The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Legal & General Publish Net Zero Strategy

Sustainable Transport
16 February 2021 | Updated 17 February 2021
 

Avoiding climate catastrophe and its irreversible changes to the earth’s climate systems is the greatest global priority. Legal & General sees the task of addressing climate change as a key growth driver, and the multi-billion pound investment that it requires over the coming decades as an opportunity not a cost.

Demonstrating another step up for Legal & General in its response to combating climate change, LGIM Real Assets has published its strategy to deliver net zero carbon across its 76 million sq. ft. UK real estate portfolio by 2050.

LGIM Real Assets’ pathway to net zero carbon sets out its commitments and delivery strategy for decarbonising the lifecycle of buildings from construction through to operation and eventual decommissioning. With the built environment contributing c.40 per cent of global greenhouse gas emissions, it has a pivotal role to play in global efforts to achieve net zero carbon. LGIM Real Assets strategy to deliver net zero is a step up in pace and ambition, building on its established policies around sustainability and responsible investment that have seen it deliver on its targets to reduce landlord operational carbon emissions by 20 per cent in the last 10 years. 

 

Responding to the Challenge

 

As an investor, house builder and landlord, Legal & General has already taken action to play its part in addressing the challenge of reducing carbon emissions.

 

  • Committing to reduce the operational carbon and energy intensity of landlord-controlled areas by 60 per cent by 2030 in scope 1 & 2 emissions.
  • By 2030, all homes built by Legal & General’s housing businesses will be capable of operating at net zero carbon emissions.
  • The Climate Impact Pledge, which covers the public equities and fixed income portfolios, uses quantitative metrics including proprietary climate modelling to evaluate the sustainability and carbon emission credentials of companies in which investment or disinvestment is being considered.
  • LGIM is one of 30 founding signatory global investors of the Net Zero Asset Managers initiative, committing to decarbonise their investment portfolios and accelerate their contribution to achieving net zero, while also encouraging other asset managers to join in order to demonstrate sector leadership and commitment to a sustainable future. 

 

 

As part of Legal & General Group and LGIM’s commitment to mitigate climate change, LGIM Real Assets has been aligning its business with a low carbon future for many years, said Bill Hughes, Head of Real Assets, LGIM. "Sustainability is at the heart of our investment strategy. 

"We have committed to deliver a portfolio of assets where every building we construct, own and manage achieves net zero carbon by 2050. In the shorter term, we will reduce the operational carbon and energy intensity of our landlord-controlled areas by 60 per cent over the next 10 years.  Collaboration across our organisation and with external partners will be the key to decarbonising and future proofing these assets. We will be working closely with all our stakeholders; from our colleagues, designers and developers, to building occupiers, managing agents and facilities managers. These partnerships will be vital in our race to net zero."

 

"LGIM Real Assets holds £21.3 billion of UK real estate across more than 700 properties," explained Shuen Chan, Head of ESG, LGIM Real Assets. "As long-term investors and real asset owners, we have a responsibility to protect our clients’ capital through integrating ESG considerations into the investment process. By future proofing our assets, we can ensure they are resilient and able to adapt to both climate related transition and physical risks.  Through the integration of sustainable practices into everything we do, we believe we can deliver enhanced returns for our investors in the form of higher occupancy rates and the ability to generate better rental income.

"Climate change is a global challenge that requires a collective global effort by governments, policymakers, companies, investors and society. Achieving our net zero goals will not be easy, but I believe that our industry can decarbonise and move to being part of the climate change solution rather than part of the problem.

 

Picture: two people riding bicycles from the Legal & General press release.

Article written by Bailey Sparkes | Published 16 February 2021

Share



Related Articles

Sustainable Deliveries at 22 Bishopsgate to Lower City Emissions

A sustainable delivery system at 22 Bishopsgate is set to reduce the number of weekly vehicle trips to the building from 1,300 to just 50. AXA IM Alts, developer of...

 Read Full Article
Sodexo Launches 2021 Social Impact Pledge

Sodexo UK & Ireland has announced its commitment to a series of pledges forming its ethical manifesto for leading the way to improve quality of life for society and...

 Read Full Article
The UK’s Hydrogen Economy – Industry Reactions

The UK’s first-ever hydrogen strategy launched this week, defining the energy source as critical in the country’s target of net-zero emissions by 2050. The...

 Read Full Article
AI Predicts Building Energy Rates in Less Than A Second

An artificial intelligence system that can predict building emissions rates almost instantly has been created. Current methods can take days to produce building...

 Read Full Article
UhUb Partners with Planet Mark

UhUb, the provider of Education Technology for the cleaning sector, has partnered with Planet Mark, a sustainability certification for every type of...

 Read Full Article
Carbon Savings From One Virtual Conference Could Power 17 Homes For a Year

The carbon saving from just one virtual conference could power 17 homes for a year. Research from Ezra, a provider of digital coaching, has revealed how UK...

 Read Full Article
How Can You Make a Building More Like a Tree?

Sourced from pure carbon, Graphene is the strongest material now known to science. It's now being used to make carbon-absorbing paint for the built...

 Read Full Article
Net Zero Week – The Carbon Battle Continues

Its Net Zero week in the UK, highlighting the ever-increasing urgency to reach climate-conscious targets surrounding the carbon footprints of our organisations and...

 Read Full Article
Consultation for Construction Carbon Reporting Rules Published

The world’s first international standard for carbon reporting across all areas of construction has had its reporting standards published for...

 Read Full Article
Disruptive Technologies Named Property Tech Company Of The Year

Disruptive Technologies, the creator of the world’s smallest wireless sensors, has been named the Property Tech Company of the Year at the Global Business Tech...

 Read Full Article