Sustainability Report 2020
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Sustainability Report 2020 OUR JOURNEY TO NET POSITIVE SUSTAINABILITY REPORT 2020: INTRODUCTION Contents Hammerson 1. INTRODUCTION P.2 Our approach to sustainability, key ESG figures for 2020, process for managing risk, and our response to the TCFD. 2. OUR PERFORMANCE P.18 An overview of our journey to Net Positive, including headline performance against targets and progress in each of our four Net Positive areas. We also share our 2021-2022 targets, long-term targets and highlights from our Transition Pathway to Net Positive. 2.1 2.2 2.3 2.4 Carbon Water Resource Socio- Use economic impacts P.28 P.34 P.36 P.38 3. OUR DATA P.46 Comprehensive disclosures of the environmental and social impacts of our business activities, our basis of reporting, methodology, boundaries and GRI index. COVER IMAGE: Pulse, part of the Festival of Light at event at Westquay, Southampton. SUSTAINABILITY REPORT 2020: INTRODUCTION 1.0 INTRODUCTION 2.0 OUR PERFORMANCE 3.0 OUR DATA 2 Welcome from our 3 Chief Executive Hammerson “Hammerson’s forward-thinking approach to sustainability has positioned the business well in responding to the rising ESG expectations of the investor community and our wider stakeholders. Our long-term vision is to ensure we continue to optimise our assets to thrive in a low carbon, city-based, 21st century economy. Our Positive Places sustainability strategy underpins this vision. Rita-Rose Gagné, CEO Hammerson’s sustainability PERFORMANCE TO DATE A DIFFICULT YEAR FOR MAINTAINING A CLEAR POWERED BY RENEWABLES strategy has long been a key AND THE IMPACT OF OUR COMMUNITIES FOCUS ON MATERIAL Our strategy recognises the critical strength of the business. Taking COVID-19 ISSUES over as Chief Executive, I made The strong relationships we have role renewable power has to play in it clear that this is a position that Unsurprisingly during 2020 with our communities has been My immediate focus moving the transition to a net zero carbon £8m we outperformed our annual important during the pandemic. forward remains on minimising economy. Almost 3% of our landlord of ESG focused investment will not change and that I expect planned 2021 - 2023 sustainability to become even more environmental targets. The trend We were immediately conscious our negative environmental electricity demand was supplied by central to our strategic thinking. has been sharply downwards of the intense pressures placed on impacts through our ongoing our on-site renewable assets in 2020 but the impact of closures due to local third sector organisations energy, water and resource use and additional capacity is planned COVID-19 makes 2020 a poor year with reduced funding and increased efficiency programmes, whilst for 2021. 92% of our electricity for comparisons. The trend over demand for services. A series extending our positive social demand in the UK and Ireland is the previous four years is more of projects was put in place to impacts. Work to reduce key currently sourced from REGO- useful and has been very strong. support local organisations help environmental impacts through backed clean electricity contracts. Carbon emissions intensity of our the most vulnerable within our optimising asset resource However, we plan to source at least -39% portfolio fell by 39% over the 4 years communities. Our investment in efficiency and investing in clean 50% of electricity for our UK assets carbon emissions intensity to the end of 2019, and absolute positive socio-economic projects technology will continue over from additional renewable power for managed retail portfolio emissions by 30% even though will obviously continue and we are the short and medium term. We from the end of 2021. This will bring over 4 years to end 2019 our portfolio has increased in size. particularly alert to the challenges have almost £8m of ESG focused unsubsidised new capacity to the Water intensity for landlord services facing local communities in 2021. investment included in asset grid and set a new standard in terms fell by 28% over this period. We are already working with local business plans to 2023, which we of power purchasing for our market. service providers and community expect to deliver financial as well as It will also support the transition of We have yet to achieve our target of foundations to target specific areas environmental and social returns. individual assets to net zero carbon becoming Net Positive for landlord of need, such as employment and over the coming years, helping us carbon, water and resource use, skills and financial exclusion. achieve our Net Positive targets for however setting this ambitious target the business as a whole. has driven the business to deliver truly exceptional medium term performance in these areas. Three of our flagship assets were Net Positive for landlord water demand in 2020. SUSTAINABILITY REPORT 2020: INTRODUCTION 1.0 INTRODUCTION 2.0 OUR PERFORMANCE 3.0 OUR DATA 4 The successful businesses 5 of the future will have sustainability at their core and be designed 92% to thrive in a net zero of electricity for our UK carbon economy. and Ireland portfolio from Hammerson REGO-backed contracts. City Quarters at Martineau Galleries, Birmingham < Continued from previous page Sustainability and the risks of climate carbon, climate risk, resource use, Looking at climate risk specifically, THE NEXT 12 MONTHS THE POWER OF We remain focused on our Net change are a shared business agenda water and our social impacts is right our portfolios have relatively low AND BEYOND COLLABORATION Positive targets over the next and the power of collaboration is for the business and supports our exposure to physical risks. Where 12 months and beyond. They Our Net Positive targets include the already clear; it will continue to be wider business strategy. these do present, our planned One of the few certainties for the represent a clear call to action impacts from the tenanted space a central element of our approach. programmes of maintenance and next 12 months and beyond is the for colleagues and are driving within our assets. These represent Our customer base is set to change As signatories to the Better Buildings upgrade will build in resilience in growing threat of climate change excellent outcomes. The successful over 70% of total carbon emissions and with it, the expectations and Partnership Climate Commitment a cost effective, well managed way. and the urgent need to act. Whilst businesses of the future will have for the business according to our opportunities we must respond to. we published our Net Zero Carbon Transitional risks presented through we can and will ensure our assets sustainability at their core and latest data. Thanks to our extensive This, along with a clearer focus on Transition pathway in December increasing regulatory and legislative remain resilient to direct physical be designed to thrive in a net environmental foot-printing model performance-in-use, are pushing new 2020. Setting out Net Positive targets standards in the UK, Ireland and risks and transitional risks, we are zero carbon economy. This is an and data sharing agreements within boundaries within the sector that we 5 years ago enabled us to publish a France are well managed across the indirectly exposed to the risks that important opportunity for us as we our leases, we are already able to fully support through our own work detailed pathway that includes all portfolio. For example we are now our other stakeholders, particularly reach out to communities within calculate the carbon emissions from and our active industry engagement. our directly managed assets and planning for 2030 MEES risk. Having our customers, face. our cities and look to provide the these areas (Scope 3 emissions) and encompasses operational, embodied established processes in place to For this reason I have tasked my local infrastructure they need and this data is set out in the report. MANAGING THE and Scope 3 carbon emissions. This ensure opportunities are taken to senior management team with deserve and that will serve the TRANSITION TO NET ZERO directly aligns with and supports upgrade units to higher standards at Reducing these emissions is essential carrying out detailed climate business and our shareholders CARBON ECONOMY our wider Net Positive targets and the most effective opportunity within and requires positive collaboration Positive Places strategic approach. scenario analysis this year to better in the decades to come. with our brands. Our work so far The challenges and changes the leasing cycle, has enabled us to understand these risks and the to encourage improved fit-out experienced through 2020 made This is particularly important as we minimise exposure to 2023 MEES potential opportunities that flow standards has delivered 900 tonnes clearer than ever the value for our look to develop our City Quarters. risk and will ensure we are well from them, to inform our wider of carbon savings within stores, business and others like ours of We have set the highest standards prepared for the next phase. business thinking and strategy. reducing carbon emissions and taking a leadership approach to for our design teams, including retailer operating costs over multiple sustainability. The sharp increase achieving net zero carbon and years. We are also working with in focus on climate change Passivhaus standards, and this strong stakeholders beyond our corporate and related risks and stronger steer is delivering exciting results. boundaries to support carbon, water public expectations of corporate The buildings that we create now and resource use savings elsewhere. responsibility, place businesses that and that will drive the performance We started this work for water in are ahead of the curve in a positive of our business for years to come 2019 and are looking to expand it to position. I am confident that our have to be ready for the challenges carbon in 2021 and 2022.