41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 71
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES
The Board recognise the scale of the challenge posed by
climate change, its potential impact on real estate and
the urgent need to take mitigating action. With the built
environment accounting for c.40% of global greenhouse
gas emissions, we also recognise our responsibility to
do what we can to minimise our carbon footprint and
encourage our customers to do the same. We have set out
a detailed pathway to achieving net zero carbon by 2030,
are committed to improving our buildings’ energy efficiency
and helping our customers adopt sustainable living habits
which will stay with them for life. This is a goal shared by
our investors, customers, suppliers and people. As part of
our Sustainability Strategy we have set carbon reduction
targets which have been validated as 1.5°C, aligned by the
Science Based Targets initiative (SBTi), an operational energy
efficiency target aligned with the CRREM 1.5°C UK Multifamily Residential trajectory, and have committed under
the RE100 initiative to source 100% of our electricity from
renewable sources by 2030.
We have complied with the requirements of LR 9.8.6R by
including climate-related financial disclosures consistent
with the TCFD recommendations, recommended disclosures,
2021 implementation guidance, and supplemental
disclosures for non-financial groups in this section and other
parts of this Annual Report where cross referenced.
We undertook a comprehensive materiality assessment of
sustainability topics and issues in 2020, and have continued
to engage with key stakeholders to ensure we stay focused
on the most important issues, and report on them in line
with their views and our own commitments. During 2022
we held a sustainability roadshow for investors, to update
them on the Group’s climate performance and priorities,
and hear their views on our sustainability strategy and
performance, particularly regarding our commitments
on climate change. The Board also considers feedback on
our ambition and performance from investors, students,
universities, employees and local communities, to ensure
we remain focused on the most material issues. This
ongoing process of stakeholder engagement, feedback,
and materiality assessment directly informed our first
sustainability strategy published in 2020 and its evolution
into our approach to sustainability reporting detailed on
pages 56 and 58–65; it continues to guide our approach while
planning, implementing, and reporting on our sustainability
strategy and progress.
Governance
Our Chief Executive has overall responsibility for our
climate-related risks and opportunities with ongoing
oversight of climate-related issues delegated to the
Sustainability Committee, a sub-Committee of the Board.
Our Sustainability Committee meets four times per year
to maintain Board oversight of environmental, social and
governance issues, and hold the business to account for
performance in this area including the management of
climate-related risk. Climate risk and performance, including
our plans for achieving and progress towards our 2030 net
zero carbon target, are reviewed by the Committee. Further
details of the Committee’s activity during the year are set
out in the Sustainability Committee Report on page 125.
The Board also undertakes a twice-yearly formal risk review
(see pages 77–87) which includes climate-related risks.
Relevant climate-related risks and opportunities are
considered during business planning, proposals and
investment cases prepared for submission to the
Management Boards (the Property Leadership Team and
Customer Leadership Team), the Executive Committee and
the Sustainability Committee, ensuring both management
and the Board have visibility over climate-related risks
and opportunities, and can consider them in planning and
decision making.
Our performance against the annual sustainability
investment budget is reported as a standalone spend
category showing detailed performance against budgeted
levels on a monthly basis. During 2022 the Board specifically
considered climate risk through the transition costs of
meeting future EPC standards and exposure to utility prices,
when it appraised a potential major acquisition.
The Remuneration Committee sets performance objectives
linked to all employees’ bonuses and incentive schemes,
with a number of climate and sustainability metrics
including GRESB rating, energy intensity, EPC ratings and our
employee Positive Impact scheme contributing to overall
remuneration. Details of the Executive Director bonus and
LTIP components, including the weighting and targets can
be found on page 132. Performance against the 2022 bonus
targets can be found on page 152.
Members of the Sustainability Committee are informed
of best practice, market expectations, and given climaterelated updates by internal and external specialists and
expert advisors, including representatives of other listed
peers, investors, analysts and supply chain partners. Board
members gain experience of climate-related risks and
opportunities through their work with other businesses.
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