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

Reduce operational carbon emissions (tCO2e) by 70% by 2030, for property under our management for at least two years (compared with a 2013/14 baseline).

FY21/22 performance

52% operational carbon reduction.

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

New target – performance to be reported next year.

Reduce energy intensity by 45% by 2030 (compared with a 2013/14 baseline).

34% energy intensity reduction.

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

66%

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

For assets located in areas highly exposed to physical risks we 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

Achieve a 25% biodiversity net gain by 2030 across our operational sites currently offering the greatest potential (2016/17 baseline).

FY21/22 performance

13% biodiversity net gain.

Achieve a 15% uplift in biodiversity for all new developments by 2030.

New target – performance to be reported next year.

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.

FY21/22 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: 71%

Recycling across new developments: 99.5%

Undertake water management assessment across assets under our operational control and set water targets by 2023.

New target – performance to be reported next year.

Live well: targets and performance

Creating opportunities and tackling local issues

Targets and Metrics

From a 2020 baseline, empower 30,000 people facing barriers into employment with the skills and opportunities to enter the world of work by 2030.

FY21/22 performance

1,802 people empowered towards the world of work including:

- Total number of people supported into employment or received employability support: 1,040

- Total number of young people engaged through our education programmes and careers sessions: 762

Please note: this doesn’t include people supported through our development activities as this is a new target and will be included next year.

From a 2020 baseline, deliver £200 million of social value in our local communities by 2030, addressing social issues relevant to each area.

£5.1m of social value delivered including:

  • - Social value created through supporting people into employment: £2.4m
     
  • - Social value created through volunteering: £195,000
     
  • - Total value of support for charitable partnerships: £2.5m


Please note: this doesn’t include social value created through our development activities as this is a new target and will be included next year.

Inclusive places

Targets and Metrics

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

FY21/22 performance

This year we achieved Disability Confident certification at a number of our assets, with five sites receiving Disability Confident Leader certification. Received a Stonewall Bronze Employer Award and introduced a ‘transitioning at work’ policy.

Accelerate diverse representation across all levels at Landsec:

- 2025 target for female representation: 50% whole organisation; 50% Board, Exec and Senior Leaders; 40% Leader.

- 2025 target BAME representation: >14% whole organisation; 14% Board, Exec and Senior Leaders; 14% Senior leaders.

- Sexual orientation: achieve appropriate accreditation as a welcoming place to work for everyone irrespective of sexual orientation.

- Disability: Achieve appropriate accreditation as a welcoming place to work for everyone irrespective of physical ability.

51% of our employees are female and ethnic minority representation is 17%. Our female representation is 35% at leader level and 30% at senior leader level. Our ethnic minority representation is 10% at leader and 3% at senior leader level.

Improving wellbeing

Targets and Metrics

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

FY21/22 performance

This year we launched an information hub to provide access to all wellbeing support including our employee assistance programme, our virtual GP, documents and apps. We continue to encourage individuals to focus on their physical and mental health and provide ongoing training to our 18 mental-health first aiders.

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.

In 2021 we became the first UK REIT to sign up to the WELL Portfolio Programme.

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.

FY21/22 performance

This is the first year that we have linked a proportion of all colleagues’ remuneration to the delivery of our energy and carbon targets. In 22/23, we’re encouraging all Landsec colleagues to set individual objectives to support achieving our vision.

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

This year we have engaged over 80 of our office customers on their sustainability plans and investigated opportunities for collaboration. Additionally, we have conducted ‘energy deep dives’ with 15 occupiers to identify opportunities for energy reduction.

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.

FY21/22 performance

All strategic suppliers are asked to comply with our Supplier Code of Conduct which sets out our minimum expectations on how we expect our suppliers to act in relation to fairness, wages, diversity, equality and inclusivity. Additionally, all strategic suppliers are expected to operate our sites with respect to Landsec’s policies on health and safety, anti-harassment and bullying, diversity and inclusion.

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.

All our properties operate within a safety-management system certified to ISO 45001, and we continue to conform to it. This year we achieved certification to BS 9997 for our fire risk management system, and produced clear requirements for our development projects in anticipation of the Building Safety Act.

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.

No. of grievances raised: 2

No. of whistleblowing incidents: 0

During the year, we have refreshed our employee Code of Conduct which provides guidance on how to do the right thing and behave in the right way and highlights the key policies that all our employees must follow.

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 will keep our accreditation with the Living Wage Foundation under regular review over the coming year as the UK economy continues to emerge from the pandemic.

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