Climate change & carbon
For the benefit of customers, society and our investors, addressing carbon emissions and increasing energy efficiency is the sensible thing to do.
Through our commitments and targets, we’re supporting the transition to a low-carbon world, creating benefits for our bottom line, reducing our customers’ costs and bringing our partners along with us.
Reducing our emissions
In 2016 we became the first commercial real estate company in the world to have its carbon emission target approved by the Science Based Targets Initiative, linking our targets with the science of climate change.
As of August 2019, we achieved our 2030 target 11 years early, reducing our carbon intensity by 45.5% since 2014. In line with our aim to lead our sector, in 2019 we became the first UK REIT to increase the ambition level of our science-based carbon reduction target, aligning it to a 1.5 degree scenario. Our externally approved science-based target (SBT) will see us reduce our absolute carbon emissions by 70% from a 2014 baseline over the next eleven years.
Becoming a net zero carbon business
As a leader in our sector, we’ve committed to becoming a net zero carbon company by 2030. Our ambitious SBT is one of several steps we are taking to ensure we become net zero.
To become net zero business we are also taking the following actions:
- Using a shadow price of carbon, at £80 per tCO2e, for all investment decisions so that our Investment Committee are able to see the carbon cost, as well as the financial cost of commercial decisions. This will enable the business to drive investment decisions towards lower carbon outcomes.
- Continuing to reduce the carbon emissions associated with construction activities, with all future developments being net zero schemes. This means careful analysis and selection of every raw material. The business will aim to avoid materials with a high carbon intensity, such as traditional steel and concrete, instead using materials with a high recycled content or with an inherently low carbon profile, such as engineered timber.
- Reducing the amount of energy used to run buildings across the Landsec portfolio and install renewable power sources, such as solar PV, where possible. Landsec’s energy intensity target aims to achieve a 40% reduction by 2030.
Tackling our full carbon footprint
Although we’re making good progress on reducing our own emissions, we recognise that we also have an important role to play in influencing emission reduction of our supply chain and customers.
Every year we report on the entire range of measurable carbon emissions associated with our business. These include the ones we control, like when we use energy to heat and power our head office or the landlord-controlled spaces within our properties, as well as emissions indirectly associated with our business, like the embodied carbon emissions produced by construction companies and suppliers when they work with us to develop a property.
We’ve set targets for reducing these indirect emissions by encouraging all our main contractors to set science-based targets, and by working with our customers who occupy our buildings to reduce their energy use and create lower-carbon spaces.
Landsec is showing great leadership within the global property industry, positioning itself to future-proof growth as the world transitions to a low-carbon economy"
Member of the Science Based Targets initiative steering committee, CDP