Climate Change Data

Environmental Metrics

ESG Focus Areas

• Championing low-carbon growth
• Investing in our local communities and environments
• Nurturing talent

Environmental Achievements

• Reduced absolute Corporate and Customer carbon emissions by 13% since 2020 (3% since 2021) to 272,218 tonnes CO2e.
• Reduced Corporate and Customer carbon intensity to 22.5 kgCO2e per sq m (2021: 27.9 kgCO2e).
• Increased on-site renewable energy capacity to 44 MW (2021: 35 MW), adding almost 6 MW at a single site in the Netherlands.
• Improved energy data visibility to 68% of total property floor area (2021: 54%).
• Average embodied carbon intensity of developments reduced by 12% from 2020 baseline to 353 kgCO2e per sq m.

Social Achievements

• Launched ten Community Investment Plans (CIPs) across the UK and Continental Europe.
• Record number of SEGRO employees (68% of workforce) volunteered 387 days, along with 95 volunteers from customers and suppliers.
• Signed the first Community Charter in Southern Paris, bringing together local authorities, customers, and charities.
• Launched the first phases of SEGRO mentoring programs in the UK and France.
• Achieved top quartile employee engagement score of 91%.

Governance Achievements

• Linked employee variable remuneration to performance on ESG metrics, including Corporate and Customer emissions, embodied carbon, and customer energy data visibility.
• No material reported incidents of breaches of the Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• High gas use by customers in Poland.
• Limited control over customer emissions (only 1% of SEGRO's emissions are corporate emissions).
• Data gaps in energy consumption data across the portfolio.

Mitigation Strategies

• Introduced standardized green lease clauses requiring customers to share energy data and commit to zero-carbon electricity tariffs.
• Upgraded over 200 customer meters to automatic meters.
• Implemented an ongoing maintenance and refurbishment program to improve energy efficiency.
• Increased on-site renewable energy capacity.
• Investing in SEGRO’s Group Sustainability Team.

Supply Chain Management

Supplier Audits: Annual supplier compliance assessment process

Responsible Procurement

• Supplier Code of Conduct
• Focus on low-carbon materials and techniques in development projects

Climate-Related Risks & Opportunities

Physical Risks

• River flood
• Precipitation stress
• Drought stress
• Heat stress

Transition Risks

• Environmental legislation
• Customer behaviours
• Access to capital

Opportunities

• Onsite renewable energy generation
• Landscaping for carbon capture
• Electric vehicle charging infrastructure

Reporting Standards

Frameworks Used: GRI, TCFD, EPRA sBPR, Workforce Disclosure Initiative, SASB

Certifications: BREEAM, DGNB

Third-party Assurance: SLR Consulting (partial assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient buildings
• Buildings with on-site renewable energy generation

Awards & Recognition

Not disclosed

Environmental Metrics

ESG Focus Areas

• Championing low-carbon growth
• Investing in our local communities and environments
• Nurturing talent

Environmental Achievements

• A seven per cent reduction in corporate and customer emissions, putting us a year ahead of plan.
• Significant reductions in our embodied carbon, putting us three years ahead of plan.
• 19 per cent increase in the visibility we have of our customer energy data.
• 92 per cent of our development completions were rated BREEAM 'Excellent' or higher.
• Our first BREEAM 'Outstanding' refurbishment in our London portfolio.
• A record 15 MW increase in our solar capacity.

Social Achievements

• Pilot project with LandAid inspires launch of national employment programme
• First jointly funded project with Heathrow Airport
• New Community Investment Plan launched in Amsterdam
• Record number of SEGRO employees, customers, and suppliers volunteering
• Improved outcomes across all community projects

Governance Achievements

• Invested in building capability for the future
• Engaged employees in how we enable the extraordinary at our Group Conference
• Launched our Behaviours, which bring to life our established Values
• Established diversity goals, with supporting action plan

Climate Goals & Targets

Environmental Challenges

• Responsibility for sourcing energy and monitoring use rests with our customers for the majority of our portfolio.
• Obtaining good quality energy data and prompting our customers to purchase renewable energy is paramount.
• Data collection challenges related to embodied carbon from refurbishments.
• Data protection legislation in a number of the countries in which we operate makes gathering ethnicity data challenging.

Mitigation Strategies

• Introduced a standardised green lease clause, asking our customers to share their energy data with us and commit to procuring a zero-carbon electricity tariff.
• Rolling out automatic meters to facilitate the data collection process for us and our customers.
• Improved methodology for calculating the extent of space under our control and estimating energy use in vacant spaces.
• Established internal targets for gender and ethnic minority representation deeper within our organisation.
• Established robust plans to support us in achieving both our gender and our ethnicity leadership team and leadership pipeline representation targets.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Embedding social value into SEGRO’s procurement process

Climate-Related Risks & Opportunities

Physical Risks

• River Flood
• Precipitation Stress
• Drought Stress
• Heat Stress

Transition Risks

• Environmental legislation
• Customer behaviours and preferences
• Access to capital

Opportunities

• Onsite renewable energy generation
• Landscaping
• Customer behaviour (EV charging)

Reporting Standards

Frameworks Used: GRI, TCFD, EPRA, Workforce Disclosure Initiative, National Equality Standard, Parker Review, FTSE Women Leaders

Certifications: BREEAM

Third-party Assurance: SLR Consulting (limited independent assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)

Sustainable Products & Innovation

• Energy-efficient buildings
• Buildings with solar panels and EV charging