Sustainable Real Estate Investment 2016 Annual Report
Sustainable Real Estate Investment
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Assets Under Management By Geography
12%
69%
15%
4%
Serious about sustainability By Sector Office 23% Retail Office 23%34% Retail 34% Industrial 17% Industrial 17% Alternatives Alternatives 18% 18% Cash 8% 8% Cash
David Paine Head of Real Estate Investments
“It gives me great pleasure to present our annual Sustainable Real Estate Investment Report for 2016. We believe that embedding sustainability in our operations is vital to our future success and to maximising value for investors. As demonstrated throughout this report, we are making strong progress. In 2016, we performed well against our sustainability targets and further improved our performance in the GRESB Assessment, achieving 15 Green Stars – the highest number of any participant globally.
31 December 2016
31 December 2016
I am proud of our sustainability performance to date and our continued leadership in responsible real estate investment. I look forward to further building on this track record in the future.”
Key facts gross real estate
assets under managementt
£22.2 billion
1
funds
properties in
15 countries
118 members of
lease
staff in six locations2
agreements 2 Sustainable Real Estate Investment
620
Over
4,500
direct 22 real estate
Over
Gross real estate assets under management as at 31/12/16, including cash and holdings in real estate held in other asset classes 2 Asset class reporting line team only, total real estate aligned resource across Standard Life Investments is 163 people 1
Sustainable Real Estate Investment
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2016 performance headlines Our global annual performance headlines show consistent improvements across all areas of sustainability.
Greenhouse Energy
4%
annual energy saving
2,171 MWh Equivalent to annual
consumption of
110 UK HOMES
Gas Emissions
annual emissions 1.1% 10% annual saving reduction
2,242 tonnes 2,948 m CO2e Equivalent to Enough to fill an 3
620 FLIGHTS
Health and safety Global ‘risks controlled’ level of
from London to Sydney
97%
PRI Assessment 2016 Score of A in Direct Property Module compared with median sector score of C
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Sustainable Real Estate Investment
Water
OLYMPIC SWIMMING POOL
Community engagement & fundraising
Waste management
99.8%
diversion from landfill
8,636 tonnes
of materials recovered Equivalent to weight of
680 DOUBLE DECKER BUSES
Over 160 fundraising, charity and community events held at UK retail assets
£200k raised for
charity at our UK retail assets
OVER 60 CHARITIES SUPPORTED
GRESB 2016
15 Green Stars 3 Five Star rated funds 17 Funds ‘Leaders’ in Health & Wellbeing Sustainable Real Estate Investment
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An integrated approach to responsible investment
Embedding our sustainability values
Graham Baxter Real Estate Sustainability Manager
2016 was another busy year for sustainable real estate investment (SREI) at Standard Life Investments. Our ongoing commitment to sustainability leadership is underlined both by the performance of our like-forlike portfolio and our results in the annual GRESB Assessment. Having updated our mission and strategic priorities for SREI this time last year, we have worked hard to identify opportunities to realise additional value for our stakeholders. In particular, this has led to an increased focus on healthy buildings and the identification of opportunities to implement circular economy principles. As our current five-year targeting cycle closes in 2017, we have the opportunity to reflect further on our performance to date and define our future direction, building on our strategic priorities. Over the coming months, we will review where we have done well and where the challenges remain to make sure our SREI strategy meets the challenges of the future. Our key priority activities for the coming year are presented on page 16.
We became Gold Leaf Members of the UK Green Building Council in 2016
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Sustainable Real Estate Investment
SREI policy Our SREI policy defines our high-level commitments on sustainability. Our Corporate Real Estate Sustainability Management System (CRESM) and environmental management system (EMS) procedures are the means by which we achieve continual improvement and embed sustainability throughout our activities and our supply chain. We have summarised our policy framework in the figure to the right and you can find the full documents at standardlifeinvestments.com
“Our work on SREI is an important part of Standard Life Investments’ mission to be the industry Amanda Young Head of leader in Responsible responsible Investments investment (RI).Our dedicated SREI staff work closely with our RI analysts – one of whom sits on the SREI Focus Group – to support our integrated approach across all asset classes. The figure to the right highlights how our Responsible Investment Mission is embedded in our policy framework for SREI. As signatories to the United Nations-backed Principles for Responsible Investment (PRI), we submit an annual transparency report, published online. As part of the 2016 PRI assessment, I am pleased to report that we scored an A for the property module compared with the median score of C.”
Standard Life Investments Sustainable Real Estate Investment Mission “We aim to be the industry leader in responsible investment, contributing to a sustainable world and a better financial future for our customers”
Sustainable Real Estate Investment Policy
Sustainable Real Estate Investment – Strategic Priorities
Occupier Performance
Resource Scarcity
Climate Change
Health
Material efficiency
Resilience to climate impacts
Wellbeing
Water efficiency
Energy efficiency
Productivity
Recovery of value
Low-carbon energy generation
Corporate Real Estate Sustainability Management System (CRESM)
Environmental Management System for developments
Environmental Management System for asset management
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Sustainable asset management
Our approach With £22.2 billion in real estate assets under management, we have a responsibility to drive sustainability benefits for wider society. To achieve this, we have a robust set of procedures that embed continual improvement in the management of our assets. Our approach and annual performance highlights are presented here, with full key performance indicator (KPI) tables included in the Appendix.
Energy and climate change TARGET
Our current target is a 10% reduction in global like-for-like energy consumption over five years from a 2011/12 baseline. This represents a notional 2% annual reduction target, which is applied at the asset level.
Case study - shopping centre success Shopping centres have delivered some of our most consistent improvements since 2011/12, reducing like-for-like energy consumption for landlord-managed supplies by 12% over this period. The Thistles Centre in Stirling, Scotland, is comprised of two shopping centres totalling 49,000m2, one built in the 1970s and the other in 1997. Historically, energy use had been relatively high at the centre and we identified the opportunity to design a package of measures to improve its performance. As part of the broader ‘Thistles Goes Green’ initiative, managing agent JLL and KJ Tait Engineers defined a programme of technical energy efficiency measures and awareness events to reduce energy consumption and encourage a new culture among staff and visitors to the centre. The package of measures included: ¬ installation of LED lighting in car parks, malls and back of house areas ¬ voltage optimisation ¬ a new building management system and monitoring/optimisation equipment
2015/16 like-for-like performance
4%
1
annual reduction in energy consumption for our like-for-like
portfolio
15%
10%
2011/12 baseline year
our like-for-like greenhouse gas emissions
below
reduction in
¬ an awareness campaign to coincide with the centre’s attainment of ISO 14001 certification. Since 2013, these measures have delivered an impressive 31% reduction in annual energy consumption. The centre was awarded a National ‘Gold’ Green Apple Award in November 2016 for this achievement. Centre Court Shopping Centre in Wimbledon also achieved a National ‘Gold’ Green Apple Award in 2016 for its package of energy efficiency measures.
We are pleased to report a 4% annual reduction in energy consumption for our like-for-like portfolio. This takes us to 15% below the 2011/12 baseline year, exceeding our five-year target ahead of schedule. Our like-for-like greenhouse gas emissions reduced by 10% year-on-year (helped by a reduction in the carbon intensity of the UK electricity grid) and are now 21% below the baseline year.
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Sustainable Real Estate Investment
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Water efficiency TARGET
Our current target is a 5% reduction in global like-for-like water consumption over five years from a 2011/12 baseline. This represents a notional 1% annual reduction target, which is applied at the asset level.
2015/16 like-for-like performance
1.1% 1.1%
Improved
1
monitoring and efficiency
reduction reductioninin like-for-like like-for-like
measures
water water
consumption consumption
Our water consumption has been challenging over the last few years, with an increase reported last year. We are pleased that improved monitoring and efficiency measures have helped reverse this trend in 2015/16. While our five-year target remains challenging, we achieved an annual 1.1% reduction in like-for-like water consumption, taking us back below baseline year consumption.
Resource efficiency and the circular economy TARGET and 2015/16 PERFORMANCE
Case study – the world’s first Cradle to Cradle® logistics building In 2016, Standard Life Investments acquired a unit at Fokker Logistics Park adjacent to Amsterdam Airport Schiphol in the Netherlands. Developed by Delta Development Group, VolkerWessels and the Reggeborgh Groep, the Fokker 7|8 Distribution Centre is the first Cradle to Cradle® inspired logistics building in the world. Alongside our ownership of the Bluewater Building at Park 20|20 nearby, this acquisition underlines our commitment to investing in buildings that demonstrate innovation in sustainability. The building responds to the principles of the circular economy. Its modular design ensures it is fully flexible for potential future uses and it is designed for disassembly so that its elements can be re-used and recycled at the end of its life. This approach recently won the sustainability category at the Dutch National Steel Awards. The building is naturally ventilated and is served by efficient lighting and heating systems. Its emissions are further reduced by the large 480kWp rooftop solar array. The building is also designed with the health and wellbeing of occupants in mind, incorporating high levels of natural lighting, extensive planting and the use of non-hazardous materials and paints.
Our primary resource efficiency objectives are to achieve 100% diversion from landfill and to maximise the recycling rate of all resource streams. We are pleased to report a diversion from landfill rate of 99.8% in 2015/16, with four out of five sectors achieving 100% diversion.
2015/16 achievements
Targets
Sector
Diversion Recycling from landfill targets (on or target off site)
Recovery targets (for other use)
Diversion from landfill
Recycling rate
Industrial
60%
40%
100%
51%
Unit Shops
70%
30%
100%
65%
70%
30%
99.2%
62%
70%
30%
100%
42%
Offices
65%
35%
100%
56%
Overall
60%
40%
99.8%
49%
Retail Warehouses Shopping Centres
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100%
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Occupier health and wellbeing
Health and wellbeing - what are we doing?
The role of buildings in health and wellbeing
As one of Europe’s largest real estate investors, we are actively working with our stakeholders on health and wellbeing. Having defined health, wellbeing and productivity as one of our strategic priorities for sustainable real estate investment, we now have several workstreams underway.
The built environment has a crucial role in determining people’s health and wellbeing; on average, we spend 90% of our time indoors, mostly at our place of work. It is therefore no surprise that there is an increasing body of evidence linking the design of the built environment not only with health and wellbeing outcomes but with workplace effectiveness and productivity. Several key building characteristics directly influence the health, wellbeing and productivity of the people in them. Poor indoor air quality can depress productivity by 8-11%3, while distracting noise can reduce performance by 66%. Similarly, feeling too hot or too cold can reduce performance by 6%. Focus at work can increase by 15% for those with window views. Additional factors such as daylight and lighting, internal planting, layout, active design and nearby amenities also have a significant influence. These principles apply not just to office buildings but also to industrial units and retail spaces where there are further implications for the customer experience. When we consider that staff generally account for 90% of business operating costs, it is clear that even a modest improvement in health and wellbeing can deliver significant benefits to businesses through improved productivity. As the body of evidence for considering health and wellbeing in design increases, there are a number of initiatives and benchmarks emerging to support building users.
We are currently participating in the UK Green Building Council’s Wellbeing Lab for offices, which aims to move the industry forward on the topic. The work involves undertaking detailed acoustic and air quality monitoring of one of our buildings alongside occupier surveys using the Leesman Index – the largest global benchmark of workplace effectiveness. Findings will inform the design of an upcoming refurbishment to ensure the building positively influences health and wellbeing. Once complete, we plan to apply the learning from this project to our wider real estate investment portfolio. Many of the factors affecting the health and wellbeing of building users are determined by the occupier’s fit-out. With this in mind, we are currently refreshing our sustainable fit-out guides for retail, office and industrial sectors to reflect these topics. This will ensure that occupiers are equipped with the evidence and information necessary to incorporate health and wellbeing into their fit-out design. We also engaged with GRESB in the design of the new health and wellbeing module of the assessment. All of the 17 funds submitted to the new module in the 2016 Assessment were ranked as Leaders. As interest in this agenda continues to grow, we look forward to reporting back on our progress in the near future.
All statistics taken from World Green Building Council, Health, Wellbeing and Productivity in Offices: http://www.worldgbc.org/activities/health-wellbeing-productivity-offices/
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Sustainable Real Estate Investment
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Stakeholder engagement
A collaborative approach to sustainability Engaging with our stakeholders is an essential part of our approach to sustainable real estate investment. Creating a dialogue with those involved in, and affected by, our real estate investment activities means we can incorporate feedback into our approach and identify opportunities for collaboration.
Clients and investors Many of our investors are keen to ensure they achieve environmental and social benefits alongside financial returns. We actively engage with our investors to provide updates on fund sustainability performance and to seek feedback on our approach. Consultants and contractors Our supply chain – including managing agents, consultants and contractors – is essential for the delivery of our sustainability priorities at the asset level. In 2016, we ran a series of workshops for suppliers to embed our updated policies and seek their feedback and ideas.
Our assets and their occupiers have an important role to play in their local communities. Our retail assets in the UK play host to hundreds of community events and initiatives every year. Below is a brief summary of some of the events and initiatives that took place throughout our retail portfolio over the past year.
Clients and investors Consultants & contractors
Our staff
Government & regulators
Standard Life Investments Real Estate
Industry bodies
Case study – community engagement at our retail assets
Occupiers & users
Communities & neighbours
Charities and fundraising
In the past year, we have supported over 60 charities across our retail portfolio, with £200,000 raised. Over 160 individual events took place to support and raise money for local, national and international charities. For example, the Water Gardens Shopping Centre in Harlow partnered with St Clare’s Hospice to host a particularly successful midnight charity walk, which attracted 1,000 participants and raised over £60,000. Other charities supported at shopping centres across the portfolio included local food banks, Marie Curie, Macmillan and the Community Air Ambulance Trust.
Educational events and schools engagement
Our staff Regular internal presentations and workshops are an important part of ensuring our procedures and where we communicate and embed any legislative updates in our activities.
Supporting educational opportunities for local pupils and the wider community is an important part of our shopping centres’ engagement activity and local schools are actively encouraged to make use of our UK retail assets. At the Charles Darwin, Pride Hill and Riverside Mall Shopping Centres in Shrewsbury, the centre team worked with local schools to run a business and product design event. Meanwhile, Castlepoint Shopping Park in Bournemouth played host to a ‘meet the employers’ event for local pupils. Finally, Palace Exchange Shopping Centre in Enfield worked with local geography students on a research project to understand consumer spending habits and perceptions of Enfield town centre.
Occupiers and users We provide occupiers in managed assets with a statement of the landlord’s energy consumption on a regular basis. This can be a useful tool for benchmarking and collaboration. At our UK retail assets, occupier satisfaction surveys achieved a 100% response rate in 2016, allowing many sustainability topics to be discussed – from lighting sensors to paper recycling.
Our centres often play an important role in promoting local businesses and contributing to economic and regeneration strategies. In 2016, several centres worked closely with partners to promote local employment and back-to-work initiatives. Many of our centres have work experience programmes in place with local schools, providing opportunities for disadvantaged young people to gain valuable experience.
Business support and work experience
Industry bodies We are active members of several industry groups including the GRESB Benchmark Committee, the Scottish Property Federation Building Standards & Sustainability Committee and the AREF Environmental & Social Governance Committee. We are also Gold Leaf members of the UK Green Building Council and participate in their Landlord-Occupier Forum. Government and regulators Through our involvement in industry groups, we take opportunities to engage with policymakers and regulators on topics related to sustainability and real estate.
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The year ahead
Our sustainability performance has consistently improved since we set our five-year targets in 2011/12. As this period ends, we are taking the opportunity to reflect on our performance to date and review the sustainability issues that will be important for us in the future. We will update our sustainability objectives following this review. There remain many challenges to embedding sustainability in real estate investment and the built environment more generally. We are committed to continual improvement and we look forward to updating you on our progress. In the meantime, the table below sets out some of our key areas of focus for the coming year.
Occupier satisfaction UK-GBC Wellbeing Lab for offices: using our own head office as the case study during this lab, we hope to build on our knowledge with a view to engaging effectively with our occupiers on this topic across the investment portfolio. Fit-out guides: we aim to finalise and roll-out sustainable fit-out guides for all sectors. These will provide occupiers with the guidance and evidence required to achieve high levels of sustainability in their fit-out and during operation. Occupier engagement: working with our managing agents, we aim to further increase the level of occupier engagement and feedback that we receive.
Key activities
Resource scarcity
Strategy review
Supply chain
Industry
of our strategy and objectives
sustainability
efficiency, accuracy and consistency
With our existing reduction targets coming to an end in 2017, we will consult with our stakeholders to review our strategy and objectives.
Summary of key activities
throughout our activities
Having hosted successful supply chain sustainability workshops in 2016, we will continue to work collaboratively with our managing agents and suppliers to embed sustainability throughout our activities.
16 Sustainable Real Estate Investment
best practice
in sustainability reporting We will continue to work with industry groups and our investors to help achieve efficiency, accuracy and consistency in sustainability reporting for our industry.
Waste management: work with our waste management consultants to maintain zero waste to landfill across the portfolio and focus on maximising recovery of value. Circular economy: identify further opportunities to implement circular economy principles throughout the portfolio on new and existing buildings (e.g. service-based contracts). Water efficiency: continue to work with our consultants and managing agents to reduce water consumption and ensure efficiency measures are included in asset action plans.
Climate change Energy efficiency: working with our managing agents and consultants, we will continue to drive down energy consumption across our portfolio and deliver reductions in emissions and operational cost. Renewable energy: we will continue to assess the feasibility for renewable energy installations across our portfolio and proceed with systems where there is an attractive return. Climate risk: continue to monitor and evaluate the risks posed by future climate change for our assets across all of our geographies.
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Appendix Real estate governance structure and reporting lines The figure below shows the reporting lines through the Head of Real Estate Investments and the linkages between dedicated real estate sustainability resource and the wider real estate and responsible investment teams.
Workforce with reporting line through Head of Real Estate
Real estate workforce as at 31 March 2016* Contract type
Standard Life Investments Board
Gender
UK total
Overseas total
Global total
Male
71
11
82
Female
11
7
18
Male
0
0
0
Female
13
1
14
Male
2
0
2
Female
1
0
1
Male
0
0
0
Female
1
0
1
Male
73
11
84
Female
12
7
19
Male
0
0
0
Female
14
1
15
Male
73
11
84
Female
26
8
34
All
99
19
118
Full time
David Paine Head of Real Estate Investments
Permanent Part time
Standard Life Investments Real Estate Management Team Full time Commercial Lending
UK Group & Institutional Funds
Finance, Tax & Structuring
Continental European Funds
Health and Safety Management
Finance & Operations
Wholesale and Listed Funds
Sustainability
International Funds
Insurance
Research & Strategy
Temporary Part time
Supplier Management
Full time
Standard Life Investments Responsible Investment Team
Part time Totals
Energy Management
Waste Management
Risk Management
Adaptability & Accessability
Tenant Management
Community Engagement All
Delivered by Portfolio Managers, managing agents and professional consultants
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*Asset class reporting line team only, total real estate aligned resource across Standard Life Investments is 163 people
Consolidated key performance indicators Reporting period
Report boundaries
This is the fourth annual Standard Life Investments Sustainable Real Estate Investment Report that covers the global environmental performance of our assets. This report therefore compares with the 2011/12 baseline year as well as last year’s data. The reporting period covered in the following data is qualified as follows.
The report covers all of the real estate funds under our discretionary management that operate from our worldwide real estate offices.
¬ UK assets UK fiscal year 1 April 2015 to 31 March 2016 ¬ Overseas assets Calendar year 2015 ¬ Baseline year 2011/12 and 2011 respectively ¬ Reporting cycle Annually We have kept the UK assets reporting year aligned with the data that we need to submit as participants in the UK CRC Energy Efficiency Scheme.
The environmental KPIs included in this report are for assets where we manage the energy and waste services (i.e. where we are the counterparty to the supply contract). In the bulk of our estate, the tenants are generally the counterparty for those supplies consumed within their demise so are not included within the scope of this report. In those buildings where tenants are supplied via a sub-metering system, then those KPIs are included within this report in the total procured figures in the Energy Efficiency Statements. However, these are excluded from UK Energy Efficiency Statements and UK Greenhouse Gas Emissions Statements. Statements made with degree-day adjustments have been carried out at the industry standard of 15.5oC on a one-year comparison basis. Like-for-like comparisons are only made with assets that have been landlord managed for the full 12 months of each year since the baseline year of 2011/12 to account for assets either bought/sold or changed from single-let to multi-let status. In those situations where assets are held in joint venture partnerships, we have included those assets where we hold a stake of 50% or more within one or more of our funds. We use the Global Reporting Initiative (GRI) G4 Construction and Real Estate Sector Disclosures Supplement to inform the scope of our SREI reporting. The table at the end of this section details our reporting in line with GRI. For any enquiries relating to the information within this report, please contact our Sustainability Manager Graham Baxter at
[email protected] or write to our real estate head office at 1 George Street, Edinburgh, EH2 2LL.
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Key performance indicators Energy efficiency statements In 2015/16, we continued to deliver reductions in energy consumption. For our global ‘like-for-like’ managed portfolio, total energy consumption reduced by 4% year-on-year and is now 15% below the baseline year of 2011/12. This portfolio includes only assets that we have held continuously since 2011/12 in order to align with our five-year targeting regime and, as such, its size decreases annually due to investment activity. Given we are now reaching the end of our current five-year targets, this portfolio will increase in size again when the baseline is reset. We are pleased that our approach to energy management has delivered significant reductions in overall energy consumption in all sectors with a ‘like-for-like’ portfolio globally. Global Sector Energy Efficiency Statement Energy (kWh)
‘Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
2011/2012 Total Procured
2014/2015 Total Procured
2015/2016 Total Procured
2011/2012 ‘Like for Like’
2011/2012 ‘Like for Like’ Intensity (kWh/m2)
2014/2015 ‘Like for Like’ Weather Adjusted
2014/2015 ‘Like for Like’ Intensity (kWh/m2)
2015/2016 ‘Like for Like’ Weather Adjusted
2015/2016 ‘Like for Like’ Intensity (kWh/m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015/2016
%
Industrial, Distribution Warehouses
21,040,142
1,354,894
1,366,574
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
8,415,771
4,388,433
5,799,224
664,940
2
680,043
2
615,257
2
-10%
-7%
336,435
£401,427,500
8%
Retail, High Street
1,738,178
1,814,123
2,051,555
977,347
25
872,295
22
865,924
22
-1%
-11%
39,450
£208,763,750
4%
Retail, Warehouses
4,908,488
8,562,848
9,023,826
3,807,055
12
3,482,484
11
3,438,021
11
-1%
-10%
321,518
£1,275,266,439
25%
Retail, Shopping Centres
33,147,491
32,513,144
31,778,902
20,340,538
58
19,263,751
55
17,996,567
51
-7%
-12%
351,401
£1,805,969,577
36%
Offices
90,637,159
82,106,964
99,345,060
36,375,174
142
30,953,630
121
30,165,660
118
-3%
-17%
255,702
£1,376,123,279
27%
Leisure
0
782,791
438,536
0
0
0
0
0
0
–
–
0
0
–
Totals
159,887,229
131,523,197
149,803,677
62,165,055
48
55,252,203
42
53,081,430
41
-4%
-15%
1,304,507
£5,067,550,545
Global Energy by Sector
Global ‘Like for Like’ Energy
40 40 40
70 70 70
35 35 35
60 60 60
30 30 30
50 50 50
25 25 25
GWh GWh GWh
GWh GWh GWh
40 40 40
20 20 20
30 30 30
15 15 15
20 20 20
10 10 10
10 10 10
55 5
00 0
Industrial, Industrial, Industrial, Business Business Business Parks Parks Parks
Retail, Retail, Retail, High High High Street Street Street
20 Sustainable Real Estate Investment
Retail, Retail, Retail, Warehouses Warehouses Warehouses
Retail, Retail, Retail, Shopping Shopping Shopping Centres Centres Centres
Offices Offices Offices
00 0
Global Energy Procured 180 180 180 160 160 160 140 140 140 120 120 120 100 100 100
GWh GWh GWh
Sector
80 80 80 60 60 60 40 40 40 20 20 20
00 0
2011/2012 2011/2012 2011/2012 2014/2015 2014/2015 2014/2015 2015/2016 2015/2016 2015/2016
UK Sector Energy Efficiency Statement Energy (kWh)
‘Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
2011/2012 Total Procured
2014/2015 Total Procured
2015/2016 Total Procured
2011/2012 'Like for Like'
2011/2012 'Like for Like' Intensity (kWh/m2)
2014/2015 'Like for Like' Weather Adjusted
2014/2015 'Like for Like' Intensity (kWh/m2)
2015/2016 'Like for Like' Weather Adjusted
2015/2016 'Like for Like' Intensity (kWh/m2)
'Like for Like' change compared to last year
'Like for Like' change compared to base year
m2
2015/2016
%
478,570
314,520
367,117
0
0
0
0
0
0
–
–
0
0
–
4,835,780
4,037,026
3,414,064
373,408
1.2
293,548
0.9
257,561
0.8
-12%
-31%
324,318
£393,315,000
8%
Retail, High Street
864,423
1,733,576
1,964,964
820,802
22.4
791,747
21.6
779,333
21.3
-2%
-5%
36,630
£138,775,000
3%
Retail, Warehouses
4,375,459
3,743,527
4,577,284
3,274,026
11.8
2,815,638
10.2
2,720,571
9.8
-3%
-17%
276,440
£1,225,210,000
26%
Retail, Shopping Centres
27,912,023
25,582,967
24,724,961
20,340,538
57.9
19,263,751
54.8
17,996,567
51.2
-7%
-12%
351,401
£1,805,969,577
38%
Offices
55,662,196
67,208,079
76,463,784
22,635,186
149.9
18,653,253
123.5
17,867,310
118.3
-4%
-21%
150,984
£1,203,549,495
25%
Leisure
0
782,791
438,536
0
0
0
0
0
0
–
–
0
0
–
94,128,451
103,402,486
111,950,710
47,443,960
41.6
41,817,937
36.7
39,621,343
34.8
-5%
-16%
1,139,774
£4,766,819,072
Sector
Industrial, Distribution Warehouses Industrial, Business Parks
Total
For our ‘like-for-like’ portfolio, total energy consumption has reduced compared with last year and the baseline year, both in the UK and overseas.
Overseas Sector Energy Efficiency Statement Energy (kWh)
‘Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
Sector
2011 Total Procured
2014 Total Procured
2015 Total Procured
2011 'Like for Like'
2011 ‘Like for Like’ Intensity (kWh/m2)
2014 ‘Like for Like’ Weather Adjusted
2014 ‘Like for Like’ Intensity (kWh/m2)
2015 ‘Like for Like’ Weather Adjusted
2015 ‘Like for Like’ Intensity (kWh/m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015
%
Industrial, Distribution Warehouses
20,561,572
1,040,374
999,456
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
3,579,992
351,407
2,385,160
291,532
24.1
386,495
31.9
357,696
29.5
-7%
23%
12,117
£8,112,500
3%
Retail, High Street
873,755
80,548
86,591
156,545
55.5
80,548
28.6
86,591
30.7
8%
-45%
2,820
£69,988,750
23%
Retail, Warehouses
533,029
4,819,320
4,446,543
533,029
11.8
666,846
14.8
717,450
15.9
8%
35%
45,078
£50,056,439
17%
Retail, Shopping Centres
5,235,468
6,930,177
7,053,941
0
0
0
0
0
0
–
–
0
0
–
Offices
34,974,963
14,898,885
22,881,275
13,739,988
131.2
12,300,378
117.5
12,298,350
117.4
-0.02%
-10%
104,718
£172,573,784
57%
Totals
65,758,779
28,120,711
37,852,967
14,721,094
89.4
13,434,267
81.6
13,460,087
81.7
0.2%
-9%
164,733
£300,731,473
Sustainable Real Estate Investment
21
UK Sector Direct Consumption Summary Gas (kWh) Sector
‘Like for Like’ Area (NLA)
‘Like for Like’ Value (£)
2011/2012 Total
2014/2015 Total
2015/2016 Total
2011/2012 ‘Like for Like’
2014/2015 ‘Like for Like’
2015/2016 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015/2016
%
57,620
9,304
22,018
0
0
0
–
–
0
0
–
2,268,956
1,316,469
1,009,278
20,944
22,995
23,551
2%
12%
176,280
£178,275,000
5%
Retail, High Street
948
635,693
636,246
0
0
0
–
–
0
0
–
Retail, Warehouses
120,844
120,160
340,635
120,844
120,038
128,515
7%
6%
175,040
£873,560,000
25%
Retail, Shopping Centres
5,679,655
4,465,448
4,065,755
3,904,242
3,519,119
3,321,991
-6%
-15%
294,650
£1,674,954,577
47%
Offices
16,484,978
22,026,031
26,338,517
9,264,732
7,259,157
7,319,384
1%
-21%
120,036
£816,429,495
23%
Leisure
0
115,011
69,057
0
0
0
–
–
0
0
–
Totals
24,613,001
28,688,115
32,481,506
13,310,762
10,921,309
10,793,441
-1%
-19%
766,006
£3,543,219,072
Industrial, Distribution Warehouses Industrial, Business Parks
Despite an increase in heating degree days for 2015/16 in the UK, we delivered a reduction in ‘like -for-like’ gas consumption. The number of degree days in our overseas locations increased by over 10% last year, contributing to an increase in the two sectors for which we have ‘like-for-like’ portfolios, particularly for offices. We are working with our managing agents to bring this back down.
Overseas Sector Direct Consumption Summary Gas (kWh)
‘Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
Sector
2011 Total
2014 Total
2015 Total
2011 ‘Like for Like’
2014 ‘Like for Like’
2015 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015
%
Industrial, Distribution Warehouses
5,751,655
0
0
0
0
0
–
–
0
–
–
Industrial, Business Parks
1,904,465
103,104
353,005
277,172
335,970
352,933
5%
27%
12,117
£8,112,500
5%
Retail, High Street
373,806
0
0
0
0
0
–
–
0
–
-
Retail, Warehouses
0
0
14,210
0
0
0
–
–
0
–
–
Retail, Shopping Centres
1,085,255
2,289,747
2,559,819
0
0
0
–
–
0
–
–
Offices
5,443,295
3,511,396
8,810,470
4,047,403
3,106,438
3,658,082
18%
-10%
97,646
£146,414,558
95%
Totals
14,558,477
5,904,247
11,737,504
4,324,575
3,442,408
4,011,015
17%
-7%
109,763
£154,527,058
22 Sustainable Real Estate Investment
UK Sector Indirect Consumption Summary Electricity (kWh)
‘Like for Like’ Area (NLA)
2011/2012 Total
2014/2015 Total
2015/2016 Total
2011/2012 ‘Like for Like’
2014/2015 'Like for Like'
2015/2016 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
420,950
305,217
345,099
0
0
0
–
2,550,133
2,720,557
2,404,786
352,464
270,480
234,830
Retail, High Street
863,475
1,097,883
1,328,718
820,802
791,747
Retail, Warehouses
4,327,261
3,623,367
4,236,649
3,153,182
Retail, Shopping Centres
22,232,368
21,117,519
20,659,206
Offices
39,177,218
45,182,047
Leisure
0
Totals
69,571,405
Sector
Industrial, Distribution Warehouses Industrial, Business Parks
‘Like for Like’ Asset Value (£)
m2
2015/2016
%
–
0
0
–
-13%
-33%
324,318
£393,315,000
8%
779,333
-2%
-5%
36,630
£138,775,000
3%
2,695,221
2,596,528
-4%
-18%
276,440
£1,225,210,000
26%
17,171,424
16,786,190
15,883,355
-5%
-8%
351,401
£1,805,969,577
38%
50,125,268
24,655,748
21,497,579
20,837,998
-3%
-15%
150,984
£1,203,549,495
25%
667,780
369,479
0
0
0
–
–
0
0
–
74,714,370
79,469,204
46,153,620
42,041,217
40,332,043
-4%
-13%
1,139,774
£4,766,819,072
On a ‘like-for-like’ basis, electricity consumption at our UK assets is now 13% lower than in 2011/12, with reductions achieved in all sectors.
Overseas Sector Indirect Consumption Summary Electricity (kWh) Sector
2011 Total
2014 Total
Industrial, Distribution Warehouses
14,809,916
1,040,374
Industrial, Business Parks
1,675,526
Retail, High Street Retail, Warehouses
2015 Total
‘Like for Like’ Area (NLA)
2011 'Like for Like'
2014 'Like for Like'
2015 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
999,456
0
0
0
–
15,437
2,032,155
14,360
15,437
12,593
499,949
80,548
86,591
156,545
80,548
533,029
4,819,320
4,432,333
533,029
Retail, Shopping Centres
4,150,213
4,640,431
4,494,122
Offices
29,531,668
11,387,489
Totals
51,200,302
21,983,598
‘Like for Like’ Asset Value (£)
m2
2015
%
–
0
0
–
-18%
-12%
12,117
£8,112,500
3%
86,591
8%
-45%
2,820
£69,988,750
23%
666,846
717,450
8%
35%
45,078
£50,056,439
17%
0
0
0
–
–
0
0
–
14,070,805
9,692,586
8,927,852
8,771,186
-2%
-10%
104,718
£172,573,784
57%
26,115,463
10,396,520
9,690,683
9,587,820
-1%
-8%
164,733
£300,731,473
Electricity consumption at our ‘like-for-like’ overseas assets fell by 1% in 2015 and is now 8% below 2011/12. We are working with our managing agents to address increased consumption at business parks and retail warehouses. Sustainable Real Estate Investment
23
GHG emission statements The carbon dioxide (CO2 ) conversion factors used in the following statements are taken from the CRC Energy Efficiency Scheme for UK supplies and the International Energy Agency and GHG Protocol Initiative for overseas supplies. All conversion factors are single year figures rather than five-year rolling averages in accordance with the UK GHG regulations guidelines. Nitrous Oxide (NO) has been expressed in CO2 equivalents using the GHG regulations guideline conversion factors. The degree day ‘adjusted’ figures tie in with the energy efficiency statements given above. Figures exclude tenant supplies.
Global Sector Green House Gas Emissions Statement ‘Adjusted’ Green House Gas Emissions 2011/2012 Sector
2014/2015
‘Like for Like’ Area (NLA)
2015/2016
‘Like for Like’ Landlord & Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/ m2)
'Like for Like' Landlord & Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/ m2)
'Like for Like' Landlord & Degree Day Adjusted (kWh)
CO2 Emissions (tCO2e)
N2O Emissions (tCO2e)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/ m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
0
0
–
0
0
–
0
0
0
0
–
–
Industrial, Business Parks
664,940
262
0.8
680,043
238
0.7
615,257
186
12
198
0.6
Retail, High Street
977,347
459
11.6
872,295
427
10.8
865,924
392
0
392
Retail, Warehouses
3,807,055
1,826
5.7
3,503,117
1,533
4.8
3,470,720
1,385
4
Retail, Shopping Centres
20,340,538
9,969
28.4
19,263,751
9,375
26.7
17,996,567
8,080
Offices
36,375,174
13,977
54.7
30,953,630
11,592
45.3
30,165,660
Leisure
0
0
–
0
0
–
Totals
62,165,055
26,492
20.3
55,272,836
23,165
17.8
Industrial, Distribution Warehouses
Total Global GHG Emissions
‘Like for Like’ Asset Value (£)
m2
2015/16
%
–
0
0
–
-17%
-25%
336,435
£401,427,500
8%
9.9
-8%
-15%
39,450
£208,763,750
4%
1,390
4.3
-9%
-24%
321,518
£1,275,266,439
25%
93
8,173
23.3
-13%
-18%
351,401
£1,805,969,577
36%
10,432
338
10,770
42.1
-7%
-23%
255,702
£1,376,123,279
27%
0
0
0
0
–
–
–
0
0
–
53,114,129
20,475
448
20,923
16.0
-10%
-21%
1,304,507
£5,067,550,545
Global Sector GHG Emissions
30,000 30,000
16,000 16,000 14,000 14,000
25,000 25,000
12,000 12,000 10,000 10,000
10,000 10,000
tCO2e
15,000 15,000
tCO2e
tCO2e
tCO2e
20,000 20,000
8,000 8,000 6,000 6,000 2011/2012 2011/2012
4,000 4,000 5,000 5,000 0
0
Global Annual (tCO2e) Global Annual GHGGHG (tCO2e)
24 Sustainable Real Estate Investment
2014/2015 2014/2015
2,000 2,000 0
0
2015/2016 2015/2016 Industrial, Business Parks Industrial, Business Parks
Retail, HighHigh Street Retail, Street
Retail, Warehouses Retail, Warehouses
Retail, Shopping Centres Retail, Shopping Centres
Offices Offices
UK Sector Green House Gas Emissions Statement ‘Adjusted’ Green House Gas Emissions 2011/2012 Sector
2014/2015
‘Like for Like’ Area (NLA)
2015/2016
'Like for Like' Landlord & Degree Day Base (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
'Like for Like' Landlord & Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
'Like for Like' Landlord & Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
0
0
–
0
0
–
0
0
–
–
Industrial, Business Parks
373,408
195
0.6
293,548
149
0.5
257,561
122
0.4
Retail, High Street
820,802
444
12.1
791,747
422
11.5
779,333
387
Retail, Warehouses
3,274,026
1,732
6.3
2,815,638
1,463
5.3
2,720,571
Retail, Shopping Centres
20,340,538
9,969
28.4
19,263,751
9,375
26.7
Offices
22,635,186
9,430
62.5
18,653,253
7,854
Leisure
0
0
–
0
Totals
47,443,960
21,770
19.1
41,817,937
Industrial, Distribution Warehouses
‘Like for Like’ Asset Value (£)
m2
2015/16
%
–
0
0
–
-19%
-38%
324,318
£393,315,000
8%
10.6
-8%
-13%
36,630
£138,775,000
3%
1,316
4.8
-10%
-24%
276,440
£1,225,210,000
26%
17,996,567
8,173
23.3
-13%
-18%
351,401
£1,805,969,577
38%
52.0
17,867,310
7,100
47.0
-10%
-25%
150,984
£1,203,549,495
25%
0
–
0
0
–
–
–
0
0
–
19,263
16.9
39,621,343
17,098
15.0
-11%
-21%
1,139,774
£4,766,819,072
Overseas Sector Green House Gas Emissions Statement ‘Adjusted’ Green House Gas Emissions 2011 Sector
2014
‘Like for Like’ Area (NLA)
2015
'Like for Like' Procured Degree Day Base (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
'Like for Like' Procured Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
'Like for Like' Procured Degree Day Adjusted (kWh)
GHG Emissions (tCO2e)
'Like for Like' Intensity (kgCO2e/m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
0
0
–
0
0
–
0
0
–
–
Industrial, Business Parks
291,532
67
5.5
386,495
89
7.3
357,696
76
6.3
Retail, High Street
156,545
15
1.2
80,548
5
0.4
86,591
5
Retail, Warehouses
533,029
93
7.7
666,846
70
5.8
717,450
0
0
–
0
0
–
Offices
13,739,988
4,547
375.2
12,300,378
3,738
Totals
14,721,094
4,722
28.7
13,434,267
3,902
Industrial, Distribution Warehouses
Retail, Shopping Centres
‘Like for Like’ Asset Value (£)
m2
2015
%
–
0
0
–
-14%
14%
12,117
£8,112,500
3%
0.4
3%
-66%
2,820
£69,988,750
23%
74
6.1
5%
-21%
45,078
£50,056,439
17%
0
0
–
–
–
0
0
–
308.5
12,298,350
3,670
302.9
-2%
-19%
104,718
£172,573,784
57%
23.7
13,460,087
3,825
23.2
-2%
-19%
164,733
£300,731,473
Sustainable Real Estate Investment
25
Global Sector Green House Gas Emissions ‘Actual’ Sector
‘Like for Like’ CO2 (tCO2e)
‘Like for Like’ N2O (tCO2e)
‘Like for Like’ Area (NLA)
Total ‘Like for Like’ GHG (tCO2e)
‘Like for Like’ Asset Value (£)
2011/2012
2014/2015
2015/2016
2011/2012
2014/2015
2015/2016
2011/2012
2014/2015
2015/2016
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015/16
%
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
252
218
187
10
12
12
262
230
199
-13%
-24%
336,435
£401,427,500
8%
Retail, High Street
459
427
392
0
0
0
459
427
392
-8%
-15%
39,450
£208,763,750
4%
Retail, Warehouses
1,821
1,529
1,386
4
4
4
1,826
1,533
1,391
-9%
-24%
321,518
£1,275,266,439
25%
Retail, Shopping Centres
9,859
9,276
8,098
109
97
97
9,969
9,373
8,195
-13%
-18%
351,401
£1,805,969,577
36%
Offices
13,542
11,195
10,498
435
334
350
13,977
11,529
10,849
-6%
-22%
255,702
£1,376,123,279
27%
Leisure
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Totals
25,934
22,645
20,562
559
447
464
26,492
23,092
21,026
-9%
-21%
1,304,507
£5,067,550,545
Industrial, Distribution Warehouses
Global Annual CO2
Global Annual N2O
Global Annual GHG
25,000 25,000 25,000
500 500 500
25,000 25,000 25,000
20,000 20,000 20,000
400 400 400
20,000 20,000 20,000
15,000 15,000 15,000
300 300 300
tCO tCO22e e tCO2e
30,000 30,000 30,000
tCO tCO22e e tCO2e
600 600 600
tCO tCO22 tCO2
30,000 30,000 30,000
15,000 15,000 15,000
10,000 10,000 10,000
200 200 200
10,000 10,000 10,000
5,000 5,000 5,000
100 100 100
5,000 5,000 5,000
00 0
00 0
00 0
2011/2012 2011/2012 2011/2012 2014/2015 2014/2015 2014/2015 2015/2016 2015/2016 2015/2016
In overall ‘actual’ terms, our ‘like-for-like’ carbon footprint decreased by 9% compared with last year and is now 21% below the baseline year. The reason that GHG emissions have fallen more than energy consumption is largely due to a reduction in the emissions factor for UK electricity. Our continued reductions in GHG emissions for the ‘like-for-like’ portfolio reflects the success of the policies and procedures we have in place.
26 Sustainable Real Estate Investment
UK Sector Green House Gas Emissions Statement ‘Actual’ ‘Like for Like’ Electricity (tCO2e) Sector
‘Like for Like’ Gas (tCO2e)
‘Like for Like’ N2O (tCO2e)
‘Like for Like’ Area (NLA)
‘Like for Like’ Total GHG (tCO2e)
‘Like for Like’ Asset Value (£)
2011/ 2012
2014/ 2015
2015/ 2016
2011/ 2012
2014/ 2015
2015/ 2016
2011/ 2012
2014/ 2015
2015/ 2016
2011/ 2012
2014/ 2015
2015/ 2016
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015/2016
%
0
0
0
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
191
144
117
4
4
4
1
1
1
195
149
122
-18%
-38%
324,318
£393,315,000
8%
Retail, High Street
444
422
387
0
0
0
0
0
0
444
422
387
-8%
-13%
36,630
£138,775,000
3%
Retail, Warehouses
1,706
1,437
1,289
22
22
24
4
4
4
1,732
1,463
1,317
-10%
-24%
276,440
£1,225,210,000
26%
Retail, Shopping Centres
9,271
8,752
7,578
588
524
521
109
97
97
9,969
9,373
8,195
-13%
-18%
351,401
£1,805,969,577
38%
Offices
7,534
6,398
5,712
1,599
1,224
1,213
297
227
225
9,430
7,849
7,150
-9%
-24%
150,984
£1,203,549,495
25%
Leisure
0
0
0
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Totals
19,146
17,153
15,082
2,213
1,774
1,762
411
329
327
21,770
19,256
17,170
-11%
-21%
1,139,774
£4,766,819,072
Industrial, Distribution Warehouses
Overseas Sector Green House Gas Emissions Statement ‘Actual’ ‘Like for Like’ Electricity (tCO2e)
‘Like for Like’ Gas (tCO2e)
‘Like for Like’ N2O (tCO2e)
‘Like for Like’ Area (NLA)
‘Like for Like’ Total GHG (tCO2e)
Sector
‘Like for Like’ Asset Value (£)
2011
2014
2015
2011
2014
2015
2011
2014
2015
2011
2014
2015
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015
%
Industrial, Distribution Warehouses
0
0
0
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
7
7
5
51
62
62
9
12
11
67
81
78
-4%
16%
12,117
£8,112,500
3%
Retail, High Street
15
5
5
0
0
0
0
0
0
15
5
5
3%
-66%
2,820
£69,988,750
23%
Retail, Warehouses
93
70
74
0
0
0
0
0
0
93
70
74
5%
-21%
45,078
£50,056,439
17%
Retail, Shopping Centres
0
0
0
0
0
0
0
0
0
0
0
0
–
–
0
0
–
Offices
3,666
3,000
2,900
743
573
673
138
106
125
4,547
3,680
3,699
1%
-19%
104,718
£172,573,784
57%
Totals
3,781
3,083
2,984
794
635
735
147
118
137
4,722
3,836
3,855
1%
-18%
164,733
£300,731,473
Sustainable Real Estate Investment
27
Water conservation statements Water scarcity has not historically been a significant issue in most of the countries where we have assets. However, this is changing and the impact of climate change will increase the importance of water conservation in many regions. Although in most of our buildings the tenants have their own water supplies, the main drivers for the landlord to conserve water are increasing supply costs and the knock-on effect of water distribution on electricity consumption. Global Sector Water Conservation Statement ‘Like for Like’ Water Sector
‘Like for Like’ Areas (NLA)
‘Like for Like’ Asset Value (£)
2011/2012 (m3)
2011/2012 Intensity (L/m2)
2014/2015 (m3)
2014/2015 Intensity (L/m2)
2015/2016 (m3)
2015/2016 Intensity (L/m2)
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
(m2)
2015/2016
%
0
0
0
0
0
0
–
–
0
0
–
Industrial, Business Parks
608
3
1,005
6
943
5
-6%
55%
178,556
£232,387,500
6%
Retail, High Street
694
79
592
67
447
51
-24%
-36%
8,766
£81,613,750
2%
Retail, Warehouses
8,396
61
8,949
65
8,573
62
-4%
2%
137,367
£511,459,770
14%
Retail, Shopping Centres
136,740
412
136,688
412
136,054
410
-0.5%
-0.5%
331,704
£1,747,869,577
48%
Offices
115,837
516
117,707
524
115,974
516
-1%
0.1%
224,644
£1,077,513,671
30%
Totals
262,275
298
264,940
301
261,992
297
-1.1%
-0.1%
881,038
£3,650,844,268
Industrial, Distribution Warehouses
Global Water Consumption
Global Sector Water Consumption
265,500 265,500
160,000 160,000
265,000 265,000
140,000 140,000
264,500 264,500
120,000 120,000
m3
263,000 263,000 262,500 262,500
80,000 80,000 60,000 60,000
262,000 262,000
2011/2012 2011/2012
40,000 40,000
261,500 261,500
2014/2015 2014/2015
20,000 20,000
261,000 261,000 260,500 260,500
m3
100,000 100,000
263,500 263,500
m3
m3
264,000 264,000
Global Global Water Water (m3)(m3)
0
0
2015/2016 2015/2016 Industrial, Business Parks Industrial, Business Parks
Retail, HighHigh Street Retail, Street
Retail, Warehouses Retail, Warehouses
Retail, Shopping Centres Retail, Shopping Centres
Offices Offices
We are pleased to report that our ‘like-for-like’ water consumption decreased in 2015/16, reversing the trend we have seen in previous years. This can be attributed to the reduced impact of refurbishment projects across the ‘like-for-like’ portfolio and an increased roll-out of water efficiency measures. Consumption for the ‘like-for-like’ portfolio is now slightly below the baseline year. We hope to continue to reduce consumption in future years in line with or targets.
28 Sustainable Real Estate Investment
UK Sector Water Conservation Statement Water (m3) Sector
‘Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
2011/2012 Total
2014/2015 Total
2015/2016 Total
2011/2012 ‘Like for Like’
2014/2015 ‘Like for Like’
2015/2016 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015/2016
%
675
969
701
0
0
0
–
–
0
0
–
51,456
63,567
33,288
207
176
175
-0.3%
-15%
166,439
£224,275,000
7%
Retail, High Street
182
4,722
3,917
182
84
57
-32%
-69%
5,946
£11,625,000
0.3%
Retail, Warehouses
7,676
7,445
10,910
7,358
8,172
7,771
-5%
6%
123,070
£491,685,000
15%
Retail, Shopping Centres
203,068
164,954
166,803
136,740
136,688
136,054
-0.5%
-1%
331,704
£1,747,869,577
52%
Offices
149,529
216,651
210,957
75,369
79,883
73,974
-7%
-2%
121,657
£911,324,495
27%
Leisure
0
1,394
960
0
0
0
–
–
0
0
–
Totals
412,586
458,308
427,538
219,857
225,003
218,032
-3%
-0.8%
748,817
£3,386,779,072
Industrial, Distribution Warehouses Industrial, Business Parks
Overseas Sector Water Conservation Statement Water (m3) Sector
Like for Like’ Area (NLA)
‘Like for Like’ Asset Value (£)
2011 Total
2014 Total
2015 Total
2011 ‘Like for Like’
2014 ‘Like for Like’
2015 ‘Like for Like’
‘Like for Like’ change compared to last year
‘Like for Like’ change compared to base year
m2
2015
%
Industrial, Distribution Warehouses
61,987
1,117
1,555
0
0
0
–
–
0
0
–
Industrial, Business Parks
50,189
829
2,482
400
829
768
-7%
92%
12,117
£8,112,500
3%
Retail, High Street
8,378
508
390
512
508
390
-23%
-24%
2,820
£69,988,750
27%
Retail, Warehouses
2,556
4,814
14,795
1,038
777
801
3%
-23%
14,297
£19,774,770
7%
Retail, Shopping Centres
13,800
14,433
15,859
0
0
0
–
–
0
0
–
Offices
107,815
58,512
68,824
40,468
37,823
42,000
11%
4%
102,987
£166,189,176
63%
Totals
244,725
80,213
103,904
42,419
39,937
43,960
10%
4%
132,221
£264,065,196
Sustainable Real Estate Investment
29
Waste diversion statements The figures below present our waste management performance for UK assets. We have successfully achieved our zero waste to landfill target for assets in three sectors, with only 0.2% of arisings going to landfill in total across all sectors. This represents an improvement on performance in 2014/15. UK Waste April 2015 – March 2016
Overall Waste Handled April 2015 – March 2016 (tonnes)
Total Recovered (tonnes)
Total Recycled (tonnes)
Total Landfill (tonnes)
Total Waste Generation (tonnes)
Retail, High Street
113 35%
208 65%
– 0%
321
Retail, Warehouses
524 37%
882 62%
11 1%
1,417
2,872 58%
2,083 42%
– 0%
4,955
31 49%
33 51%
– 0%
65
Offices
837 44.3%
1,050 55.6%
2 0.1%
1,889
Leisure
2 91%
0.05 3%
0.1 6%
2
4,379 50.6%
4,257 49.2%
13 0.2%
8,649
Sector
Retail, Shopping Centres
Industrial
Total
0.2% 13
49.2%
50.6%
4,257
Total Recovered
4,379
Total Recycled
Total Landfill
UK Sector Waste 5,500 5,000 4,500 4,000
Landfill
Tonnes
3,500
Recovered
3,000 2,500
Recycled
2,000 1,500 1,000 500 0
Retail, High Street
Retail, Warehouses
Retail, Shopping Centres
Industrial
Offices
Leisure
We currently manage waste arisings for one shopping centre asset in Poland. For the reporting period, waste treatment rates for this asset were 52% recycled and 48% recovered via energy from waste. This represents a significant improvement on last year when a significant proportion was sent to landfill.
30 Sustainable Real Estate Investment
Health and safety performance statements Standard Life Investments is committed to providing safe and secure buildings that promote a healthy working/customer experience and support a healthy lifestyle. We manage and control health and safety risks systematically using technologically advanced systems and environmentally protective materials and equipment. We aim to achieve the highest levels of health and safety performance, allowing us to earn the confidence and trust of tenants, customers, employees, shareholders and society at large. The chart on the left below shows the performance of the portfolios in terms of controlled risk for the point of first audit at the beginning of 2016. The chart on the right illustrates the significant progress we have made over the period we have been tracking our performance in this area and highlights the effectiveness of our health and safety risk management process, with over 95% of all risks managed effectively over the period 2010-2016.
Geographical Comparison
Year-on-year Improvement
120.0%
96.7%
100.0%
98.3%
96.7%
99.2%
100% 90% 80%
80.0%
77%
83%
88%
90%
2007
2008
95.4%
95%
95.5%
96%
96.2%
96.7%
97%
96.7%
2009
2010
2011
2012
2013
2014
2015
2016
70% 60%
60.0%
50% 40%
40.0%
30% 20% 10%
20.0%
0.0%
0%
3.3%
3.4% Europe Uncontrolled – Total %
2005
2006
UK Controlled (Initial) %
Controlled (Live) %
Sustainable Real Estate Investment
31
Global Reporting Initiative (GRI) alignment We use GRI G4 Sustainability Reporting Guidelines and the accompanying Construction and Real Estate Sector Disclosures to inform the scope of our sustainability reporting. The following table outlines our assessment of our alignment with the GRI G4 reporting requirements for the ‘in accordance – Core’ reporting option. As previously stated, this report covers real estate funds under the discretionary management of Standard Life Investments. The scope of the report does not therefore align with the scope of a single organisational entity and, as such, not all GRI indicators are applicable. Global Reporting Initiative – Assessment of Reporting Application Level G4 Standard Disclosures - Construction and Real Estate
Relevant 2016 Report Section and Commentary (if applicable)
General Standard Disclosures Strategy & Analysis G4-1 Statement from the most senior Decision Maker G4-2 Description of Key Impacts
Introduction, quote from David Paine, Head of Real Estate Statement from Real Estate Sustainability Manager with additional detail throughout the report and SREI Policy published online
Organisation Profile G4-3 Name of Organisation G4-4 Primary Brands/Products G4-5 Location of Head Office G4-6 Number of Countries
The report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate offices Appendix - Consolidated KPIs, Report Boundaries Appendix - Consolidated KPIs, Report Boundaries Introduction - Key Facts
G4-8 Markets Served G4-9 Scale of Organisation G4-10 Total Workforce G4-11 Collective Bargaining G4-12 Supply Chain G4-13 Significant Changes in Year G4-14 Precautionary Approach G4-15 External Organisations
The report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate offices Appendix - Consolidated KPIs, Report Boundaries Introduction - Key Facts Appendix - Real Estate Workforce as at 31 March 2016 12% of Real Estate staff. This applies to staff based in France only Appendix - Governance Structure. Additional detail in SREI Policy published online Introduction - Key Facts Not applicable at Real Estate level At Real Estate level: UNPRI, GRESB
G4-16 External Memberships
At Real Estate level: GRESB, INREV, BPF, SPF, AREF, UK-GBC
G4-7 Nature of Ownership
Identified Material Aspects and Boundaries G4-17 Operational Structure
Refer to Standard Life plc Annual Report and Accounts, published online. This report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate offices
G4-18 Process for Content G4-19 List of Material Aspects G4-20,21 Aspect Boundaries G4-22 Re-statements G4-23 Significant Changes
Appendix - Consolidated KPIs, Report Boundaries Appendix - Consolidated KPIs, Tables Appendix - Consolidated KPIs, Report Boundaries Appendix - Consolidated KPIs, no relevant re-statements Appendix - Consolidated KPIs, Report Boundaries
32 Sustainable Real Estate Investment
Stakeholder Engagement G4-24 Stakeholder Groups G4-25 Basis for G4-24 G4-26 Approach to Stakeholder Engagement G4-27 Key Stakeholder Topics
Stakeholder Engagement section with additional detail in SREI Policy published online Stakeholder Engagement section with additional detail in SREI Policy published online Stakeholder Engagement section with additional detail in SREI Policy published online Stakeholder Engagement section with additional detail in SREI Policy published online
Report Profile G4-28 Reporting Period G4-29 Date of Last Report G4-30 Reporting Cycle G4-31 Contact Point G4-32 Table of Disclosures
Appendix - Consolidated KPIs, Reporting Period April 2016 Appendix - Consolidated KPIs, Reporting Period Appendix - Consolidated KPIs Appendix - this table
G4-33 Assurance
KPI data is externally checked and validated by KJ Tait Engineers. It is our intention to move to assurance of our annual SREI reports in future
Governance G4-34 Governance Structure
Appendix - Governance Structure and reporting lines through Head of Real Estate
Ethics and Integrity G4-56 Ethics and Integrity
Indicator not applicable at Real Estate level
Specific Standard Disclosures Economic G4-EC1 Direct Economic Value Generated and Distributed G4-2 Description of Key Impacts
Refer to Standard Life plc Annual Report and Accounts, published online Statement from Real Estate Sustainability Manager. Additional information throughout report and in SREI Policy published online
Environmental G4-EN3 Energy Consumption Within the Organisation G4-EN4 Energy Consumption Outside the Organisation G4-EN5/ CRE1 Building Energy Intensity G4-EN6 Reduction of Energy Consumption G4-EN7 Reductions in Energy Requirements of Products and Services G4-EN8 Total Water Withdrawal by Source CRE2 Building Water Intensity G4-EN15 Total Direct Greenhouse Gas Emissions G4-EN16 Total Direct Greenhouse Gas Emissions G4-EN17 Other Relevant Indirect Greenhouse Gas Emissions G4-EN18/ CRE3 Greenhouse Gas Emissions Intensity G4-EN19 Reduction of Greenhouse Gas Emissions G4-EN20 Emission of Ozone Depleting Substances G4-EN21 NOx, SOx and Other Significant Air Emissions G4-EN23 Total Weight of Waste by Type and Disposal Method G4-EN29 Monetary Value of Environmental Fines
Appendix - Consolidated KPI’s, Energy Efficiency Statements Appendix - Consolidated KPI’s, Energy Efficiency Statements Appendix - Consolidated KPI’s, Energy Efficiency Statements Sustainable Asset Management, Appendix - Consolidated KPI’s, Energy Efficiency Statements Sustainable Asset Management, Case Studies, Appendix - Consolidated KPI’s, Energy Efficiency Statements Appendix - Consolidated KPI’s, Water Conservation Statements Appendix - Consolidated KPI’s, Water Conservation Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Sustainable Asset Management, Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, GHG Emissions Statements Appendix - Consolidated KPI’s, Resource Efficiency Statements None
Product Responsibility G4-PR1 Health and Safety Impacts of Products and Services G4-PR2 Total Number of Incidents of Non-compliance With Regulations
Appendix - Consolidated KPI’s, Health and Safety Performance Statements Appendix - Consolidated KPI’s, Health and Safety Performance Statements
Sustainable Real Estate Investment
33
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority. Standard Life Investments (Hong Kong) Limited is licensed with and regulated by the Securities and Futures Commission in Hong Kong and is a wholly-owned subsidiary of Standard Life Investments Limited. Standard Life Investments Limited (ABN 36 142 665 227) is incorporated in Scotland (No. SC123321) and is exempt from the requirement to hold an Australian financial services licence under paragraph 911A(2)(l) of the Corporations Act 2001 (Cth) (the ‘Act’) in respect of the provision of financial services as defined in Schedule A of the relief instrument no.10/0264 dated 9 April 2010 issued to Standard Life Investments Limited by the Australian Securities and Investments Commission. These financial services are provided only to wholesale clients as defined in subsection 761G(7) of the Act. Standard Life Investments Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority under the laws of the United Kingdom, which differ from Australian laws. Standard Life Investments Limited, a company registered in Ireland (904256) 90 St Stephen’s Green Dublin 2, is authorised and regulated in the UK by the Financial Conduct Authority. Standard Life Investments (USA) Limited is registered as an Exempt Market Dealer in Canada and as an Investment Adviser with the US Securities and Exchange Commission. Standard Life Investments (Corporate Funds) Limited is registered as an Investment Adviser with the US Securities and Exchange Commission. Calls may be monitored and/or recorded to protect both you and us and help with our training. www.standardlifeinvestments.com © 2017 Standard Life, images reproduced under licence INVBRE_16_1740_SREI_Report_TCM 0217
34 Sustainable Real Estate Investment