The Group will achieve this by:
- identifying investment risks during acquisition due diligence and identifying opportunities to add value;
- considering the social and environmental performance of our assets; and
- Monitoring and measuring our resource consumption to identify efficiencies, particularly relating to energy and reduce our carbon footprint and the operational costs for our tenants.
We have continued to take important steps in the deployment of our resilient investment strategy.
Asset managers and agents have been given guidance to ensure social and environmental credentials are incorporated into sales and letting materials where available.
The Group continues to progress the development and implementation of formalised jurisdiction specific acquisition checklists that include environmental and social criteria such as liabilities related to carbon and energy regulations and costs, energy labels and ratings, building certifications and flood risk.
The Group continues to implement its phased roll out of LED lighting across our UK Retail portfolios. To date this has enabled an approximate 65 per cent reduction of power consumption and we will soon be able to calculate the further impact of this programme in terms of energy efficiency improvements and carbon emission reductions during 2017.
The Group has completed the process of identifying metrics for each asset type that can be used to track and communicate improvements to rental income or capital value achieved because of environmental or social improvement measures. Asset‑specific examples of situations where CSR initiatives have resulted in both financial and social and environmental benefits, such as:
- St. George’s Shopping Centre, Harrow: replaced all lighting in the common parts of the Mall from PL‑C compact fluorescent lighting to LED achieving a saving of 45,450kWh per year cutting maintenance costs on tube and lamp replacement by 90 per cent and reducing CO2 emissions by 18,728kg per year. The planned car park LED replacement programme incorporating dimming functionality to 20 per cent when car bays are not in use should reduce the overall consumption by a further 5 per cent; and
- Grand Arcade Shopping Centre, Wigan: implemented an LED lighting retrofit programme which reduces energy consumption and has enabled cost savings of around £20,000 per year with a payback of less than 12 months. This is 85 per cent complete.
Our performance and targets