Hibernia REIT plc
Climate Impact & Sustainability Data (2019, 2020, 2021)
Reporting Period: 2019
Environmental Metrics
Total Carbon Emissions:25,514 tCO2e/year (Scope 1, 2, and 3)
Scope 1 Emissions:1,801 tCO2e/year
Scope 2 Emissions:1,713 tCO2e/year
Scope 3 Emissions:22,000 tCO2e/year
Renewable Energy Share:100%
ESG Focus Areas
- Climate change mitigation and resilience
- Energy efficiency
- Waste management
- Community engagement
- Employee development
- Responsible asset management
- Delivering sustainable buildings
- Supplier engagement
Environmental Achievements
- 13% reduction in absolute energy consumption across total portfolio
- 13% reduction in like-for-like Scope 1 and Scope 2 greenhouse gas emissions intensity across our multi-let office portfolio
- Zero waste sent to landfill
- 1SJRQ development received LEED Platinum certification
Social Achievements
- Provided funding to support local charities and community organisations
- Offered vacant residential units to medical professionals
- €349,000 raised for Dublin Simon and other charities through Dragons at the Docks 2019
Governance Achievements
- Appointment of Neil Menzies as Sustainability Manager
- Carried out sustainability materiality assessment and corporate governance roadshow with investors
- Alignment to the United Nations Sustainable Development Goals
Climate Goals & Targets
Long-term Goals:
- Net zero carbon pathway for the business over the next 20-30 years
Medium-term Goals:
- Assess pathways for net zero carbon for the portfolio
- Be in the second quintile of GRESB scores (four-star rating)
Short-term Goals:
- 10% reduction in energy consumption across multi-let investment portfolio by end of 2021
- 10% reduction in GHG intensity across multi-let office portfolio by end of 2021
- Recycling/composting rate of >60%
- Achieve and maintain ISO 14001 and ISO 45001 certifications
Environmental Challenges
- Climate change impacts on assets and stakeholder needs
- Reducing overall environmental impact dependent on supplier and tenant actions
Mitigation Strategies
- Developing a greater understanding of climate change risks
- Working closely with suppliers and tenants
- Implementing a new energy management system
- Assessing pathways to net zero carbon for the portfolio
- Adopting TCFD recommendations
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
- Water shortages
Transition Risks
- Legislative developments
Reporting Standards
Frameworks Used: EPRA sBPR, GRI, GRESB, UN SDGs
Certifications: LEED Platinum (1SJRQ, 1 Cumberland Place), LEED Gold (1WML, 2WML)
Third-party Assurance: JLL Upstream
UN Sustainable Development Goals
- SDG 3
- SDG 4
- SDG 7
- SDG 8
- SDG 9
- SDG 11
- SDG 12
- SDG 13
- SDG 17
Hibernia's sustainability priorities are aligned with these SDGs
Awards & Recognition
- EPRA Gold Award
- GRESB three-star award
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:2599 tCO2e/year
Scope 1 Emissions:1470 tCO2e/year
Scope 2 Emissions:1129 tCO2e/year
Scope 3 Emissions:11649 tCO2e/year
Renewable Energy Share:10% (aiming for greater than 10% in new developments)
Total Energy Consumption:11649 MWh/year
Waste Generated:132 tons/year
Carbon Intensity:0.000041 tCO2e per unit total revenue
ESG Focus Areas
- Climate Change
- Environmental Sustainability
- Social Impact
- Governance
Environmental Achievements
- Reduced like-for-like energy intensity of managed portfolio by 39% since 2016
- Reduced like-for-like carbon emissions by 57% since 2016
- Installed over 25kW of PV solar panels across two buildings
- Entering into a PPA to install over 140kW of solar PV on two buildings in 2021
- Achieved LEED Platinum certification for 2 Cumberland Place
Social Achievements
- Launched Transforming Dublin Responsibly, Sustainability Statement of Intent to 2030
- Quarterly sustainability meetings with tenants
- Hosted a climate change webinar for all tenants on Earth Day 2021
- Issued sustainability newsletters to tenants with updates on energy and GHG emissions performance
Governance Achievements
- Established a Sustainability Committee chaired by the CEO
- Integrated ESG targets into executive remuneration
- Aligned with the recommendations of the TCFD
- Achieved four green stars in GRESB with an overall score of 80% in 2020
- Achieved a B- score in CDP in 2020
Climate Goals & Targets
Long-term Goals:
- Net zero carbon business by 2030
Medium-term Goals:
- Achieve 30% reduction in absolute GHG emissions by 2030
- Achieve net zero carbon emissions by 2030
Short-term Goals:
- Reduce operational carbon emissions by 40% by 2030
- Achieve LEED Operations and Maintenance certification for existing buildings
- Achieve WELL Certification for new buildings
Environmental Challenges
- Supply chain disruptions due to climate events (acute physical risks)
- Increased operational energy costs due to carbon taxes (transitional risks)
- Uncertainty around the cost of carbon offsetting (transitional risks)
- Increased cooling demand due to rising temperatures (chronic physical risks)
- Increased risk of flooding due to extreme weather events (acute physical risks)
Mitigation Strategies
- Incorporated flood defence measures into all new building design
- Monitoring of environmental, energy and climate-related risks
- Building risk assessments completed
- Flood risk factors factored into development and acquisitions due diligence
- Installation of real-time energy/water monitoring in buildings
- Building LEED Gold certified (or better) buildings
- Green roofs and rainwater harvesting
- Set net zero carbon targets
- Appointed a Director of Sustainability
- Achieved certification to ISO 45001/14001
- Developed a Net Zero Carbon Pathway
- Aligned with the recommendations of the TCFD
Supply Chain Management
Supplier Audits: 2% of suppliers by number, 54% total procurement spend
Responsible Procurement
- Code of conduct featuring climate change KPIs
- Sustainable Development Brief
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity and frequency of extreme weather events
- Rising mean temperatures
- Increased risk of flooding
Transition Risks
- More stringent regulation and pricing on GHG emissions
- Uncertainty around the cost of carbon offsetting
Opportunities
- Achieving rental premiums by developing and leasing highly energy-efficient and sustainable spaces
- Revenue and electricity/carbon cost savings from on-site renewable energy generation
- Attracting tenants with a strong sustainability ethos
Reporting Standards
Frameworks Used: EPRA sBPR, GRI, TCFD
Certifications: ISO 14001, ISO 45001, LEED
Third-party Assurance: JLL Upstream
UN Sustainable Development Goals
- UN Sustainable Development Goals
Aligned with the UN Sustainable Development Goals
Sustainable Products & Innovation
- LEED Gold and Platinum certified buildings
Awards & Recognition
- EPRA Gold Award (2020)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:2,599 tCO2 (absolute); 2,530 tCO2 (LFL)
ESG Focus Areas
- Climate change
- Wellbeing
- Community impact
Environmental Achievements
- Reduction in energy use intensity across our managed portfolio (2016-2020): 51%
- Energy consumption down by 28% and other fuels consumption by 20% (2020 compared to 2019)
- 26% decrease in Scope 1 and Scope 2 GHG emissions (2020 compared to 2019)
- 57% reduction in water consumption across the portfolio (2020 compared to 2019)
- 76% decrease in waste generated (2020 compared to 2019)
- Received a four-star GRESB rating for the first time
- Achieved a B- score in their inaugural CDP response
Social Achievements
- Launched Transforming Dublin Responsibly, our new Sustainability Statement of Intent
- €70,000 donated to local community groups and charities
- Instituted our artist in residence programme
- A Lust For Life (young persons’ mental health organisation) chosen as charity partner for next two years
- Employee retention (turnover): 10% (2020: 14%)
- 97% of staff would recommend Hibernia (2020: n/a)
Governance Achievements
- 2021 renewal of Remuneration Policy
- Increased focus on stakeholder engagement
- Strategic priorities refocused to take account of the impact of the pandemic
- ISO 14001 and ISO 45001 certification completed
Climate Goals & Targets
Long-term Goals:
- Become a net zero carbon and climate resilient business by 2030
Medium-term Goals:
- By 2030, reduce our overall carbon emissions by 30% and operational carbon emissions by 40% against a 2019 baseline.
- Achieve 70% recycling across all managed assets by 2030
- Ensure biodiversity net gain for all major developments and refurbishments by 2030
Short-term Goals:
- Reduce in-place office vacancy rate
- Let remaining space in 2 Cumberland Place and 50 City Quay
- Full alignment with recommendations of the TCFD by end 2022
Environmental Challenges
- Uncertain recovery from the COVID-19 pandemic
- Ireland’s attractiveness is negatively impacted by potential regulatory or tax changes
- Failure to respond appropriately and sufficiently to climate change risks
- Risk of tenant default
- Poor or mistimed execution of development projects
- Failure to motivate and retain team
- Disruption from external threat/event, cyber-attack, or fraud
- Inappropriate capital structure/lack of funds for investment
Mitigation Strategies
- Active monitoring of lead indicators. Regular financial forecasting and stress testing. Risk appetite limits including leverage
- Full-time Sustainability Manager, Sustainability Committee monitors our ESG performance, risks, and controls
- Risk indicators regarding sector, tenant and geographic concentration form a key part in all leasing and investment decisions
- Regular review of the pipeline and schedule against portfolio sectors, financing, risk appetites and market trends
- Employee remuneration strongly linked to Group performance, active engagement and succession planning
- Business continuity and crisis management plans are reviewed at least annually
- The Group has a target loan to value ratio of 20-30% through the cycle
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Transition Risks
- Increased legislation setting legal minimum energy requirements
- Increasing demand from occupiers to lease sustainable buildings
- Investors are taking a greater interest in the performance of assets
Opportunities
- Collaborate with stakeholders to deliver significant reductions in carbon emissions
Reporting Standards
Frameworks Used: TCFD, GRESB, EPRA, CDP
Certifications: ISO 14001, ISO 45001, LEED
Third-party Assurance: JLL Upstream Sustainability Services
Awards & Recognition
- EPRA Gold Award (Sustainability Reporting)
- Four-star GRESB rating