Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced landlord-controlled energy usage CO2e emissions to 16.8 tonnes (market-based method) from an estimated 26.8 tonnes (location-based method).
• 55% of landlord-controlled electricity acquired from 100% renewable supplies, with an additional 16% from suppliers using only renewable sources and nuclear power.
• Oakcroft Road, Chessington development awarded a BREEAM Very Good rating.

Social Achievements

• Property Manager attained accreditation as a Living Wage employer.
• Audited the Company's suppliers to ensure key suppliers were paying their employees the Real Living Wage.
• Diversity and Inclusion Policy implemented, with a successful female candidate hired for Financial Controller position.

Governance Achievements

• Updated ESG policies and targets published on the website.
• Implemented a sliding scale for annual management fee based on NAV.
• Developed a Modern Slavery and Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Rent collection challenges due to COVID-19 and economic downturn.
• Potential for further COVID-19 restrictions impacting rent collection and tenant operations.
• Risks of rising inflation and potential monetary response.
• Risks relating to reliance on Property Manager and AIFM.
• ESG-related risks including climate change, tenant energy usage, and compliance with responsible business practices.

Mitigation Strategies

• Negotiated with tenants for payment plans or rent deferrals.
• Secured new debt facilities (£43.64m) and extended existing facilities.
• Maintained a diverse portfolio of good quality industrial properties in good locations, keeping loan-to-value within the target range.
• Implemented ESG policies and targets, including monitoring tenant operations, conducting quarterly environmental impact analysis, and setting sustainability goals.
• Appointed Evora Global to collect and analyze tenant and landlord utility data to inform net-zero strategy.
• Appointed Professor John French to develop a Net Zero Carbon Strategy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Modern Slavery and Supplier Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Reduce the number of discarded fashion items
• Improve the sustainability of our supply
• Promote human rights in our community
• Minimize waste per shipment
• Reduce operational greenhouse gas emissions
• Care for our talent

Environmental Achievements

• Reduced packaging weight per average shipment by 3%
• Reduced the use of plastic filling material drastically
• Reduced scope 1 and 2 greenhouse gas emissions by 55% per unit of revenue
• 95% renewable electricity used in facilities

Social Achievements

• Implemented an online product take-back program in partnership with Vite En Vogue / Buddy-&Selly
• Donated almost 14,000 winter clothing items to Kyiv
• Updated annual performance review process
• Invested in pay equity
• Increased leadership training
• Paid all permanent employees an inflation compensation premium of EUR 3,000 until the end of 2024

Governance Achievements

• Developed a new Supplier Code of Conduct
• Stopped sourcing real fur and exotic leather
• Implemented animal exclusion guidelines

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions caused limited supplies and rising prices, exacerbated by higher energy costs
• Delayed installation of solar panels due to supply chain disruptions and internal process changes
• Unwanted returns due to incorrect product descriptions or product damage

Mitigation Strategies

• Implemented an online product take-back program
• Reduced packaging material per shipment, particularly plastic
• Improved energy efficiency
• Procured almost all electricity from renewable sources
• Launched several initiatives to address unwanted returns, including ramping up inbound audits and implementing a new color correction tool

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Stopped sourcing real fur and exotic leather

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Reduce the number of discarded fashion items
• Improve the sustainability of our supply
• Promote human rights in our community
• Minimize waste per shipment
• Reduce operational greenhouse gas emissions
• Care for our talent

Environmental Achievements

• Expanded our product take-back program by 50%
• Launched a pre-loved second-hand product category
• Decreased wood waste to almost zero by reusing and selling all intact wood pallets
• Switched to renewable electricity in Spain
• Moved to shipping tariffs in Germany that finance climate projects
• Improved emission data collection
• Conducted a scope 3 assessment of our most relevant emission categories

Social Achievements

• Implemented a risk management system for human rights and environmental risks pursuant to the German SCDDA
• Established an electronic whistleblowing and complaints mechanisms for SCDDA-related risks
• Updated our company Code of Conduct
• Donated to the victims of the earthquakes in Turkey and Syria
• Introduced LinkedIn Learning and O’Reilly as on-demand learning platforms
• Implemented a Competency Framework
• Launched a junior leadership development program
• Strengthened our performance review process
• Introduced a gender-inclusive language resource document
• Updated our job descriptions with more inclusive and gender-neutral language
• Analyzed our gender pay gap
• Conducted internal audits for our logistics center in Poing
• Trained fire safety assistants in our logistics centers by the H&S team
• Restructured our H&S organization and increased the size of our team

Governance Achievements

• Developed a sustainable sourcing guide for textiles
• Conducted a workshop for buyers to train them on climate-friendly and sustainable sourcing practices
• Increased the share of sustainable materials in our Private Label women’s fashion apparel line

Climate Goals & Targets

Environmental Challenges

• Excessive packaging and numerous returns in online shopping
• Differences in waste management systems between logistics centers
• Need to optimize waste separation at offices and stores
• Increased energy consumption and scope 1 and 2 greenhouse gas emissions due to opening a large logistics center and new offices
• Limited control over the production practices and sustainability of the materials used to manufacture the overstock items we sell
• Human rights challenges in the fashion industry (health and safety, poor working conditions, low pay, gender-based violence, and repression of unions and freedom of association)
• Achieving equity and inclusion for everyone

Mitigation Strategies

• Continuously optimizing processes to further improve environmental impact
• Introducing a new intermediate box size to further reduce average size of packages
• Improving waste data collection and reporting
• Optimizing waste separation in offices and stores
• Analyzing the use of reusable shipping boxes
• Continuing to test a dimensioning device
• Charging for bags in retail stores and donating proceeds to a local charity
• Evaluating options to switch to renewable electricity in new facilities
• Working on a plan to install solar panels on the roof of logistics centers
• Continuing to roll out LED lighting in stores
• Further analyzing scope 3 emissions and how to reduce them
• Ensuring compliance with the European Corporate Sustainability Reporting Directive (CSRD) on climate change
• Complying with the requirements of the German Supply Chain Due Diligence Act (SCDAA)
• Developing a sustainable sourcing guide for textiles
• Training buyers on more sustainable sourcing practices
• Increasing the share of more sustainable materials in women’s fashion apparel
• Shifting more production from China to Europe
• Implementing inclusive hiring training for managers, including unconscious bias training
• Increasing female representation on hiring panels
• Supporting parental leavers
• Working on initiatives to close the gender pay gap
• Improving data collection and reporting in line with the requirements of the European Corporate Sustainability Reporting Directive (CSRD)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI