41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 77
STRATEGIC REPORT
GOVERNANCE
The process for assessing, identifying and managing
climate-related risks is the same as for all principal risks
with responsibility sitting with the Board and is described on
pages 77–87. Details of how we identify, assess and manage
climate-related risks are covered in Principal Risks 8 and 9 on
page 85 which includes a description of the principal climate
-related risks and uncertainties facing the Group.
The Energy and Environment Team is dedicated to
integrating sustainability into the business which includes
tracking, and reporting on, climate legal and policy-related
developments which allows the business to stay wellinformed on regulatory and technological developments
and effectively manage any associated risks. This includes
MEES regulations covering minimum EPC standards and the
development and implementation of transition plans for
those assets which do not meet future standards. We closely
monitor future, or potential regulatory requirements in all
areas of our business including climate change, to ensure
that we are able to take any actions required to meet new
requirements as they become effective.
Portfolio and asset level climate-related risks and
opportunities are identified and assessed through due
diligence for new investment, divestments and risk
assessments for existing assets which cover specific climaterelated risks such as energy efficiency ratings of properties
and physical climate risks, as well as in individual property
level Asset Transition Plans:
Investment and divestment – review of sustainability
risks for investment decisions is undertaken by the
Investment Committee. Geographical location plays an
important part in the identification of physical risks during
the due diligence process, for example through the use
of flood and overheating risk assessments, and transition
risks are identified through reviewing energy efficiency
ratings, existing plant and machinery, construction
type and an estimate of the investment required to
deliver energy intensity targets aligned to our net zero
operational commitment. Where a risk is identified, we
develop appropriate mitigation strategies in the case of
new developments or reflect the risk in acquisition pricing
if the risk is capable of mitigation to an acceptable level.
Existing assets – risks are identified through compiling and
analysing data on specific property attributes, such as flood
risk, transition risk through the CRREM tool outputs, and
energy performance. This data would typically be analysed
annually and is used to inform asset management decisions
and the business’s disposal strategy.
FINANCIAL STATEMENTS
OTHER INFORMATION
Metrics and targets
We are committed to transitioning to net zero carbon in
alignment with the UK Government’s 2050 target and with
the goals of the Paris Agreement. Our sustainability strategy
includes a net zero carbon commitment by 2030. This is built
on our science based targets approved by the SBTi, and a
commitment under the RE100 scheme to purchase 100%
renewable electricity by 2030. We published our net zero
pathway during 2021 setting out the action we will take over
the coming decade. As a residential landlord, our customers’
energy use is included within our Scope 2 emissions, this
gives us significant opportunity to reduce both our and
our customers’ impact on the environment. Our strategy
includes ambitious climate-related targets:
•
Science-based target, aligned with a 1.5°C scenario to
reduce our carbon emissions (tCO2e) by 56% by 2030
compared with a 2019 baseline (Scope 1 + market-based
Scope 2 emissions)
•
Reduce embodied carbon across our developments by
48% compared, in line with the RIBA Climate Challenge
targets, with a typical building by 2030 by prioritising
asset retention where possible, smart design and using
sustainable materials
•
Reduce energy intensity by 28% by 2030 compared with
2019 baseline
•
Source 100% of total energy consumption from renewable
sources by 2030
We expect that 40% of our 2019 baseline emissions,
being predominantly Scope 3 emissions, will remain by 2030
and require either further investment to avoid, or the use
of offsetting.
Our 2030 net zero carbon target covers both our operations
and development activity. Our operations targets covers
Scope 1 and 2 emissions from our buildings, including all
building energy used by our student tenants, as well as
selected Scope 3 emissions as per the BBP Climate Change
Commitment. Our development target covers Scope 3
emissions arising from the construction of new buildings,
including embodied energy and construction activity, and a
focus on making new buildings net zero carbon in operation.
This target applies to properties delivered for us by our
supply chain partners on a design-and-build, and new build
properties purchased on a forward-funded basis from other
developers. Further detail is available in our Net Zero Carbon
Pathway. The board have not approved interim targets for
reporting in the 2022 ARA but these will be considered for
future periods.
Additional climate-related KPIs and details of our performance can be found
on page 56
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