Originally posted: https://news.google.com/rss/articles/CBMibGh0dHBzOi8vZ3JvdXAubGVnYWxhbmRnZW5lcmFsLmNvbS9lbi9vdXItcHVycG9zZS90YWNrbGluZy10aGUtY2xpbWF0ZS1jcmlzaXMvcmVhbC1lc3RhdGUtcm9hZG1hcC10by1uZXQtemVyb9IBAA?oc=5

The built environment is linked to 40% of all UK carbon emissions1 and as a major investor with a £19 billion UK property portfolio across residential, commercial and industrial assets we believe we have an important part to play in tackling the climate crisis.

At the end of 2020 we published our real estate net-zero roadmap, which laid out Legal & General Investment Management’s (LGIM’s) strategy to transition its real estate portfolio to net-zero carbon. Through this strategy we will seek to deliver on the commitments we made in 2019 as signatories of the Better Buildings Partnership’s Climate Change Commitment, to seek to achieve net-zero for all our real estate assets by 2050 or sooner.

And we have now adopted new interim science-based targets to reduce all our carbon emissions by 2030. We have committed to reducing Scope 1 and 2 absolute carbon emissions (those from our landlord-controlled areas) by 42% compared to a 2019 baseline. For the Scope 3 emissions associated with the energy use of our occupiers, we will seek to reduce their carbon intensity by 55%2.

Sustainability is a priority

As a global institutional investor, we believe we have a responsibility to generate value for our clients. We believe that sustainability is a key factor in real estate value and performance and its importance will only increase over time.

During 2022, we carried out an exercise to estimate our wider carbon footprint. This was an estimate of emissions associated with activities such as the energy being used each year by our many occupiers, the embodied carbon built into our developments, and all the carbon wrapped up in operating and managing our real estate portfolio.

We found that only around 3% of emissions came from the electricity and fuel that we buy to operate our buildings (Scope 1 and 2 emissions). The majority (around 71%) are due to the energy used and controlled by our occupiers, which means that collaborating with them will be essential if we are to meet our targets. The second most significant source is from capital goods, primarily the embodied carbon built into our new developments.