We are working to reduce operational carbon intensity by 75% across our portfolio by 2030 vs 2019.
The chart below sets out the key opportunities we have to reduce carbon emissions across our portfolio over the coming eight years. On our standing portfolio these focus on renewable power and energy saving initiatives in our buildings.
Note: Indicative view which assumes developments are built out per development pipeline and excludes any capital activity
We already offset residual embodied carbon on our developments and from 2030, will offset operational carbon across our standing portfolio but will seek to minimise this as far as possible.
The decarbonisation of the National Grid will play a key role in the switch to renewable power across the UK. We will supplement this by investing in onsite and offsite renewable energy sources.
Already we have two megawatt peak of solar capacity across our portfolio (of which half is at Meadowhall) and following a refresh of our portfolio wide feasibility study, we have selected two pilot sites for installing solar on retail park roof space. In addition, we are exploring the possibility of building a solar car port at Meadowhall, making use of some our 2.9m sq ft parking facilities.
We continue to purchase both REGO backed electricity and RGGO backed gas, accounting for 88% and 90% respectively of electricity and gas purchased.
Energy saving initiatives – standing portfolio
In 2022, we completed a programme of net zero audits, identifying energy and carbon efficient interventions across our standing portfolio. In 2023, we integrated the most impactful of these recommendations within the business plans for our assets. Many of these initiatives are lifecycle replacements providing opportunities to introduce low carbon technologies such as replacing gas boilers with air or water source heat pumps, LED lighting and fan coil units. We have also held a series of customer round tables attended by our leading retail and office occupiers, helping them to identify opportunities to make improvements on their own space.
While our focus is on achieving a net zero portfolio, we also recognise that forthcoming Minimum Energy Efficiency Standard (MEES) legislation will require all our buildings to be EPC A or B by 2030. Our net zero interventions should help deliver this.
Our Transition Vehicle finances the retrofitting of our standing portfolio.
Find out more about our approach to EPCs.
Energy efficiency – developments
Where we are delivering new developments, we have a clear opportunity to target more ambitious goals in energy efficiency. Our 2030 target of 90kWhe per sqm (on a whole building basis) for new developments aligns with the UK Green Building Council’s interim targets and the trajectory for the Paris Proof target of 70kWhe per sqm for 2035-50.
We have also adopted NABERS UK on all our new office developments. The NABERS methodology produces an energy performance rating for each office development, helping us to track performance to ensure we meet our targeted levels of efficiency. 1 Broadgate has received a 5 star NABERS Design for Performance target rating.