Climate Change Data

Urban Logistics REIT plc

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2024)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:159 tCO2e
Scope 1 Emissions:13 tCO2e
Scope 2 Emissions:146 tCO2e
Scope 3 Emissions:3,261 tCO2e
Renewable Energy Share:3%
Total Energy Consumption:11,122,900 kWh
Water Consumption:24,132 m3
Waste Generated:505 kg
Carbon Intensity:Not disclosed

ESG Focus Areas

  • energy performance
  • climate change mitigation
  • climate adaptation
  • on-site energy generation
  • promoting nature on our sites

Environmental Achievements

  • Increased portfolio with EPC A or B from 21% to 31% on a like-for-like basis.
  • New developments achieved BREEAM Very Good or Excellent and EPCs of A.
  • 12% of assets by floor area have EV chargers installed.

Social Achievements

  • Worked with tenants to collect and distribute equipment for humanitarian aid in Ukraine.
  • Installed an outdoor gym for community use as part of a new development.

Governance Achievements

  • Appointed CBRE to provide strategic and technical support in managing buildings and reporting on sustainability initiatives.
  • All staff received sustainability training.

Climate Goals & Targets

Long-term Goals:
  • 100% EPC B or better by 2028.
Medium-term Goals:
  • Develop a systematic programme to engage tenants to decarbonise by 2024.
  • Develop a longer-term Scope 3 decarbonisation target in the coming years.
Short-term Goals:
  • Achieve net zero Scope 1 and 2 emissions by 2024.
  • Increase solar PV capacity to 10% of buildings by floor area by 2024.
  • Develop a plan for enhancing biodiversity on sites by 2024.

Environmental Challenges

  • Lack of direct control over Scope 3 emissions from tenant operations (over 95% of carbon impact).
  • 75% of EPCs below EPC B, representing 73% by floor area.
  • Managing the transition to meet UK climate legislation.
Mitigation Strategies
  • Engaging with tenants to support their decarbonisation activities and gather data for future Scope 3 targets.
  • Targeting EPC B or better by 2028 (two years ahead of proposed legislation).
  • Developing and refurbishing buildings to high standards (fabric first approach).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Changes to MEES legislation
  • Tenant demands for decarbonisation
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: EPRA sBPR, TCFD

Certifications: BREEAM

Third-party Assurance: CBRE's Investor ESG team (no third-party verification)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:331 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:17.23 tCO2e/year
Scope 2 Emissions:324 tCO2e/year
Scope 3 Emissions:18,668 tCO2e/year (estimated)
Renewable Energy Share:4% of buildings with PV cells installed
Total Energy Consumption:1,713,554 kWh/year
Water Consumption:697,994 m3/year
Waste Generated:122,725 tons/year
Carbon Intensity:3.43 tCO2e/m2/year (Scope 1 & 2)

ESG Focus Areas

  • Energy performance
  • Climate change mitigation
  • Climate adaptation
  • On-site energy generation
  • Promoting nature on our sites

Environmental Achievements

  • Improved 37 EPC ratings, bringing 52% of the portfolio to an A/B rating.
  • All new energy contracts were zero carbon, and all new leases included green clauses.
  • Increased portfolio with PV cells from 2% to 4%, with conversations underway for an additional 8%.

Social Achievements

  • Partnership with Pablo’s Horse Sanctuary for land use.
  • Sponsorship of Corstorphine Cougars rugby club.

Governance Achievements

  • Achieved a GRESB score of 69 and an MSCI ESG rating upgrade from CCC to A.
  • Produced a TCFD-aligned report.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Improve all buildings to an EPC of B or above by 2028.
  • Develop a Scope 3 net zero plan.
Short-term Goals:
  • Achieve net zero Scope 1 and 2 emissions by 2024.
  • Install PV cells in >10% of buildings (by floor area) by 2024.

Environmental Challenges

  • Legacy energy contracts needing switching to zero carbon tariffs.
  • Unavoidable emissions due to the nature of operations.
  • Tenant operational energy consumption making up the vast majority of the total footprint.
  • Reliance on tenant responses for data on tenant-controlled assets.
Mitigation Strategies
  • Exploring carbon offsetting aligned with Oxford Principles for Net Zero.
  • Long-term ambition to generate own offsets.
  • Tenant survey to initiate engagement on decarbonisation.
  • Green clauses in all new leases to promote closer engagement on environmental goals.
  • Development of a Scope 3 net zero plan.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
Opportunities
  • Attracting premium occupiers with high environmental standards.

Reporting Standards

Frameworks Used: TCFD, EPRA sBPR

Certifications: BREEAM

Third-party Assurance: CBRE’s Investor ESG team (external checking and review, but not third-party assurance)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • GRESB 'most improved' award

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:222 tCO2e (Scope 1 & 2)
Scope 3 Emissions:22,385 tCO2e (estimated)
Total Energy Consumption:1,091,746 kWh

ESG Focus Areas

  • Climate Change
  • Energy Efficiency
  • Biodiversity
  • Governance

Environmental Achievements

  • Achieved operational net zero (Scope 1 and 2 emissions) in 2024 using high-quality offsets.
  • Improved EPC ratings: over 60% of the portfolio rated A or B, up from 22% three years ago.
  • Installed 1,199 kWp of new solar PV capacity, bringing the total to 1,595 kWp.

Social Achievements

  • Launched a project to understand Biodiversity Net Gain (BNG) potential on sites.
  • Tenant engagement initiatives to improve ESG performance of buildings (90% of respondents in a survey desired further collaboration).

Governance Achievements

  • Maintained a GRESB standing assets score of three stars, EPRA sBPR Gold and MSCI A rating.
  • Established an ESG Committee consisting of independent Directors to oversee ESG activities.

Climate Goals & Targets

Long-term Goals:
  • SBTi aligned Scope 3 net zero target.
Medium-term Goals:
  • Achieve an installed capacity of 3MWp of solar PV power by 2028.
  • Reduce carbon emissions from the portfolio on a per square metre basis by 2050.
Short-term Goals:
  • Improve all assets held for at least two years to an EPC of B by 2026 (two years ahead of MEES).

Environmental Challenges

  • Scope 3 emissions from tenant operations (vast majority of total footprint).
  • Improving EPC ratings of remaining 10% of units (D or below).
  • Managing flood risk.
  • Meeting Minimum Energy Efficiency Standards (MEES) requirements by 2030.
  • Achieving SBTi aligned Scope 3 net zero target.
Mitigation Strategies
  • Engaging with tenants to support their decarbonisation efforts and gather data for future Scope 3 targets.
  • Prioritising improvements to the 10% of units with D or below EPC ratings, focusing on removing gas heating, installing PV cells, and implementing energy efficiency measures.
  • Incorporating flood mitigation measures into site design for new developments and using insurance for short-term flood risks.
  • Improving EPC ratings two years ahead of MEES requirements.
  • Commitment to an SBTi aligned net zero goal within the next 24 months.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought stress
  • Heat stress
  • Precipitation stress
Transition Risks
  • MEES compliance
  • Biodiversity net gain requirements
  • Reporting compliance
  • Occupier behaviour
  • Decarbonisation of logistics sector
Opportunities
  • Higher occupancy rates and premium rents from sustainable properties.
  • Lower operating costs through resource efficiency and renewable energy.
  • Increased access to capital and lower borrowing rates.

Reporting Standards

Frameworks Used: GRESB, EPRA, MSCI, TCFD

Awards & Recognition

  • GRESB three-star rating
  • EPRA sBPR Gold award
  • MSCI A rating