2 018 Sustainability Report Contents Page
04–35 36–43 44–75
SECTION 1 SECTION 2 SECTION 3 Executive Summary and Delivering Positive Social Impacts Reducing our Carbon Emissions Key Messages
76–83 8 4 –10 3 1 0 4 – 11 3
SECTION 4 SECTION 5 SECTION 6 Reducing our Water Use Managing Resource Use Managing Health and Safety
11 4 – 1 2 1 122–135 136–150
SECTION 7 SECTION 8 SECTION 9 Upskilling and Inspiring Corporate Data Reporting Approach and our People Data Management
Cover picture: detail of roof at Victoria Quarter, Leeds.
This page: Restaurant terrace at Terrasses du Port, Marseille. Section 1
Chief 2018 has been another busy year for Hammerson and Executive our focus on excellence has continued to deliver strong Statement sustainability outcomes.
ur sustainability achievements in 2018 have been significant O across each of our three key operating countries. Having recognised early the significance sustainability would have for our business, Positive Places has become one of the most successfully Section 1 embedded sustainability strategies within our sector, a view supported by discussions with key stakeholders during our 2018 materiality review. Our approach has enabled us to deliver a consistently strong performance against our sustainability targets and I am pleased to be able to share similarly successful outcomes for 2018. A further 19% improvement in the carbon intensity of the business, one of our five corporate KPIs, shows the progress we are making in decoupling business output from rising carbon emissions.
Positive Places includes both our environmental and social impacts; and I was delighted to start the year with an event in the House of Commons to celebrate the positive social impacts that our retail Executive portfolio brings to our local communities. It was enormously encouraging to be able to share this positive message with so many and to hear first hand how local people are benefiting from our Summary employment and skills brokerages and community partnerships. More on our external engagement on pages 36–43
Our environmental focus remains clearly on minimising demand for grid energy, reducing both cost and carbon emissions whilst also mitigating our energy supply risk. This strategy has generated some 11% reduction in absolute carbon emissions in 2018, bringing and Key the total reduction across our portfolios to 22% since 2015 even though the portfolio has grown. Our investment in renewables is contributing to this reduction whilst producing income for the business. This consistent approach has enabled us to achieve our % short term carbon emissions reduction targets ahead of schedule. Our targets to be Net Positive for carbon emissions, water, Messages resource use and socio-economic impacts by 2030, remain as 19 challenging as we expected. Our current projections anticipate a improvement in the carbon requirement for approximately 12,000 tonnes of carbon offset in intensity of the business 2020 and we are developing a number of initiatives to deliver this.
4 STATEMENTS 5 Section 1
Our strategy has generated
% Delivering our Net Positive targets Our work with retailers on improving the energy efficiency of I am hugely encouraged by the way all my colleagues have been As we look back on 2018 it may turn out to have been something of store fit out has already generated significant savings and we see inspired to step up to the Net Positive targets the business has set, a watershed year for sustainability. The 2015 Paris Accord seems to 11 the reduction of these scope 3 emissions as a priority for offsetting and the progress we have made as a result.We need to do more and, have energised many business leaders to address climate change, our remaining scope 1 and 2 emissions over the next two years. as the more straight forward savings are made, achieving further even with limited political leadership on policy. This lack of political reduction in absolute carbon reductions will become more challenging. We are also working clarity makes it even more important for business to step up and Making a commitment to find ways to offset our remaining within a more capital constrained operating environment as we help shape our sector’s response to this increasingly pressing issue, emissions in 2018 across the environmental impacts in this way is bold but this is the scale of anticipate heading into an increasingly challenging phase for the and drive initiatives that we are confident will work. response needed to tackle climate change, as made clear by the retail portfolios, bringing the economy. This certainly won’t change our commitment to our Seen in this context our decision to set challenging Net Positive recent reduction of the global warming target agreed within the 2015 Positive Places strategy or our Net Positive targets, particularly targets for the business in 2017 was clearly the right one. total reduction to Paris Accord from 2°C to 1.5 °C. Businesses will be expected to be at as the financial benefits from our key projects are clear – both the forefront of this challenge. for us and our tenants. However I will continue challenging each business area to find low cost and new ways of reducing The lack of political clarity regarding climate change Responding to climate risk our impacts and work with the Positive Places team, to make policy makes it even more important for business to the business case for any initiatives as strong as possible as they Climate change remains our overriding sustainability concern and step up and help shape our sector’s response to this % compete with all other business streams for capital allocations. energy demand is our direct link with it. Our climate risk exposure The same challenge goes out to our major suppliers – we expect increasingly pressing issue, and drive initiatives that to extreme weather events was confirmed as limited by the portfolio their expertise to support the delivery of these targets. we are confident will work. 22 climate risk analysis completed this year. We are responding to since 2015 the risks identified by building resilience into new assets and into asset management plans. We are also developing our understanding Our discussions with stakeholders for our materiality review of how our existing buildings perform under climate stress. For this year revealed a sharp increase in focus on sustainability example, our artificial intelligence project with tech start-up Grid Our headline financial savings from environmental governance and reporting as investors, in particular, want to Edge at Bullring in Birmingham is using machine learning to link initiatives can be seen on pages 18 understand how different companies compare. This report is building thermal performance data to forecast weather conditions designed to provide exactly that level of transparency. I am sure “I am hugely encouraged by and footfall to enable us to optimise building operation. In interesting times you will find it interesting and useful and as always, if you have any Delivering one of the most ambitious sustainability programmes suggestions or questions, we welcome your feedback. What does the future hold? the way all my colleagues in the sector is certainly not easy. We have not been able to deploy Looking forward, Positive Places is at the heart of our City as much PV as we wanted to in 2018 for a variety of reasons have been inspired to step Quarters strategy, announced in July. The development of our including challenges with local network operators and tenants. land holdings around our assets is a unique opportunity to The extreme cold at the beginning of the year and extreme heat up to the Net Positive reinforce the link between those assets and the community they in the summer impacted our energy demand, particularly in our Our Positive Places website provides further serve, by providing new facilities, public realm, infrastructure and most northerly assets. Plus, the split incentive issue remains, information on our performance and initiatives: targets that the business opportunities that speak to the needs of future generations. where investments that we make deliver direct business benefits sustainability.hammerson.com As we reach a potential technological watershed affecting where and to our retailers through reduced service charge. But these are has set and the progress we how we work, travel and spend our leisure time, our Hammerson all issues we are experienced in addressing and will continue David Atkins assets will be positioned to respond and to do so in a fundamentally to overcome. The UK’s changing political landscape presents Chief Executive have made as a result.” positive way. The knowledge our teams have already developed in challenges for all areas of the business as uncertainty impedes delivering sustainable projects will underpin our City Quarters decision-making and slows activity. For sustainability, strategy and the delivery of long term value for the business. however, the agenda is effectively a global one so we remain clear in our purpose.
6 SUSTAINABILITY REPORT 2018 STATEMENTS 7 Section 1
ith just two years to go before we reach the first of our three W Net Positive target milestones, our attention has been Group heavily focused on reducing our carbon emissions and identifying opportunities to reduce scope 3 emissions. We are making steady % progress and I am hugely encouraged by the collaboration and Head of innovation that setting such ambitious targets has drawn from 17 reduction in energy demand Sustainability colleagues, suppliers and the wider stakeholder group. since 2015 Our 2018 materiality review Statement Our Positive Places strategy is designed specifically to address our most material issues, as the sustainability agenda is constantly evolving this year we carried out a materiality review with Our Positive Places sustainability stakeholders to ensure we remain focused on the right areas. This £790k was enormously useful and the insight we gained has influenced this in energy cost savings to the strategy has continued to make report and will continue to be reflected in our over-arching strategy. business and our retailers in 2018 strong progress in 2018, reducing our environmental impacts and extending our positive social impacts across our assets. Find out more about our materiality review on The science behind our targets is sound – we have calculated our Since the operation of our French assets has been brought pages 24–25 environmental and socio-economic footprints using data from the in-house, mirroring our approach in the UK, the management business and from our tenants and visitors, so we know what our teams have achieved significant improvements in A key change we noted over the four years since our last review significant impacts are, including those from our tenanted space environmental performance. Improvements in building was the significant increase in importance attributed to climate and our visitors. Whilst this report is focused most specifically on management systems, investment in LED lighting and greater change risk. We have a comprehensive strategy embedded across our 2018 performance and short term targets, our performance vigilance of performance have enabled the French portfolio to the business supporting a consistent and managed approach to against our Net Positive targets is also provided. Our targets to achieve an impressive 27% reduction in energy demand since the monitoring of our exposure to climate risk alongside other 2020 are designed to support the delivery of our target to be Net 2015, 15% in 2018 alone. corporate risks, as recommended by the Financial Stability Board’s Positive for scope 1 and 2 emissions by that date. Task Force on Climate Related Financial Disclosures (TCFD). We reported last year that we expected our development at Les 3 Fontaines Cergy to bring opportunities for carbon and materials
Addressing scope 3 emissions savings and this has been the case. Working closely with our
contractor, Bouygues, we have achieved a significant reduction in Through our work with retailers we are beginning to be able to virgin materials and a saving of over 274 tonnes in embodied carbon influence carbon reductions in the let space within our assets. Key findings of our climate risk study and our approach emissions through the specification of recycled content within the This is a key focus area for the business as it presents a significant to managing our sustainability risks are provided on concrete and steel used for the build. pages 26–27 opportunity to reduce overall emissions from our portfolios whilst also saving our retailers money. Our work with retailers at Elliott’s As public expectations of businesses to take clear responsibility Field Retail Park, Rugby, has enabled them to reduce the energy for their environmental and social impacts increases we Our latest materiality review confirmed that our key environmental demand in their stores on that site by up to 30% compared with are pleased to see Hammerson’s foresight in developing a target area remains reducing energy demand across the operational their other stores. This has potential benefits that go way beyond comprehensive sustainability strategy place us at the forefront of portfolio. This is still the major driver of our carbon emissions and our portfolio but is exactly the sort of outcome that is needed to our sector. It is clear from our conversations with investors and an impact over which we either have control, within common areas, bring about meaningful change. other stakeholders that sustainability is no longer optional but or can influence through our relationships with retailers. I am an imperative within a responsible, forward thinking business very pleased to be able to report that we have made a further 6% Tackling waste strategy. As we face an uncertain business outlook, increasing reduction in energy demand across the landlord controlled areas climate change is one of the few certainties on the horizon. Our in 2018 bringing our total efficiency gains to 17% since 2015. This Waste management remains a key focus area for us as full Sustainability Report contains extensive data on our 2018 has delivered £790k in savings to the business and our tenants management costs rise and the organic waste streams from our performance and is designed to be as transparent and useful as in 2018. We have provided a brief overview of the findings of our assets increase. Many of our assets are achieving impressive possible. I hope you find the report interesting and if you have any materiality review on page 24–25 with a summary report available recycling rates leading to rising income from waste being returned comments, questions or feedback please do let us know. on the Positive Places website. to our tenants through service charge. Organic waste has been a focus this year with great results from the Biowhale at Cabot Responding to international goals Circus in Bristol and Westquay in Southampton and our new Louise Ellison coffee waste recycling scheme at Victoria, Leeds. Group Head of Sustainability Our Positive Places strategy and targets align with the four United Nations Sustainable Development Goals identified as We confirmed through our supply chain that our recycling does most relevant to our business. They exceed the current carbon not go beyond Europe so the only impacts we have experienced Our sustainability reporting also includes our Annual Report and efficiency trajectory required for achieving 1.5°C scenario and from the policy changes in international recycling have been accounts and reflects the compliance requirements of GRI and the EPRA Sustainability Best Practice Reporting Standards. respond to the risk management expectations of the TCFD cost increases. We are expecting costs to rise further once the reporting requirements. UK leaves the EU due to labour shortages.
8 SUSTAINABILITY REPORT 2018 STATEMENTS 9 Section 1 About Hammerson
We own, operate, curate and develop winning European destinations. Bringing together the very best retail, leisure and entertainment brands, we seek to deliver value for all our stakeholders, creating a positive and sustainable impact for generations to come.
Our 2018 portfolio includes investments in:
21 13 20 prime shopping convenient retail premium outlets centres in the UK, parks in the UK across Europe Ireland and France
UK shopping centres France shopping centres Ireland shopping centres
A full list of properties is included in our sustainability reporting shown on pages 142–145 UK retail parks Premium outlets
10 SUSTAINABILITY REPORT 2018 ABOUT HAMMERSON 11 Section 1 A resilient model for long term value
Our purpose We create vibrant, continually evolving spaces, in and around thriving cities, where people and brands want to be. We seek to deliver value for all our stakeholders and to create a positive and sustainable impact for generations to come.
What we have What we do Who we deliver for
High-quality property Shareholders in the right places We have a broad range of institutional investors and private We own and operate high-quality, flagship shareholders. We actively engage with them throughout the year and destinations and premium outlets. Our City undertake regular communication to ensure they understand the Quarters concept will enable us to leverage performance of the business. our existing land bank around these flagship assets, supporting their continued growth and success. Brands Product Positive experience places Our business strategy and future success is aligned with that of all of the brands which fill our destinations – retailers, food and beverage and framework We create A dynamic and leisure tenants, as well as direct to consumer brands. diverse team We create desirable destinations spaces where people that deliver net We go to great lengths to attract, develop and brands want to be, positive impacts and retain the best people. By the end of economically, socially by developing iconic Consumers 2018 Hammerson directly employed 533 destinations which and environmentally people across the UK, France and Ireland. at their core have the through the Group’s We create vibrant destinations that meet the needs of the wide range Positive Places Our strategy very best brands and of consumers that engage with them. In a modern omnichannel experiences. We put the strategy. environment, we need to provide more than just a place to shop. customer at the heart of everything we do, Our target is to be net delivering a journey that positive for carbon, Insight led is truly frictionless and resource use, water Capital Optimised Operational supported. and socio economic Partners We use property and consumer trends efficiency portfolio excellence impacts by 2030. to shape our strategy and inform our The four key pillars of We work with a wide range of partners including joint venture partners, decisions around capital allocation, project our framework are: suppliers and capital partners over the long term, making our business priorities and resource deployment. Our stronger and delivering a competitive edge. dedicated Insight team monitors the latest • Iconic destinations consumer habits and retail trends to better understand and respond to markets. • Retail specialism • Experience led Communities • Customer first Effective capital Our assets rely on a strong, positive connection with thriving local management communities. This is where we draw our customers from, and over 80% of the employees in our flagship destinations. Effective capital management ensures balance sheet resilience. We monitor against internal guidelines to maintain the Group's robust financial position. Our Our people preferred source of debt is Group-level, unsecured funding and we have a platform Talented, motivated colleagues are critical to the success of the business. of successful joint venture partners. We have built a winning team to support our delivery of the best destinations.
12 SUSTAINABILITY REPORT 2018 CREATING LONG-TERM STAKEHOLDER VALUE 13 Section 1
At a Glance – Our key Water demand for Positive social impacts landlord services Retaining strong, positive relationships with the communities Numbers for 2018 Landlord water demand has decreased in 2018, with our intensity surrounding our assets is central to our business model. We work metric of M3/visitor dropping by 33% across our like-for-like hard to ensure the whole community benefits from our presence portfolios. Our Irish water intensity is considerably higher than in the area through our contribution to local social capital as well Scope 1 & 2 Carbon Emissions (mtCO2e) the UK because we are currently unable to split landlord from as the economy. Over the course of 2018 we worked with more Table 1.1 tenant consumption. This issue will be resolved in 2019 with the than 450 organisations bringing opportunities, connections, 2015 2016 2017 2018 % Change YOY % Change vs. 2015 installation of new submetering. facilities and more, to thousands of local people
UK 26,638 23,922 19,089 16 ,111 -16% -40% We are working closely with our suppliers to identify potential • Over 100 previously unemployed people employed at our assets France 7,065 5,514 5,243 4,541 -13% -36% areas for savings, and with regional water companies to carry out through jobs brokerages and skills training water audits to identify leaks. We are confident that these projects, Ireland n/a 2,355 5,374 5,714 6% n/a combined with our investment in metering will enable closer • 550+ entrepreneurs given business skills training Group 33,703 31,790 29,707 26,366 -11% -22% management of water usage bringing additional reductions in 2019. • 1600 young people provided with confidence-building training EPRA LFL Portfolio 28,563 23,562 -18% D B I EPRA and enterprise opportunities Chart 1.3 Water Consumption • £1.7m of support provided to local charities EPRA like-for-like Portfolio and organisations
Carbon emissions Energy demand Our consistent focus on good management of energy at our Reducing grid energy demand is a key focus for our key assets continues to drive carbon emissions down. These sustainability strategy. Investment in technology and a reductions come in spite of the addition of four shopping clear focus on continuous improvement in management m centre assets since 2015. Our EPRA like-for-like portfolio has achieved an 11% saving across the EPRA like-for-like £1. 7 has achieved a year-on-year carbon emissions reduction of portfolio in 2018. 18%. Whilst this has been supported by grid factors in the in direct contributions to charities C UK, E the French C grid factor E has worsened EPRA and in Ireland has Extreme weather events presented challenges with an through cash and in kind support not changed. average of 131 additional cooling degree days per asset during the summer highs. In the first half of 2018, each asset Chart 1.1 experienced on average 155 additional heating degree days compared to 2017 however this was balanced out in Q4 by Carbon Emissions the mild winter. The net weather effect on our assets was U S C M T R EPRA EPRA like-for-like Portfolio higher electricity demand due to increased summer cooling F S C Chart 1.4 E loads. D We are pleased E that C in spite of this, EPRA we are continuing I S C Waste Management to drive our energy consumption down year-on-year. EPRA like-for-like Portfolio Chart 1.2 Energy Consumption EPRA like-for-like Portfolio CO T Waste management In 2018 we continued our focus on recycling and diversion from S landfill, achieving a recycling rate of 75% and diverting 99.8% of S waste from landfill across all three geographies. M U U F F We have had good success with food waste disposal on site, I I reducing carbon emissions through anaerobic digestion and reduced transportation. We have continued to focus on reuse as well as recycling, in particular for plastics. Through our relationship with Mainnetti we sent an estimated 92,000 plastic coat hangers for reuse or re-purposing in the last two years. E
14 SUSTAINABILITY REPORT 2018 PERFORMANCE HEADLINES 15 Section 1 Progress Against Targets
Table 1.2
Target Annual performance Progress in 2018 Commentary
2016 2017 2018 2019 2020
Reduce carbon intensity of Further reductions in grid energy demand coupled with grid decarbonisation in the UK have helped A further 19% year-on-year the business by 20% against -9% -3% -19% significantly reduce carbon intensity of the business in spite of a challenging financial year. This is improvement in carbon intensity. 2015 baseline evidence of our growing success in decoupling business growth from growth in carbon emissions.
Absolute operational carbon emissions have fallen by 34% since 2015 across the like-for-like assets. We are Reduce absolute operational carbon targeting a further 25% reduction in our scope 1 and 2 emissions by 2020, allowing for predicted grid factor Achieved our 2020 absolute emissions by 18% by 2020 against a improvements. This equates to annual reductions of approximately 11% per annum against our 2015 baseline, -14% -9% -11% carbon emissions reduction 2015 baseline for the like-for-like UK significantly ahead of sector requirements for achieving a less than 2°C climate change scenario. This will be two years early. and France shopping centre portfolio combined with offset projects to achieve our Net Positive scope 1 and 2 carbon emissions target by 2020. Our long term target remains to be Net Positive, for scope 1,2 and 3 carbon emissions by 2030.
Reduce operational energy use Energy demand for our 2015 like-for-like portfolio is 7% lower than it was in 2015. Our targets 15% by 2018 across the like-for-like Achieved -6% energy demand for 2019 and 2020 are further reductions of 6% and 4% taking us to a total 27% against 2015. -3% -8% -6% shopping centre and retail parks for the 2015 like-for-like assets. Our focus remains on effective on-site management and investment in technologies. Our 2018 portfolio against a 2015 baseline investment in smart metering is expected to drive further efficiency gains in 2019 and beyond.
Recycling rates are high for the Achieve 85% waste recycling sector and continue to improve. Performance varies across geographies and is affected by local infrastructure. Our French for the like-for-like shopping 70% 73% 75% 7 assets achieved in excess of assets are showing improved performance but our Irish assets fallen back a little this year. centre portfolio 85% recycling rate for 2018.
Reduce landlord water intensity Landlord water intensity has Reducing water demand is challenging. Better metering is expected to bring efficiencies litres/visitor by 10% by 2020 worsened marginally in 2018 in 2019 and we are working with regional water companies to carry out water audits to 10% -14% 1% but is still significantly ahead against a 2015 baseline for like- identify saving opportunities. for-like shopping centre portfolio of the 2015 baseline.
Build 2 MWh renewable capacity We now have 1.4MWp of installed PV and have a further 1.7MWp planned for 2019. into our existing assets and new 130kWp 1.1MWp 1.4MWp Additional 300kWp installed. We have therefore extended the target to 3MWp by 2020. developments by 2020
16 SUSTAINABILITY REPORT 2018 PROGRESS AGAINST TARGETS 17 Section 1 Key Environmental Financial Metrics
Our consistent focus on environmental efficiency continues to reap financial rewards for the business and for our retailers.
Enviromental Financial Metrics Table 1.3
Energy (Hammerson Group) Unit 2018 Energy costs are a key focus within this Minimum Energy strategy but the management of waste and Efficiency Standards Cost of energy £000 12,463 water are also important. Over the course Table 1.4 MEES Risk in England and Wales (Cert-Tot) of 2018 we have seen energy demand We have continued to remove F and G continue to fall, our water efficiency rated EPCs from the portfolio. As the table Energy Performance Certificates 2017 2018 Estimated energy savings MWh 792 improve and a significant improvement shows, there is limited MEES risk across EPCs across retail portfolio 1,272 1,291 in our waste recycling and reuse figures, our portfolios. What there is, is being systematically managed out. Energy Efficiency investment £000 2,625 particularly in the UK. Number new EPCs registered 110 128 Our corporate target is for all retail units As the water market in the UK is changing Number EPCs for England and Wales assets 1,061 1,073 Estimated energy savings GRI 302-4 MWh 1,440 we have switched suppliers and are to achieve a D rating. This is beyond expecting to see improvements in data compliance but more cost effective for our Number F & G rated in England and Wales assets 142 94 management. Water management retailers through energy savings. infrastructure has traditionally been Carbon costs under-invested and this is beginning to change. As part of our automatic metering CRC Energy Efficiency Scheme £000 211 project we have upgraded water metering at our assets and are now able to better Climate Change Levy £000 234 understand consumption. This has already Case Study enabled us to identify opportunities for reducing consumption. Water 2018 In our 2017 report we anticipated a Financial Returns challenging environment for waste Cost of water for £000 2,093 management. This has been seen in a on LED Installation Landlord services reduction in income from waste as the Investment in water value of recyclables has fallen. However, £000 30 management improvements it has not impacted our overall waste management costs. Increased recycling Estimated water cost £000 70 rates achieved this year have compensated ED installation continues across (3 car parks, service yard, walkways and savings (increases) to some extent for this loss in income. L our portfolio. We have already seen canopy lighting), costing £40,000, was Recycling in France remains lower than significant savings, and these have continued completed in October 2017. The lighting has the UK and Ireland is still challenging. in 2018. seen total annual electricity fall from 168MWh Waste 2018 in 2017 to 69 MWh in 2018, a reduction of 59%. We have a new waste management In October 2018 installation of LED lamps Operational costs from supplier in France and have started to £000 3,911 started on each of the seven levels of At Ravenhead Retail Park a £90,000 waste management see some improvement in performance. multi storey car park at Cabot Circus. We investment in lighting upgrades to 225 However, the French waste management Savings from averted forecast that the LEDs will reduce energy lamps in external areas was completed in £000 2,104 infrastructure remains limited, relative to landfill tax consumption of the car park by over 60%, a December 2017. The upgrade has reduced the UK, as a result of significantly lower saving of 896 MWh/year and 315 tonnes of total annual consumption from 289 MWh Income from sale of £000 321 landfill tax rates. carbon. The project completed in early 2019 in 2017 to 86 MWh in 2018, a total saving waste for recycling and delivers a payback period estimated at of 70%. These savings accrue directly to 5.8 years. the tenants so are forward-funded through service charge. Telford Forge Retail Park has seen similarly significant benefits from LED. A lighting upgrade of 166 lamps in external areas
18 SUSTAINABILITY REPORT 2018 SECTION 1 19 Section 1
The Journey Resource use Water By 2030 we will be Net Positive for: Net Positive for resource use means waste avoided, recycled or Net Positive for water means water replenished by re-used exceeds materials used that are neither recycled or reused external projects exceeds water consumed from Towards or are sent to landfill. mains supply. Our 2020 Net Positive targets focus on resource use within our Achieving Net Positive for water is potentially our Carbon Water Resource Socio-economic operational portfolio which is dominated by waste from the hardest target. The water market is less developed Use impacts shopping centres. We already achieve consistently high recycling than the energy and waste markets and carries less rates across the portfolio which is supporting our delivery of this value, making investment more difficult to justify. We Net Positive target. A number of initiatives have helped improve our recycling are working with regional water companies to carry including our work with OWL using their Biowhale, Helistrat on out water audits within our assets to identify and data management and with Paprec, our waste provider in France. reduce leaks. We have completed one at Cabot Circus Our Net Positive targets are divided into three We have also looked at ways to reduce waste, such as promoting and are targeting further audits across the portfolio. drinking water fountains, and to reuse waste, for example through phases, the first of which completes in 2020. Once we have completed audits and started rectifying a coffee grounds reuse scheme in Leeds. leaks at our assets we will explore how to support We perceive there to be a clear opportunity to reduce further the water companies in auditing third party assets Taking a phased approach materials entering the waste stream by identifying re-use within our local communities. Many organisations, opportunities. Our relationship with Mainetti has enabled over particularly third sector organisations and small 90,000 plastic clothes hangers from our centres to enter the N businesses, P struggle R to apply sufficient resource to 2016–2020 2021–2025 2026–2030 reuse stream over the last two years. We also have relationships address high water demand. This programme would Phase one Phase two Phase three with a number of local charities who are offered surplus store be considered a form of offset for our water targets. refurbishment items and materials. We are exploring how we might Landlord controlled Landlord controlled and Landlord controlled and work more closely with our retailers to support their materials impacts development impacts development and on-site recycling programmes, particularly the fashion retailers. Waste tenant impacts Chart 1.7 has become a very public issue during 2018 and we expect this to Net Positive Water continue to be the case. Major fashion retailers are particularly vulnerable within this area and, as one of our major tenant groups, Carbon N we P are looking R to U work more closely with them to understand how we can support them in responding to demands for more Net Positive for carbon means carbon emissions avoided exceed For example, green electricity contracts are not considered responsible use of resources. emissions generated. For 2020 the target includes our Scope 1 and eligible. However, establishing a power purchase agreement that