Net Zero Pathway (2022 update)

Section

Net Zero Pathway

1

Cadogan | Net Zero Pathway

2

Contents Introduction

4

Baseline

6

Pathway Best Practice

8

Pathway Action 1: Tackling Embodied Carbon

10

Pathway Action 2: Reducing Operational Impacts

12

Pathway Action 3: Maximising Renewables

14

Pathway Action 4: Offsetting

15

Delivery

16

Appendix A - Delivery Strategy Summary

18

Appendix B - Scope Boundary

19

Appendix C - Emissions Calculation Methodology

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Contact 22

First published in 2021, updated in 2023 3

Cadogan | Net Zero Pathway

Introduction Cadogan has a 300-year history of property ownership, management and development in Chelsea, with stewardship at its heart. Our longterm commitment comes with responsibility to ensure that we are making a positive contribution towards a sustainable environment, protecting the area’s unique heritage and supporting a thriving community.

Our goal to become a net zero emission Estate by 2030 is part of our wider sustainability vision for the future, Chelsea 2030. This document sets out how we will become a net zero carbon business by 2030, reducing our emissions across our areas of impact to drastically reduce our carbon footprint, with responsible principles of offsetting the remainder.

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We recognise our role as one in which we can bring people together, supporting innovation and acting as a catalyst for change. With the next few years probably the most important in our history in terms of global climate change, proactive, radical collaboration and true working in partnership is more vital than ever.

Introduction

F I G U R E 1 : C H E L S E A 2 0 3 0 TA R G E T S

AIM

TA RG E T

2 0 3 0 D E TA I L

CARBON EMISSIONS

NET ZERO EMISSIONS

Net zero emissions across Cadogan’s scope of influence

A I R Q UA L I T Y

S U P P L I E R C O N S O L I D AT I O N

At least 40% of commercial tenants to join offsite consolidation scheme

ZERO-EMISSION SUPPLIERS

80% suppliers to deliver by zero-emission transport

ELECTRIC VEHICLE INFR A STRUCTURE

All service bays and residential parking lots to have EV charging by 2025, and all new developments after 2021 to include EV charging

GREEN INFR A STRUCTURE

IMPROVED GREEN INFR A STRUCTURE

Improve quality and quantity of green infrastructure, including a 25% increase in the Urban Greening Factor

WA S T E

WA S T E R E D U C T I O N

Send zero commercial and operational nonhazardous waste to landfill Reuse or recycle over 90% of commercial and operational non-hazardous waste

WAT E R

WAT E R U S E R E D U C T I O N

Reduce absolute mains water consumption by 50%

WELLBEING & C U LT U R E

E M P LOY M E N T & S K I L L S

Increase local employment and support skills development

H E A LT H & W E L L B E I N G

Make a measurable improvement to our communities’ health & wellbeing

COMMUNIT Y COHESION

Enhance community cohesion between local stakeholders

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Cadogan | Annual Report 2022

Baseline Our net zero target has been developed in line with the parameters of the Estate’s reach and influence.

With £5,104m of gross property value1, Cadogan’s assets include retail, residential and commercial property. The target boundaries are set by the limitations of geography and function, including all assets under management2 and direct operations, along with upstream/downstream impacts that can be influenced by Cadogan3.

A holistic assessment of emissions for the year to 31 December 2019 resulted in a carbon footprint of 35,664 tCO2e - with 88% of our impact being Scope 3 emissions4 as indicated in Figure 2.

Embodied carbon (total emissions generated in creating a building or asset) constituted 16% of the baseline footprint, resulting from three major developments: 196-222 King’s Road mixed-use scheme, 1 Sloane Gardens hotel, 115-116 Sloane Street hotel, as well as commercial white-boxing and over 24 property refurbishments.

Occupier operations also have a substantial impact, with 58% of the baseline footprint coming from commercial and residential portfolios. Energy use in these spaces is outside direct control, so working in partnership with occupiers and stakeholders across the Estate to facilitate decarbonisation is key.

2019 carbon footprint in tCO2e:

35,664 88%

of baseline emissions fall into scope 3

16%

of baseline emissions come from developments

Cadogan Estates Annual Report and Accounts 2022 Excluding non-managed long leasehold properties, where leases typically last over 100 years 3 For further detail see Appendix B 4 Scope 3 emissions are indirect emissions from an organisation’s value chain 1

2

6

58%

of baseline emissions come from occupier activity

Baseline

F I G U R E 2 : 2 0 1 9 B A S E L I N E F O OT P R I N T

1

L A N D LO R D GA S

4% L A N D LO R D

I N V E ST M E N TS

6%

1 3

R E F R I G E R A N T GA S

0.2% L A N D LO R D

pe 3

7%

pe

2

2

TOTA L E M M I SS O N S Sco

E L EC T R I C I T Y

Sco

Scope 1

2

2

35, 6 6 4 (t CO 2 e )

2

D E V E LO P M E N TS

16% WAT E R

0.2% OT H E R P U RC H A S E D G O O D & S E RV I C E S

5% 2 3 O CC U P I E R O P E R AT I O N S

58%

C A P I TA L G O O D S

0.5%

E M P LOY E E CO M M U T I N G

0.2%

3

0.002% WA ST E

0.2%

F U E L A N D E N E RGY R E L AT E D AC T I V I T Y

2%

BUS I N E SS T R AV E L

2

3

3

7

Cadogan | Annual Report 2022

Pathway Best Practice This pathway to net zero has been developed with best practice guidance from the UK Green Building Council (UKGBC) and the Better Buildings Partnership (BBP), as signatories5 to the BBP Climate Change Commitment.

Chelsea’s historic nature, conservation area requirements and development pipeline have been taken into consideration, with both bottom-up calculations of building decarbonization potential, and topdown assumptions on industry-wide transformation.

Our greatest focus is on the areas with maximum impact potential: supply chain, embodied carbon in developments, and occupier operations.

In line with common practice, much of the Scope 3 baseline has been estimated. Estimation methodologies have been updated since Version 1 of this document, according to best practice information available at the time of calculation. Current emissions methodologies are set out in Appendix C. Given the importance of scope 3 emissions, improvements in data access, quality and analysis will play an essential role in the pathway to 2030.

It is expected that this pathway will continue to evolve over the coming decade, as the industry better understands the intricacies of net zero accounting, technology develops, and processes adapt to a low-carbon economy.

Together the pathway is intended to deliver a 2030 footprint reduction of 53% compared with 2019, in line with science-based goals and the Paris Agreement, and offset the remainder according to parameters set out in Pathway Action 4.

The pathway is intended to deliver a 2030 footprint reduction of

53%

F I G U R E 3 : R E D U C T I O N PAT H WAY

Total CO2e (in tonnes)

35K

EMBODIED CARBON

35K

Embodied carbon: developments

16K

ACTION 1

Total CO e (in tonnes) Landlord carbon 2

ACTION 2

REDUCING O P E R AT I O N A L I M PA C T S ACTION 1 EMBODIED CARBON

Embodied carbon: supply chain

Embodied carbon: developments Occupier operations

16K

ACTION 3

Embodied carbon: supply chain Remainder

MAXIMISING R E N E WA B L E S ACTION 2 REDUCING O P E R AT I O N A L I M PA C T S

Landlord carbon

ACTION 3 MAXIMISING R E N E WA B L E S

ACTION 4 OFFSETTING

Occupier operations Remainder

ACTION 4 OFFSETTING

2019 5

s a Climate Commitment signatory, we align with the BBP’s definition A of climate resilience. The BBP define that a climate-resilient business has a strategy in place to: (1) mitigate the worst impacts of climate change by becoming ‘net zero’ 2019 carbon before 2050

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2030 (2) adapt to operating in a world in which climate-driven disruption is more frequent and severe, and (3) disclose climate-related information to investors, regulators and other stakeholders in a useful and timely way.)

2030

Cadogan | Net Zero Pathway

Pathway Action 1 R E D U C T I O N PAT H WAY ACTION 1 TA C K L I N G EMBODIED CARBON

As operational emissions from buildings continues to decrease, the UKGBC estimates that embodied carbon will form over 50% of built environment emissions by 2035.

The 2030 net zero pathway sets clear embodied carbon targets, with a downward trajectory as seen in Figure 4, for stages A1-A5 (“cradle to post-completion”) of all development projects. This allows for supply chain development and adaptation, ensuring shared learning and ability to maximise benefits across the value chain.

This also applies to capital goods suppliers and other purchased goods and services, since 5.5% of the 2019 baseline footprint came from these sectors.

MOV ING TO N ET ZERO Design Standards: sustainable design standards for all development projects addresses climate risk and covers embodied carbon targets, operational energy use and water intensity targets, as well as innovative opportunities arising from circular economy models. These standards will continue to evolve and be improved towards 2030.

2019

Embodied carbon comes from the design and construction of a building, from extraction of materials, through manufacturing, processing, transportation and assembly of every element before operation. Embodied carbon from the construction and refurbishment of buildings makes up about 20% of built environment emissions6.

ACTION 2 ACTION 3

2030

TACK LING EM BODI ED CA R BON

ACTION 4

Supply Chain Engagement: proactive engagement with partners, suppliers and the wider industry regarding sustainability expectations and environmental performance continues, alongside sharing best practice and supporting suppliers in the development and implementation of their own emissions reduction strategies. As part of this, we will continue to engage through Better Buildings Partnership to understand and implement the Net Zero Carbon Buildings Standard when it launches.

Improved Data and Reporting: tracking whole life carbon for every development project above £1.5m spend, alongside our internal carbon benchmarks for minor projects, is improving the quality of footprint data. Supply chain tracking and reporting will also continue to increase, as transparent and comparable data reporting helps drive improvement across the board.

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UKGBC (2023) Climate Change: www.ukgbc.org/climate-change-2

F I G U R E 4 : E M B O D I E D C A R B O N TA RG E T S kg C O 2 e / m 2 ( W H O L E B U I L D I N G G I A ) P ROJ E C T T Y P E

OFFICE

R E TA I L A N D F & B

RESIDENTIAL

PUBLIC REALM

NEW BUILD AND MAJOR REFURBISHMENT

475

425

400

34

MEDIUM REFURBISHMENT

310

275

200

34

MINOR REFURBISHMENT

1 70

150

120

34

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Pathway Best Practice

C A S E S TU DY

30-33 Sloane Street From inception, Cadogan’s mixed-use development at 30-33 Sloane Street was planned to be net zero carbon.

Initial scheme scoping between cut-andcarve or façade retention options determined that operational carbon emissions of the latter would be 5% approximately per annum lower, with increased upfront embodied carbon emissions offset within 18 years through significantly lower operational emissions.

The proposed scheme prioritised the circular economy with increased flexibility, adaptability and accessibility provided by the better floorplates and ceiling heights.

The scheme’s embodied carbon is currently measuring at 550kgCO2e/m2 (for stages A1-A5), which meets RIBA’s current best-practice rating of <600kgCO2e/m2 for office buildings and is progressing towards the RIBA stretch target of <475 kgCO2e/ m2. Savings have already been achieved through reduction in concrete thickness, specification of low-carbon concrete and retention of the existing façade. We will continue to target reductions through material re-use, such as sourcing re-used steel sections and remanufactured raised access floors.

The scheme is aiming for BREEAM Outstanding, NABERS 5 stars and WELL Gold, and is scheduled for completion in 2027.

S U P P O RT I N G C H E L S E A 2 0 3 0 TA R G E T S SUPPLIER C O N S O L I D AT I O N

Minimizing transport trips and reducing the number of vehicles on the roads will not only improve air quality, but also reduce embodied carbon.

Z E RO - E M I S S I O N VEHICLES:

Ensuring that remaining transport is undertaken on zero-emission vehicles will reduce embodied carbon of materials.

BE YON D 2030 Cadogan will continue to work in partnership with stakeholders to reduce its embodied carbon, using our influence to support improvements materials, technology, processes, and knowledge sharing.

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Cadogan | Net Zero Pathway

Pathway Action 2 R E D U C T I O N PAT H WAY ACTION 2 REDUCING O P E R AT I O N A L I M PA C T S

Cadogan’s operational carbon emissions come from landlord managed electricity and gas. While this only accounts for 12% of the baseline footprint, it is within direct control so will be reduced as far as possible.

Chelsea is a challenging environment with historic properties, conservation areas and Listed buildings, but clear energy intensity targets for all new and existing buildings are phased into the pathway to 2030.

MOV ING TO N ET ZERO Energy Efficient Retrofit: An extensive programme is underway to survey all assets and programme in relevant works, including (but not limited to) replacing windows, installing insulation and shifting towards low-carbon heating. Following a comprehensive review, costs to implement energy efficiency and low-carbon measures across the Estate are modelled at £75m. Together with a focus on design for performance, there will be an increase in operational performance measurement against energy use intensity targets, exploring the use of operational

ACTION 1 2019

Operational emissions from commercial and residential occupier spaces constitute 58% of the overall footprint, requiring a collaborative approach to reducing emissions.

Legislation is rapidly changing in this area, ranging from a push for gas-free homes to tightening MEES requirements, and this is expected to continue.

ACTION 3

2030

R EDUCING OPER AT IONA L I M PAC TS

ACTION 4

performance standards. This move mirrors an industry shift from theoretical to operational measurement and supports a proactive management strategy, using a data-informed approach to minimise unnecessary emissions and tackle best practice behaviours.

Occupier Fit-Out Standards: working in partnership with occupiers, Cadogan sets guidelines for sustainable occupier fit-out: requiring all relevant occupier works achieve an Energy Performance Certificates of B or higher, alongside measures in energy and water efficiency, the circular economy and material reuse. These standards will continue to evolve as industry knowledge develops.

Occupier Engagement: occupier engagement and data sharing is essential to measure performance against targets, share best practice, and facilitate collaboration across Chelsea to reduce emissions. As of 2022, we have actual data covering 36% of occupier space.

F I G U R E 5 : O P E R AT I O N A L E N E R GY U S E TA RG E T S k W H / M 2 / Y E A R ( G I A )

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P ROJ E C T T Y P E

OFFICE

R E TA I L A N D F & B

RESIDENTIAL

NEW BUILD

55

55

35

MAJOR REFURBISHMENT

55

55

50

MEDIUM AND MINOR REFURBISHMENT

70

70

60

Pathway Best Practice

C A S E S TU DY

Passivhaus In 2018-19 Cadogan trialled the EnerPHit standard (Passivhaus for retrofits) on a refurbishment of a mews house, while retaining its charm, heritage character and luxury.

Sitting in the heart of the Hans Town conservation area, 126 Pavilion Road is a nineteenth century stable house, which makes it one of the oldest houses in the UK to meet Passivhaus standards. The refurbishment was so successful that it is one of only 1 percent of domestic refurbishments to be certified as BREAAM ‘Outstanding’.

The refurbishment focussed on superefficient fittings, enhanced thermal insulation and airtightness, and innovative material procurement. The result was a property that the residents love, with improved thermal comfort, enhanced site ecology and biodiversity, and an 85% reduction in energy consumption compared to a traditionally built mews house.

The building has set a new precedent in environmental performance, meeting the demand for a more energy efficiency property in a desirable location. Cadogan is taking the learnings from the project into future residential projects.

S U P P O RT I N G C H E L S E A 2 0 3 0 TA R G E T S WA S T E

Reducing waste generation, promoting material reuse and driving the circular economy will also reduce the carbon emissions associated with the transport and management of waste.

WAT E R

Increasing water efficiency and reducing the volume of mains water consumed will have a knock-on effect on reducing the emissions associated with the provision, management and heating of water.

BE YON D 2030 Cadogan will continue to improve the efficiency of its building stock, collaborating with partners across the value chain to ensure use of the best technology most suited to Chelsea’s historic environment and collaborating to improve performance.

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Cadogan | Net Zero Pathway

Pathway Action 3 R E D U C T I O N PAT H WAY

Growth in renewable energy generation is fundamental to the transition to a low-carbon economy and, with energy demand expected to grow, will play an increasingly important role in the energy mix. How Cadogan procures energy is therefore important at both a company and a grid level.

Using industry best practice to avoid double counting, Cadogan uses location-based emission factors for all electricity consumption, aside from direct onsite generation, or contracted renewable procurement through a private wire or corporate power purchase agreement (PPA). Despite not accounting for renewable grid energy in Cadogan’s net zero trajectory, this is reported annually as part of the organisation’s commitment to support the decarbonisation of the national grid.

ACTION 1 2019

A small 20kWp array on George House generates over 18,000kWh of renewable electricity a year. Following a review of all Chelsea rooftops and identification of over 20 opportunities for retrofit of solar arrays, in 2022 an 80kWp array was completed in Duke of York Square, expected to generate over 69 MWh a year.

ACTION 3 MAXIMISING R E N E WA B L E S

ACTION 2

2030

M A X I M ISING R EN E WA BLE S

ACTION 4

MOV ING TO N ET ZERO Install onsite renewables: onsite renewables will continue to be a focus, installing solar panels and ground- and air-source heat pumps where feasible.

Explore Power Purchase Agreements: procuring landlord energy through renewable corporate power purchase agreements would cut emissions and facilitate additional clean energy generation. Due to the Estate’s small direct procurement this may prove challenging, but innovation in contracting and collaboration with partners should lead to new solutions.

Community Power: Working with occupiers, suppliers, local businesses and residents, the cocreation of a zeroemission energy service could be explored, to provide affordable access to a clean, secure supply of power.

BE YON D 2030 Continuing to prioritise the installation of onsite renewables as far as possible, Cadogan will engage with the wider community in facilitating access to renewable generation.

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Pathway Best Practice

Pathway Action 4 R E D U C T I O N PAT H WAY

OF FSET T ING Once emissions have been reduced by 53%, the remainder will be addressed through offsetting in 2030.

ACTION 4 OFFSETTING

Offsets used will be additional, measurable, and real, and will be in accordance with the following principles: ACTION 2 ACTION 3

2030

ACTION 1 2019

• Independently verified, • Permanent, • Avoiding leakage, • Sourced from parties with integrity, and • Provide co-benefits.

Given the rapidly changing nature of the offset market and understanding of best practice, our approach will continue to evolve. Current plans are to embrace a portfolio approach to offsets, initially favouring local reduction credits and nature-based removal credits, and transitioning to more permanent removals over time.

MOV ING TO N ET ZERO Develop evolving strategy: the offset landscape is expected to change significantly as 2030 approaches, and so whilst the principles set out here will remain, it is expected that the details of Cadogan’s approach will evolve.

S U P P O RT I N G C H E L S E A 2 0 3 0 TA R G E T S GREEN INFR A STRUCTURE:

Increasing the quality and quantity of our green infrastructure will result in additional carbon absorption across the Estate.

COMMUNIT Y COHESION:

Through our twinning programme to replicate successful projects elsewhere in the community, we could tackle fuel poverty through installing insulation or other energy efficiency measures, or install renewable generation.

For any twinning projects to be counted as an offset they will be independently verified and assured.

BE YON D 2030 Emissions will continue to be reduced beyond 2030, as the industry and technology develops. Cadogan will continue to offset their footprint annually every year after 2030, maintaining net zero and collaborating with partners to ensure that actions and offsets are effective and meaningful.

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Cadogan | Net Zero Pathway

Net Zero Emissions COLL A BOR AT ION & PA RT N ERSHIP

GOV ER NA NCE

Collaboration and collective action across the value chain is required to achieve net zero, as set out in the Pathway Actions, but also plays a vital role in supporting innovation across Chelsea and the wider industry.

To achieve net zero, emissions footprint needs to be considered across every aspect of the business and every element of the Estate. Each department recognises its responsibilities and reports on progress regularly, and internal reviews ensure that the carbon implications of decisions are incorporated into decision making.

Cadogan is proud to be involved in a range of industry groups and partnerships driving positive environmental change and managing climate risk in the built environment. This will continue, sharing learnings and ideas to support the industry’s overall transition to net zero.

Please get in touch if you would like to work with Cadogan on achieving this goal.

DATA & V ERT IF ICAT ION One of the biggest challenges in the built environment is the complexity and fragmentation of environmental data.

Operational data is fundamental to the effective management of internal processes and already very high quality. Scope 3 data is improving with more accurate estimates (see Appendix C for a detailed scope 3 methodology), but will continue to develop with a comprehensive Data Improvement Plan addressing embodied carbon data, occupier utility consumption data, supplier emissions data, and improved postcompletion evaluations for finished projects.

Progress on the transition to net zero is reported internally on a quarterly basis, and to the public on an annual basis, every year to 2030. Scopes 1 and 2 are independently verified through limited assurance, and as data quality improves scope 3 will be too.

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Our Chief Executive has ultimate responsibility for climate-related risks and opportunities. Climate related risks and opportunities are considered in long-term strategy setting, acquisitions and investment decisions.

Ongoing ownership and management of all sustainability and climate-related risks and opportunities is led by the Head of Sustainability, with support from all departments. Our commitment to address climate-related risk and achieve net zero emissions is embedded across the business, with all teams owning relevant targets and key performance indicators reported internally on a quarterly basis A dedicated Decarbonisation Working Group provides specific oversight and coordination to estate decarbonisation and the journey to net zero, reporting to the Board annually.

Section

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Cadogan | Net Zero Pathway

Appendix A - Design Strategy Summary AIM

TA RG E T

D E L I V E RY S T R AT E GY

R E P O RT I N G M E T R I C

EMBODIED CARBON

All developments meet relevant embodied carbon targets Reduced supplier emissions

- New Design Standards - Supply chain engagement - Improved data and reporting, including whole life carbon assessments - Reduced vehicle and transport emissions

- Whole life carbon assessment - Carbon intensity (kgCO2e/m2 GIA)

O P E R AT I O N A L CARBON

All buildings meet energy use intensity targets

- Energy efficient retrofit Energy use intensity targets and subsequent operational measurement - Occupier fit-out standards - Improved occupier engagement, data and reporting

- Energy intensity (kWh/m2/year) - Carbon intensity (kgCO2e/m2/year)

ON-SITE G E N E R AT I O N & R E N E WA B L E S P RO C U R E M E N T

Maximise renewable generation, reduce reliance on national grid and ensure all energy procured by Cadogan is additional and renewable

- Install renewables on new builds - Consider PPA for landlord elec and gas - Encourage occupiers to move to renewables - Support additional renewable generation on Scottish investments

- MWh on-site capacity - Location and marketbased emissions (tCO2e/year)

OFFSETTING

Offset remaining emissions that cannot be reduced

- Consider internal shadow carbon pricing - Develop ongoing offset strategy that is additional, transparent, verified and has societal cobenefits

- Total emissions offset (tCO2e) - Quantity and types of offsetting used

T H I R D - PA RT Y V E R I F I C AT I O N ; I N D U S T RY S TA N D A R D S A N D C E RT I F I C AT I O N

Annual transparent reporting against targets

- Conduct third party assurance of environmental KPIs in Cadogan sustainability report - Annual reporting against targets - Continue with independent building and management system certification (BREEAM, Passivhaus, WELL etc) where appropriate

- Independent third-party assurance statement

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Delivery

Appendix B - Scope Boundary BUSINESS AREA

S U B -A R E A

G H G P RO T O C O L

CARBON SCOPE

BBP

C AD O GAN

C O R P O R AT E

Head office energy use

Company facilities

1&2

No

Yes

Company vehicles

Company vehicles

1

No

Not relevant: no company vehicles

Business travel

Business travel

3

No

Yes

Purchased goods & services

Purchased goods & services

3

No

Yes

Operational waste

Waste generated in operations

3

No

Yes

Operational water use

Purchased goods & services

3

No

Yes

Employee commuting

Employee commuting

3

No

Yes

Landlord purchased energy (electricity & fuels)

Purchased electricity, heat and steam

1,2&3

Yes

Yes

Occupier purchased energy (electricity & fuels)

Downstream leased assets

3

Yes

Yes

Landlord refrigerants

Purchased goods and services

1

Yes

Yes

Occupier refrigerants

Occupier Scope 3

3

No

No

Landlord purchased water

Purchased goods & services

3

Yes

Yes

Occupier purchased water

Occupier Scope 3

3

No

No. Issue addressed in separate water reduction target

Landlord managed operational waste

Waste generated in operations

3

Yes

Yes

Occupier managed operational waste

Occupier Scope 3

3

No

No. Issue addressed in separate water reduction target

Occupier transport emissions

Occupier Scope 3

3

No

No. Issue addressed in separate water reduction target

Occupier supply chain emissions

Occupier Scope 3

3

No

No

Landlord purchased capital goods & services (M&E & property management services)

Purchased goods and services

3

Yes

Yes

DIRECT RE AL E S TAT E H O L D I N G S (including JVs with management control)

I N V E S T M E N T S (indirect real estate holdings, e.g., where investments are managed by a third party such as jvs with no management control or investments in other real estate investment vehicles)

D E V E LO P M E N T

Landlord purchased energy (electricity & fuels)

Purchased electricity, heat and steam

1,2&3

Yes

Yes

Occupier purchased energy(electricity & fuels)

Downstream leased assets

3

Yes

Yes

Landlord refrigerants

Purchased goods and services

1

Yes

Yes

Occupier refrigerants

Occupier Scope 3

3

No

No

Landlord purchased water

Purchased goods & services

3

Yes

Yes

Occupier purchased water

Occupier Scope 3

3

No

No

Landlord managed operational waste

Waste generated in operations

3

Yes

Yes

Occupier managed operational waste

Occupier Scope 3

3

No

No

Occupier transport emissions

Occupier Scope 3

3

No

No

Occupier supply chain emissions

Occupier Scope 3

3

No

No

Landlord purchased capital goods & services (M&E & property management services)

Purchased goods and services

3

Yes

Yes

New development (including those where funding is being provided)

Purchased Goods & Services

3

Yes

Yes

Refurbishments

Purchased Goods & Services

3

Yes

Yes

Fit-out (landlord controlled)

Purchased Goods & Services

3

Yes

Yes

Fit-out (occupier controlled)

Occupier Scope 3

3

Yes

No. Issue addressed through fit-out standards and occupier engagement

End of life

End of life treatment of sold products

3

No

No

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Cadogan | Net Zero Pathway

Appendix C – Emissions Calculation Methodology FO OTPRINT C AT E G O RY

SCOPE 1

SCOPE 2

SCOPE 3

20

F O O T P R I N T C AT E G O RY

APPLICABILIT Y

M E T H O D / R E A S O N F O R E X C LU S I O N

Landlord gas

Yes

Emissions from landlord-purchased natural gas, including the gas subsequently consumed by occupiers. This includes properties managed by a third party who buy gas on Cadogan’s behalf. Actual consumption in kWh is converted into emissions using DEFRA emissions factors.

Landlord refrigerants

Yes

Landlord refrigerant losses are measured through top-ups paid by Cadogan, and multiplied by DEFRA emissions factors to report emissions.

Landlord refrigerants

Yes

Emissions from landlord-purchased fuel oil, including that which is subsequently consumed by occupiers. This includes properties managed by a third party who buy fuel oil on Cadogan’s behalf.

Actual consumption in litres is converted into emissions using DEFRA emissions factors.

Landlord refrigerants

Yes

Emissions from landlord-purchased diesel, excluding diesel purchased for construction activities which is reported under Scope 3: Purchased Goods & Services – Developments. Actual consumption in litres is converted into emissions using DEFRA emissions factors.

Landlord electricity

Yes

Emissions from landlord-purchased electricity, including electricity subsequently consumed by occupiers.

This includes properties managed by a third party who buy electricity on Cadogan’s behalf. Actual consumption in kWh is converted into emissions using location-based DEFRA emissions factors.

Purchased goods & services Developments

Yes

This category includes emissions from developments: site energy (including FERA), waste generation, and embodied carbon of materials used in construction. We work with a consultant to calculate the total embodied carbon emissions for each medium and large development, with these emissions reported in the year of project completion. Where embodied carbon data is not available, emissions are calculated by multiplying procurement spend by EEIO emission factors for each relevant economic sector of spend. Site energy and waste data are reported per project using data provided by relevant contractors.

Purchased goods & services - Other

Yes

Supplier-reported emissions (pro-rata for turnover derived from Cadogan activities) are calculated from energy reporting and DEFRA emissions factors. Where primary supplier data is not present, emissions are calculated by multiplying procurement spend by EEIO emission factors for each relevant economic sector of spend.

Landlord water

Yes

Emissions from landlord-purchased water, including water subsequently consumed by occupiers. This excludes water used in construction activities and water procured directly by occupiers, but includes properties managed by a third party who buy water on Cadogan’s behalf. Actual consumption in cubic meters is converted into emissions using location-based DEFRA emissions factors.

Capital goods

Yes

This category reflects emissions from capital goods purchases made by Cadogan in 2022, including but not limited to new vertical transport, HVAC equipment and machinery. Emissions are calculated by multiplying procurement spend by relevant EEIO emission factors – noting to deduct spend from supplier emission estimates above to avoid double counting.

Fuel and energy related activities

Yes

Transmission and distribution (T&D) and well-to-tank (WTT) losses associated with landlord-procured electricity and natural gas. This excludes FERA associated with Scope 3 energy (development energy, occupier energy, business travel, commuting, and other transport), as this is included with the respective scope 3 energy emissions figures for those categories.

Upstream transportation & distribution

Yes

This category includes emissions generated from the transport of materials delivered to, and waste removed from, our 2 major construction sites. Data is not extrapolated to medium and minor sites.

The calculation multiplies primary transport data by the relevant DEFRA emissions factor, and includes FERA.

Waste

Yes

Emissions associated with waste produced by the landlord, and occupier where reported. Where we don’t have tenant reported waste data, we have not extrapolated across the portfolio. Emissions exclude development and refurbishment waste, which is included in Scope 3: Purchased Goods & Services – Developments. Emissions are calculated by multiplying weight of waste by the relevant DEFRA emission factor for different treatment methods.

Business travel

Yes

Calculated by multiplying distance and type of travel by relevant DEFRA emission factor, and includes relevant FERA.

Employee commuting

Yes

Emissions associated with the commute of Cadogan employees and homeworking, as reported with no extrapolation. Calculated by multiplying distance and type of travel, and number of homeworking days, by relevant DEFRA emission factor.

Upstream leased assets

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

Downstream transportation & distribution

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

Processing of sold products

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

Use of sold products

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

End-of-life treatment of sold products

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

Downstream leased assets

Yes

Emissions associated with occupier-purchased energy (including FERA), and refrigerants where reported. Occupier water emissions are excluded, and occupier waste is included in Scope 3: Waste.

Where actual energy consumption data is available, emissions are calculated by multiplying metered consumption by relevant DEFRA emission factors. Where no actual data received from occupiers, emissions are calculated by multiplying the Net Lettable Area by the most relevant Building Energy Efficiency Survey (BEES) benchmark.

Franchises

No

N/A: Cadogan does not lease assets, so there are no emissions to report in this category.

Investments

Yes

Emissions from the four Cadogan owned hotels is calculated by multiplying actual metered energy consumption by relevant DEFRA emission factors, including FERA.

Section

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C ON TAC T Kate Neale Head of Sustainability sustainability@cadogan.co.uk www.cadogan.co.uk

10 Duke of York Square London SW3 4LY T. 020 7730 4567 cadogan.co.uk