Wates Group Limited

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Wates Developments will power community spaces and street furniture with renewable energy on schemes of 150+ homes, and explore battery storage solutions on schemes of 500-1000+ homes. Net Zero Carbon Ready Homes are targeted across all scheme sizes, with full Net Zero Homes on 25% of consented homes by 2030.

The Wates transition plan references the need to offset any residual Scope 2 emissions (by 2025 milestone) but does not disclose a programme of durable carbon removals such as DAC, BECCS or biochar. The company references the need to 'continue to implement energy saving projects and offset any residual emissions' as part of its Scope 2 roadmap. No carbon removal credits or offsets retired are quantified in the 2023 report.

• Scope 1 & 2 carbon neutrality for Group companies

  Wates commits to carbon neutrality for Scope 1 & 2 emissions across all Group companies by 2025, with an absolute 46.2% reduction in Scope 1 & 2 by 2030 versus a 2019 baseline, aligned to a 1.5°C SBTi pathway.

• Embodied carbon assessments at masterplanning stage

  Wates is exploring opportunities to reduce embodied carbon at the master planning stage, with Embodied Carbon Assessments of two proposed masterplans completed in 2024, requirements set for commercial schemes in 2026, and for residential schemes in 2025. Masterplan embodied carbon assessments apply across all scheme sizes.

• Higher energy performance homes (Future Homes Standard)

  By 2030, 25% of all homes consented in the year will be designed to a higher energy performance than building regulations, exceeding the Future Homes Standard. These initiatives will create homes with significantly lower heating needs and superior energy and water efficiency.

• BREEAM Excellent for commercial schemes

  Commercial spaces will achieve BREEAM Excellent as a minimum, with BREEAM Excellent targeted for all commercial schemes by 2028.

• Electric vehicle infrastructure and car clubs

  Electric vehicle car clubs to be provided on schemes of 150+ homes, plus disabled EV charging spaces given the finding that only 0.003% of UK EV charging sites are accessible to disabled drivers.

• Pre-manufactured value / modern methods of construction

  Wates targets a pre-manufactured value of 65% within its Residential and Construction businesses by 2025, reducing embodied carbon and waste through offsite manufacture and design-out-waste approaches.

• Scope 1 and 2 operational decarbonisation: fleet electrification and site energy efficiency

  Wates is reducing direct emissions through a programme of replacing diesel vans with EVs (45 replaced in 2023, with orders for 124 electric commercial vehicles for 2024, reaching 14.7% of fleet). On-site diesel use rose to 20,011 MWh in 2023 due to temporary electrics unavailability; the company is profiling site compounds for energy efficiency. EV charge points were installed at head office and energy-saving upgrades were made at the Prism offsite manufacturing plant in Coventry. The firm targets 46.2% reduction in absolute Scope 1 and 2 emissions by 2030 vs 2019.

• Net zero and sustainable building delivery — BREEAM Outstanding projects and embodied carbon reduction

  In 2023, 71% of live BREEAM projects were rated Excellent and 21% Outstanding, with 85% of preconstruction projects targeting Outstanding. Wates uses a Design for Performance approach and smart building technology, completing net zero carbon projects such as 4 Angel Square (BREEAM Outstanding, 5* NABERS, running entirely on renewable energy). The company targets significant embodied carbon reduction through Modern Methods of Construction and prefabricated elements via its Prism offsite manufacturing hub. Whole Life Cycle Assessments are being conducted for an increasing number of projects to identify carbon hotspots.

• Fleet electrification and reduction of red diesel

  Wates Property Services operates a fleet of over 600 vans and is identifying options to transition to electric vehicles. At end of 2021, 62% of company cars on order were electric and 27% were plug-in hybrids, with only 12% internal combustion engines. Red diesel use fell from 12,805 MWh (2019) to 4,086 MWh (2021) due to greater use of customer electricity supplies. Battery systems and electric plant are being trialled to reduce red diesel dependence further.

• Office closure and flexible working reducing Scope 2

  Scope 2 location-based emissions reduced 74% from 5,182 tCO2e (2019) to 1,370 tCO2e (2021), driven by closure of 13 offices in 2021 and adoption of flexible/home working by non-operational staff. The Group launched Group-wide Flexible Working Principles in June 2021, formalising hybrid work as an ongoing operational change that reduces office energy consumption.

• Offsets to bridge gap to 2025 zero-carbon target

  In line with its Zero Carbon target for 2025, Wates offset 3,569 tCO2e in 2021, equating to 62.3% of market-based Scope 1 and 2 emissions. The Stonewater contract commitment states all CO2 generated by operational delivery will be offset within the calendar year. Wates is also devising a formal net zero carbon definition and offsetting strategy for Cardiff Living, covering any carbon that cannot be eliminated from manufacture, construction and operational processes.

• Supplier Science-Based Targets engagement

  By end of 2027, Wates is committed to ensuring 89% of suppliers, by emissions, have a Science Based Target in place. Supply chain partners are measured on environmental performance and invited to collaborate with Wates to devise new solutions that reduce emissions, pollution and waste.

• Lower-impact materials and resource efficiency

  Wates commits to increasingly use materials with lower environmental impact, ensure existing assets become more resource efficient, design-out waste across operations, and reduce the environmental impact of assets created.

• Joint venture partner collaboration on housebuilding

  Wates is working closely with Joint Venture partners (leading UK housebuilders) to explore solutions and embed sustainability standards on JV schemes, including tablets and 12-month broadband subscriptions for every Affordable Home, modern methods of construction targets, and accessibility standards.

• Supply chain science-based targets engagement — 89% of suppliers by emissions by 2027

  Scope 3 accounts for >98% of Wates' total GHG emissions, with purchased goods and services (Category 1) at 89%. Wates ran 12 supplier events in 2023 to encourage science-based target adoption; the percentage of top 200 suppliers with SBTs increased from 4% in 2022 to 9.5% in 2023. The firm is introducing minimum material sustainability criteria for key construction materials and working with UK materials manufacturers in strategic partnerships. Contract clauses requiring SBTs are being incorporated into framework agreements.

• Social housing decarbonisation and retrofit — Wates Retrofit programme

  Wates is a market leader in domestic zero-carbon retrofit through its Wates Retrofit offering. The programme scaled from £3.4m in 2021 to £15.4m in 2022 and £36.8m in 2023, with a forecast of £88.0m in 2024. In 2023, Wates helped customers secure over £100m in SHDF Wave 2.1 funding, resulting in £125m of contracts to retrofit 5,000 homes. Over three years, 2,217 social homes were retrofitted to PAS 2035 standards, with 1,167 completed in 2023 alone. The government committed a further £2.8bn under SHDF Wave 3 from 2025.

• Supply chain decarbonisation and Scope 3 baseline development

  The supply chain accounts for 75% of Wates' total carbon emissions, with purchased goods and services (Category 1) constituting the biggest contributor at 75% of total Scope 3. Wates established a 2019 Scope 3 baseline covering 12 of 15 categories using an Environmentally Extended Input-Output (EEIO) model via the Quantis tool. The Group is prioritising large spend categories and aims to phase in actual carbon data from suppliers over time, working collaboratively to make progress toward Net Zero.

• Passivhaus and embodied carbon reduction in residential development

  Wates Residential built its first 100% affordable Passivhaus scheme in Cardiff for Cardiff City Council, undertaking whole-life carbon and circular economy assessments to inform future projects. A formal net zero carbon definition and offsetting strategy is being devised. Cardiff Living homes incorporate ground source heat pumps, smart thermal storage, photovoltaic panels, batteries and EV charging. The first modular homes in Cardiff feature solar panels, heat pumps and no gas connection.

• Low-carbon retrofit and Net Zero buildings for customers

  Wates Living Space launched a zero-carbon retrofit programme under PAS 2035, targeting EPC rating C or above by 2030, with a pipeline of £27m in future work. Wates is leading the Decarbonising Health Estates Partnership for NHS England. Net Zero schools are being built under the DfE Schools Rebuilding Programme using Modern Methods of Construction. The Wates Innovation Network (WIN) portal connects customers with 70 vetted sustainable technology suppliers to help them achieve Net Zero goals.