Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Action
• People
• Nature

Environmental Achievements

• 5GWh of renewable energy generated on-site across the portfolio in 2022 (63% increase from 2021), surpassing the 2030 target.
• 69% decrease in electricity required from the grid at Veghal – Udea BV HQ in the Netherlands after solar panel installation.
• Improved EPC ratings at Cathedral Hill, UK, from mainly C and D to A or A+ after retrofitting.

Social Achievements

• Partnership with The Cycle to build eco-toilets and deliver clean water solutions in India, impacting 1,500+ lives.
• Gdański Business Centre, Poland, awarded Building Without Barriers certificate for improved accessibility.
• Investment20/20 programme engagement to introduce students to careers in investment management.

Governance Achievements

• Restructured ESG Committee to Responsible Investment Committee (RIC) to focus on restorative business goals.
• Inclusion of NZC audits in Stage 2 Investment Committee papers.
• Development of a Sustainable Development Brief outlining embodied carbon requirements for development partners.

Climate Goals & Targets

Environmental Challenges

• Difficulty in gaining oversight of whole-building utility usage due to split management between owner and occupier.
• Accurately predicting the cost of transitioning the portfolio to net zero.
• Achieving Net Zero Whole Life Carbon when entering acquisitions at later stages of development.
• Varying landlord sophistication and data aggregation at building level for office emissions data collection.
• Challenges in comparing EPCs and extracting information from certificates in different languages across 12 countries.
• Evolving climate science, legislation, and reporting guidance requiring ongoing training.

Mitigation Strategies

• Using best available data and industry benchmarks to track progress.
• Engaging arbnco for building analytics software to improve UK portfolio data collection.
• Completing c50 NZC audits to identify and cost emission reduction initiatives.
• Creating costed transition plans for corporate offices.
• Acquiring assets at earlier development stages to influence NZC initiatives.
• Dedicated ESG training budget and various training programs for employees.
• Active membership in industry bodies to navigate legislative and policy shifts.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of sustainable materials (London office refurbishment, Bourn Quarter).
• Green clauses in supplier contracts (corporate office transition plan).

Climate-Related Risks & Opportunities

Physical Risks

• River flood
• Tropical cyclone
• Heat stress
• Precipitation stress
• Sea level rise
• Fire weather
• Drought stress

Transition Risks

• Increased regulation for suppliers
• Increased costs in meeting enhanced emissions reporting obligations
• Increased pricing of GHG emissions
• Non-compliance with building codes
• Increased cost of financing

Opportunities

• Increased asset value with strong sustainability and climate resilience approach.
• Shifts in investor demand for sustainable strategies.
• Tenant demand for net-zero buildings.

Reporting Standards

Frameworks Used: Better Buildings Partnership (BBP) Net Zero Carbon Pathway, EPRA’s Sustainability Best Practices Recommendations, GRESB, TCFD, ISO 14064-3, UN SDGs

Certifications: BREEAM Excellent (Bourn Quarter), WELL (London office)

Third-party Assurance: Lucideon CICS Limited

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15

Savills IM categorizes its impact as 'contribution' for SDGs 7, 8, 11, 12, 13, and 15, and 'alignment' for SDGs 3, 4, and 5.

Sustainable Products & Innovation

• Affordable housing strategy
• Impact investment products