MAKING SUSTAINABLE DECISIONS
Real estate is a carbon intensive sector, so we're taking actions to minimise our carbon emissions, as well as enhancing nature and the wider environment. It's the right thing to do and also makes business sense. Our customers value sustainability, wanting spaces that support their climate goals, making greener spaces more desirable.
As we continue on the path to net zero, we’ve developed clear targets that shape how we build and manage properties, encourage us to think differently, help us work in harmony with nature and that make cutting carbon simpler.
Our 2030 commitments
DECARBONISING OUR PORTFOLIO
Since we set our targets and launched our strategy in 2020, we’ve made great progress.
With real estate accounting for 26% of global energy-related carbon emissions, all of us working in the industry have a responsibility to support the transition to a low-carbon economy.
In taking action, we’ve reduced embodied carbon in our new developments and the carbon intensity of our operations.
We’ve also lowered water use at our places and are reusing, composting and recycling more, while delivering new projects creating places that encourage biodiversity.
This work is reflected in our 5* Global Real Estate Sustainability Benchmark rating for both the Standing Investments and Development benchmarks – identified as European Sector Leader for Standing Investments and Global Sector Leader for Development.
FOCUSING OUR EFFORTS
Our Greener Spaces commitments cover a number of focus areas that are most material to our work – from cutting emissions and growing climate resilience to boosting biodiversity, rethinking waste and saving water. Together, these help us make an impact as efficiently and effectively as possible.
You can find more detail on our performance in our Sustainability Progress Report.
Decarbonisation
Our decarbonisation work reduces both embodied and operational carbon. Embodied carbon encompasses all the emissions from creating, maintaining and eventually deconstructing our buildings. Operational carbon covers all the emissions from running our buildings, including energy for heating, cooling and lighting. To cut embodied carbon, we’re reusing and recycling as much as possible, designing lean and using low carbon materials. To improve operational efficiency, we're retrofitting heat pumps in our buildings, installing responsive LED lights and investing in the latest technology developments, including renewables. Our Transition Vehicle finances energy efficiency retrofitting projects across our standing portfolio and carbon credits to offset residual embodied carbon in our developments. Established in 2020, it is funded by our internal carbon levy, which is currently £90 per tonne on embodied carbon in developments, and an additional £5m annual float.
Our decarbonisation work reduces both embodied and operational carbon. Embodied carbon encompasses all the emissions from creating, maintaining and eventually deconstructing our buildings. Operational carbon covers all the emissions from running our buildings, including energy for heating, cooling and lighting. To cut embodied carbon, we’re reusing and recycling as much as possible, designing lean and using low carbon materials. To improve operational efficiency, we're retrofitting heat pumps in our buildings, installing responsive LED lights and investing in the latest technology developments, including renewables. Our Transition Vehicle finances energy efficiency retrofitting projects across our standing portfolio and carbon credits to offset residual embodied carbon in our developments. Established in 2020, it is funded by our internal carbon levy, which is currently £90 per tonne on embodied carbon in developments, and an additional £5m annual float.
Nature
As a society, we’re facing a nature loss crisis. As well as the important role natural spaces play within our complex ecosystems and in supporting biodiversity, they support the health and wellbeing of people in our places. We have nature targets and requirements for both our developments and managed assets, including a biodiversity net gain target of at least 15% for new developments. We’re also working to finalise our Nature Strategy, which will introduce new targets.
Climate resilience
We continue to futureproof our portfolio for climate resilience. Our Climate Resilience Action Plans for our places cover flood risk management, thermal comfort and nature-based strategies as appropriate. Our net zero carbon strategy also futureproofs our portfolio under future climate scenarios.
Circular economy
We aim to accelerate the transition to a circular economy, working towards zero waste. This includes prioritising reuse and recycling across all our places and sourcing all construction materials from ethical and sustainable sources. In reducing embodied carbon, our number one priority is to use less – retaining existing building components, reusing materials and focusing on design efficiency.
Water use
We aim to minimise water use, optimising efficiency and maximising opportunities for rainwater and greywater recycling. Our Sustainability Brief for our Places sets out our targets to reduce modelled potable water use on new developments. We will develop targets for standing assets in 2025, following the release of Science Based Targets Network (SBTN) freshwater targets.
EPC ratings
Energy Performance Certificates (EPCs) are one measure of the modelled energy efficiency of properties. British Land has a strong track record of improving actual operational efficiency and has set challenging targets to drive further progress. Across our managed portfolio, the majority of our assets have a net zero plan and 58% of our portfolio is now rated EPC A or B. This is up from 45% at FY23.
Our Approach to EPCs