‘ESG Is Not Just a Label – It's a Strategic Imperative’

Madlen Fiedler, head of ESG and corporate services at SICORE Real Assets, talks about her career in sustainability - and offers a few tips for the next generation

Madlen Fiedler, head of ESG and corporate services at SICORE Real Assets

How did you end up working in ESG?

I’ve always been open to innovation and new topics within the company. Even when ESG was still considered part of CSR, I was involved in helping our parent company, Signal Iduna, prepare their first sustainability reports. When management was looking for someone to take on the ESG function, I was appointed as the company’s sustainability officer in 2018.

At that time, ESG was a somewhat nebulous field. The scope of the role was unclear and initially, the only requirement was to provide data on certified assets. However, I recognised early on that ESG would become much more than just a regulatory tick-box exercise. 

My previous work, such as negotiating framework contracts for energy supply or waste management, aligned perfectly with the evolving demands. Over time, I gradually expanded the remit of the role, built up my expertise and eventually helped to establish a dedicated ESG department that now operates with an interdisciplinary team. 

What does your day-to-day job entail?

There’s no such thing as a typical day, and there never really has been. Having said that, we’ve made significant progress in developing an operational ESG framework. Much of our work involves aligning ESG strategy with corporate objectives and the realities of the asset portfolio. We gather and analyse ESG data, identify critical KPIs as well as stranding points. We collaborate closely with other departments to translate sustainability goals into actionable plans. Workshops, training sessions and internal knowledge transfer are key to building competence across the organisation.

By now, we are decentralising certain responsibilities to encourage the adoption of ESG thinking into operations. My team functions as an internal consultancy, offering guidance and strategic input. ESG's role in relation to external stakeholders is all about communication. This means we interact with a range of people and organisations, including investors, asset managers and supervisory bodies. We also represent the company in working groups, industry initiatives and conference panels. Our work involves a blend of strategic oversight, stakeholder management and hands-on implementation.

What specific challenges do you think logistics faces as a sector when it comes to ESG? And how do you go about overcoming them?

Logistics is a dynamic and important asset class for us. We have even launched our own Article 9 logistics impact fund and are actively expanding it. However, the ESG challenges in logistics differ from those in other segments. One key issue is the prevalence of single-tenant structures. In office buildings, which often host multiple tenants, we have more influence over operational aspects. In logistics, however, tenants usually manage operations themselves, including energy procurement and maintenance contracts. 

This can limit our ability to gather relevant ESG data unless tenants cooperate. Therefore, tenant engagement is critical. Many logistics tenants are not familiar with the real estate context or the potential of ESG strategies. Educating and involving them is a necessary step to improving sustainability across the board. On a positive note, however, the market is clearly shifting. We have found that almost all new logistics assets are certified, and we only acquire certified buildings. Many of these buildings are equipped with solar PV systems, reflecting a growing awareness of the value of ESG drivers. However, when these systems are tied to existing lease agreements, it can hinder our ability to implement our own operating models.

What are the most exciting initiatives you’re working on at the moment?

Two stand out. Firstly, we developed our own ESG data collection software. After testing commercial platforms for years that didn’t fully meet our needs in terms of functionality or cost, we decided to develop a custom tool in collaboration with external developers. What started as manual, Excel-based reporting has evolved into a robust, scalable system integrated with Microsoft Power BI. This gives us full control and flexibility, and has been a game changer.

Secondly, we created our own sustainability report, even though we weren’t legally required to do so. We voluntarily followed GRI standards to provide stakeholders with a clear overview of our efforts and to define our internal ESG strategy more precisely. This was a major achievement.

When you look back at your career, what is the one thing of which you are most proud?

In addition to the initiatives mentioned, I am particularly proud of our success in launching Article 8 and Article 9 funds. We developed our own investment guidelines and collaborated closely with regulators. The fact that Germany’s BaFin approved our frameworks so quickly suggests that we did something right. We have proven that off-the-shelf solutions are not inevitable. It is possible to create something bespoke and still meet the highest standards.

What advice would you give to somebody just starting out on their career?

Don't view ESG as a narrow specialism. Many of us working in this field, myself included, have a background in business administration or economics rather than environmental science. This is a strength. You need to understand the economic side of sustainability. After all, what works environmentally must also make sense in social and financial terms.

To succeed in ESG, you need a generalist’s mindset. Think in terms of systems rather than silos. Consider how environmental, social and economic factors relate to one another. This is where you can drive meaningful change, not just by applying technical solutions, but by integrating ESG into a company's core strategy.