SUSTAINABILITY REPORT 2016 Progress Commitments Complete Existing commitment (retained) AT A GLANCE On track Existing commitment (extended) Not on track New commitment Our Commitments and Progress to date CREATING JOBS AND OPPORTUNITIES EFFICIENT USE OF NATURAL RESOURCES COMMUNITY RENEWABLE EMPLOYMENT FAIRNESS ELECTRICITY WASTE COMMITMENT COMMITMENT COMMITMENT COMMITMENT Help a total of 1,200 Ensure the working Continue to procure 100% Send zero waste to landfill with disadvantaged people secure environments we control are renewable electricity across at least 75% recycled across all jobs by 2020 fair and ensure that everyone our portfolio our operational and construction who is working on our behalf activities by 2020 PROGRESS – within an environment we PROGRESS control – is paid at least the PROGRESS Employment secured Living Wage by 2020 As of 1 April 2016, our for 779 people from group electricity contract is Diverting 98.6% from landfill and disadvantaged backgrounds PROGRESS 100% renewable recycling 72% All tenders and contractual clauses for new developments ENERGY now stipulate Living Wage CARBON requirements COMMITMENT COMMITMENT DIVERSITY HEALTH, SAFETY AND SECURITY Reduce carbon intensity Reduce energy intensity (kWh/ 2 2 (kgCO2/m ) by 40% by 2030 m ) by 40% by 2030 compared compared to a 2013/14 to a 2013/14 baseline, for COMMITMENT COMMITMENT baseline, for property under property under our management Make measurable Maintain an exceptional our management for at least for at least two years improvements to the profile standard of health, safety two years, with a longer-term – in terms of gender, ethnicity and security in all the working ambition of an 80% reduction PROGRESS and disability – of our environments we control by 2050 employee mix Previous commitment was to PROGRESS PROGRESS reduce the absolute energy PROGRESS consumption of our five largest 100% of employees completed New commitment energy consuming managed Established and chaired a M1 training and 98% have buildings by 15% by 2020 against sector-wide People in Property completed M2 within six a 2014 baseline. Achieved this Diversity Steering Group months of joining the company year so have now set a more ambitious science-based carbon and energy reduction target SUSTAINABLE DESIGN AND INNOVATION NEW EMBODIED BIODIVERSITY WELLBEING DEVELOPMENTS CARBON COMMITMENT COMMITMENT COMMITMENT COMMITMENT Design all our new Carry out embodied carbon Maximise the biodiversity Ensure our buildings are developments to meet analysis to inform the potential of all our designed and managed or exceed best practice selection and procurement of development and to maximise wellbeing guidelines for carbon emissions building materials to reduce operational sites and productivity and the use of energy, water environmental impacts and materials. Current targets PROGRESS PROGRESS are Very Good for Retail and PROGRESS Excellent for Offices Partnered with The Wildlife Sponsored World Green Embodied carbon Trusts to develop a strategic Building Council Campaign PROGRESS assessments progressing on action plan “Better Places for people” to all major new developments further understand how space Designing to meet or exceed affects wellbeing and how it Part L requirements. 98.3% of can be measured waste diverted from landfill. All office schemes on track for minimum of BREEAM Excellent and retail schemes Very Good Land Securities Sustainability Report 2016 1 THIS YEAR WE DEFINED CONTENTS THE SUSTAINABILITY 2 Chief Executive’s Statement 4 Strategic Update ISSUES THAT ARE 10 Investing through the lifecycle 11 CREATING JOBS AND MOST IMPORTANT TO OPPORTUNITIES 12 Community employment OUR STAKEHOLDERS 15 Education 16 Charity partnerships and volunteering AND OUR BUSINESS. 18 Diversity 19 Fairness THEN WE REFINED OUR 20 Health, Safety and Security 21 EFFICIENT USE OF STRATEGY AND SET NATURAL RESOURCES 22 Climate change and carbon MORE CHALLENGING 25 Energy 29 Waste COMMITMENTS. 30 Water 30 Responsible supply chain management We also launched our Sustainability 31 SUSTAINABLE DESIGN AND INNOVATION Matters training programme for 33 New developments everyone within the company. We were 35 Embodied carbon 36 Biodiversity active participants at the Paris Climate 38 Wellbeing Conference and have now set a new 39 ADDITIONAL DATA, ASSURANCE AND CONTACTS science-based carbon reduction target. 40 Greenhouse gas reporting 42 Benchmarking and awards And we took a leadership role on areas 43 Assurance Statement as diverse as employment, energy 45 Contact and biodiversity. Over the following pages we talk about our priorities, the actions we’ve taken and the progress we’ve made – from 100% renewable electricity to our Community Employment Programme that’s helping to transform lives and support communities. 2 Land Securities Sustainability Report 2016 CHIEF EXECUTIVE’S STATEMENT WE NEED TO ACT IN THE RIGHT WAY SO THAT THE PEOPLE WE DEPEND ON KEEP SUPPORTING US.” Robert Noel, Chief Executive Land Securities Sustainability Report 2016 3 Our vision is to be the best Climate change is an issue of importance We will only continue to thrive as for all of us. During the year we played a business if all of these people – property company in the UK an active role at the UN Conference on customers, communities, partners and in the eyes of our customers, Climate Change in Paris (COP21), talking employees – choose us. Our shared communities, partners and about our approach to sustainability and agenda with these groups helps make sharing experiences with others. Inspired Land Securities more resilient and more employees. Our sustainability by the steps taken towards a global successful. Critically, investors are more vision reflects this ambition. agreement, we have set an ambitious likely to choose to invest in us if we’re We aim to be the sustainability science-based carbon reduction target meeting the needs of everyone we for the company. We’ve also taken depend on. It’s a virtuous circle. leader in the UK listed real direct action, becoming the first property estate sector – a company company in the UK to switch to fully This year we carried out research to that pioneers better ways to renewable electricity. ensure that, in terms of sustainability, we continue to meet the changing needs approach everything from Our partners can choose whether they and expectations of our stakeholders community employment to want to work with us or not. as we move forward. The findings of our energy, waste and biodiversity. That’s why we set high standards for materiality review are discussed in this our supply chain, always backing that report, together with an update on our Why do we think it’s so important to take up by acting according to our values, commitments and actions. Following a lead on sustainability? Because it helps particularly the value of integrity. For the review we have chosen to focus on to ensure this company remains healthy example, our commitment to fair pay three priority areas – creating jobs and and successful for years to come. Put for employees is now matched by a opportunities, efficient use of natural simply, we need to act in the right way requirement that our contractors, on all resources, and sustainable design and so that the people we depend on keep new developments, pay a Living Wage innovation. Over the next 12 months you supporting us. to anyone who works on our behalf. will see us work to lead in each of these areas, driven by our purpose of helping The rationale for this approach is clear: Across the business we partner with businesses to succeed, economies to people have a choice. a wide range of organisations, from grow and people to thrive. suppliers to government, charities and Our customers can choose whether to industry peers. Over the past few years I occupy or visit our spaces or not. have been delighted to help The Passage That means we must understand their homelessness charity in Victoria, SW1. changing needs and respond in the way Working in partnership with Westminster we design, build and manage property. City Council, Grosvenor Estate and Yes, it’s about helping occupiers to Berkeley Homes, we ensured Section Robert Noel manage costs and meet environmental 106 funds were redirected to enable the Chief Executive regulation. But it’s also about providing charity to transform its dilapidated care great experiences inside our buildings, centre, and we supported them during the delivering modern space that helps works. The result? Instead of firefighting our customers to attract new talent and property issues The Passage can now support the wellbeing of their employees. focus on providing essential support to It’s about providing great experiences for the local community. people outside our buildings too, from the natural parkland at Bluewater to the Our employees can choose whether to new public realm we’re opening up in spend their time here or go elsewhere. Victoria, SW1. In my experience the most talented people want to work for a company Our communities can choose whether that believes in itself and, in turn, that to support our development schemes they can truly believe in. Sustainability and properties or not. is central to this. I am convinced the By regenerating land in a smart and importance we place on thinking in a thoughtful way we can deliver powerful rounded, long-term way provides us economic benefits, creating thriving with an advantage in the competition locations where people want to spend for talent. Not least, it presents the sort their time and money. We believe new of intellectual challenges our people developments must enhance the local relish. In February we launched our new area, a challenge we’re meeting in Sustainability Matters online training current schemes across London and at programme for all of our employees. We our Westgate retail scheme in the historic will be developing the programme this centre of Oxford. We also believe the coming year with a series of role-specific construction and management of our face-to-face modules.