Climate Change Data

Newcore Capital Management LLP and Newcore Capital Management Finance LLP

Climate Impact & Sustainability Data (2021-01 to 2022-03, 2022-2023, 2023-2024)

Reporting Period: 2021-01 to 2022-03

Environmental Metrics

Total Carbon Emissions:1974.5 tCO2e/year (Fund IV estimated)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Newcore Management Platform achieved carbon neutrality in 2022 (Scope 1 & 2).
  • 100% of Fund IV assets were refurbished (not demolished and redeveloped), minimizing embodied carbon.
  • Procured REGO-backed renewable energy for all landlord-controlled assets within Fund IV & V.

Social Achievements

  • Creation of 143 Special Educational Needs (SEN) school places.
  • Creation of 1,600 additional childcare/nursery places.
  • £469m social value created across Fund IV.

Governance Achievements

  • Became a Certified B Corporation in 2020.
  • Established an ESG committee.
  • Signed up to the UN Principles for Responsible Investment (UNPRI).

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions across AUM.
Medium-term Goals:
  • Achieve net-zero emissions by 2040 (aiming to improve this timeline).
  • Publish a transition plan based on the CDP framework and begin reporting through SBTI.
  • Deliver measurable social impact through Fund V.
Short-term Goals:
  • Improve B Corporation score.
  • Integrate ESG across all decision-making.
  • Install AMRs in 100% of Fund V assets.

Environmental Challenges

  • Reducing CO2 emissions across portfolios.
  • Improving biodiversity.
  • Ensuring accurate data collection for benchmarking and reduction targets.
Mitigation Strategies
  • Installation of Automated Meter Readers (AMRs) to provide live data on energy usage.
  • Implementation of a 10% of net operating income policy to improve environmental impact.
  • Development of a five-point plan to improve biodiversity.

Supply Chain Management

Responsible Procurement
  • Refurbishment-first policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, UNPRI, B Corp, CDP, SBTI, Planet Mark

Certifications: B Corp, Planet Mark

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 4 (Quality Education)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 13 (Climate Action)
  • SDG 1 (No Poverty)
  • SDG 14 (Life Below Water)

Investments in social infrastructure contribute to these goals.

Awards & Recognition

  • 2021 UK Property Fund Manager of the Year Award

Reporting Period: 2022-2023

Environmental Metrics

Total Carbon Emissions:3300 tonnes CO2e/year (NSS IV & V)
Renewable Energy Share:100% (NSS V)
Total Energy Consumption:12,000,000 kWh/year (NSS IV & V)

ESG Focus Areas

  • Governance
  • Social
  • Environment

Environmental Achievements

  • Newcore management platform operationally carbon neutral for scopes 1, 2 & 3.
  • 100% green leases in NSS V
  • Asset level energy and carbon data collection at ~95%
  • Refurbishment of 1 million sq ft (NSS IV) and 120k sq ft (NSS V) of derelict, vacant or underutilized space.
  • Installation of solar panels on a building in Chertsey (NSS IV), avoiding over 4,000kg of CO2 emissions per year.

Social Achievements

  • Creation of 2,604 children’s nursery places (NSS V) and 1,826 (NSS IV).
  • Creation of 326 total SEN school places (NSS IV & NSS V).
  • 70% of NSS V and 72% of NSS IV assets categorized as 'benefiting stakeholders' or 'contributing to solutions'.
  • Donated over £160,000 to 22 different charities.
  • Launched ESG Committee.

Governance Achievements

  • B Corp score 112.6
  • 100% of Funds governed onshore
  • Formalized stakeholder engagement strategy for tenants and suppliers.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2040
Medium-term Goals:
  • Achieve net zero by 2040
Short-term Goals:
  • Improve B Corporation score
  • Submit to GRESB for NSS IV & V
  • Report to PRI for the first time
  • Publish net zero pathway

Environmental Challenges

  • Engaging tenants around improving assets (due to FRI leases)
  • Improving biodiversity engagement with tenants.
Mitigation Strategies
  • Offering every tenant £500 to improve environmental performance or biodiversity.
  • Identifying assets where significant interventions can be made to improve performance and utilizing 10% NOI.
  • Sending 'nature boxes' to educational assets.

Supply Chain Management

Responsible Procurement
  • Engagement strategy for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, UN PRI, TCFD, B Corp

Certifications: B Corp

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 8
  • SDG 13
  • SDG 1

Investments support the provision of good health and well-being, quality education, decent work and economic growth, and climate action.

Awards & Recognition

  • Best ESG Firm - Small Cap award at Private Equity Wire ESG AAA European Awards

Reporting Period: 2023-2024

Environmental Metrics

Total Carbon Emissions:1,450 tonnes/year
Renewable Energy Share:100% (REGO-backed renewable energy for landlord-controlled assets)
Total Energy Consumption:12,000,000 kWh/year
Carbon Intensity:1.75 kg CO2e/sq ft (2023)

ESG Focus Areas

  • Governance
  • Environment
  • Social

Environmental Achievements

  • 2023 operational carbon emissions exceeded target (26% lower than target, 46% lower than 2022); 67% of EPCs improved by one rating post-refurbishment; 16 nature boxes delivered enhancing biodiversity

Social Achievements

  • Over 3,000 educational places created; Newcore’s contribution to achieving impact is medium/high for 77% of total assets; 41 buildings refurbished rather than developed; £110,000 donated to charity

Governance Achievements

  • Recertified as a B Corp with 164.6 points (highest scoring real assets firm globally); Submitted to PRI scoring 4 out of 5 across the board; GRESB management score improved by 16% to 29/30; GRESB performance score improved by 77% to 42/70 (on average)

Climate Goals & Targets

Long-term Goals:
  • Reduce at least 88% of emissions by 2040; Reduce energy consumption by 20% by 2040; Net Zero Carbon by 2040
Medium-term Goals:
  • Reduce the intensity of Scope 3 emissions by 50% per sqm by 2030; 50% intensity reduction of scope 3 emissions for educational assets by 2032
Short-term Goals:
  • Accelerate carbon intensity reduction to 50% by 2030; Deploy 10% NOI to improve environmental performance; Distribute 12 nature boxes

Environmental Challenges

  • Challenges with pre-determined carbon intensity reduction targets from CRREM higher than actual carbon intensity; Hard to get baseline data due to change in use of assets; Fully repairing and insuring (FRI) leases mean Newcore’s influence is limited; Closed-end value-add funds result in relatively short hold periods in comparison to net zero targets; Investing in asset classes that do not align with pre-defined pathways in frameworks; Growing asset base increases consumption and emissions
Mitigation Strategies
  • Partially aligning with CRREM and creating bespoke targets for assets without CRREM reduction pathways; Developing NZC pathways for each asset; Offering active assistance to tenants in developing ESG/NZC knowledge and strategies; Directly investing in solutions to transition assets to net zero; Focus on tenant engagement; Developing a comprehensive dashboard for tracking environmental performance; Improving data quality and depth

Supply Chain Management

Responsible Procurement
  • Renewable energy procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Heat stress
Transition Risks
  • Policy and regulatory changes
  • Technology changes
  • Market shifts
  • Reputational risks

Reporting Standards

Frameworks Used: GRESB, PRI, B Corp, CRREM (partially)

Certifications: B Corp

Awards & Recognition

  • Property Week's 2024 award for Property Fund Manager of the Year