Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• 8% overall energy reduction
• 2% overall water reduction
• 100% waste diverted from landfill (excl. leisure portfolio)
• 7% overall reduction in energy use at our five largest energy-consuming buildings
• 1% overall reduction in water use at our five largest water-consuming buildings

Social Achievements

• 51%/49% female/male gender balance
• 25 work experience placements for Mencap candidates of which 15 secured permanent jobs
• 157 jobs secured for disadvantaged groups in London
• £135,489 raised for Mencap
• £3m value of financial, time and in-kind contributions
• 8,940 hours volunteered by employees

Governance Achievements

• New Sustainability Committee established
• Accountability for sustainability at Board level
• OHSAS 18001 certified
• 6 reportable RIDDORs

Climate Goals & Targets

Environmental Challenges

• Difficulty in consistently reporting energy performance due to changes in occupiers
• Challenges in improving water use due to limited control over customer actions
• Challenges in achieving high recycling rates due to customer waste management practices
• Complexity of measuring and managing biodiversity impacts
• Challenges in ensuring Living Wage payment across all supply chain partners

Mitigation Strategies

• Developing site-specific energy reduction plans
• Sharing innovative ideas with customers to reduce water consumption
• Working with supply chain partners to improve waste measurement and recycling
• Developing a new biodiversity strategy
• Working with main contractors to ensure Living Wage payment

Supply Chain Management

Supplier Audits: 56% compliance statement received from key suppliers

Responsible Procurement

• Sustainable Development Brief
• Living Wage
• Human rights policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, EPRA Best Practice Recommendations for Sustainability reporting, DEFRA Environmental Reporting Guidance 2013, Greenhouse Gas Protocol

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Corporate Citizenship

Awards & Recognition

• EPRA Gold Award for sustainability reporting

Environmental Metrics

ESG Focus Areas

• Creating jobs and opportunities
• Efficient use of natural resources
• Sustainable design and innovation

Environmental Achievements

• Reduced total energy consumed by 3% versus the previous year on a like-for-like basis; total energy consumed in absolute portfolio down 6% versus 2013/14 baseline.
• Achieved 100% renewable electricity across the portfolio as of April 1, 2016.
• 98.3% of waste diverted from landfill on new developments.
• Average recycling rate of 76.1% in London (surpassing original 70% target).
• Reduced like-for-like water consumption by 4% in London compared with last year.

Social Achievements

• Secured employment for 779 people from disadvantaged backgrounds through the Community Employment Programme.
• Established and chaired a sector-wide People in Property Diversity Steering Group.
• All tenders and contractual clauses for new developments now stipulate Living Wage requirements.
• 100% of employees completed M1 training and 98% completed M2 within six months of joining.

Governance Achievements

• Launched Sustainability Matters training programme for all employees.
• Engaged EY to conduct sustainability assurance.

Climate Goals & Targets

Environmental Challenges

• Skills shortage in the construction industry.
• Lack of diversity in the workforce and industry.
• Climate change risks (flooding, extreme weather).
• Energy supply security issues.

Mitigation Strategies

• Community Employment Programme to address unemployment.
• Diversity initiatives (mentoring, unconscious bias training).
• Strategic risk assessment programme to identify and mitigate climate change risks.
• On-site energy generation (CHP, solar PV, hydrogen fuel cell) to reduce grid dependency.

Supply Chain Management

Responsible Procurement

• Living Wage requirement for all contractors on new developments.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Regulatory changes (e.g., Minimum Energy Efficiency Standards)

Opportunities

• Development of energy-efficient products and technologies.

Reporting Standards

Frameworks Used: GRI, EPRA, Climate Disclosure Standards Board Reporting Framework, Greenhouse Gas Protocol

Certifications: OHSAS 18001, ISO 50001, ISO 14001

Third-party Assurance: EY

Awards & Recognition

• Business in the Community Work Inclusion Award 2015
• Better Society National Commitment to the Community Award 2016
• EPRA Gold Award for sustainability reporting 2014 and 2015

Environmental Metrics

ESG Focus Areas

• Carbon emissions reduction
• Energy intensity reduction
• Waste management (zero landfill, high recycling)
• Social value creation
• Diversity and inclusion
• Health and safety
• Sustainable design and innovation
• Climate change adaptation
• Responsible sourcing of materials
• Biodiversity
• Wellbeing

Environmental Achievements

• Reduced carbon emissions by 55% since 2013/14
• Reduced energy intensity by 43% compared to 2013/14
• 100% waste diversion from landfill
• 99% recycling and 99.9% diversion from landfill of construction waste

Social Achievements

• Created over £6.5m of social value in 2020/21
• 52% of employees are female (exceeding 2025 target of 50%)
• Improved female representation at leadership levels

Governance Achievements

• Alignment with TCFD recommendations
• Ongoing oversight of climate-related issues by Sustainability Committee
• ESG KPIs linked to employee remuneration

Climate Goals & Targets

Environmental Challenges

• Pandemic impact on retail sector (Living Wage commitment, recycling rates)
• Data limitations and exclusions
• Climate-related physical and transition risks

Mitigation Strategies

• Collaboration with Stronger Together on modern slavery risk
• Updated reporting methodology for energy and carbon
• Climate change adaptation risk reviews
• Investment in energy efficiency measures
• Net-zero carbon strategy
• Internal shadow carbon price

Supply Chain Management

Supplier Audits: Over 900 suppliers responded to sustainability questionnaire (representing over half of Landsec's spend)

Responsible Procurement

• Supplier Code of Conduct
• Supply chain sustainability questionnaire
• Materials Brief

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Windstorm
• Heat stress
• Sea level rise
• Subsidence

Transition Risks

• Policy and Legal changes (e.g., MEES)
• Market shifts (e.g., customer expectations)
• Technology changes (e.g., renewable energy)
• Reputational risks

Opportunities

• Investment in renewable energy generation
• Increased capacity to attract occupiers
• Improved organisational resilience

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Real Estate standard, TCFD, EPRA Best Practice Recommendations for Sustainability reporting, UN Global Compact

Certifications: ISO 14001:2015, ISO 50001:2018

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Three awards at Share Action’s inaugural Workforce Disclosure Initiative (WDI) awards ceremony
• 7th Gold Award from EPRA for best practice sustainability reporting

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Investment
• Diversity & Inclusion
• Responsible Business Practices
• Sustainable Development

Environmental Achievements

• Reduced energy intensity by 33% from a 2013/14 baseline (on track for 45% reduction by 2030)
• Reduced operational carbon emissions by 33% compared with 2013/14 baseline (on track to meet 70% reduction by 2030)
• Completed The Forge, our first Net Zero carbon building powered entirely by renewable energy
• Updated carbon reduction targets to align with SBTi Net-Zero Standard, committing to net zero by 2040
• 36% of portfolio already at EPC B or higher

Social Achievements

• Launched Landsec Futures fund, committing £20m over ten years to enhance social mobility
• Supported 7,067 people facing barriers in our communities towards the world of work
• Created £25.1m of social value since 2020
• Revised D&I strategy: Diverse Talent, Inclusive Culture, Inclusive Places
• Launched Landsec Futures internship programme

Governance Achievements

• Complied with Listing Rules requirements relating to Board diversity
• Implemented a new inclusive recruitment process for senior leaders
• Maintained ISO 45001 certification with no non-conformances

Climate Goals & Targets

Environmental Challenges

• Rising inflation and interest rates creating headwinds for business
• Reduced investment activity across property markets
• Yield reset due to higher interest rates
• Cost of living challenges affecting consumers and brands
• Supply chain disruptions

Mitigation Strategies

• Proactive approach to disposals, reducing LTV to 31.7%
• Selective investments where value is seen
• Issued a £400m Green bond
• Organisational review to create a more agile, efficient culture
• Focus on driving operational performance and executing strategy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply Chain Commitment
• Sustainable Procurement Guide
• Membership in Supply Chain Sustainability School

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Extreme weather events

Transition Risks

• Regulatory changes (MEES)
• Carbon tax
• Increased demand for ESG credentials

Opportunities

• Rent and value premia for sustainable assets
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: ISO 45001, ISO 14001, ISO 50001, BREEAM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through energy efficiency, sustainable development, and carbon reduction efforts.

Sustainable Products & Innovation

• Myo flexible office offering
• Net zero carbon buildings

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Retail
• Climate Change
• Localism
• Collaboration
• Data Sharing
• Community Engagement

Environmental Achievements

• Investing in energy efficiency measures and decarbonisation (removing gas-fired boilers, optimising BMSs, investing in onsite renewable electricity capacity) to accelerate transition to net zero by 2040.
• Improving biodiversity, health & wellbeing and climate change resilience through the enhancement of nature across our assets

Social Achievements

• Investing in communities through Landsec Futures (£20m social impact fund), creating employment opportunities for underrepresented groups and providing local grants.
• Designing, building and managing inclusive places that meet community needs, using procurement to improve D&I in the supply chain and engaging diverse communities in redevelopment plans.

Governance Achievements

• Collaborating with brand partners to share data more effectively, sustainability initiatives and best practice.
• Raising awareness of the benefits of sustainable retail destinations.

Climate Goals & Targets

Environmental Challenges

• Consumers' perceived higher costs of sustainable choices.
• Uncertainty if sufficient brands and consumers are willing to pay premiums for sustainability.
• Low awareness and perceived added costs associated with BREEAM ratings.
• Concerns about EPC rating system's evolving standards and lack of 'in-use performance' measure.
• Need for better data transparency and sharing between landlords and retailers.
• Balancing the need for sustainability with economic viability for businesses.

Mitigation Strategies

• Promoting the concept of 'sustainable retail destinations' to the public.
• Working with brand partners and local authorities to find solutions.
• Developing a new 'co-investment framework' for sustainability upgrades.
• Exploring new opportunities to replace the LEP regime.
• Developing a performance-based rating system alongside current EPC ratings.
• Streamlining development management and decision-making processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Using procurement processes to improve and influence D&I practices within our supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed