Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental
• Community
• Employee Well-being
• Business Conduct

Environmental Achievements

• Aiming to achieve carbon neutrality by 2030
• Working towards 100% renewable electricity by 2025
• Ensuring all planning applications include environmental considerations
• Minimising supply chain impact by working with suppliers on their carbon footprint and evaluating new suppliers' ESG policies

Social Achievements

• Creating a safe and healthy working environment
• Establishing a diverse and dynamic workforce
• Maintaining good communications with staff
• Close liaison with tenants

Governance Achievements

• Complying with the provisions of the UK Corporate Governance Code 2018 (with some exceptions noted in the report)
• Regular Board meetings and formal schedule of matters requiring Board approval
• Active Audit Committee overseeing finance and risk management
• Remuneration Committee setting Directors’ and staff remuneration

Climate Goals & Targets

Environmental Challenges

• Downturn in market confidence due to rising inflation, interest rates, and building costs
• Strain on the office rental market due to working from home trends
• Meeting the legal requirement for minimum EPC rating of E from April 2023

Mitigation Strategies

• Managing property portfolio considering market rent and lease terms
• Monitoring property value and rental yields
• Taking action to reduce risks from government policy and planning legislation changes
• Annual external valuations of property
• Use of experienced development teams or partners with robust Development Agreements
• Undertaking a full review of the property portfolio and obtaining updated EPCs where necessary

Supply Chain Management

Supplier Audits: Planned for the year ended 30 September 2023

Responsible Procurement

• Evaluating new suppliers' ESG policies
• Working closely with suppliers and contractors to understand their carbon footprint

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rise of sea level

Transition Risks

• Changing market demand
• Carbon pricing
• Changes in planning legislation and building regulations

Opportunities

• Incorporating initiatives that potentially lower carbon emissions in new developments

Reporting Standards

Frameworks Used: UK Corporate Governance Code 2018, IFRS, FRS 101

Certifications: Null

Third-party Assurance: PKF Littlejohn LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Energy Efficiency
• Climate Change
• Health and Safety

Environmental Achievements

• A large part of our property portfolio is relatively new having been developed by the Group within the last ten years. Where refurbishment has taken place the management team have given thought to all aspects of ESG together with related Health and Safety issues and implemented where viable and possible. In respect of current planning applications design emphasis has been given towards sustainability and green policies as well as being energy efficient. Our aim is to create a good working environment and achieving a BREEAM rating of very good.

Social Achievements

• Liaison with the Group’s tenants which comprise mainly small businesses remains a priority. The majority of retail tenants continued to trade during the Covid period and have subsequently grown their businesses.
• We strive to create a safe and healthy working environment for the wellbeing of our staff and create a trusting and respectful environment, where all members of staff are encouraged to feel responsible for the reputation and performance of the Company.

Governance Achievements

• The Board has had a strategy in place for a number of years. It meets regularly to review specific elements of its strategy ensuring it remains appropriate and is endorsed by the Board as a whole both in terms of its approach to investments and more widely in terms of its culture and in particular ensuring the directors act with integrity and promote the desired culture to the rest of the team.

Climate Goals & Targets

Environmental Challenges

• average length of unexpired tenancies and financial strength of tenants; changes in planning legislation; adverse market conditions resulting in a reduction in the value of the property portfolio; development risk; changes in interest rates; government policies (including policies relating to climate change legislation) and taxation; changes in investor sentiment towards the property sector; changes in lending policy by providers of finance; Cybercrime risk; Geopolitical risks; Reputation risk; and Legal and regulatory risk.
• Planning costs have risen substantially as a result of applications now requiring numerous independent reports. Planning lead in time and response have lengthened considerably leading to increased costs and uncertainties.

Mitigation Strategies

• managing its property portfolio taking regard of market rent and the terms of individual leases. The Directors monitor available sources of information regarding the value of property and level of rental yields. They are also aware of potential changes in government policy and the implication of planning legislation and take action to reduce the risk to the Group where possible. External valuations of property held by Cardiff are commissioned annually. The Directors of Campmoss, the Joint Venture, carry out internal valuations of the Campmoss Group portfolio annually. Development risk is mitigated by the use of experienced teams or development partners with robust Development Agreements. Cash is deposited in fixed and variable interest rate accounts with such rates monitored to determine the appropriate length of time and level of funds to invest.
• external consultants and staff training are undertaken to minimise the evolving risk. Geopolitical risks, for example the Ukraine Russia conflict, can have a significant impact on financial markets, this risk is mitigated as far as possible by maintaining cash balances that enable the Company to continue to repurchase own shares and minimising the equity investments held, currently 2.6% of net assets. Reputational risks including ethics and integrity, cyber security and quality of service are considered in all aspects of the Group’s business and actions taken to mitigate risks where possible through decision making in respect of development partners, and liaison with tenants. Legal and regulatory risks specific to the industry are mitigated where possible by keeping up to date with changing requirements and use of external experts where applicable.

Supply Chain Management

Responsible Procurement

• Work closely with all suppliers and contractors to understand their carbon footprint. Evaluation of new suppliers to include consideration as to their ESG policies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme changing market demand

Transition Risks

• Carbon pricing

Opportunities

• Incorporating tenant, statutory and legal requirements, including initiatives that potentially lower carbon emissions in new developments.

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Energy efficiency
• Health and Safety
• Carbon emissions reduction
• Modern design in planning applications
• BREEAM rating

Environmental Achievements

• Developed the majority of our property portfolio and together with our tenants continue to take appropriate action to reduce carbon emissions and the impact on the environment

Social Achievements

• Providing environmentally sustainable, energy efficient and functionable buildings
• Creating a good working environment
• Aiming for a BREEAM rating of Very Good
• Properties contribute to the local economy and provide householders with decent living facilities

Governance Achievements

• Entered a legally binding relationship agreement with its controlling shareholder to address the requirements of LR 5.3.1 of the Listing Rules

Climate Goals & Targets

Environmental Challenges

• Planning costs continue to spiral as a result of additional reports being required and subsequent delays. The planning process has become immersed in paperwork and must be simplified if new development is to take place.
• Market uncertainty around the continuing impact of higher interest rates
• Effects of the Chancellors recent budget and financial statements

Mitigation Strategies

• No specific mitigation strategies mentioned in the report

Supply Chain Management

Climate-Related Risks & Opportunities