Land Securities : commits to ambitious science-based carbon reduction target

17 June 2016

Land Securities is at the forefront of sustainability innovation in the UK property sector and has become the first commercial real estate company in the world to announce it has set a science-based target for carbon reduction.

This comes just two months after becoming the first property company in the UK to switch to 100% renewable electricity.

Global leaders from 195 countries committed to limit global warming to a maximum increase of two degrees at COP21 in Paris last year. To help achieve this goal Land Securities has worked with the Carbon Trust to calculate a carbon reduction target which is consistent with what the best available science says will be necessary.

The new target was calculated using the Sectoral Decarbonisation Approach methodology developed by the Science Based Target Initiative. This allows companies across a wide range of economic sectors to calculate carbon reduction targets which fit within the 2 degree warming scenario based on the most robust and credible data-sets.

Land Securities and the Carbon Trust calculated the required decarbonisation for both the entire commercial real estate sector and the Land Securities portfolio. Using this ground-breaking analysis the company set an ambitious target of achieving 40% reduction in the carbon intensity in property under management for at least two years by 2030 when compared with a 2013/14 baseline. This is measured in kilograms of carbon emissions per square metre.

In order to drive these carbon emission reductions Land Securities will also reduce energy intensity by 40% by 2030 in the same buildings. This will set Land Securities on the trajectory needed to achieve the 80% reduction in carbon emissions in property required by 2050.

Land Securities recognises that to be truly sustainable, landlords also need to look beyond their directly controlled areas to how their customers use energy. The new target therefore includes all energy procured by Land Securities on behalf of their customers.

The target has been submitted to the Science Based Target Initiative for review, and Land Securities will make the methodology public to share best practice with other companies in the sector.

Robert Noel, Chief Executive of Land Securities, said: 'The introduction of such an ambitious science-based target for carbon reduction not only demonstrates Land Securities' leadership and commitment to sustainability but also signals our intent to work collaboratively to address this global challenge. I hope that by sharing our methodology we can encourage others to follow suit.'

Hugh Jones, Managing Director, Carbon Trust Business Services, said: 'Land Securities is showing real leadership on climate change. This goes beyond aiming for what is merely possible or economically attractive today, looking at what will actually be required if we are to keep global warming to no more than two degrees, or potentially less. If everyone does just a little bit, we won't meet global targets on carbon emissions. Companies that announce big ambitious goals can set an positive example to governments, regulators and other businesses, showing that it really is possible to be low carbon and profitable at the same time. This helps raise the bar and drives the stronger, faster action that we will need across all sectors of the economy. '

Julie Hirigoyen, Chief Executive, UK Green Building Council, said: 'Land Securities' target represents true leadership - not just within the property sector but also within the business community at large, which is much needed in the absence of an ambitious UK policy framework. It's hugely encouraging that Land Securities, one of UK Green Building Council's (UK-GBC) Gold Leaf Members, should recognise the link between stretching carbon reduction targets and energy efficiency, productivity and innovation.'

-Ends-

Notes to editors:

Sustainability is already key to the design, construction and management of Land Securities' assets. Highlights include:

• Installation of the first hydrogen fuel cell in the City of London at 20 Fenchurch Street, EC3. This innovative technology produces electricity for the building through an extremely clean and reliable process. The building also has roof-mounted solar panels.

• Retrofitted PV with a 300kWp array at Gunwharf Quays, Portsmouth.

• Plans to retrofit PV at other key assets, including White Rose, Leeds which would create the UK's largest shopping centre solar scheme with an array of over 785kWp which is around 20% of the entire landlord consumption for the site.

• Our Westgate development in Oxford has a 45-point sustainability implementation plan to support its objective to be the greenest shopping centre in the UK. The development also aims to be the lowest whole life carbon retail destination with an ultra-low embodied carbon reduction target of over 25,000 tonnes.

• In April 2016 Land Securities became the first property company in the UK to switch to 100% renewable electricity. The new contract with SmartestEnergy is backed by REGOs (Renewable Energy Guarantees of Origin certification) and provides fully renewable power for a competitive price and great service levels.

• Rolled out a company-wide training programme on why Sustainability Matters.

Land Securities

Land Securities is the UK's largest listed commercial real estate company. Our £14.5 billion portfolio totals 23.6 million sq ft and includes some of London's most desirable office buildings and the UK's most successful shopping and leisure destinations.

We are the biggest office developer in London, where we own and manage a portfolio totalling more than £8.2 billion. Our relentless customer focus delivers vibrant working environments, both in our developments and through thoughtful asset management, which resonate strongly with businesses looking to attract and retain top talent. In the City, our 1.7 million sq ft of real estate includes the award-winning New Ludgate scheme, and the landmark 20 Fenchurch Street. In the West End, our expertise in placemaking and public realm has seen the transformation of Victoria, SW1 into a vibrant destination that is attracting global businesses and visitors alike.

In Retail, our commitment to creating an outstanding consumer experience, combined with the strength and resilience of our 17.5 million sq ft of assets, means we provide the space where consumers want to shop and retailers want to be, both now and in the future. Our focus on collaborating with our retailers and anticipating consumer needs not only delivers an unrivalled experience for our customers, but our footfall and sales figures consistently outperform the industry benchmarks.

Whether in offices or retail, sustainability is key to everything we do. For us, being a sustainable business means ensuring Land Securities remains healthy and successful for years to come. To achieve this we need the support of our customers, communities and partners. That's why we lead the way on sustainability in the UK listed real estate sector by focusing on three key areas: creating jobs and opportunities through our award-winning Community Employment Strategy, which has put 779 disadvantaged people into employment since 2011; efficient use of natural resources; and sustainable design and innovation.

Land Securities delivers value for our shareholders, great space for our customers and positive change for our communities.

For further information:

Molly Neal
Land Securities Group PLC
T: +44 (0)20 7024 5460 / 07809 341 377
molly.neal@landsecurities.com

Land Securities commits to ambitious science-based carbon reduction target