We've set our roadmap to net zero carbon

Our Roadmap to Net Zero

May 2021

As the need for urgent action to respond to the climate crisis grows, and occupiers demand more sustainable spaces, we have set out our Roadmap to Net Zero, outlining how we plan to meet our ambitious 2030 target. With the bulk of our carbon footprint outside of our direct control, we are working together with our occupiers and supply chain to create innovative solutions and pioneer new technology to reduce our collective carbon emissions.

During the year, we created our Roadmap to Net Zero, setting out how we would decarbonise our business to become net zero carbon by 2030. In line with most property companies, the vast majority of our footprint is outside of our direct control. Therefore close, collaborative relationships with our occupiers and supply chain are of critical importance if we are to meet our net zero carbon goals.

Through the analysis of our baseline carbon footprint we estimate that, if we do nothing, our annual carbon footprint is expected to reach around 37,000 tonnes of carbon by 2030. Accordingly, our Roadmap sets out our approach to reaching net zero carbon by 2030:

1. Reduce embodied carbon

The majority of a building’s embodied carbon is emitted during construction, that’s the carbon required to manufacture and transport building materials to site and the construction process (around 40% of our carbon footprint). It can take 40 years or more to emit the same quantity of emissions during operation. We therefore have a target to reduce our embodied carbon emissions by 40% by 2030, and will ensure all developments are net zero carbon by the same date.

2. Reduce energy intensity

The purchase of energy on green tariffs is no longer enough. We need to improve energy efficiency and reduce consumption. The regulatory landscape is evolving fast. The government has announced its intention that by 2030, the minimum energy efficiency standard will be an EPC ‘B’ rating. This risks obsolescence for those buildings that do not comply. Therefore, we have set a stretching target to reduce our energy intensity by 40% by 2030, including occupier emissions.

3. Increase renewable energy supply

Buildings will always need some form of heating and cooling. Once the efficiency of these systems has been maximised, we need to ensure that they are powered through renewable energy supplies wherever possible. This means that we need to radically increase our on-site renewable power supplies, with a target to generate 600MWh p.a. across our portfolio by 2030. That’s approximately the annual energy consumption of 160 homes.

4. Offset residual emissions

Finally, and as a last resort, from 2030 we will offset our residual carbon emissions. We will look to utilise these offsets in our communities to create a lasting social impact, for example supporting those living in fuel poverty, investing in new local renewable energy projects and developing biodiverse spaces within London.

Decarbonisation Fund

In advance of 2030, we have created a Decarbonisation Fund to accelerate our progress. We will levy an internal carbon price of £95 per tonne against the Scope 1 and 2 operational emissions and against the embodied carbon from our development activities. The funds raised will support the deep retrofitting required to accelerate our transition. It will also provide the efficient spaces our occupiers want and build further climate resilience into our existing portfolio reducing the risk of stranded assets.

If we can move faster we will do so and we believe there are opportunities ahead if we succeed. We are already collaborating across our value chain to combine our expertise and, beyond 2030, we have an ambition to fully decarbonise by 2050.

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