In our first full year following our commitment to be net zero carbon (NZC) by 2030, we set building-specific energy targets aligned with a 1.5°C climate scenario, introduced embodied carbon targets for our new developments, and released our first net zero carbon survey to ramp up our NZC-focused engagement with our occupiers.
Change in Scope 1-3 carbon emissions
While our absolute energy and water consumption has increased from last year, largely as a result of increased occupancy of our buildings, we have seen minimal change in our total carbon footprint. Landlord emissions alone, reduced by 3%. These minimal changes can be attributed to lower carbon factors and the start of our transition to all electric heating and cooling systems.
We saw a 1% increase in our absolute landlord and tenant energy consumption. With increased occupancy, we had anticipated this figure to increase more, but this was largely offset by the disposal of Angel Square EC1, 19-35 Baker Street W1 moving into the construction phase and continued building optimisation by our property management team.
We saw a 7% increase in absolute water consumption (excluding retail) which closely follows increased occupancy of our buildings.
Over 55,000 sq ft of floor space was converted to being all electric in 2021 and more than 70,000 sq ft is currently on site. Our total portfolio is now 14% all electric based on net internal area (NIA).
Occupier engagement on net zero carbon
We undertook our first net zero carbon occupiers survey which, along with our first Stakeholder Day has helped us better understand our occupiers’ net zero journeys and how we can collaborate to reduce operational carbon. By the end of 2021 we had engaged with 49% of our occupiers (by ERV).
EPC 2023 Compliance
Our portfolio is 99% compliant (by ERV) with 2023 EPC legislation and already 61% compliant with proposed 2030 legislation, which requires EPC ‘A’ or ‘B’. We have a fully costed plan of c.£97m to cover 2030 compliance, supported by third parties.
23% of total gas consumption is covered by a green tariff.
Energy intensity - SBTi
We reduced our energy intensity by 28% against our 2013 baseline science-based target (SBTi).
Carbon intensity - SBTi
We reduced our carbon intensity in our like-for-like portfolio by 55% against our 2013 baseline science-based target (SBTi).
We committed £105k towards the Community Fund for 2021, supporting 19 projects. To date the fund has supported around 130 projects since inception with £850k of funding.
Sponsorships & donations
Additional community and sponsorship donations for 2021, including our provision of accommodation to NHS staff in Fitzrovia.
Placed in top 5% of all companies achieving the National Equality Standard. Our Diversity & Inclusion working group established clear priorities and KPIs to help guide the business.
Proud to work for Derwent London
Our latest staff survey revealed that 94% of staff said they are proud to work for us with 91% either satisfied or very satisfied to work for us.
Mental health champions
Staff Mental Health First Aid (MHFA) champions trained in supporting and signposting colleagues.
Payment days to suppliers
The Finance team worked hard to reduce our average payment term to 20 days, which assisted our contractors and suppliers with their cash flow and liquidity.
Our attitude towards tax risk is primarily governed by the Board’s objectives to retain our REIT status and maintain our ‘low-risk’ rating from HMRC. The Board was pleased to have received a ‘low-risk’ rating from HMRC which is valid until 2022.
Executive Director bonus
7.5% of the Executive Directors’ annual bonus is dependent upon the achievement of climate-related targets. A further 2.5% is reliant on staff satisfaction.
Compliance training hours undertaken by all staff
We continue to operate a mandatory training programme which aims to reinforce key compliance messages in areas such as anti-bribery, modern slavery, conflicts of interest etc. All staff (including our Directors) completed 143 hours of training during 2021, in aggregate.
Download At A Glance
99% EPC compliance for 2023
Scottish solar park could provide 40% of our total electricity needs
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This report relates to the work undertaken in the past financial year which is also the calendar year – 1 January to 31 December 2021.Read
Its scope reflects our business activities – real estate investment, management and development in central London – which were unchanged during 2021. Our data boundaries, together with the calculation and aggregation methods are set out in our data methodology.
Our report structure reflects our material ESG issues in the context of our day-to-day business activities.Read
Our materiality matrix puts our seven key priorities into context against the issues material to our business.
This year, for the first time, we have made the report fully digital.Read
The ability to interact with the material online as well as download data will, we hope, make it more accessible to our audiences and stakeholders, and elevate the communication of our ESG activity to a new, more responsive level.
We compile and align our outputs with two reporting frameworks – GRI Standards and the EPRA Sustainability Best Practices Recommendations (sBPR) summaries of these can be found here (GRI) and here (EPRA).
Our review of our progress in supporting the UN Sustainable Development Goals (SDGs) can be found here. We have also set out our disclosures against the Task Force on Climate-related Financial Disclosures (TCFD) recommendations here.
Our environmental, health and safety and green finance data is independently assured at the reasonable level by Deloitte LLP.Read
We continually review the broad spread of ESG based aspects relevant to our business to ensure they are captured effectively in our corporate strategy and net zero carbon ambitions.Read
As part of the review, a four-step process – identification, prioritisation, validation and review – was used to ensure the right issues are brought forward and assessed properly. The results from this exercise are examined by members of the Sustainability and Executive Committees to establish the priority and relative importance of the issues to both our business and stakeholders and ensure alignment with our Board’s risk tolerance. The material issues that affect our business remain unchanged from 2020.
We support numerous charities and organisations working in our local areas. During the pandemic, our priority to support disadvantaged communities and individuals has never been more relevant.Read More
In 2021, our annual fund of £100,000 was divided between 19 projects and, for the second year, provided some core funding to help keep some organisations up and running through the pandemic.Read More
Community Fund 2021
130+ projects since 2013