After exceeding its 2020 sustainability strategy goal of reducing carbon intensity by 55% (compared with 2009 levels), British Land is pushing itself further with a new set of ESG targets.
This week the group revealed its 2030 sustainability strategy, which focuses on two key areas – creating a net zero carbon portfolio and delivering a place-based approach to social contribution.
The REIT has committed to having net zero embodied carbon in all developments delivered after April this year, reducing its embodied carbon in its developments by 50% to below 500kg of CO2e per sq m, reducing its operational carbon emissions by 75% and creating a transition fund, resourced by an internal carbon fee of £60 per tonne levied on new developments. The fund will be used to finance the retrofitting of its standing portfolio.
Chief financial officer Simon Carter said: “As we think about the future of our business, we’re increasingly focused on how we can deliver space which is both more sustainable and more inclusive.
“We’re taking a whole-life approach, but the overriding principles are to reduce, recycle and resource sustainably. We’ll only offset as a last resource.”
He said the transition fund would incentivise the business to reduce embodied carbon while funding resources to improve the efficiency of the standing portfolio.
“We’re seeing more and more evidence that sustainable buildings generate higher rents and lease more quickly than other prime space,” said Carter. “And, with more of our customers explicitly committed to reducing their emissions, we think this approach really enhances our offer. Already, we’re seeing the benefit of that in the conversations we’re having.
“Sustainability is a key part of our offer and our strategy. It’s what our customers want, and that means it goes hand-in-hand with delivering value for our shareholders.”
The social element of BL’s fresh commitment will see the group extend the work it has done with its Recruitment & Skills Centre at Fort Kinnaird in Scotland and Community Fund at Regent’s Place in London (pictured) across its entire managed portfolio.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
