerns like global warming, while also being a significant contributor to those impacts. Lavastone Properties is committed to reducing its carbon footprint, aligned with Mauritius’ national goals to reduce greenhouse gas emissions by 40% and increase green energy’s share in the energy mix to 60% by 2030.
Determined to play our part in these ambitions, we embarked on our carbon footprint journey in FY 22, with an initial assessment conducted in collaboration with Dynamia. This foundational exercise focused on Scope 1 and Scope 2 emissions, capturing energyrelated impacts within our direct operations. In FY 23, we deepened our understanding with a second, more comprehensive assessment conducted with WillChange, applying the Bilan Carbone® methodology and the GHG protocol to include Scope 3 emissions, offering a more complete picture of our value chain’s environmental impact.
Carbon footprint calculation results
In addition to using the Bilan Carbone methodology to assess the sources of our emissions, we also conducted a separate evaluation under the GHG Protocol. While both frameworks serve similar purposes, the GHG Protocol offers a globally recognised and standardised approach that enhances comparability across industries. For our reporting purposes, we have chosen to disclose our data under the GHG Protocol. Its broader international adoption ensures that our emissions are measured in a way that is consistent and relevant, making it easier to compare our performance with global and local peers, and track our progress over time. By using both methodologies, we gain a more thorough understanding of our emissions, while ensuring that our reporting practices meet global standards.
80%
OF LAVASTONE PROPERTIES’ EMISSIONS COME FROM THE USE OF PREMISES BY TENANTS.
Legend
Scope 1: Direct GHG emissions from sources that the organisation directly owns or controls. This generally includes emissions from on-site fuel combustion, such as emissions from company vehicles, boilers, back-up generators, etc.
Scope 2: Indirect GHG emissions associated with the production of electricity, heat or steam that the organisation purchases from third parties. This includes emissions generated by the production of electricity by electricity suppliers, but which are indirectly linked to the company’s activities.
Scope 3 Upstream: Other indirect GHG emissions associated with the company’s upstream activities, but which do not fall into Scope 1 or Scope 2 categories. These may include supply chain emissions, employee travel, waste, etc. Scope 3 emissions are often the most difficult to measure as they can be extensive and complex.
Scope 3 Downstream: Other indirect GHG emissions associated with the downstream activities, namely leased assets.
The properties managed by Lavastone Properties are leased, which means tenant activities significantly contribute to our carbon footprint. These activities—categorised as Scope 3 emissions under the GHG Protocol—represent the largest source of emissions for Lavastone Properties. In FY 23, our total emissions amounted to 7,460 tCO2e, with approximately 67% (5,000 tCO2e) linked to tenant energy usage within their premises.
While our initial carbon footprint assessment in FY 23 provided a valuable foundation, it also revealed the complexities of addressing Scope 3 emissions. This category encompasses a wide range of activities, such as the production of vehicles, transportation of materials, waste generation, and building management, making it one of the most challenging to measure and manage. Recognising these limitations, we intensified our efforts in FY 24 with guidance from WillChange, collecting more comprehensive tenant data and refining our strategies to address the most critical emission sources effectively.
However, due to business expansion and the addition of new assets—including acquisitions and the launch of a hotel in Rodrigues—our total GHG emissions for FY 24 grew to 8,233 tCO2e.
The path to carbon reduction
The findings from both carbon footprint assessments have highlighted key areas where targeted efforts will yield the greatest impact on our path to carbon reduction. Chief among these is the importance of collaborative engagement with our tenants, whose activities represent a substantial portion of emissions across our properties. This collaboration is vital to driving meaningful carbon reduction initiatives and aligns with our broader sustainability objectives.
The increase from FY 23 to FY 24 highlights the impact of our initial actions as we await the operationalisation of our PV farm—a cornerstone of our long-term strategy. These insights have also informed a set of strategic guidelines and levers, applicable across both our existing properties and future developments:
CARBON FOOTPRINT DATA AND REPORTING
Improve data collection processes for higher quality, more accurate information on tenants’ fossil fuel consumption. This is a necessary
prerequisite to be able to connect carbon footprint calculator tools with Lavastone Properties’ databases in the future.
RENEWABLE ENERGY PRODUCTION
Project launch for the solar farm installation at Case Noyale scheduled in 2025
CARBON OFFSETTING AND REDUCTION
- Embed carbon reduction criteria when identifying any future investments, ensuring they hold fewer climate risks
- Pursue and obtain LEED (O+M) certification for key assets, and align other properties with LEED standards
- Implement tenant engagement strategies, with a particular focus on Operations & Maintenance, aimed at promoting sustainable practices across energy use, waste management and operational efficiency
PROJECTED EMISSIONS VS SBTIS TARGET (TCO2E)
As we continue to expand and manage additional assets, we expect a temporary increase in GHG emissions in the coming year. This anticipated rise reflects the increased energy use and operational activity typically associated with onboarding new properties. Despite this short-term growth in emissions, our projections indicate a significant long-term reduction. Total emissions are expected to decrease by 54%, from 7,460 tCO2e in FY 23 to 3,500 tCO2e in FY 30, as a result of our comprehensive reduction plan.
By the end of this period, Lavastone Properties aims to not only meet its reduction targets, but also achieve a surplus, allowing us to contribute positively to carbon reduction efforts beyond our direct operations.
CASE
STUDY
LEED Gold (O+M) Certification at EDITH
Better for business, people and the planet
AT A GLANCE
Building name
EDITH
Location
Port Louis, Mauritius
Area
6,588 m2
Primary use
Grade A Offices, Retail and F&B outlets, Exhibition and Entertainment venue
Project consultant
Prodesign Engineering Consultant
THE FIRST LEED GOLD (O+M) CERTIFICATION FOR A MIXED-USE BUILDING IN AFRICA
LEED-certified buildings are designed to
Context
Sustainability has always been at the core of our strategic objectives. As players in property development and management, Lavastone Properties’ direct emissions are comparatively low to more energy-intensive industries, owing to the nature of our activities and smaller workforce size. Buildings themselves, however, are substantial contributors to indirect carbon emissions, driven by energy requirements for cooling, lighting and other operations. Globally, buildings account for almost 40% of global energy use and resource consumption, making it crucial for us to focus on reducing these indirect emissions across our properties. Our recent carbon footprint analysis this past year reaffirmed this insight. Our carbon footprint calculation page 54
This understanding led us to embark on a major initiative in 2022 that marked a significant milestone in our journey toward a greener future. This project focused on EDITH, one of our key assets located in the heart of Port Louis. Fast forward to today, EDITH stands as the first existing mixed-use building in Africa to achieve the LEED Gold (O+M) certification, setting a new benchmark for our existing assets and future developments alike.
Why EDITH?
The decision to select EDITH as the pilot project for the LEED certification journey was driven by two primary reasons. Firstly, EDITH is a culturally and historically significant landmark for Mauritius, with over a century of rich history. Lavastone Properties has always valued it as an enriching community-driven space, where people gather, connect, and create shared experiences. LEED similarly envisions buildings as dynamic environments that enhance health and quality of life, while also lowering global carbon emissions, reducing operating costs and conserving resources. This holistic approach considers all critical elements that work together to create a high-performing building with environmental, economic, and social benefits. By aligning EDITH with this globally recognised symbol of excellence in green building, Lavastone Properties aimed to set an example of how the preservation of heritage buildings and environmental stewardship can coexist.
Secondly, EDITH’s attributes made it highly suitable for the certification process. Its strategic location, offering excellent access to public transportation, including light rail and urban bus services, enabled EDITH to fulfill many of the prerequisites in the transportation category, accelerating the certification process.
Key strategies
Located in the heart of Mauritius, EDITH is a unique property combining Grade A offices, retail & F&B spaces, and an exhibition & entertainment venue across a gross floor area of 6,588 m2. Achieving LEED Gold (O+M) certification required a comprehensive strategy to meet the prerequisites and credits across nine key metrics for building excellence, including integrative design, energy and water use, and occupant wellbeing. This process challenged the project team to innovate and develop creative solutions that aligned with our commitment to sustainability. Key initiatives implemented include:
OUTCOMES | 3.7% reduction in Greenhouse Gas Emissions
Environmental, Social and Economic impact
Lavastone Properties remains committed to upholding the LEED Gold (O+M) status at EDITH, through continuous monitoring and engagement initiatives with tenants. This achievement has set a new benchmark for green buildings across our portfolio, with major tenants in our other buildings expressing strong interest in aligning with similar environmental goals for the spaces they occupy. We proactively conducted gap analyses in three of our key buildings to take stock of their standing against LEED standards, identify the investments and operational improvements required to achieve LEED certification, and engage with our tenants on the process towards certification. This commitment is shaping both our existing assets and future developments, progressively aligning our entire portfolio with today’s environmental standards and strengthening their resilience in a way that benefits not just our tenants, but also the surrounding community
Environmental Impact
- Our Natural capital section on page 42 outlines the environmental value we created, including a reduction in energy and water usage.
Social Impact
The improved quality of the internal and external environment of the building has enhanced the comfort and wellbeing of our tenants, contributing to more productive workplaces.
- Our Human capital section on page 46 offers details on how our people practices aim to enhance the wellbeing of our team members.
- Our Social capital section on page 44 provides information on how we deliver on our customer promise and contribute to our communities.
- Our Stakeholder relationships section on page 68 delves into how we engage with our stakeholder groups and the value we place on fostering strong relationships with them.
Economic Impact
This economic impact has been substantial for both Lavastone Properties and the tenants housed at EDITH. Increased energy and water efficiency has led to reduced utilities bills for tenants, improving their bottom line.
• Our Financial capital section on page 36 offers details into the financial value delivered to our shareholders.
Testimonials
WATER, WASTE AND ENERGY MANAGEMENT
SUSTAINABLE PROCUREMENT
Lavastone Properties is committed to responsible procurement as a crucial step in achieving its environmental goals, particularly aiming for ongoing compliance with its purchasing policy, which forms part of the LEED certification. This comprehensive purchasing policy was first implemented at Lavastone Properties to prioritise sustainable sourcing. This policy mandates that specific consumables and electronic equipment under Lavastone Properties’ management meet stringent eco-friendly standards, particularly in high-consumption categories such as coffee, paper, toner cartridges, batteries, and electronic equipment. Purchases conducted by tenants are currently excluded. We oversee vendor compliance with the policy’s sustainability criteria, and actively involves tenants and management in adopting these practices. Ongoing quality control measures are in place, with quarterly evaluations to track progress and report on progress toward Lavastone Properties’ sustainable procurement goals.
Mandatory procurement standards we adhere to
OUR SOCIAL
PERFORMANCE
Lavastone Properties’ social capital strategy is centred on building long-term, mutually beneficial relationships with our stakeholders. Externally, this involves maintaining open, transparent communication and actively engaging in partnerships that support community wellbeing and sustainable development. Internally, we are committed to cultivating a dynamic and supportive workplace for our team members. Through tailored training and development programmes, regular feedback loops, and clear paths for career progression, we empower our employees to reach their full potential.
MATERIAL TOPICS AND STRATEGIC PILLARS
EMPLOYEE ENGAGEMENT AND WELLBEING
TALENT MANAGEMENT AND DEVELOPMENT
STAKEHOLDER AND COMMUNITY ENGAGEMENT
Contribution to SDGs
EMPLOYEE ENGAGEMENT AND WELLBEING
Key demographics
Diversity and inclusion are critical pillars of a vibrant, engaging workplace. Having a wide range of perspectives— across different backgrounds, age groups, and genders— promotes richer discussions, fresh ideas, and a more innovative approach to problem-solving.
40%
60%
Engagement strategies
Team-building activities – Off-site learning activities promote cross-departmental collaboration and team alignment, contributing to a positive work culture. The past year’s sessions focused on communication, coordination, and time management skills.
Townhall meetings – Townhall gatherings offer opportunities for colleagues to connect, share insights, and celebrate milestones together. They also serve as a forum for updates on Lavastone Properties’ performance, organisational changes, and introductions to new team members.
Performance management – Our performance management system drives an incentive scheme that rewards employees based on Group performance, individual contributions, and team success. Clear performance objectives, a mid-year review, a final year-end assessment guide the process.
TALENT MANAGEMENT AND DEVELOPMENT
Learning and development are central to building a skilled and capable workforce. Over the past year, we invested significantly in training, and progressed on a comprehensive Competency Framework, mapping out expected competencies and behaviours for each role. This framework, paired with a tailored appraisal system, offers employees clear insights into their performance and growth opportunities, paving the way for promotion and career development. Our Management Development Programme further strengthens our leadership team, equipping managers to lead effectively in a dynamic world.
STAKEHOLDER ENGAGEMENT
COMMUNITY ENGAGEMENT
Lavastone Properties’ commitment to community engagement is channeled through meaningful partnerships and initiatives aimed at fostering longterm positive impact, guided by the United Nations’ Sustainable Development Goals (SDGs). Through the Taylor Smith Foundation, Lavastone Properties supports programmes across education, youth development, women’s empowerment, sports, and environmental protection, providing resources to uplift and strengthen communities. In FY 24, our contributions funded several projects through a number of trusted local partners, working closely with them to ensure that our resources are aligned with community needs and make a tangible difference.
PROTECTION OF THE ENVIRONMENT
Partner: The Mauritius Wildlife Foundation
Conservation project at l’Ile Aux Aigrettes in Mauritius & Anse Quitor in Rodrigues
Partner: Coral Garden Conservation Mauritius
Rebuilding coral reefs in the southwest of the island & raising awareness among the local community and tourists
Partner: Odysseo
Sponsorship for an educational programme in Rodrigues
SPORTS
Sponsorship for a ladies’ football team in Rodrigues
Partner: Batatran Government School
Donation for annual sports day
EDUCATION & YOUTH DEVELOPMENT
Partner: Konekté
Implementation of ‘Skills for life’ programmes in schools in Mauritius and Rodrigues
Partner: Anfen
Partner: Organisation ST Education de Roches Bois
Offering educational support to children after school hours
OUR GOVERNANCE
PERFORMANCE
Lavastone Properties’ governance framework is built on independence, accountability, and a dedication to going beyond compliance standards. With regular evaluations of both the Board and individual directors, we ensure continuous oversight and improvement. Specialised sub-committees with distinct delegated roles bring focused attention to critical areas, enhancing governance effectiveness. Our diverse Board composition brings multiple perspectives to strategic discussions, enabling us to navigate complex challenges with insight and integrity, while aligning decisions with stakeholder interests.
MATERIAL TOPICS AND STRATEGIC PILLARS
A DIVERSE BOARD COMPOSITION
LEADING RESPONSIBLY AND WITH INTEGRITY
RISK MANAGEMENT
Contribution to SDGs
