As with our Group KPIs, sustainability informs all of our principal and emerging risks.
Failure to properly consider and act upon the environmental and social impact of our activities, leading to negative impact on our reputation, delays in our development activities, poor relationships with our customers or erosion of shareholder value.
Current principal risks relate specifically to: sustainability and health, safety and security. Emerging risks include topics such as the Living Wage; Modern Slavery Act; resilience of the portfolio to climate change; and energy supply.
Strategic objectives relating to effective risk management of sustainability related risks include:
- Deliver sustainable long-term shareholder value
- Continually improve sustainability performance
The inherent risk has increased, to reflect a global increase in the risk of failure of climate change mitigation and adaptation. The net risk is unchanged reflecting a better understanding of the risk and improved mitigations. See our resilience page for more details on how we’re assessing these risks and our 2017/18 Performance Data Report for our climate change risk disclosure.
Resilience is becoming a major consideration for businesses with impact on insurance, valuation and rents already starting to show in many countries. Landsec are leading the way by committing to protecting their properties and customers from the impacts of climate change as these risks become more apparent."
Partner, Catastrophe and Climate Risk Management, Willis Towers Watson