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

We’ve scaled up our ambition to deliver buildings that are Paris-aligned, becoming a signatory to the Better Buildings Partnership Climate Change Commitment and pledging to achieve net zero carbon for our real estate platform by 2050 or sooner. Our science-based targets will help support our trajectory to net zero out to 2030.

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.

Real estate equity responsible investment policy

The principles, governance and objectives surrounding our real estate equity policy are continuously reviewed and updated in line with our evolving ESG priorities.

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Embodied carbon study

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

Get in touch

The Real Assets ESG team operates across the LGIM Real Assets platform. This dedicated group works closely with the asset management and investment teams to support ESG integration in investment strategy and decision making.