Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• All landlord-controlled portfolio sourced 100% renewable electricity
• Like-for-like electricity consumption decreased by 6%
• Like-for-like gas consumption decreased by 6.34%
• Total greenhouse gas emissions (Scope 1-3) decreased by approximately 11%
• Over 97% of timber used in refurbishment projects was sustainably sourced with full Chain of Custody, and 86% using FSC timber
• All refurbishment properties assessed achieved a Grade C or above EPC rating
• 98% of construction waste from refurbishment projects diverted from landfill (94% recycled)

Social Achievements

• No reportable health and safety incidents throughout the portfolio
• Average score of 38/50 achieved in Considerate Constructors Scheme assessments (target 30/50)
• £816,650 invested in community and charitable giving
• 68% of employees are female; 66% of Executive Committee are female

Governance Achievements

• No incidences of non-compliance with Anti-Bribery Policy

Climate Goals & Targets

Environmental Challenges

• Difficulty in attributing energy, water, and waste data to specific uses within the portfolio due to mixed-use buildings and shared services
• Inaccurate meter readings for some properties requiring estimated consumption calculations
• Limited data on Scope 3 emissions in some areas

Mitigation Strategies

• Progressive measurement of portfolio floor areas to improve data accuracy
• Estimated consumption based on bills and available meter readings where accurate readings unavailable
• Increased coverage of Scope 3 emissions in line with commitment to setting a Science Based Target

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EPRA sBPR, GRI Standards, UN Global Compact, Sustainable Development Goals (SDGs)

Certifications: BREEAM, Energy Performance Certificates (EPC)

Third-party Assurance: Carbon Smart

UN Sustainable Development Goals

• 3
• 4
• 5
• 7
• 8
• 11
• 12
• 13
• 14
• 15

Report details how initiatives contribute to these goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Tackling Climate Change
• Improving Air Quality
• Driving Innovation and Change
• Supporting Communities and People

Environmental Achievements

• Improved GRESB score and awarded a green star.
• Achieved a “B” rating in the CDP Climate Change Programme.
• Improved score in the S&P Global CSA.
• Overall electricity consumption fell by 16%
• Covent Garden gas requirement is now fully renewably sourced
• Two projects completed achieving SKA Silver and improved EPC rating.
• Lillie Square Phase 2 achieved Code for Sustainable Homes Level 4 certification.
• 100% of non-hazardous waste from Covent Garden Market Building diverted from landfill
• 99% of project and development waste diverted from landfill.

Social Achievements

• 60% of workforce and 64% of senior management are female.
• Employee turnover reduced by 62%
• Offered all employees three additional fully paid well-being days.
• Donated approximately £600,000 in value of time, in-kind contributions and cash to the local community.

Governance Achievements

• Established a Board ESC Committee to oversee ESC matters.
• No significant failings or weaknesses identified in internal control review.
• No claims or incidents of non-compliance or fines for ESG issues in 2021.
• No breaches of Capco’s Business Code of Practice in 2021.

Climate Goals & Targets

Environmental Challenges

• Energy market disruption hindering timely conversion of non-renewable energy supplies.
• Variability in indirect GHG emissions due to tenant electricity procurement.
• Limited data availability for waste at Lillie Square due to local authority collection.
• Need for additional area measurement and alignment of scope 3 data for full comparability with Net Zero Pathway targets.

Mitigation Strategies

• Group seeks to convert all supplies to renewable supplies at the earliest opportunity.
• Working to raise awareness of recycling opportunities across the estate.
• Developing and driving data quality in energy intensity metrics.
• Capco policy is to seek to convert tenant supplies to renewable sources.

Supply Chain Management

Responsible Procurement

• SKA Silver minimum standard on major projects and refurbishments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EPRA sBPR

Certifications: ISO 14064-3 (GHG emissions verification)

Third-party Assurance: Carbon Footprint Limited

Awards & Recognition

• Prime ESG Corporate Rating by ISS
• Recognition in the Financial Times Europe’s Climate Leaders Special Report 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Community Investment
• Diversity & Inclusion
• Employee Well-being
• Governance

Environmental Achievements

• Reduced total Scope 1 and 2 GHG emissions by 10.3% compared to 2022 (location-based).
• Reduced total energy consumption by 9.5%
• 92% of timber purchased was sustainably sourced.
• 80% of properties are EPC grade A to C by ERV, representing a 12% increase from the prior year.
• Increased green space by 11% across the portfolio.

Social Achievements

• 64% of workforce and 53% of senior management are female.
• Average training hours per employee increased by 23.4% to 24.3 hours.
• 100% of employees received performance reviews.

Governance Achievements

• Achieved a Prime ESG Corporate Rating by ISS.
• Improved GRESB rating by 9% to 74, maintaining two green stars.
• Increased CDP Climate Change Programme score to A-.

Climate Goals & Targets

Environmental Challenges

• Data limitations in accurately measuring tenant energy consumption (Scope 3).
• Difficulty obtaining complete service records for air conditioning assets, leading to estimated leakage rates for F-gas emissions.
• High employee turnover due to merger and restructure.

Mitigation Strategies

• Used industry intensity benchmarks for 65% of downstream leased assets for Scope 3 calculations.
• Used estimated leakage rates from UK Government guidelines for F-gas emissions where service records were unavailable.
• Implemented lifestyle programs focusing on employee well-being (financial, physical, and mental health).

Supply Chain Management

Responsible Procurement

• Sustainably sourced timber (92%)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EPRA sBPR, GRI Standards (2016 edition), CRESD, TCFD

Certifications: BREEAM, SKA, FSC, PEFC

Third-party Assurance: Carbon Footprint Limited