41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 129
STRATEGIC REPORT
GOVERNANCE
The Sustainability Committee also monitors how our
science-based target reductions in carbon emissions will
be delivered through a significant reduction in energy
use and property specific asset transition plans, which
were completed during 2022. These asset transition
plans specify the physical improvements to building
fabric and services and their impact on carbon emissions,
energy consumption, utility costs and EPC compliance in
accordance with Minimum Energy Electricity Standard
(MEES) targets. For new developments, the Sustainability
Committee has initially targeted at least a 33% reduction in
the embodied carbon of new buildings (from the materials
and construction process) with a view to achieving a
48% reduction by 2030 to achieve the RIBA 2030 Climate
Challenge benchmark of 625kgCO2, where possible. In
addition, the Committee is looking towards a 75% reduction
in operational energy use on completed schemes again in
line with the RIBA 2030 benchmarks.
FINANCIAL STATEMENTS
During 2022, the Group reviewed our revolving credit
facility and the three KPIs linked to our environmental
and social initiatives, namely: (1) targeted reductions in
Scope 1 & 2 carbon emissions, (2) improvements in the %
of assets with an A–C EPC rating and (3) the value of social
investments made by the business, including the Unite
Foundation. We extended the revolving credit facility by a
period of 12 months to ensure continued alignment with
our wider sustainability commitments.
Key focus areas for 2023
Looking ahead to 2023, the Sustainability Committee will:
•
Continue to oversee the embedding and implementation
of the sustainability strategy with regular reviews of
sustainability targets, performance and investment
activity linked to sustainability-related objectives.
•
Oversee increased engagement with employees around
sustainability, with a view to enabling them to play a
greater role in delivering the Group’s sustainability
objectives.
•
Monitor and oversee the student behavioural change
pilot, MyFootprint.
•
Oversee the ongoing commitment to invest 1% of annual
profits into social initiatives.
Our approach
Our goal is to lead on sustainability and raise
standards in the living sector. Our governance and
processes ensure that we always operate with integrity
and transparency.
With input from the Sustainability Committee, the business
continues its compliance with the Taskforce on Climaterelated Financial Disclosures (TCFD) and maintained a stable
Global ESG Benchmark for Real Assets (GRESB) rating, with
the business ranked second among listed residential real
estate companies. The Sustainability Committee notes
that while the GRESB rating was just below the Threshold
target set for the financial year, positive progress was
made in a number of areas. The MSCI rating has also been
reconfirmed at AA in the 2022 review (2021: AA).
Alongside Governance, oversight of compliance with EPC
regulations remains a key focus for the Sustainability
Committee and the tightening of minimum standards to
“B” by 2030 in England and Wales, and “C” by 2027 (2025 in
Scotland). Following the UK Government’s official update
to the EPC methodology, 80% of the Group’s floorspace
is rated A–C, and 100% is fully compliant with current
regulations. The Sustainability Committee steered the
completion of asset transition plans for every property
which helped determine the investment required to ensure
ongoing EPC compliance, alongside reductions in energy
consumption, carbon emissions and utility costs. These
investments include a variety of improvement measures
such as LED lighting, heating controls and air source
heat pumps.
OTHER INFORMATION
Dame Shirley Pearce
Chair – Sustainability Committee
28 February 2023
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