RCS - Land Sec. Group PLC - Landsec to invest £135m to decarbonise portfolio

Land SecuritiesAnnouncement

16/11/2021 07:05

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RNS Number : 4479S  Land Securities Group PLC  16 November 2021

Land Securities Group PLC ("Landsec")

 

16 November 2021

 

Landsec to invest £135m to significantly decarbonise its portfolio by 2030

 

Landsec has today announced the creation of a new £135m net zero transition
investment plan to help the Group achieve its 2030 science-based targets and
drive its transition to net zero.

 

The move comes two years ahead of the Government's recently announced deadline
for corporates to publish their pathway to net zero*. The fund will be used to
finance a series of initiatives over the coming nine years to reduce Landsec's
carbon footprint and drive innovation and best practice across the wider
industry.

 

Since becoming the first real estate company in the world to have its carbon
emission target approved by the Science Based Targets Initiative in 2016,
Landsec has continued to identify and implement a range of technologies and
innovations to enable it to support a transition to a low carbon world. This
ambition was further increased in 2019 when the Group aligned its
science-based targets with the 1.5 degrees global warming scenario - targeting
a 70% reduction in carbon emissions by 2030 compared with a 2013/14 baseline.

 

The £135m investment programme will be used across Landsec's entire
portfolio. It is expected that overall the programme will see 24,000 tonnes of
carbon emissions removed from Landsec's operations - equivalent to over 35,000
return flights from London to New York.

 

The nine-year investment programme will support Landsec's decarbonisation
plans by:

·      Reducing operational energy use through:

o  Optimising building management systems, using innovative Artificial
Intelligence technologies

o  Engaging our customers on energy efficiency to drive down consumption

·      Moving to cleaner sources of energy through:

o  Replacing gas-fired boilers with electric systems such as Air Source Heat
Pumps (ASHP).

o  Investing in renewable energy including adding onsite renewable capacity
through more solar PV panels

Mark Allan, Landsec CEO said: "Our net zero transition investment plan is a
significant commitment to ensure that Landsec delivers against its
science-based target to reduce carbon emissions by 70% by 2030.

We're investing across our entire estate because we want to remain at the
forefront of everything the property sector is doing to respond to the climate
crisis. Through these actions, we'll be supporting the current and future
needs of our customers, communities and stakeholders as we help them
transition to a low carbon world.

Never has it been more important to prioritise carbon reduction programmes.
The future of the planet depends on businesses like ours driving forward
change - as quickly as we can."

The built environment is estimated to represent c.40% of total carbon
emissions globally. Experts agree that reducing this to achieve the planet's
goal of limiting warming to 1.5 degrees by 2050 will require significant
innovation, collaboration and financing. Actions are required to reduce
emissions embodied in buildings through construction and materials as well as
in eliminating the carbon emissions associated with energy and other
operational requirements.

 

Alongside this investment, Landsec remain committed to designing and building
net zero buildings with The Forge, its first net zero building, on track to
complete in October 2022 having achieved to date a 25% reduction in embodied
carbon from the initial design stage.

 

This investment equates to approximately 1% of portfolio value and will enable
the Group to stay ahead of the future non-domestic Minimum Energy Efficiency
Standards (MEES) which require an EPC 'B' certification by 2030 as well as
other regulatory requirements. With increasingly clear evidence of stronger
sustainability credentials underpinning stronger operational performance, it
is not only essential from an environmental perspective but an economic one
too.

 

 

END
 

 

 

Notes to Editors

 

* Earlier this month, the Chancellor, Rishi Sunak, set out that by 2023 all UK
listed businesses will be required to provide detailed public plans for how
they will support a transition to a low-carbon future, in line with the UK
Government's 2050 net-zero target.

 

In 2020, Landsec published its Net Zero Carbon Pathway
(https://landsec.com/sites/default/files/2020-12/Net%20Zero%20Carbon%20Pathway_FINAL.pdf)
which set out plans to:

1.   Reduce operational energy use in support of our updated science-based
carbon reduction target, aligned with a 1.5°C scenario

2.   Invest in renewable energy through REGO-backed contracts and Power
Purchase Agreements and implement on-site renewables across our assets

3.   Use an internal shadow price of carbon to clearly communicate
climate-related risks and opportunities in investment decisions

4.   Reduce construction impacts through asset retention, efficient design
and responsible sourcing of low-carbon materials

5.   Offset remaining emissions through carefully selected projects which
actively take carbon out of the atmosphere

 

The net zero transition implementation plan announced today will provide the
funding to deliver this strategy and support Landsec to reach its target to
reduce its carbon emissions by 70% by 2030 from a 2013/14 baseline.

 

 
About Landsec

 

At Landsec, we build and invest in buildings, spaces and partnerships to
create sustainable places, connect communities and realise potential.  We are
one of the largest real estate companies in Europe, with a £11 billion
portfolio of retail, leisure, workspace and residential hubs. Landsec is
shaping a better future by leading our industry on environmental and social
sustainability while delivering value for our shareholders, great experiences
for our guests and positive change for our communities.

 

Find out more at landsec.com

 

 Please contact:
 Press                        Investors
 Sara Doggett                 Edward Thacker

 Landsec                      Landsec

 +44 (0)7834 431258           +44 (0) 7887 825869

 sara.doggett@landsec.com     edward.thacker@landsec.com (mailto:edward.thacker@landsec.com)

 

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