Sustainability performance

For us, sustainability is about the actions we take to fulfil our purpose so Landsec prospers far into the future. We want customers to prefer our spaces. We want communities to be pleased it’s us operating in their area. We want partners to share our priorities. And we want employees to invest their energy and ambition here.

To deliver this we’ve set 22 sustainability targets, within our Build Well, Live Well Act well framework. This section includes a summary of our performance against those commitments and our key disclosures.

Build well

Decarbonising our portfolio transitioning to net zero

Targets and Metrics

Updated science-based carbon reduction target (SBT): achieve net zero emissions across the value chain by 2040
• Near-term target: reduce absolute Scope 1,2 and 3 GHG emissions by 47% by 2030 from a 2019/20 baseline
• Long-term target: reduce absolute Scope 1, 2 and 3 GHG emissions by 90% by 2040 from a 2019/20 baseline

2023/24 performance

24% absolute carbon reduction

Reduce average upfront embodied carbon by 50% compared with a typical building by 2030 by prioritising asset retention where possible, smart design and using sustainable materials

40% average upfront embodied carbon reduction across development pipeline

Updated energy intensity target: reduce energy intensity by 52% by 2030 (for properties under our operational control for at least two years) compared with a 2019/20 baseline

18% energy intensity reduction

Source 85% of total energy (electricity, gas, heating and cooling) consumption from renewable sources by 2030

68% total energy from renewable sources

Ensure 100% of assets located in areas highly exposed to climate risks have adaptation measures in place

Assets located in areas highly exposed to physical risks continue to ensure adequate protection and mitigation plans are in place, including Business Continuity and Emergency Response Plans

Enhancing nature and green spaces

Targets and Metrics

Deliver our nature strategy and associated targets across our operational assets and development schemes measuring progress against our three principles:
• Improving biodiversity in the built environment: Biodiversity net gain (BNG)
• Promoting health, well-being and community engagement: Environmental Benefits for Nature (EBN)
• Creating nature-based solutions to mitigate and adapt to climate change: Urban Greening Factor (UGF)

2023/24 performance

This year we published our new nature strategy and suite of updated targets.
• Operational assets: performance against all metrics to be reported every 2 years with next update due 2025/26
• Developments: performance to be reported on project completion basis

Using resources efficiently

Targets and Metrics

For every development, source 100% of core construction materials from ethical and sustainable sources, extending this across our full supply chain in due course

2023/24 performance

100% of core construction materials with a responsible sourcing certification

Promote reuse and circular economy principles and achieve at least 75% annual recycling rate across our portfolio and new developments

• Recycling across operations: 66%
• Recycling across new developments: 99.5%

Undertake water management assessment across assets under our operational control, ensuring water is used efficiently

For operational assets, the water management assessments carried out last year continue to help shape our water strategy for both workplace and retail portfolios.

For new developments, we follow our Sustainable Development Toolkit to incorporate water efficiency, and explore the use of water recycling strategies.

To see all our Build Well, Live Well and Act Well targets, please click here.

Live well: targets and performance

Creating opportunities and tackling local issues

Targets and Metrics

From a 2019/20 baseline, empower 30,000 people facing barriers into employment with the skills and opportunities to enter the world of work by 2030

2023/24 performance

• 10,249 people facing barriers supported into employment since 2019/20

• 3,182 people supported through Landsec Futures in 2023/24

From a 2019/20 baseline, deliver £200 million of social value in our local communities by 2030, addressing social issues relevant to each area

• £54m of social value delivered since 2019/20

• £28m of social value delivered in 2023/24

Inclusive places

We will design, develop and manage our assets and new developments to be accessible ensuring everyone feels like they belong.

This year to make our places more inclusive and accessible we:
• added a new Inclusion Index to our employee engagement survey to measure progress in creating an inclusive culture
• made D&I criteria part of our procurement process
• introduced requirements for disability training for customer-facing staff
• rolled out stoma-facilities across our retail portfolio
• celebrated the diversity of our communities through events for Pride, Eid, Purple Tuesday and Black History Month

Actively recruit, retain and progress a diverse workforce at all levels and nurture and support diverse talent into the wider real estate industry Gender targets by 2030: 40:40:20* 

Ethnic minority representation targets by 2030:
• Board (20%)
• Executive (20%)
• Senior Leader (18%)
• Leader (18%)

* Our 40:40:20 gender diversity targets mean that we will have a minimum of 40% women and 40% men in the relevant population. 20% is flexible accounting for the small headcount and diversity beyond the gender binary.

Gender diversity:
• Board: 40% female/ 60% male
• Executive: 40% female/ 60% male
• Senior Leader: 38% female/ 62% male
• Leader: 36% female/ 64% male

Ethnic minority representation:
• Board: 10%
• Executive: 10%
• Senior Leader: 0%
• Leader: 7%

Improving wellbeing

Targets and Metrics

Promote a culture which enhances Landsec colleagues’ wellbeing, having relevant policies and delivering impactful campaigns

2023/24 performance

This year we introduced improved benefits to support working parents including:
• increased partners leave from 2 weeks full pay to 6 weeks full pay
• introduced up to 4 weeks paid leave for those undergoing fertility treatment
• introduced better support to help those returning from 26 weeks or more family-related leave

Achieve WELL portfolio programme annually for our directly managed office portfolio and new developments setting a baseline score against which we will aim for continual improvement

This year we:
• continued to roll out the International WELL Building Institute’s (IWBI) WELL Portfolio programme across our operational assets
• achieved WELL Core Platinum on eight assets
• were awarded WELL Equity Rating and WELL H&S Rating at 16 of our assets

Act well: targets and performance

Embedding ESG

Targets and Metrics

All Landsec colleagues to have individual objectives to support the delivery of Build well, Live well, Act well with a proportion of remuneration linked to our energy and carbon targets.

2023/24 performance

Landsec colleagues commit to setting sustainability objectives as part of our sustainability training and ESG metrics are included in the Long-Term Incentive Plan (LTIP) and Annual Bonus Plan for Executive Directors and employees.

Build relationships with our customer base (office and brand partners), establishing partnerships to drive improved sustainability performance for mutual gain

Since 2021/22 we have completed 38 energy audits for our highest energy-consuming office occupiers, accounting for 56% of our total tenant consumption across our office portfolio. We identified potential annual energy savings of 10-40% for the majority of customers.

Of the first 18 occupiers participating in the customer engagement programme, overall they have achieved a 20% electricity reduction compared to 2019/20.

Doing the basics brilliantly

Targets and Metrics

Build relationships with our strategic suppliers ensuring compliance to our Supplier Code of Conduct and enhancing sustainable practices throughout our supply chain

2023/24 performance

We continue to work with our suppliers to achieve our sustainability commitments and support positive change beyond our own business. Since publishing our Supply Chain Commitment in 2022, over 300 suppliers have signed up, which includes almost 80% of our strategic suppliers.

Provide safe, healthy and secure environments for those who work, visit, live and relax across our managed portfolio, maintaining ISO 45001 and BS 9997 certifications, as well as continually going beyond compliance delivering data-led and risk-prioritised improvement actions and leading the industry on fire safety

This year we maintained our ISO 45001 certification, having undergone a full certification re-assessment by independent auditors.

We undertook a project during the year to identify whether reinforced autoclaved aerated concrete (RAAC) was present in our portfolio.

We have also maintained our fire-safety management-system certification to the BS 9997 standard.

Ensure all colleagues have read, understood and are following our Code of Conduct and underlying policies and standards which set out how we do things building on the foundations of our purpose and values

This year, we have refreshed our employee code of conduct, updating our policies and content on harassment and bullying, inside information, buying and selling Landsec shares, staying cyber-secure and speaking up.

Pay our colleagues the Real Living Wage and work with our suppliers to do the same

We continue to pay all our direct employees the Real Living Wage and encourage our suppliers to pay all those who work on our behalf the Real Living Wage. This year, as part of our new operations model and the implementation of our Future of Facilities Programme we welcomed new specialist facilities management partners who are committed to paying their colleagues the Real Living Wage as a minimum.