Future-proofing our assets

We believe that as building owners and operators, we have a central and urgent role to play in delivering the changes needed to drive down carbon emissions in the real estate sector.  We also believe that location, occupier, building size and building quality are important factors in delivering better-quality, better-performing real estate assets.

Achieving carbon emission reduction

Over the last 10 years, we’ve successfully achieved our carbon emission reduction targets across our entire real estate portfolio. We’ve established a strong sustainability and ESG framework, based on active portfolio management, which sets out our strategy, policies, asset level plans and targets, green lease clauses, and monitoring and reporting systems. For new developments and capital works, ambitious sustainability targets and requirements such as BREEAM and Soft Landings have been in place for many years.

Our Pathway to Net Zero

net-zero-pathway-report

Our updated Real Estate Net-Zero Carbon Roadmap provides a summary of the progress since our first roadmap was published in 2020 and covers up until the end of 2022.

Building an inclusive economy and society

We’re committed to improving social outcomes across the assets that we manage, leading to better health and wellbeing and building a more inclusive economy and society.

We also believe that our societal objectives go hand in hand with our environmental goals. In our view, net zero carbon goals will not be met unless our decarbonisation efforts are intrinsically linked to the creation of a more equitable society. This is about achieving a just and inclusive low-carbon transition. 

 

 

In 2020, we started to measure the social value across all assets in the portfolio using a framework based on four key themes

Promote local skills and employment

Focusing on local jobs, skills development and opportunities for under-represented groups

Supporting growth of responsible, regional business

Promoting local and diverse supply chains and encourage collaboration wherever possible

Healthier, safer and more resilient communities

Fostering a culture of community engagement that is meaningful, needs-based and long-lasting

Protecting and improving our environment

Ensuring measures are taken to reduce negative environmental impacts and promoting biodiversity.

This social value framework will act as a baseline against which we can identify specific social and environmental impact initiatives that can support the delivery of greater social outcomes and positive impact in the local communities that we can directly influence or through our occupiers.

Embodied carbon study

Case study: 245 Hammersmith. Source: LGIM as at July 2019.

We carried out our first detailed embodied carbon study at a recently completed major office development at 245 Hammersmith Road in London. Through this work, we reduced embodied carbon by 10.4%, resulting in embodied carbon levels of just over 800 kgCO2/m2. This office was confirmed as one of the best-performing developments that our consultant, Cundall, has assessed to date.

Responsible investing

Key risks

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.

Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.

The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing in this fund is available in the prospectus at. http://www.lgim.com/fundcentre