Átomo Capital Partners has moved its offices in Lisbon to the ARCIS Building on Rua Ivone Silva, close to the well-known Entrecampos train station. This new workplace fulfils a desire to significantly improve the quality of the workspace provided to its employees.

According to Miguel Subtil, Managing Director of Átomo Capital Partners, “This move was essential to keep up with the growth of the business and consequently of the team, which has almost doubled in the last year. We’re very pleased with this new workspace, and even more so for the reasons that led us to this change. May it always be like this, and now we’re even better prepared to welcome our clients, who will be able to enjoy an almost 360º view of Lisbon”.

The ARCIS building enjoys a privileged location between Campo Pequeno and Entrecampos, with many access points to various forms of public transport – train, metro and bus – bicycle and electric scooter facilities and access to the city’s main avenues.

In addition to accessibility, the range of services (gyms, laundry, supermarkets, pharmacies, shopping centres, etc.) and restaurants are also very rich and diverse, making it easier to achieve the so-called “worklife-balance”.

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In an interview with PME Magazine, Miguel Subtil, the managing director of ÁTOMO Capital Partners, discusses the projects the company has implemented and how they can help SMEs in Portugal.

PME Magazine – What was the objective behind creating ÁTOMO Capital Partners?

Miguel Subtil – It was created with the aim of actively participating in the energy transition and sustainable development process. Companies must have a purpose, a design. We believe there doesn’t have to be a trade-off between having a positive societal impact versus financial return. The biggest challenge we face as a global community is understanding how we can continue to improve our living conditions on a planet with finite resources, a quickly growing global population, and a climate emergency. Our purpose and mission were clear, which we materialize into four business areas – Utility Scale (large energy production projects), Energy as a Service (dedicated to self-consumption and energy communities), Electric Mobility and Real Estate Sustainability.

PME Magazine – What projects have you implemented and what investments have you made in the renewable energy and sustainability sector?

M.S. – The major renewable energy production projects (Utility Scale) that we have developed with investors and independent power producers (IPP) are the most representative because of their size. This area continues to be the most significant in our business volume, primarily because it was the first we started, even before the first solar auctions in 2019, and which subsequently saw significant development. We act as developers of these major projects (solar, wind, hybrid, and hydrogen), integrating all necessary services up to the ‘ready to build’ (RtB) phase, dealing and negotiating with all necessary entities, and obtaining all licenses.

On the other hand, this market is currently in a phase where opportunities for grid access are scarcer, enhancing M&A operations. We have also been sought after to support these processes, especially with DD Technical, Environmental, and Licensing. Besides, we are very committed to the self-consumption and energy communities sector. It is essential that decentralized electricity production becomes widespread, even without investment from customers, which can be our responsibility. Maximizing solar potential near consumption points, with very competitive tariff values, and significant gains for our clients contributes to the electrification of the economy but also to the increased competitiveness of Portuguese companies.

PME Magazine – Why also bet on electric mobility and new technologies?

M.S. – In the field of electric mobility, we are launching the operation. We are charging station operators (OPC) and are in a phase where we are witnessing a rapid adoption phenomenon of electric vehicles by the population. Estimates vary, but it is predicted that, on average, in Portugal, about 30-40% of the new vehicles registered in 2030 will be electric. This is a massive revolution. We completely change the way we use our vehicles and how we equip them with energy to move, we change our habits, and we must adapt the infrastructure to face this new reality. Many charging stations will have to be installed to accommodate this growth in electric vehicles, and public charging will play a crucial role since, with the expected massification, not everyone will be able to charge the EV at home or in the office.

We are currently negotiating with investors to quickly scale up the business and, on the other hand, with owners, real estate investors, promoters, and public entities to obtain a pipeline of locations that boost the growth we project. We are also very attentive to new technologies in the storage area. Efficient storage is essential for the stability of the electrical system, and many technologies are being tested that we are interested in deepening.

PME Magazine – How does ÁTOMO Capital Partners support SMEs in Portugal?

M.S. – This is a crucial point in our strategy, central to our purpose of contributing to the decarbonization of the economy, increasing the competitiveness of companies. Energy costs and adapting to a new energy paradigm are essential for SMEs to face future challenges more competitively. Currently, energy production using solar technology, for example, is the cheapest way to obtain the electricity needed for company operations. It’s a unique opportunity to anticipate a transition that’s here to stay and start reducing costs as soon as possible. Often, company financial management is directed towards its core business, with little availability to invest in renewable solutions, even with a financial return. In these cases, the investment can also be on us, with companies benefiting without investment costs.

What we do is design a solution according to company needs, implementing, building, and operating the plants without any investment cost for our clients, who will benefit from reduced energy costs, also contributing to the decarbonization of the economy. On the other hand, it is also possible to design energy communities by extending these benefits to other nearby companies and entities, optimizing the sizing of these systems. Átomo positions itself as a fundamental partner for increasing SME competitiveness without them having to seek support or subsidies that always delay, delaying decisions, with evident opportunity costs.

PME Magazine – What is the balance of the company’s three years of activity?

M.S. – We make a very positive balance. We have developed more than 900MW of projects, which will amount to about 600 million euros of associated investment. Clearly, the company’s ambitious and uninstalled DNA never allows us to be satisfied, not even when the objectives are widely exceeded. Things have been going very well, and the company’s positioning has been appropriate to the climate transition we are experiencing. Uncertainty always generates opportunities, but the important thing is to have the necessary knowledge to take advantage of them and make our clients and partners benefit from it. We are in a transition time, and many paradigms are changing, generating risks that many did not consider and others did not expect to incorporate. In this context, immobility seems much riskier than structuring this change appropriately. The energy and climate transition has costs, of course, but they are associated with enormous opportunities. In this sense, we always want more and will try to take good advantage of them.

PME Magazine – Is internationalization part of ÁTOMO’s future prospects?

M.S. – Yes, clearly! This is a moment of global transition, with identical challenges and opportunities in all countries. We closely follow both technological development and global regulatory changes, which, with the experience and capacity we have, put us in an excellent position in this sector in various geographies.

Interview with Miguel Subtil, published in PME Magazine on September 19th, 2023.

BREEAM In-Use certifies the level of performance of buildings in terms of their sustainability in operation, and is the result of a series of measures identified with the support of Átomo Capital Partners, a specialist in the renewable energy and sustainability sector.

In a statement, Átomo said that “the commitment of the owner represented by South to the good operational performance practices of Towers G and E is reflected in the various improvements implemented in these assets, valued within the scope of the BREEAM certification”. It highlights measures such as optimising the water efficiency of the equipment installed, modernising the air treatment units, replacing the heating boilers and converting all the lighting to LED technology.

For Átomo, “the BREEAM Very Good performance level is very commendable, especially considering the age and intensive use of the assets. The certification obtained places Towers G and E at the forefront of the capital’s office spaces, making them eligible to house companies with high corporate sustainability requirements.

“For his part, Miguel Subtil, Managing Director of Átomo Capital Partners, emphasises that “our team has technicians accredited to certify any variant of the LEED /BREEAM and WELL frameworks, which allows us to advise and suggest to our clients the certification strategies to adopt that best suit their interests. Our support is individual and highly personalised, so that we can provide the best possible response for each specific case.”

He believes that “due to the urgency of change and growing environmental concerns, it makes sense to apply sustainability benchmarks that promote more efficient asset management and operation, while also bringing benefits to owners by favouring their performance in terms of efficiency and reducing operating costs”. Commenting on this partnership, South said that “with the advice and support of Átomo Capital Partners, it has obtained the very good classification of the BREEAM In -Use International Commercial certification for its assets in the Torres de Lisboa complex – Torre G and E. BREEAM will allow Southcap to valorise its assets.

He believes that “due to the urgency of change and growing environmental concerns, it makes sense to apply sustainability benchmarks that promote more efficient management and operation of assets, also bringing benefits to owners by favouring their performance in terms of efficiency and reduction of operating costs”.

Commenting on this partnership, South said that “with the advice and support of Átomo Capital Partners, it has obtained the very good classification of the BREEAM In -Use International Commercial certification for its assets in the Torres de Lisboa complex – Torre G and E. BREEAM will enable Southcap to valorise its portfolio of assets and make them more competitive according to the best practices in sustainable building construction and operation. This partnership between Átomo and South results in a model in this area that is constantly evolving and reflects South’s growing concern to ensure sustainable management with the creation of healthier environments.”

Article published in Vida Imobiliária on 3rd August 2023

Initially, the focus was only on socially responsible investment, which aimed to avoid “objectionable” practices that exploited human or natural resources in an unacceptable way in order to make a profit. This exclusionary approach has, in fact, become one of the most widely used strategies over the years, bringing various benefits to investors and creditors.

However, today, far more than having a policy of exclusion, businesses are required to have a purpose, to act positively, to influence change, to have a positive impact.

And it seems to be a fact that companies with a purpose are more likely to succeed in the modern world. This is because as well as being financially viable, such businesses can also be socially relevant and for long periods of time, creating strong bonds of empathy and recognition with all stakeholders and not just shareholders, which positively influences the company’s bottom line for a long time. Purpose and profit are therefore not mutually exclusive variables, but are now complementary to the point where one cannot exist without the other.

According to several recent studies, a brand that has a strong purpose increases its chances of winning the trust of its customers by 3 to 4 times, promoting customer loyalty [1].
According to a Forrester survey [2], for example, more than 31% of respondents say that a company’s social reputation influences their purchasing behaviour. But that’s not all: companies with a strong purpose outperform the market average by 5% to 7% a year, grow faster and make more profits, according to another study by Harvard Business Review.

Is that so? But how? Why?

According to George Serafeim [3] purpose does matter. But it only matters if it is well implemented, with a clear, concise, top-down orientation and in such a way that the company’s middle management feels fully integrated. In his latest book “Purpose + Profit”, Serafeim details some of these concepts, which also lead him to claim that purpose and results are interdependent.
Purpose-driven companies, he says, have better results – partly because there are incredible ways of using sustainability factors as business drivers, motivating more innovation, informing decisions about products and services and also, often, because companies that care about these issues inspire employees who care and are therefore willing to dedicate themselves and work harder. The rewards for individuals are much greater when they feel proud of the contribution they make on a daily basis to a purpose they believe in.

In fact, the idea seems to be forming that corporate leadership with sustainability underpinnings is not just a new management fad, but the only way to run a successful business in the long term [4]. Corporate sustainability offers enormous opportunities and this is how it should be viewed – it reduces risk, increases brand value, increases talent attraction and retention and provides a new lens, a new way of seeing the world, promoting innovation that meets new customer needs and demands.

According to the BCSD, there will be at least USD12 trillion of opportunities available to companies that fulfil the UN SDGs by 2030, and the best evidence suggests that strong corporate sustainability performance generates better financial returns in the long term [5].

This idea of a new corporate leadership that also focuses on ESG issues is corroborated by a survey of Fortune 500 CEOs where only 7 per cent of respondents believe that their companies should “focus primarily on making profits and not be distracted by social goals” [6].

A leader, these leaders, by pushing their companies to define and live their purpose consistently, are challenging the status quo in such a way that it can be disruptive and risky for employees and even themselves.Championing this change requires courage and knowing how to lead with empathy – which, according to a McKinsey study [7], means developing a broad vision of the future that extends beyond the immediate problem, inspiring and building trust with others, finding common ground and leading by example.This new data suggests that a redefinition of leadership norms may be important as the leader strives to define and live the purpose of their organisation, which must be and prove to be coherent and appropriate to the style and actions of the leader themselves, their management team and other employees.

Paul Polman, former CEO of Unilever, is of the same opinion when he says that “the main reason for any company to exist is to fulfil the needs of customers and make their lives better”[8]. While obviously out of line with Milton Friedman’s view that a leader’s sole focus should be profit, it’s important to emphasise that many of Friedman’s assumptions have changed a lot in recent decades. And it may well be that in order to adequately remunerate shareholders, as he intended, we now have to take many issues, such as the company’s purpose, that were once considered mere distractions, seriously.Aiming for long-term, more sustainable and less volatile success will not be an easy path, especially with the voracious demand for short-term results, quarterly if possible.

Paul Polman, quoting Peter Drucker, reminds us, however, that “profit for a company is like oxygen for a person. If you don’t have enough, you’re out of the game. But if you think that the purpose of your life is to breathe, you’re missing something”.

Are we missing something?

[1] Forbes, 2023

[2] US market research company

[3] George Serafeim – Professor of Business Administration at Harvard Business School, where he leads the Climate and Sustainability Impact AI Lab.

[4] “All in: the future of business leadership”, David Grayson et al, 2018

[5] “The Impact of Corporate Sustainability on Organizational Processes and Performance”, Harvard Business School, Robert G. Eccles, Ioannis Ioannou e George Serafeim, 2016

[6] Fortune, maio de 2019

[7] Responder ao apelo da sociedade: Um novo imperativo de liderança, 2019

[8] “Net Positive: How courageous companies thrive by giving more than they take”, Paul Polman et al., 2021

Opinion Article by Miguel Subtil, Managing Diretor of Átomo Capital Partners, published in Executive Digest on 27th July 2023.

With more than 20,000 participants from more than 80 countries, MIPIM 2023 brings together the main players in the real estate sector and investment in this sector. At this fair, the state of the sector is debated, investment opportunities are presented, and the future of real estate investment is discussed.

This year, the event will have a special focus on decarbonization and real estate sustainability, and Átomo Capital Partners could not fail to be present, once again.

Our mission in this participation in MIPIM 2023 is to emphasize the importance of sustainability certifications for any investment strategy or asset management. Yes, it is demanding, but it is not that difficult if you have Átomo team to accompany your company in this process!

If you want to learn more about:

• Definition of ESG strategies
• BREEAM, LEED and WELL Certifications
• Energy efficiency
• Certifications as an asset valuation strategy
• Sustainable finance and real estate
• Certifications for investment funds and promoters

Contact our team and we can schedule a meeting to present you with the right solution for your company and your real estate assets.

Miguel Subtil – Managing Director
miguel.subtil@atomocapitalpartners.com

José Campos e Sousa – Business Developer
jose.sousa@atomocapitalpartners.com

Meet you there?