Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability Governance
• Environmental Stewardship
• Social Responsibility

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented employee health insurance schemes covering spouses and up to four children.
• Provided HIV/AIDS awareness training.
• Established a staff welfare fund to support vulnerable colleagues during the COVID-19 pandemic.

Governance Achievements

• Undertook a Board performance evaluation.
• Mandated all employees to complete annual anti-bribery and corruption training.

Climate Goals & Targets

Environmental Challenges

• High borrowing costs and constrained revenue due to a slowdown in sales of legacy assets and limited investments in new developments.
• The COVID-19 pandemic severely impacted the hospitality sub-sector.
• Limited liquidity, insufficient supply of mortgages, and pressure on purchasing power in the Nigerian real estate sector.

Mitigation Strategies

• Successfully completed a rights issue to reduce debt obligations.
• Entered into a 50/50 joint venture partnership for the facility management business.
• Aggressively cut costs and focused on essential expenditure.
• Developed a strategy for 2021 focusing on growth, revenue generation, capital structure and cash flow management, new developments, and cost optimization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Extending the code of conduct to suppliers and vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Nigeria Stock Exchange’s Sustainability disclosure guidelines

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Contributes to the achievement of social and economic progress required to achieve the sustainable development agenda of the UN SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action and Emissions Reduction (GHG)
• Biodiversity
• Supplier Environmental Assessment
• Environmental Compliance
• Green Buildings
• Water Management
• Energy
• Employee Relations
• Diversity and Inclusion
• Women in Leadership
• Training and Performance Management
• Health & Safety
• Financial Transparency and Accountability
• Ethics and Anti-Corruption
• Control Framework
• Stakeholder Engagement
• Risk Management
• Business Conduct
• Affordable Housing

Environmental Achievements

• Sourcing local materials to reduce transportation emissions. Lower carbon footprint across estate developments
• Adopted significant virtual meetings over physical meetings. Reduction in transportation emissions
• Obligated contractors from burning waste materials on-site and require our contractors to provide carbon data for materials used on-site. Enhanced sustainable approach of contractors/suppliers to our developments
• Deployment of modern high-efficiency HVAC systems. Long-term focus to minimize resource consumption through longer equipment lifecycle
• Improvements to building designs adopting more open spaces. Significant improvements to Occupant comfort from natural ventilation benefits than technological
• Installation of renewable energy on-site for use during the construction phase including LED Lighting and motion sensors and building automation systems. Renewable energy generation and Reduced reliance on fossil fuels compared to 2022
• Recycling waste materials. Reduced waste generation. Developed new techniques for repurposing waste and promoted training for contractors
• Adopted Rainwater harvesting for landscaping in new developments. Improved resource conservation
• Installation of low-flow fixtures in our hotels. Lower water consumption. Reduction in water consumption per guest room

Social Achievements

• Completed Pinnock Prime Estate in Lekki Peninsula II Lagos on schedule and budget, exceeding financial returns.
• Launched The Hampshire in Sangotedo, Lekki.
• Maintained a robust personal safety program with 0 incidents per million hours worked across LTIFR, TRIR, and Safety Training Hours.
• Achieved 100% compliance rate with Personal Protective Equipment (PPE) requirements.
• Maintained a robust process safety management system with 0 major incidents reported and 100% completion of improvement recommendations.
• Improved contractor safety performance by 35% compared to 2022.
• Maintained transport safety initiatives with 0 incidents per million kilometers traveled and 100% compliance with Vehicle Maintenance Standards.
• Provided employees with benefits, competitive compensation, health and wellness perks, medical insurance, paternity and maternity leave days, physical and mental wellbeing support, housing allowances, pensions, and 13th-month bonus payments.
• Trained 54 employees (2022: 49, 2021: 63) for 15.5 hours per employee (2022: 16, 2021: 13).

Governance Achievements

• Established a comprehensive health and safety management system aligned with international standards and best practices.
• Established a health and safety committee to review performance and identify improvement opportunities.
• Provided regular training and education to employees on health and safety matters.
• Implemented robust ethics policies and procedures, including prohibitions against bribery, corruption, fraud, and other unethical practices.
• Provided regular ethics training to employees.
• Maintained a whistleblowing mechanism to encourage reporting of unethical behavior or wrongdoing.
• Engaged independent auditors to conduct comprehensive audits of financial statements.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment characterized by inflationary pressures, supply chain disruptions, rising energy prices, and geopolitical tensions.
• Depreciating Naira by over 50% in 2023.
• Headline inflation rate surged from 21.82% to 28.9% by the end of 2023, affecting the cost of building supplies, real estate, and rent.
• Substantial housing deficit of around 28 million homes in 2023.
• Increased costs for purchasing new homes and rent, with some regions experiencing over 100% price hikes, while building supplies saw increases of more than 50%.
• Risks arising from lack of funds to meet obligations, fund new developments, and meet operational obligations; huge cost of debts.
• Risks arising from inability to sell key assets and fall in the value of legacy assets.
• Risks arising from land acquisition to project completion and sale, including cost overruns, design defects, quality issues, HSE risks, and project exit risks.
• Contractual risks involving potential losses from breach of contracts by the Company or counterparties.
• Macro-economic risks due to government, regulatory, and non-governmental actions and economic policies impacting Forex and interest rates.
• Regulatory risks from non-adherence to laws, standards, and codes of conduct.
• Information security/technology risks from inadequate IT strategy, lack of data and information availability, integrity, and security.

Mitigation Strategies

• Pre-sale of new developments to generate cash.
• Locking in soft and hard construction costs early.
• Continuous enforcement of credit controls.
• Initiating developments in diverse categories and executing new projects.
• Aggressive marketing of key assets and engaging high-caliber brokers.
• Quarterly market surveys and monthly business review meetings.
• Rigorous due diligence on title documents and owner entities.
• Extensive market research to ensure adequate product offering.
• Early engagement with Planning Agency, quality tests, and obtaining necessary certifications.
• Stakeholder Management Policies and Procedures.
• Inclusion of ESG-driven energy solutions in projects.
• Improved interaction between departments at contract development.
• Simplification of contracts with clear language.
• Deployment of standard contracts with mitigating clauses and Service Level Agreements (SLAs).
• Deleveraging the business via equity fund injection and unlocking value from encumbered and low-performing assets.
• Including clauses in contracts to cushion currency fluctuations.
• Regular review and conformity with statutory regulations and collaboration with regulatory bodies.
• Regular interactions with regulators and government agencies.
• Deployment of high-end IT infrastructure and implementation of standard data protection practices.

Supply Chain Management

Responsible Procurement

• Ethical sourcing practices; due diligence to address human rights abuses; collaboration with like-minded partners.

Climate-Related Risks & Opportunities

Opportunities

• Investing in renewable energy sources; incorporating renewable energy solutions into projects.

Reporting Standards

Frameworks Used: GRI 2021 standards, TCFD guidelines, UN Global Compact

Certifications: ISO 45001 (Occupational Health and Safety)

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the goals

UPDC’s activities have significant impact on these SDGs through initiatives related to sustainable development, responsible business practices, and community engagement.

Sustainable Products & Innovation

• Green buildings with energy-efficient technologies; rainwater harvesting; low-flow fixtures.

Awards & Recognition

• Best Customer Care Awards 2023, West Africa Innovation Awards