Sustainability Strategy 2040 Maximising Every Opportunity
Mark Kildea Chief Executive
Foreword The need to address climate change is apparent, and whilst daily news and documentaries highlight global environmental events, Howard de Walden’s properties are profoundly affected too. In recent years, we have witnessed London grappling with a series of extreme weather events with floods and heatwaves presenting formidable challenges to property owners and occupiers. I was recently invited to inspect the refurbished roof of St. Marylebone Church and saw the new storm flow guttering, which
Page 2
is capable of draining rainwater at four times its previous capacity, designed for the weather and climate of the 19th century. In this context, it is imperative that we wholeheartedly embrace climate-driven property upgrades and actively participate in the discussions and actions needed to avoid physical and financial losses. We firmly believe that this endeavour aligns with our responsibility towards the natural environment, our local community, and ultimately the preservation of our long-term business interests.
The need to strike a balance between sensitive, considerate development and the pursuit of sustainability and the futureproofing of buildings has never been more pressing. For these reasons, we recognise that our deCarbon strategy will assume a vital role in shaping the future of Marylebone and our estate. Achieving lasting success, hinges on our commitment to confront and manage the climate crisis, not to shirk from it. Taking proactive measures to both mitigate and adapt to climate change is not merely
- Foreword
Embedded within our strategic business objectives is our commitment to “avoid property obsolescence and plan for net-zero carbon emissions by 2040.” a matter of responsibility; it is a financial necessity. It is vital for safeguarding the intrinsic value of our properties, reducing operational costs, and attracting environmentally conscious customers. Embedded within our strategic business objectives is our commitment to “avoid property obsolescence and plan for netzero carbon emissions by 2040.” This objective is supported by our Board and Executive Committee, underlining our dedication to making the essential changes
- Foreword
and investments that generate enduring and demonstrable benefits for the natural environment, our community, and our estate.
initial progress, we need to do a lot more, both now and in the years ahead, and we are fully committed to further advancements.
Realising this goal will necessitate a shift in our investment priorities, our engagements with customers and recognition that building energy performance is a key performance metric. The role that our colleagues play is pivotal, as we continue to integrate our strategic commitments into the operational and cultural approach of our organisation. Whilst we have made commendable
I remain optimistic for the future and in our strategy, and I am confident that, in collaboration with our customers, colleagues, and supply chain partners, we can maximise opportunities and fulfil the sustainability priorities needed for Howard de Walden to remain prosperous for many more generations to come.
Page 3
Simon Tranter Head of sustainability
Introduction Howard de Walden is a company that believes climate change represents a material threat to its business. We understand the pressing need to curtail carbon emissions and combat the advancing impact of climate change. As a testament to our commitment, we have set a science-based target and made “Achieving Net Zero Carbon” a core element of our strategic business objectives.
Page 4
We are fully aware that the consequences of inaction on climate change will far outweigh any potential challenges or costs associated with taking proactive measures. We are resolute in our determination to act decisively and strategically. In recent times, the imperative to address climate change has compelled the real estate industry to reevaluate its fundamental duty of safeguarding assets for future generations. Climate change stands as one of the
most intricate challenges of our era, demanding immediate and substantial transformation across the property sector to curb unsustainable carbon emissions. It’s a multifaceted issue that necessitates a collaborative approach, considering diverse values, perspectives, and interests. Adhering to these principles and guided by our strategy, deCarbon, we endeavour to shoulder our responsibilities in confronting the climate change
- Introduction
It’s a multifaceted issue that necessitates a collaborative approach.
challenge. As a landlord in one of London’s most coveted neighbourhoods, Howard de Walden aspires to lead change and foster collaboration within our local community, encompassing businesses, residents, and our supply chain partners. Given the urgency and context surrounding climate change, our collective commitment to adopting innovative approaches is nothing short of imperative.
- Introduction
Ultimately, we must draw strength from our values of collaboration, responsiveness, innovation, excellence, and inclusiveness to help shape the methods and strategies our industry needs to thrive. We are fortunate to employ dedicated and astute teams who collectively recognise the paramount importance of this mission. It is our collective duty to invest our time and resources in pursuits that promise meaningful advancements.
Our climate strategy is more than compliance; it stands as an unwavering vision for responsible property ownership in an era defined by the uncertainties of climate change, and it aims to permeate every facet of our operations, underscoring our commitment to a sustainable future.
Page 5
Our vision
Avoid property obsolescence and plan for net zero carbon emissions by 2040
Page 6
- Our vision
Supported by our values
Innovation
Responsiveness
We offer buildings and spaces that provide modern-day amenities, designed and suited to our customers’ lives and livelihoods.
Approachable and partnering with our stakeholders. Listening and reacting to other parties, who are also invested in the prosperity of the area.
Excellence
Collaboration
We want Marylebone to continue to be known as a fantastic place to live, visit and do business.
Cultivating great relationships with customers, colleagues, suppliers, community and other stakeholders.
Inclusiveness We recognise that diverse and inclusive businesses grow prosperity
- Our values
Page 7
Our commitments We have defined four commitments, which we feel are necessary to guide our agenda and strategic response to the climate change crisis over the coming period. The commitments are used to define our sustainability objectives and priorities. Our progress is regularly reviewed by our Sustainability Committee, and day-to-day implementation is managed by our Sustainability Taskforce.
COMMITMENT ONE:
Managing our buildings efficiently Our buildings will be free from fossil fuels and will maximise renewable energy technology Our managed buildings will perform in line with recognised energy performance standards We will reduce the environmental footprint associated with our property management operations
Page 8
- Our commitments
COMMITMENT TWO:
COMMITMENT THREE:
COMMITMENT FOUR:
Delivering low carbon refurbishments and redevelopments
Training and educating our colleagues
Working with our customers and suppliers
Our refurbishments and redevelopment projects with achieve Net Zero Carbon in Operation
Our people will be committed and understand the role they play in everything they do
Our supply chain partners will demonstrate their commitment to carbon reduction
Our refurbishment and redevelopment projects will achieve Net Zero Embodied Carbon
Our people will develop the skills and competencies needed to innovate
Our customers will value our expertise and work with us to reduce their carbon emissions
All of our projects will align with the core principles of our sustainable development framework
- Our commitments
Our people will recognise the benefits of being active leaders in sustainable development across our Estate
We will adopt responsible business practices throughout our value chain
Page 9
COMMITMENT ONE
We must consider the efficiency and impact of our managed operations.
Managing our buildings efficiently In the UK, buildings account for nearly 20% of the UKs total carbon emissions. Across our estate, the carbon footprint from our managed buildings represents a significant proportion of our scope 1, 2 and 3 emissions. We must adopt energy performance improvements at pace and align our buildings with recognised industry standards as
Page 10
they emerge or evolve. Removing fossil fuels, maximising the use of renewable technology, and making our buildings more energy efficient is a core priority over the life of this strategy. We will also develop decarbonisation pathways for our buildings and integrate these recommendations across our portfolio and asset management plans. We must consider the efficiency and impact of our managed operations. The procurement
of renewable energy will sit at the heart of our energy strategy, and we will investigate ways to achieve additionality, either on or off our estate. Investing in our landlord areas, improving our approach to waste management and vehicle logistics, and enhancing our procurement practices to align with standards for responsible sourcing will all help to support our transition to a leaner and greener way of doing business.
- Managing our buildings efficiently
Our buildings will be free from fossil fuels and will maximise renewable energy technology
Our managed buildings will perform in line with recognised energy performance standards
We will reduce the environmental footprint associated with our property management operations
- Managing our buildings efficiently
COMMITMENT ONE
Our objectives 2040 Our immediate priorities: •
Remove gas boilers and replace with net zero ready technologies
•
Meet our minimum energy performance compliance requirements (e.g. EPCs)
•
Meet recognised standards in responsible sourcing
Our immediate priorities: •
Undertake net zero and decarbonisations audits across our Estate
•
Develop a plan to maximise the use of onsite renewable energy generation
•
Automate our energy monitoring and metering infrastructure
Our immediate priorities: •
Baseline and reduce our waste and water consumption
•
Integrate embodied carbon and lifecycle costing principles into our maintenance activities
•
Comply with internal supply chain policies
Page 11
COMMITMENT TWO
We will take steps to improve operational energy intensity and we will adopt methods that help us accurately predict and then measure performance in use.
Delivering low carbon refurbishments and redevelopments How we design and redevelop our buildings will be one of the most tangible demonstrations of our commitment to net zero carbon. We have set objectives that aim to deliver net zero operational and embodied carbon projects for all our major schemes, and we commit to measuring and reducing carbon across all other refurbishment and redevelopment work.
Page 12
We will take steps to improve operational energy intensity and we will adopt methods that help us accurately predict and then measure performance in use. Designing for performance will become the norm and we will favour standards and recognised performance targets that help to verify this commitment during occupation. The way we commercially appraise our schemes will also evolve. We must ensure our sustainability requirements are fully considered and then
protected commercially, from the brief and concept stage, through to practical completion. Our projects will comply with our internal sustainable development framework used for implementing standards for sustainable design and construction. Reflecting what the climate agenda requires of our buildings will help us deliver quality spaces we know our customers demand. These standards will always evolve with the latest industry recommendations.
- Delivering low carbon refurbishments and redevelopments
Our refurbishment and redevelopment projects will achieve net zero carbon in operation
Our refurbishment and redevelopment projects will achieve net zero embodied carbon
All of our projects will align with the core principles of our sustainable development framework
COMMITMENT TWO
Our objectives 2040 Our immediate priorities: •
Assess the options to achieve net zero carbon in operation at early design stages
•
Design to achieve net zero aligned energy usage intensity (EUI) targets
•
Measure how our buildings perform in line with predicted energy performance
Our immediate priorities: •
Measure and reduce embodied carbon across all our projects
•
Develop and implement embodied carbon benchmarks
•
Integrate an internal price of carbon into our development appraisals
Our immediate priorities: •
Comply with our Sustainable Development Framework
•
Develop design specifications for small scale refurbishments and redevelopments
•
Define sustainability criteria and budgets within our commercial appraisals
- Delivering low carbon refurbishments and redevelopments
Page 13
COMMITMENT THREE
We want our people to respond in a way that helps drive efficient and sustained improvements across all our operations.
Training and educating our colleagues The scale and pace of change we need to see, both within our business and across Marylebone, requires everyone at Howard de Walden to pull in the same direction. We want every person in our business to understand the important role they play in leading change across our estate. Every role in our business has an opportunity to improve what we do, and how we do it.
Page 14
Integrating our commitments across the operational and cultural fabric of the organisation will help create a foundation on which our people feel confident, and encouraged, to learn and grow. This means investing in training and development and giving everyone an opportunity to develop the skills they need for the future. Utilising our existing network of memberships and associations will play a huge role alongside clear and visible leadership from our Executive Committee.
We want our people to respond in a way that helps drive efficient and sustained improvements across all our operations. We also want to develop a culture that rewards creative thinking and encourages innovation, and we must give our colleagues the time and resources they need to invest in our essential priorities. The best people with the best solutions will recognise for themselves the benefits of being proactive leaders in sustainability.
- Training and educating our colleagues
Our people will be committed and understand the role they play in everything they do
Our people will develop the skills and competencies needed to innovate
Our people will recognise the benefits of being active leaders in sustainable development across our Estate
COMMITMENT THREE
Our objectives 2040 Our immediate priorities: •
Improve our methods by developing relevant guidance and processes
•
Incorporate sustainability into new-starter induction programme
Our immediate priorities: •
Develop a skills and training needs assessment
•
Deliver sustainability related engagement sessions
•
Align sustainability to performance objectives and annual appraisals
Our immediate priorities: •
Promote the resources made available through our membership organisations
•
Ensure a proportion of our annual incentive aligns with company performance in sustainability
•
Benchmark and improve our internal performance through our employee surveys
- Training and educating our colleagues
Page 15
COMMITMENT FOUR
Communicating through environmental forums, reaching agreement through our leases, and sharing performance-related data will help to build agreement on the way forward.
Working with our customers and suppliers We know how difficult it will be to achieve our ambitions without adopting responsible business practices throughout our value chain. Extreme heat, wind and rain could impact the resilience of our estate so we must future proof our assets. Planning for a changing climate and understanding how uncertainty will impact our business, customers, and supply chain will continue to feature in our assessment and mitigation of risk.
Page 16
This will mean taking a proactive approach to customer engagement, who themselves are reliant on occupying safe, energy efficient and well-maintained buildings. Our customers look to us for guidance and leadership, and we must work collaboratively to develop the economic and environmental outcomes we both need. Communicating through environmental forums, reaching agreement through our leases, and sharing performance-related data will help to build agreement on the way forward.
We are continuing to collaborate with a supply chain that shares our vision and can offer the services and expertise we need to adapt. As the regulatory context evolves and our need for creative thinking increases, we will look to our partners for the solutions. We expect our supply chain partners to reduce carbon emissions in their operations and demonstrate how their approach to business supports our net zero journey.
- Working with our customers and suppliers
Our supply chain partners will demonstrate their commitment to carbon reduction
Our customers will value our expertise and work with us to reduce their carbon emissions
We will adopt responsible business practices throughout our value chain
COMMITMENT FOUR
Our objectives 2040 Our immediate priorities: •
Integrate net zero carbon requirements into our supplier onboarding process
•
Comply with our minimum sustainability requirements for suppliers
•
Educate and engage our suppliers through forums
Our immediate priorities: •
Work with our customers and enhance our green leasing policies and processes
•
Engage our customers through forums and events
Our immediate priorities: •
Integrate sustainability into our preacquisition and due diligence process
•
Build climate resilience into our risk framework and operational controls
•
Develop a carbon offsetting strategy
- Working with our customers and suppliers
Page 17
Performance will be reported each year through our annual report.
Governance The business has established a Sustainability Committee, with delegated authority from the Board. The Committee has responsibility for setting our strategic direction and monitoring progress against this strategy. The strategic scope includes activities relating to investments, acquisitions and disposals, property and facilities management, developments and refurbishments, internal operations and working practices, and customer and supply chain engagement activities. Implementation of our strategic commitments and objectives is managed by our Sustainability Taskforce
Page 18
The Board
Sustainability Committee
Sustainability Taskforce
- Governance
We want to play our part.
Our memberships We recognise the important role our membership organisations play. They provide a much-needed platform through which the property industry collaborates, evolves, and improves. And we want to play our part. We want to collaborate, we want to help lead in our neighbourhood in Marylebone, and we want to support the development of common approaches with other businesses. In return, we hope to improve, resulting in the measured and sustained achievement of our strategic sustainability objectives.
- Our memberships
Page 19
The Howard de Walden Estate 23 Queen Anne Street London W1G 9DL Contact us: +44 (0)20 7580 3163 sustainability@hdwe.co.uk hdwe.co.uk Company registered number 06439246