Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed automatic meter reading at 98% of retail properties and 91% of office properties to cut energy costs and carbon emissions
• Launched fourth Sustainability Brief for Developments
• Completed Energy Performance Certificate assessments across entire portfolio
• 36% lower emissions (Scope 1 and 2) across like-for-like portfolio than 2009
• 34% less energy use across like-for-like portfolio than 2009
• 93% of waste diverted from landfill since 2012

Social Achievements

• Worked with suppliers and local partners to implement Community Charter at major properties and developments
• Reviewed supply chain risks and developed a plan to increase focus on social risks, including human rights
• Introduced awards for staff who exemplify company values
• Surveyed over 50,000 people at properties to identify opportunities to create places people prefer
• Contributed £7 million to communities through a community programme

Governance Achievements

• Dow Jones Sustainability Index score influences variable remuneration of Executive Committee members
• Independent assurance of selected key social and environmental data by PwC under ISAE 3000 standard

Climate Goals & Targets

Environmental Challenges

• Enabling more apprenticeships
• Expanding local procurement
• Enhancing staff training and development
• Understanding the impact on wellbeing in buildings
• Using CIBSE Technical Memorandum (TM) 54 methodology to compare operational energy performance against design predictions
• Reducing embodied carbon from materials and construction on developments
• Working with the industry to launch Landlord Energy Ratings
• Determining the business case for investment in on-site micro generation of energy

Mitigation Strategies

• Stipulating 3% apprentices in selected major contracts (future goal)
• Producing local procurement plans for all major assets (future goal)
• Rolling out new training programmes (future goal)
• Working with the World Green Business Council to identify wellbeing metrics to pilot at a new development (future goal)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Community Charter, Supply Chain Charter, plan to increase focus on social risks

Climate-Related Risks & Opportunities

Physical Risks

• Increased flooding, rising temperatures

Transition Risks

• New climate change legislation

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI B+ standard, EPRA Best Practice Recommendations, UN Global Compact

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Business in the Community Awards 2014 in Glasgow, Hull and London
• Business in the Community Awards 2013 in Glasgow, Hull, London and Rotherham
• National Payroll Giving Excellence Award 2013
• CIBSE Client Energy Management Award and Building Performance Award 2014
• NAREIT Global Recognition Leader in the Light Award 2013
• Property Week Sustainability Achievement Award 2013
• Sustainable City Resource Conservation Award 2013
• World Green Business Council Business Leadership in Sustainability Award 2013

Environmental Metrics

ESG Focus Areas

• Net Zero Carbon
• Place Based Approach
• Environmental Leadership
• Responsible Business

Environmental Achievements

• Completed net zero audits of 29 major office and retail assets, identifying energy saving interventions to support our target of a 25% improvement in energy intensity by 2030.
• Installed solar PV at 11 assets, generating 1,731 MWh in 2021/22, saving 368 tonnes of CO2e.
• 100 Liverpool Street development completed with an embodied carbon intensity of 389kg CO2e per square metre.
• 1 Triton Square development completed with an embodied carbon intensity of 436kg CO2e per square metre.

Social Achievements

• Launched a peer-led employee recognition programme, ‘Hats Off’, recognising employees for sustainability-related achievements.
• Engaged with three major retail occupiers to include their space in BREEAM assessments.
• Planned Net Zero Summits with occupiers for 2022/23.

Governance Achievements

• Board-level oversight of climate-related issues.
• Established a TCFD Working Group to monitor and manage delivery of TCFD recommendations.
• Incorporated climate considerations into major capital expenditure decisions through Sustainability Briefs for Acquisitions and Developments.

Climate Goals & Targets

Environmental Challenges

• Meeting Minimum Energy Efficiency Standards (MEES) for England and Wales.
• Potential cost of compliance with the UK's proposed 2030 Minimum Energy Efficiency Standards (MEES).
• Price volatility risk of carbon offset credits.
• Losses from assets located in high flood risk zones.
• Increased cost of delivering Net Zero buildings.

Mitigation Strategies

• Portfolio-wide EPC review to understand exposure to E/F/G rated properties and analysis of costs to improve underperforming assets.
• Exploring options to pre-purchase carbon credits to offset embodied carbon.
• Regular portfolio-wide flood risk assessments and flood management plans.
• Internal carbon levy to cover a carbon price increase of up to £60 per tonne.
• Net Zero audits to identify energy saving interventions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Brief for Developments

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of flooding
• Increased frequency of extreme wind events

Transition Risks

• Non-compliance with energy regulations
• Regulation increasing energy-related costs
• Proposed 2030 MEES standard
• Price volatility of carbon offset credits

Opportunities

• Green rental premium
• Annual cost savings from increased energy efficiency
• Revenue and electricity/carbon cost savings from on-site renewable energy generation

Reporting Standards

Frameworks Used: TCFD, GRESB, SBTi

Certifications: BREEAM, NABERS UK

Third-party Assurance: DNV

Sustainable Products & Innovation

• Net zero carbon buildings
• Highly sustainable, energy efficient space

Awards & Recognition

• CIBSE “Test of Time” award
• CIBSE Client Energy Management Award
• Building Operation Award
• NAREIT Global Recognition Leader in the Light Award

Environmental Metrics

ESG Focus Areas

• Net Zero Carbon portfolio by 2030
• Place-Based approach to social contribution

Environmental Achievements

• Delivered two net zero carbon developments (100 Liverpool Street and 1 Triton Square)
• Achieved c.40,000 tonnes of carbon savings at 1 Triton Square versus a new build alternative
• Refurbished 3,500 sqm of glass panels at 1 Triton Square, reducing carbon footprint and saving 25,000 transport miles
• Replaced over 70% of cement with low carbon alternatives at 1 Triton Square
• Incorporated 492m2 of green roof at 1 Triton Square to enhance biodiversity

Social Achievements

• Delivered 22 affordable housing units and 10,000 sq ft of affordable workspace at 1 Triton Square
• Supported nine apprentices and provided 63 work experience placements at 1 Triton Square

Governance Achievements

• Established a Sustainability Committee chaired by the COO

Climate Goals & Targets

Environmental Challenges

• Reducing embodied carbon in new developments
• Improving operational efficiency of existing assets

Mitigation Strategies

• Conducting whole life carbon assessments for developments
• Designing out embodied carbon through re-use of existing materials or use of low carbon materials
• Completing net zero carbon audits to identify energy efficient interventions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, CDP, EPRA, MSCI ESG, Sustainalytics, UN Global Compact

Certifications: BREEAM Outstanding, BREEAM Excellent, BREEAM Very Good, Home Quality Mark ONE (HQM ONE) 4 Star, The Code for Sustainable Homes (CfSH) 4 Star

Third-party Assurance: DNV (Second Party Opinion)

UN Sustainable Development Goals

• 7
• 11
• 13
• 17

Awards & Recognition

• 5 star rating in the GRESB Development benchmark
• B score in CDP 2022 Climate Change questionnaire
• EPRA Gold Award for sustainability
• AAA rating in MSCI ESG
• 'Negligible Risk' rating in Sustainalytics
• 'Top 75 Employer' in the Social Mobility Employer Index 2021

Environmental Metrics

ESG Focus Areas

• Greener Spaces
• Thriving Places
• Responsible Choices

Environmental Achievements

• Embodied carbon intensity in office developments reduced by 5% to 646kg CO2e per sqm (from a 2019 benchmark of 1000kg CO2e per sqm)
• 40% reduction in operational carbon intensity (offices) vs 2019 baseline
• 22% whole building operational energy intensity improvement (offices) vs 2019 baseline
• 45% of the portfolio now rated EPC A or B, up from 36% last year

Social Achievements

• £12.5m social value created in the year
• 26,000 beneficiaries from social impact programmes in the year
• 16,600 young people took part in 62 local needs-based education initiatives
• 2,300 people received meaningful employment support, with 580 supported into employment

Governance Achievements

• Ranked the top property company and 16th overall in the Social Mobility Foundation’s Index
• Updated Supplier Code of Conduct to include specific UN Sustainable Development Goals requirements
• Sustainability progress overseen at Board level by the Environmental, Social and Governance (ESG) Committee

Climate Goals & Targets

Environmental Challenges

• Some improvements in energy and carbon performance are due to altered working patterns because of Covid-19 and are expected to unwind as office use normalizes.
• Market volatility makes Power Purchase Agreements challenging.

Mitigation Strategies

• Implementing recommended interventions from net zero audits to improve performance
• Investing in energy and carbon-efficient interventions
• Exploring local opportunities for carbon offsetting

Supply Chain Management

Supplier Audits: Independent anti-modern slavery audits of 8 critical suppliers

Responsible Procurement

• Supplier Code of Conduct with UN Sustainable Development Goals requirements
• Commitment to pay at least the Real Living Wage

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRESB, EPRA, TCFD, SBTi, IES, B4SI

Certifications: ISO 14001, ISO 45001, BREEAM, NABERS

Third-party Assurance: DNV, CHY Consultancy, Korn Ferry

Sustainable Products & Innovation

• Low-carbon materials, energy-efficient building designs

Environmental Metrics

ESG Focus Areas

• Greener Spaces
• Thriving Places
• Responsible Choices

Environmental Achievements

• Reduced operational carbon intensity by 39% across the managed portfolio vs. FY19 baseline
• Improved energy intensity by 18% across the managed portfolio vs. FY19 baseline
• Reduced embodied carbon intensity across current office developments to 625kg CO₂e per sqm in FY24
• 58% of the portfolio (by ERV) holds A or B EPC ratings

Social Achievements

• 8,100 people benefitted from education and employment partnerships
• Generated £29.8m of direct social and economic value
• Achieved Living Wage Employer accreditation
• 50% women on the Board, 36% women in senior management

Governance Achievements

• ESG Committee meets three times per year and reports to the Board
• Chief Financial Officer is the Board Director responsible for sustainability
• Ranked in the Top 75 of the Social Mobility Employer Index for the sixth consecutive year

Climate Goals & Targets

Environmental Challenges

• Decarbonising retail parks due to limited control over store units
• Negotiating power purchase agreements (PPAs) with diverse occupiers for solar PV
• Securing high-quality carbon credits in a maturing voluntary carbon market
• Addressing the acute undersupply of more sustainable, modern warehousing in Greater London

Mitigation Strategies

• Implementing LED lighting and voltage optimisation in landlord areas of retail parks
• Piloting retail park roof solar PV installations
• Incorporating additional due diligence and criteria into carbon credit selection
• Delivering best-in-class, environmentally sustainable, multi-storey urban logistics schemes

Supply Chain Management

Supplier Audits: 10 independent supplier audits in FY24

Responsible Procurement

• Supplier Code of Conduct
• Prompt payment (average 20 days)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRESB, CDP, EPRA, SASB, TCFD, SBTi, IES

Certifications: ISO 14001, ISO 45001, Living Wage Employer

Third-party Assurance: DNV, CHY Consultancy, Korn Ferry

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 17

The 2030 Sustainability Strategy supports multiple UN Sustainable Development Goals (SDGs) and particularly focuses on goals 8 – Decent work and economic growth and 12 – Responsible consumption and production, and are underpinned by 17 – Partnership for the goals.

Sustainable Products & Innovation

• Low-carbon materials, heat pumps, LED lighting

Awards & Recognition

• 5-star GRESB rating for Standing Investments and Development
• A- CDP rating
• Top 75 Social Mobility Employer Index