Business Climate Guidance Case Study: Landsec

In 2016 Landsec became the first property company in the world to have its carbon emissions target approved by the Science Based Targets initiative. Since then it has procured 100% REGO-backed renewable electricity. It was one of the first companies globally to join all three of Climate Group’s RE100, EP100 and EV100 campaigns, a series of commitments for businesses to procure renewable energy, improve energy productivity and invest in electric transport infrastructure.

In 2019, Landsec announced its commitment to becoming a net zero carbon business by 2030 and set out its strategy for achieving this. It is an ambitious strategy with five clear actions:

1. Reduce operational energy use in support of the updated science-based carbon reduction target, aligned with a 1.5°C scenario
2. Invest in renewable energy through REGO-backed contracts and Power Purchase Agreements and implement on-site renewables across our assets
3. Use an internal shadow price of carbon to clearly communicate climate-related risks and opportunities in investment decisions.
4. Reduce construction impacts through asset retention, efficient design and responsible sourcing of low-carbon materials
5. Offset remaining emissions through carefully selected projects which actively take carbon out of the atmosphere

In developing its strategy, Landsec considered long term macro trends that will affect its business, such as climate change and resource scarcity. For that reason, environmental leadership has been identified as a key performance driver and important source of competitive advantage.

Key drivers:

• Competitive advantage: Landsec recognised that acting on climate change would make it more attractive to both potential customers/tenants and investors.
• Attracting/retaining employees: Landsec believes that acting on climate change helps to attract and retain top talent. Employees are proud to work for a company that embeds environmental sustainability into its operations.

Challenges:

• Commercial vs. environmental: It is important to balance environmental actions with commercial requirements. Landsec looks at investments based on their impact, not just cost alone.
• Buy-in: Landsec continues to positively influence colleagues on climate action. As a result, they are now far more interested and aware of the importance of climate action.

Benefits: 

• Investment: Investors are also much more aware of the importance of sustainability and climate related issues. Landsec has positioned itself as an early leader in acting on these.
• Increased revenue: The hope is that a fully sustainable building will attract existing and new customers and support them with their respective environmental goals.

Read the Construction framework