Wates Group Limited — full event log

By 2030, Wates Developments commits that a quarter of the homes it gets consented will exceed the Future Homes Standard / be Net Zero Homes.

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By 2028, BREEAM Excellent targeted for all commercial schemes, with modern methods of construction targets set on Joint Venture schemes.

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Commitment to be carbon neutral for Scope 1 & 2 emissions for all Group companies by 2025.

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By 2025, home water efficiency standard of 100 Litres Per Person Per Day in place, with 90 LPPPD for larger schemes and greywater/rainwater harvesting on 30% of homes in water stressed areas.

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Achieve an aggregate Biodiversity Net Gain of 20% for Residential and Construction businesses by 2025.

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Achieve a pre-manufactured value of 65% within Residential and Construction businesses by 2025.

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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.

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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.

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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.

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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.

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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.

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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.

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

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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.

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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.

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By the end of 2030, Wates will reduce absolute Scope 1 & 2 emissions by 46.2% against 2019 baseline.

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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.

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By end of 2027, Wates committed to ensuring 89% of suppliers, by emissions, have a Science Based Target in place.

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Wates Group has committed to reducing absolute Scope 1 and 2 GHG emissions by 90% from a 2019 base year by 2045, and reducing absolute Scope 3 GHG emissions by 90% within the same time frame. Target verified by Science Based Targets initiative.

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Wates Developments is creating a new business to deliver nature-based solutions to the built environment, with a target of 10 sites introduced into the Wates Developments Habitat Bank by 2030. Biodiversity net gain targets of 10%, 15% and 20% onsite depending on scheme size.

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Wates Developments became a signatory of the Healthy Homes Pledge in 2024, setting out principles for new homes and neighbourhoods that prioritise physical, mental and social wellbeing of residents.

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Wates Developments Group launched its Sustainability Strategy in 2024, with three pillars (Thriving Places, People, Planet) and seven drivers. Includes commitment to complete Embodied Carbon Assessments of two proposed masterplans in 2024.

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By 2045, Wates will deliver Science-Based Target of 90% reduction of Scopes 1, 2 and 3, in line with 1.5°C pathway.

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Wates is certified to ISO 14001:2015 environmental management standard.

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Wates purchases electricity backed by Renewable Guarantees of Origin (REGO) certificates, with 91.3% of all electricity purchased in 2023 from renewable sources (8,899 MWh). Where REGOs are not available, a residual mix emission factor is applied. The company is transitioning its fleet to EVs, increasing the proportion of electric company cars from 34% in 2022 to 54% in 2023, with new company car orders now limited to EVs and plug-in hybrids. A salary sacrifice scheme for EVs was launched in 2023 to address grey fleet emissions.

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In November 2023, Wates' long-term net zero GHG emissions target across the value chain by 2045 was externally validated by the Science Based Targets initiative (SBTi). This made Wates one of only three UK Tier 1 contractors to hold both a near-term and net zero SBT. The near-term SBT (halving Scope 1, 2 & 3 by 2030 vs 2019) had been validated in October 2022.

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The Carbon Trust was engaged to undertake limited assurance of the Group's Scope 1, 2 and selected Scope 3 emissions (waste and business travel) using ISO 14064-3:2019. This is consistent with prior years - assurance maintained at limited level.

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Eoghan O'Lionaird joined as Chief Executive in February 2023. Tim Wates became Chairman in May 2023 replacing Sir James Wates CBE. In December 2023, Cressida Curtis was appointed as Group Sustainability Director joining the Executive Committee. These leadership changes also included appointment of new NEDs Rachel Addison and Liz Reilly.

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In 2023, waste data presented includes that from logistics providers for the first time, resulting in a 24% increase in reported waste generated compared to 2022. This scope expansion improves accuracy of reporting though it inflates the reported total.

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Having exceeded the original target of engaging with 25,000 children and young people from communities by 2025, Wates set a new target of reaching 100,000 young people by end of 2025. Also extended social enterprise spend target from £25m to £36m by 2025.

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In 2023, Wates launched its Environmental Sustainability Plan setting short-term 2025 targets (carbon neutral Scope 1&2, 65% pre-manufactured value, 20% biodiversity net gain) and long-term targets (zero waste by 2045, net zero Scope 1/2/3 by 2045, adopt TNFD reporting by 2030).

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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.

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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.

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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.

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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.

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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.

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In October 2022, Wates' near-term science-based target was externally validated by the SBTi. The target commits to reducing absolute Scope 1 and 2 GHG emissions by 46.2% by 2030 from a 2019 base year, and to 89% of goods and services suppliers having science-based targets by 2027.

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In 2021, Wates committed to setting a formal Net Zero target under the Science-Based Targets initiative (SBTi) and joined the Race to Zero campaign, committing to halve Scope 1, 2 and 3 emissions by 2030 against a 2019 baseline. The Group's aim is to be Net Zero by 2045.

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The carbon reporting baseline was changed from 2016 to 2019 to align future reporting with science-based targets. Prior year Scope 1 and 2 carbon emissions per £m revenue were also adjusted to include F-Gas emissions and Needspace? business. Market-based calculations for 2019 and 2020 refreshed to account for residual mix.

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The Construction Group restructured in 2021, arranging into four regional geographies (Central, London, North, South). WICS businesses aligned to the new regional structure. This was intended to expand national footprint and improve local delivery capability.

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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.

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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.

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The Carbon Trust was engaged to undertake limited assurance of the Group's Scope 1, 2 and selected Scope 3 emissions (waste and business travel) using ISO 14064-3. This represents the first disclosed external assurance engagement for Wates' climate data.

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Wates purchases renewable electricity backed by Renewable Guarantees of Origin (REGO) certificates, applying an emissions factor of zero tCO2e per MWh for market-based reporting. In 2021, 5,451 MWh (84.8% of all electricity purchased) came from renewable sources. Where REGOs are unavailable, a residual mix emission factor is applied. The company also trialled on-site solar PV (site cabins at Wellington Place providing 22% of energy needs) and PV installations on project rooftops.

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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.

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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.

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Emissions from waste were reported for the first time in 2021, added to the existing Scope 3 business travel category. The Scope 3 data for business travel in 2021 also includes GHG emissions associated with hotel stays for the first time.

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Wates published its carbon reduction plans in September 2021. In 2021, the Group established a TCFD working group reporting to the Sustainability Committee quarterly. A new Environmental Sustainability Director (Bekir Andrews) was appointed in November 2021 to lead the Net Zero transition.

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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.

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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.

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When Wates launched its environmental strategy in January 2020, it committed to generating zero carbon and zero waste from its operations and to having a positive impact on nature from all operations by 2025. Short-term target: zero Scope 1 and 2 emissions from operations and vehicles by 2025.

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