We recognise that investing to extend the life and improve the energy performance of a building has significantly less impact on the environment than the construction of new properties and this has been part of our strategy for many years.
Part of our commitment to environmental responsibility lies in how we consider the carbon emissions associated with the refurbishment and modernisation of our portfolio including the use of building materials.
Embodied carbon project
We have created an award-winning embodied carbon project alongside our engineering partners Arcadis Germany. We were recognised by the German Sustainable Building Council (“DGNB”) with the Green-BIM Award 2022, for the building information modelling (“BIM”) system we devised to calculate embodied carbon associated with our refurbishment projects. By creating 3D models of spaces and extrapolating data from a representative sample of our German portfolio we were able to understand the drivers of carbon emissions in our portfolio.
Embodied carbon |
FY2021/22 |
FY2022/23 |
Embodied carbon in total emissions (Germany) | 6,777 MtCO2e | 6,815 MtCO2e |
The model we created can be used in future renovation projects, informing choice of materials and suppliers. Equally it provides a platform on which we can engage with our suppliers to improve our emissions performance.
New build projects
Sustainability considerations are also embedded in our new build projects. BREEAM is a well-respected sustainability certification which takes a holistic approach considering elements beyond carbon and energy efficiencies, including biodiversity, wellbeing and community. Going forward, when we undertake new builds as part of our asset improvement programme, we will target BREEAM “Excellent” certification, or equivalent, where relevant and appropriate. During the financial year 2022/23 we commenced planning for our new development in Tempelhof, and with construction commencing in May 2023, we expect to achieve a BREEAM “Excellent” certification upon completion. We are considering a similar approach for other sites with new developments including Gartenfeld and will update on progress as appropriate.
Pre-acquisition due diligence
In addition to considering the impacts of our modernisation and refurbishment processes, we have also worked to integrate environmental, social and governance factors such as climate and biodiversity into our pre-acquisition due diligence process. The acquisitions team applies a considered three-stage ESG analysis and implementation strategy for any new acquisition including in-depth assessments of tenants and condition of the buildings, and physical inspection of the site to identify energy efficiency and biodiversity criteria and opportunities. Upon exclusivity of an opportunity, the third stage includes in-depth assessments of emissions and technical inspection of HVAC systems and more in order to gain a better understanding of potential carbon and capex implications of modernising the sites.