Sustainable Property.

What we know

The case for sustainability is perhaps clearest when considering our environmental impacts, where efficiency enables us to deliver lower costs for occupiers and better returns for investors by avoiding unnecessary expenses arising from purchasing, disposal or regulation relating to resource use. Beyond our own business, the built environment currently creates 40% of UK carbon emissions and 33% of UK waste to landfill, so our management of resources can have a significant impact on the finances of our own business as well as the wider environment.

Social sustainability for our properties is equally important for our business. We need to ensure that our investments deliver long-term benefits for the communities that live near, or work in, our properties, so we are committed to engaging with them throughout our ownership of the asset.

In addition, our stakeholders and clients increasingly expect us to integrate sustainability into our investment considerations. We believe that in future years, sustainability will be a core element of an Investment Manager’s responsibility, and in this respect we are determined to show leadership.

Finally, employees increasingly want to work for a company that has sustainability at the heart of day-to-day decision-making. We are focused upon attracting, retaining and developing high-calibre people, and believe that a commitment to sustainable property helps us to do this.

What are we doing

In 2011 we have published our first Sustainable Performance Report for our Commercial Property Business. Key areas of delivery in 2010 have been:

Sustainability risk management

Legal & General Property have set up sustainability systems and procedures to include social and risk management as part of our sustainability strategy which we continue to grow, with input from industry research and a strategic review by a third party consultancy, Upstream Sustainability Services. As a result of this review, we now have in place a process that covers numerous criteria relating to environmental, social and economic sustainability of assets. We review all new assets against these criteria, and also use them to look at sustainability risks in our existing portfolio.

Climate change and energy

In addition to consumption management of all properties, we’ve identified our top 24 properties, which account for around 80% of our energy spend as a business and have in place focused reduction targets for these properties, put in place with managing agents and energy advisors.

Resource use and Environment

All multi-let properties meet the requirements of ISO 14001. 100% of our service charge properties are accredited, with new acquisitions targeted to join them the following year.

Beyond this, we continue to develop procurement controls to ensure materials and resources are sourced responsibly, and that contractors and suppliers have in place appropriate policies for environmental sustainability.

Sustainable communities

Community engagement occurs at both our multi-let and development sites where helping the environment and our neighbours encourage a long-term beneficial relationship.

Our work with the community including St Joseph's Primary School for our Central Saint Giles Development, highlights the commitment made to the local community. Our partnership with The Homes and Communities Agency and MUSE on the English Cities Fund (ECF) is also an example of our work to strengthen existing communities through the investment we make. ECF seeks to increase private investment in regeneration projects, which are both viable and worthwhile for our underlying investors, but which also bring community and environmental benefits.