SEGRO — full event log

SEGRO targets an Energy Performance Certificate (EPC) rating of B or better for all new construction and refurbishments. At end 2025, 81% of the portfolio had an EPC rating of B or better (2024: 76%). The Group replaces fossil fuel heating systems with efficient electrical heating and has an 80% reduction target in corporate and customer carbon intensity by 2034 versus 2023 baseline. SEGRO uses a powerful carbon reporting platform to manage thousands of gas and electricity datapoints across its controlled space.

sustainability_report p.22

SEGRO carries out third-party verified embodied carbon assessments for all development projects over 5,000 sq m under its Mandatory Sustainability Policy. Key steps include increasing use of low-carbon steel, cement replacements and timber (e.g. the Hamburg Neu Wulmstorf timber structure). The embodied carbon intensity of representative developments reduced 12% in 2025 to 280 kgCO2e/sq m, targeting a 58% reduction by 2034 vs 2023 baseline of 331 kgCO2e/sq m. SEGRO also designs embodied carbon out of buildings by changing layouts and geometries.

sustainability_report p.23

SEGRO uses green lease clauses to require customers to share energy usage data and, where possible, source energy via a renewable tariff. Customer energy data visibility reached 91% of portfolio by area in 2025 (up from 87%). The Group works closely with data centre customers who have committed to 100% renewable energy by 2030, and encourages all customers to procure certified renewable electricity. Corporate and customer combined emissions intensity fell 17% in 2025 to 20.0 kgCO2e/sq m, targeting 80% reduction by 2034.

sustainability_report p.22

SEGRO has an established Green Finance Framework complying with International Capital Market Association and Loan Market Association principles, setting out investment criteria for deploying and allocating proceeds of green finance instruments including energy-efficient and low-carbon buildings. When deciding to raise capital, consideration is given to whether the issue should fall under the Green Finance Framework (e.g. a Green Bond). An internal carbon price of £100 per tonne is applied to capex for environmental improvements, particularly solar PV retrofits.

sustainability_report p.52

SEGRO's SBTi-validated net-zero methodology allows for offsetting residual emissions with best practice carbon removals at the 2050 target year, accounting for a maximum of 10% of target emissions. The Group has not disclosed any current carbon removal purchases or credits; the removal strategy is positioned as a last-resort measure for residual emissions after deep operational and embodied carbon reductions are achieved.

sustainability_report p.22

Reducing embodied carbon in the development programme is critical to improving the carbon footprint. SBTi approved updated targets aligned with the new 'Buildings Framework': near-term target to reduce embodied carbon by 58% by 2034 vs the 2023 baseline, and net-zero by 2050. Reduced embodied carbon intensity of developments by 12% to 280 kgCO2e/sq m in 2025 (2024: 318 kgCO2e/sq m). All eligible development completions accredited BREEAM 'Excellent' or 'Outstanding' (or local equivalent).

sustainability_report p.21

At end of 2025, 81% of the portfolio had an EPC rating of B or better (2024: 76%). Majority of portfolio is modern and already meets highest sustainability standards. Older assets in London held pending refurbishment/redevelopment, providing opportunity to add value while improving environmental performance.

sustainability_report p.19

Green lease clauses require customers to provide energy usage data and, where possible, source energy via renewable tariffs. These clauses, alongside an increase in automatic meter feeds, have helped increase visibility of portfolio energy use to 91% in 2025 (2024: 87%), enabling more accurate Scope 3 reporting and identification of efficiency opportunities.

sustainability_report p.19

SEGRO formed a 50:50 joint venture with Pure Data Centres Group (Pure DC) to develop a 56MW IT load fully fitted data centre in Park Royal, West London. SEGRO contributed land and Pure DC contributed 70 MVA of power. Gross investment anticipated at approximately £1 billion, SEGRO's cash equity contribution expected below £150 million. This marks SEGRO's first fully fitted data centre, evolving beyond powered shells.

sustainability_report p.4

Following adoption of the SBTi Buildings framework methodology improvements, the 2023 baseline corporate and customer carbon intensity was restated to 22.5 kgCO2e/sq m (from previously reported) and the 2024 figure restated to 24.0 kgCO2e/sq m. The 2023 embodied carbon intensity baseline is 331 kgCO2e/sq m.

sustainability_report p.22

SLR Consulting provided limited independent assurance to ASAE3000 on GHG data. SEGRO has had external assurance annually since 2014. No change in assurance provider or level noted in this report.

sustainability_report p.47

Visibility of customer energy use improved from 87% (2024) to 91% (2025) of total property footprint by area, driven by green lease clauses and increased automatic meter feeds. This enables more accurate Scope 3 (Downstream Leased Assets) measurement covering approximately half of total Scope 1-3 emissions.

sustainability_report p.27

During 2025, SEGRO's near-term and net-zero carbon reduction targets were approved by the Science Based Targets initiative (SBTi). Near-term target: reduce corporate and customer emissions intensity by 80% by 2034 vs 2023 baseline. Embodied carbon target: reduce by 58% by 2034 vs 2023. Net-zero by 2050. Aligned with 1.5°C pathway.

sustainability_report p.8

SEGRO's updated near-term and net-zero GHG reduction targets were validated by the Science Based Targets initiative (SBTi) in July 2025. Targets are based on SBTi Buildings criteria with 2023 baseline: 80% reduction in corporate and customer carbon intensity by 2034, 58% reduction in embodied carbon intensity by 2034, and net-zero by 2050 in both categories.

sustainability_report p.5

During 2025, the SBTi approved our updated embodied carbon targets, aligned with their new 'Buildings Framework'. Near-term target to reduce embodied carbon by 58 per cent by 2034 versus the 2023 baseline, and a target to be net-zero by 2050.

sustainability_report p.21

Corporate and customer emissions are the dominant Scope 3 category for SEGRO as a REIT. In 2025, achieved 17% reduction in corporate and customer carbon emission intensity (to 20 kgCO2e/sq m from restated 24 in 2024), largely from increased use of renewable and low-carbon energy across the portfolio, supported by ongoing rooftop solar installation. Working closely with tenants on their own net-zero journeys (e.g. data centre customers committed to 100% renewable energy by 2030). Green lease clauses and automatic meter feeds increased visibility of portfolio energy use to 91% (2024: 87%).

sustainability_report p.19

SEGRO continues to expand solar capacity across its portfolio through retrofitting onto existing assets, while installing photovoltaic arrays on almost all new developments. During 2025 added 22MW of installed solar capacity, taking the total to 145MW (2024: 123MW), 18MW of which was through retrofits onto existing buildings. Working with data centre customers who have made commitments to use only renewable energy by 2030.

sustainability_report p.19

SEGRO installs photovoltaic arrays on almost all new developments and is actively retrofitting existing buildings, adding 22 MW in 2025 to reach 145 MW total installed capacity. The Group purchases certified renewable electricity for SEGRO's own use and for customers on whose behalf it procures energy. 82% of visible corporate and customer electricity use comes from certified renewable sources. Data centre customers have committed to use only renewable energy by 2030, and SEGRO works with customers to adopt certified renewable energy tariffs and track uptake through green lease clauses.

sustainability_report p.22

Setting targets under the new SBTi Buildings criteria required methodology improvements. This resulted in restatement of previously reported 2023 and 2024 corporate and customer carbon intensity and total embodied carbon intensity figures. The 2024 corporate and customer intensity was restated from an unspecified prior figure to 24.0 kgCO2e/sq m.

sustainability_report p.22

SEGRO's SELP joint venture (50% owned) completed acquisition of a six-asset, 37,000 sq m portfolio in the Netherlands and Germany for €470 million (formerly owned by Tritax EuroBox plc) plus a logistics park in Prague. Total asset acquisitions at SEGRO share were £232 million in 2025.

sustainability_report p.4

During the year, we have established an ESG Governance Committee. The Committee formally meets at least four times a year to govern the Company's ESG disclosure and reporting, and determine the process for setting ESG targets.

sustainability_report p.36

Formation of SEGRO Premier Park DC, a 50:50 joint venture with Pure Data Centres Group to deliver 56MW IT load fully fitted data centre in Park Royal, West London. Gross investment ~£1bn; SEGRO equity <£150m; projected ~9% net yield on cost.

sustainability_report p.11

During 2025 we acquired £232 million of assets (at share), all within our SELP joint venture: portfolio of six assets in Germany and Netherlands formerly owned by Tritax EuroBox plc, and a logistics park in Prague. Annualised rental income £11 million.

sustainability_report p.20

SLR Consulting provided ISAE3000 limited assurance on 2024 Scope 1, 2 (market-based), and all relevant Scope 3 categories, covering 100% of reported emissions. Assurance also covers base year emissions, progress against targets, emissions breakdown by country/area and business division, and electricity/heat/steam/cooling consumption.

sustainability_report p.116

At end-2024 SEGRO had visibility of energy data from 87% of floorspace (target was 85%). Of that, 71% was estimated to be from renewable sources. Target is 100% data coverage by 2030 and 100% zero-carbon tariff by 2030. Baseline 2020 was 11% on zero-carbon tariff.

sustainability_report p.88

SEGRO installed or acquired 64 MW of solar panels in 2024 (cumulative installed capacity 123 MW). Total solar generation was 60 GWh across assets. 187,396 kWh consumed by SEGRO; balance consumed by customers or exported to grid. Avoided 38 tCO2e for SEGRO Scope 1+2. Annual CO2e savings from solar initiatives: 426 tCO2e. Investment of £64m in 2024 solar installations.

sustainability_report p.130

Scope 3 Cat 1 increased from 57,130 tCO2e (2023) to 97,122 tCO2e (2024), a 70% increase. This category uses spend-based method (CEDA database). The increase likely reflects higher procurement activity rather than a methodology change, but no explicit explanation provided.

sustainability_report p.106

SEGRO targets an Energy Performance Certificate rating of B or better for all new developments and refurbishments. In 2024, 76% of the portfolio achieved EPC B or better (2023: 65%), up from 3% rated below E (2023: 3%). The estimated cost to upgrade the UK estate to EPC B or better is approximately £55 million by 2030. Refurbishment capex is factored into short-term budgets and the five-year Medium-Term Plan. This lever is directly linked to compliance with UK MEES regulations requiring EPC B by 2030.

sustainability_report p.10

SEGRO intends to neutralise residual emissions using removal-based offsets at the end of its 2050 net-zero target. The firm plans to purchase and cancel carbon credits for neutralisation and will identify schemes within its operating geographies with clearly measurable, long-term impacts. No carbon credits have been retired to date (confirmed in 7.79). The firm does not plan to mitigate emissions beyond its value chain in the near term. The approach to removal credits will be developed as the 2050 target date approaches.

sustainability_report p.198

The largest element of SEGRO's Scope 3 emissions is from customer use of buildings (Cat 13, 272,561 tCO2e in 2024, intensity 27.06 kgCO2e/sqm). SEGRO addresses this through mandatory green lease clauses requiring customers to procure zero-carbon electricity tariffs and share energy data. Gas-powered heating is removed when units become vacant or through negotiation. SEGRO also directly procures electricity for some customers. The SBTi-validated intensity target requires a 79.9% per m2 reduction by 2034 and 95.3% by 2050. At end-2024, 87% floor area data coverage was achieved against an 85% target.

sustainability_report p.71

SEGRO pursues zero-carbon electricity through two routes: purchasing certified renewable electricity for SEGRO's own use and for customers for whom it procures energy, and installing rooftop solar PV across the portfolio. In 2024, SEGRO added a record 64 MW of solar, bringing total capacity to 123 MW (2023: 59 MW). 71% of visible corporate and customer energy use comes from certified renewable sources (2023: 65%). Green lease clauses encourage tenants to procure certified renewable electricity, and data centre customers have committed to 100% renewable electricity by 2030. All new developments are built with roofs capable of supporting full PV arrays.

sustainability_report p.9

Embodied carbon from buildings SEGRO develops represents 30-40% of its carbon footprint. All developments over 5,000 sqm must undergo externally verified LCA calculations using One Click LCA software, beginning at pre-design phase. In 2024 the average embodied carbon intensity was 318 kgCO2e/sqm (vs 353 in 2022 and 331 in 2023), a 4% reduction from the 2023 baseline of 329.89 kgCO2e/sqm. The SBTi-validated target requires a 57.9% per m2 reduction by 2034. Innovations include low-carbon concrete, timber structural elements, and electric arc furnace recycled steel. Annual embodied carbon targets are written into contractor briefs and verified by third parties.

sustainability_report p.86

SEGRO has an SBTi-validated absolute target to reduce fleet-related Scope 1 and 2 emissions by 58.8% by 2034 from a 2023 baseline of 481.15 tCO2e. The plan is to transition company-owned vehicles to electric vehicles. In the 2024 reporting year, fleet emissions were 488 tCO2e, a slight increase of 2.42% relative to the base year. This target sits alongside the broader suite of Science-Based Targets.

sustainability_report p.171

SEGRO's Mandatory Sustainability Policy (introduced 2022) requires properties with an EPC below B to be upgraded when they become vacant. The estimated cost to upgrade the UK portfolio to EPC B-grade is £55 million by 2030. A programme is ongoing to achieve EPC C or better by 2027, and EPC B or better by 2030 across all UK assets. Every new development and major refurbishment targets BREEAM Excellent or better. These costs are factored into development appraisals and financial planning.

sustainability_report p.71

SEGRO received SBTi approval for a full suite of targets on 10/19/2024: (1) Abs1: 58.8% absolute Scope 1&2 fleet reduction by 2034; (2) Abs2: 90% absolute Scope 1,2, Cat1, Cat2 reduction by 2050; (3) Int1: 79.9% per m2 operational intensity reduction (S1+2+Cat13) by 2034; (4) Int2: 57.9% per m2 embodied carbon intensity (Cat2) by 2034; (3) Int3: 95.3% per m2 operational intensity by 2050; (4) Int4: 95.5% per m2 embodied intensity by 2050; (5) NZ1: Net-zero across value chain by 2050. All 1.5C-aligned.

sustainability_report p.168

As the vast majority of SEGRO's Scope 3 emissions (53%) arise from customer energy use in leased spaces (Cat 13), SEGRO uses green lease clauses to mandate renewable energy procurement and require sharing of energy data. Over 500 automatic meter readers have been enabled to improve data visibility. All employees' variable compensation is linked to improving visibility of customer energy data. In France, legislation requires occupier disclosure. SEGRO works directly with customers, particularly data centre operators, to support their transition to 100% renewable electricity by 2030.

sustainability_report p.9

The 2024 carbon emissions intensities have been restated to align with updates to our methodology and estimations related to Scope 3 emissions.

sustainability_report p.5

SEGRO has designed and rolled out a methodology requiring all contractors to conduct multiple LCA calculations at RIBA stages 1-4 throughout design and construction. Annual embodied carbon reduction targets are written into contractor briefing documentation. 100% of Tier 1 suppliers by procurement spend are required to comply; 76-99% are in compliance. Non-compliant suppliers are retained and engaged; those unable to demonstrate reductions are not preferred for future projects. SEGRO also engages 10 Tier 2 suppliers. The firm collaborates with contractors to find innovative building design and material specification solutions.

sustainability_report p.85

SEGRO is installing solar PV panels on new developments and existing assets across the UK, France, Germany, Poland, Italy, Spain, the Czech Republic and the Netherlands. In 2024 the installed capacity reached 123 MW, generating 60 GWh of electricity. SEGRO also procures 100% renewable electricity for its own operations via retail green electricity contracts (Guarantees of Origin) in all geographies. For tenants, SEGRO encourages procurement of zero-carbon tariffs through green lease clauses and energy basket group contracts; by end-2024 71% of corporate and customer electricity was on zero-carbon tariffs. A new dedicated team is being established in 2025 to expand renewable energy generation ambitions, with plans for a further 150 MWp over five years.

sustainability_report p.39

SEGRO adopted the SBTi 'Buildings' framework launched in 2024 to set new net-zero targets: 81% reduction in corporate and customer emissions intensity by 2034 vs 2023 baseline, and 58% reduction in embodied carbon intensity by 2034 vs 2023 baseline. Net-zero target year 2050. Replaced previous 2021 targets which were due for renewal.

sustainability_report p.9

Creating the new 2023 baseline provided the opportunity to bring emission calculation methodologies in line with latest best practice. All 2023 GHG figures (except Scope 3 category 6 business travel) were restated. This includes improved methodology for vacant space consumption and energy tariffs, contributing to higher corporate emissions in restated 2023.

sustainability_report p.9

In 2024, a revised data allocation methodology moved significant emissions from Scope 3 category 2 (capital goods) into Scope 3 category 1 (purchased goods and services). Scope 3 Cat 1 increased from 56,221 to 97,122 tCO2e. Comparatives not restated. This reflects a reclassification rather than a change in actual emissions.

sustainability_report p.49

SEGRO added a record 64 MW of installed solar capacity during 2024 (2023: 15 MW added), bringing total portfolio solar capacity to 123 MW from 59 MW at end-2023. Achieved through new development completions, retrofitting PV panels to existing buildings and acquisitions of buildings with PV.

sustainability_report p.10

Energy data coverage improved from 81% to 87% of floor area in 2024 (up 6 percentage points). This is a key metric linked to all employee variable compensation. Greater visibility increases accuracy of Scope 3 Cat 13 downstream leased asset emissions. New carbon reporting platform deployed.

sustainability_report p.10

SEGRO completed a significant reshaping of its senior leadership team in 2024, appointing a new Head of Western Corridor, Group Marketing and Communications Director, and Chief Information Officer. New governance processes introduced including dynamic carbon management governance and an annual corporate and customer emissions forecasting process.

sustainability_report p.20

SLR Consulting provided limited independent assurance on SEGRO's GHG figures for 2024, consistent with annual external assurance since 2014. DNV provided limited assurance on SELP Green Bond impact data. Level remains limited (not reasonable/full assurance).

sustainability_report p.66

SEGRO's SBTi net-zero pathway allows for offsetting residual emissions with best-practice carbon removals accounting for a maximum of 10% of target emissions once the 2050 net-zero target year is reached. The report states SEGRO will 'research and implement innovative approaches to absorb or offset residual carbon.' No specific removal technology or contract is disclosed for the current period; this is a forward commitment embedded in the 2050 net-zero target structure under the SBTi Buildings framework.

sustainability_report p.9

SEGRO's Mandatory Sustainability Policy requires all new buildings and refurbishments to incorporate fossil fuel-free space heating. The corporate carbon reduction strategy calls for replacing fossil fuel heating systems with efficient electrical heating (e.g. heat pumps) to electrify the portfolio and reduce natural gas use. Gas is the primary fuel across the standing portfolio, so electrification is a critical primary lever. Improving thermal performance of building envelopes is a complementary action.

sustainability_report p.9

Embodied carbon from developments (Scope 3 Cat 2) represents 32% of total 2024 emissions. SEGRO's Mandatory Sustainability Policy requires lifecycle carbon assessments (LCA) for all eligible projects over 5,000 sq m and Building Information Modelling on all such projects. Average embodied carbon intensity was 318 kgCO2e/sq m in 2024 (2023: 331 kgCO2e/sq m), a 4% reduction. Key levers include use of timber, electric arc furnace / recycled steel, low-carbon concrete products, low-carbon building layouts and pre-cast concrete elements. The 2034 SBTi target is 58% reduction in intensity vs 2023 baseline (to 139 kgCO2e/sq m). All embodied carbon calculations are externally verified.

sustainability_report p.11

SEGRO changed reporting year from 1 Oct-30 Sep to 1 Jan-31 Dec to align with financial reporting. Also updated: (1) data centre kWh/m2 electricity intensity for estimation; (2) records of sites with gas consumption; (3) customer zero-carbon electricity procurement data for Italy. Applied to 2023 and 2024. Additionally, following SBTi guidance, upstream energy emissions of customers (T&D losses in Cat 13) will be removed in 2025 restatement.

sustainability_report p.93

SEGRO is actively installing solar PV on new developments and existing assets, reaching 59 MW installed capacity in 2023 generating 36 GWh. The firm procures renewable electricity via retail green tariffs backed by Guarantees of Origin across all eight operating countries. In 2023, 51% of corporate and customer electricity consumption was on a zero-carbon tariff (up from 11% in 2020), with a target of 100% by 2030. A new dedicated team is being set up in 2024 to expand renewable energy generation; SEGRO plans to install a further 150 MWp over five years at ~£1,000/kWp average cost. Green lease clauses now commit customers to procuring zero-carbon tariffs.

sustainability_report p.33

SEGRO recalculated base year (2023) emissions for Scope 1, Scope 2 market-based, and Scope 3 following methodology changes: reporting year alignment, data centre intensity update, gas site records update, and Italy renewable electricity data. Threshold for recalculation is effectively 0%.

sustainability_report p.93

SLR Consulting provided independent limited assurance under ISAE3000 for SEGRO's Scope 1, 2 and Scope 3 emissions data for the period 01 October 2022 to 30 September 2023. Note: this reporting period is set back one year from the financial year to allow for data lag. SEGRO intends to align reporting periods from 2024 onwards.

sustainability_report p.105

In the base year (2020), Cat 1 purchased goods were estimated using the Quantis tool. In the 2023 reporting year, the CEDA database is used to apply conversion factors to spend data. This methodology change may partially explain the significant increase in Cat 1 from 36,471 to 66,722 tCO2e.

sustainability_report p.97

UK Government BNG legislation requires SEGRO to deliver 10% biodiversity net gain on all qualifying new developments. SEGRO follows the DEFRA process. The UK has been identified as an area of rapid ecosystem integrity decline. SEGRO plans to implement biodiversity indicators within two years.

sustainability_report p.15

SEGRO explicitly confirmed it has not canceled any project-based carbon credits within the 2023 reporting year. No removals (DAC, BECCS, or nature-based) are disclosed in this CDP response. The transition plan relies on absolute emissions reductions through energy efficiency, renewable energy, and embodied carbon reduction rather than offsets. The firm's internal carbon price of £100/tCO2e is used as a shadow price to drive investment decisions, not to retire credits.

sustainability_report p.167

Cat 3 emissions increased approximately 5x from the 2020 base year to the 2023 reporting year. This covers upstream emissions of gas and electricity use by SEGRO and customers, and T&D losses. The increase likely reflects both portfolio growth and improved data coverage driven by green lease clauses (81% floorspace data coverage achieved in 2023 vs targets).

sustainability_report p.97

Through green lease clauses and direct procurement switching, SEGRO has grown its zero-carbon electricity tariff coverage from 11% (2020 baseline) to 51% (2023). Target is 100% by 2030. This is tracked as a key Scope 3 Cat 13 reduction lever. In 2023, 15MW of additional solar was installed, bringing total installed capacity to 59MW generating 36 GWh.

sustainability_report p.81

The Mandatory Sustainability Policy requires all new developments to achieve BREEAM Excellent or better (92% of 2023 completions achieved this). All acquisitions must have at least EPC B. Existing assets below EPC B must be upgraded upon vacancy. In 2023, SEGRO refurbished SEGRO Park Greenford from EPC C to EPC A achieving BREEAM Outstanding. Estimated cost to upgrade the UK portfolio to EPC B by 2030 is £66 million. By 2028, properties must have at least EPC C; by 2030, EPC B under UK MEES regulations. 99% of 2023 development completions achieved BREEAM Very Good or better under the Green Finance Framework.

sustainability_report p.29

All developments over 5,000 m² must comply with the Mandatory Sustainability Policy and undergo externally verified Life Cycle Assessment using One Click LCA at multiple RIBA design stages. SEGRO targets a 20% embodied carbon intensity reduction per m² by 2030 from its 2020 baseline. In 2023, average embodied carbon was 348 kgCO2e/m² (down from 391 in 2021 and 353 in 2022), representing a 13% improvement since the 2020 baseline. Contractors must contractually commit to LCA targets; non-compliant suppliers are deprioritised. An internal shadow carbon price of £100/tCO2e is applied to capital goods and upstream transport decisions.

sustainability_report p.79

SEGRO is removing natural gas provision at its sites wherever possible and rolling out efficient electrical heating systems. Scope 1 gas consumption in 2023 was 5,455 MWh (all non-renewable). The firm has committed to not invest in fossil fuel expansion and states it does not invest in new fossil fuel power plants, pipelines or buildings with inefficient energy systems. Transition from gas to electricity is a key dependency on customers eliminating gas heating in leased spaces.

sustainability_report p.61

Significant improvement in Cat 1 methodology in 2023, applying latest best-practice conversion factors from the CEDA database. This increased reported Cat 1 from 49,534 tCO2e (2022) to 66,722 tCO2e (2023).

sustainability_report p.13

In 2023 SEGRO restated 2022 Cat 3 (fuel and energy related activities) following a significant change: coverage extended from sites with energy data only to all sites, and emission factors extended to include full well-to-tank emissions. 2022 restated from original to 147,403 tCO2e.

sustainability_report p.13

In 2023 SEGRO made improvements in methodology for calculating floor space under control during refurbishments/vacancies, and changed estimation methodology for energy use in vacant spaces without data. Combined result was significant reductions in Scope 1 and location-based Scope 2.

sustainability_report p.12

During 2023 SEGRO undertook a significant restructure of its Executive Committee and EC-1 population. New structure designed to build capabilities needed for future success. 75% of new EC/EC-1 appointments filled internally.

sustainability_report p.29

SEGRO acknowledges that offsetting is currently not part of SBTi's permitted net-zero pathway and uses the term as a placeholder for residual emissions. The strategy is to offset residual emissions as a last resort only and, as far as possible, to identify schemes within operating geographies with clearly measurable, long-term impacts. In 2023 carbon offsets were purchased in a local bioenergy project to cover the Group Conference in Amsterdam. Nature-based carbon capture through strategic landscaping (planting trees and shrubs) is also under review as a long-term opportunity.

sustainability_report p.15

Gas and electricity carbon emissions show gas at 16% and electricity at 84% of corporate and customer carbon. SEGRO is transitioning away from fossil fuel heating to efficient low-carbon electrical heat sources, including air source heat pumps and ground source heat and cold storage. Gas is being removed from units when they become vacant or through negotiation with customers. Mandatory Sustainability Policy encourages electrification or low-carbon alternatives across all refurbishments and new developments.

sustainability_report p.10

Changed approach for Cat 5 waste from operations to derive from LCA calculations using module A5w (site waste), making it more comprehensive. Result: 2023 value 9,378 tCO2e vs 2,023 tCO2e in 2022.

sustainability_report p.13

For the first time in 2023, SEGRO added homeworking emissions to Cat 7 (employee commuting) to reflect hybrid working policy, estimated using best practice assumptions based on staff numbers.

sustainability_report p.13

SEGRO added 15 MW of solar PV capacity during 2023, its biggest single-year increase, taking total installed capacity to 59 MW (from 44 MW in 2022). Generation increased to 35,567 MWh from 30,131 MWh. Further pipeline identified.

sustainability_report p.14

65% of the portfolio held an EPC rating of B or better at end 2023 (2022: 58%), including 58% of the UK portfolio. The target is 100% of the portfolio at EPC B or better by 2030. Estimated cost to upgrade UK estate to B or better is approximately £66 million by 2030, largely absorbed in normal course refurbishment capex. SEGRO conducted a full EPC audit in 2023 and is commissioning refreshed EPCs. The first BREEAM Outstanding refurbishment in the London portfolio was achieved in 2023 (Greenford, EPC raised from C to A+).

sustainability_report p.14

SBTi developed a new Real Estate-specific Building Standard during 2023, currently in pilot phase. SEGRO committed to evaluate it once published (expected 2024) and will publish any new net-zero targets in 2024 Annual Report & Accounts. Existing targets (42% corporate+customer by 2030; 20% embodied carbon intensity by 2030) remain in place.

sustainability_report p.15

SEGRO targets a 20% reduction in embodied carbon intensity of new developments by 2030 vs a 2020 baseline of 400 kgCO2e/m². Average intensity in 2023 was 348 kgCO2e/m² (–13% vs baseline), three years ahead of plan. Life Cycle Assessments are mandated for all developments >5,000 m² with external specialist verification. Building Information Modelling is mandatory. SEGRO uses low-carbon concrete, timber and recycled steel beams. The Mandatory Sustainability Policy embeds BREEAM Excellent as minimum for all new builds >5,000 m².

sustainability_report p.11

SEGRO works with contractors and material suppliers to reduce embodied carbon in developments through low-carbon materials procurement (low-carbon concrete, recycled steel, timber), optimised building layouts, and joint lifecycle assessment work. The corporate embodied carbon intensity target drives supplier innovation. All LCA calculations are externally verified. In 2024 SEGRO plans lifecycle assessments of infrastructure projects to improve data quality, and will explore capturing refurbishment projects under Cat 2.

sustainability_report p.11

Customer emissions (Scope 3 Cat 13 downstream leased assets) represent approximately 41% of SEGRO's total Scope 1–3 emissions, making tenant energy the dominant lever. SEGRO includes these in its SBTi-aligned target and has improved energy data visibility to 81% of floor area in 2023 (from 68% in 2022), deploying over 400 automatic meters. Green lease clauses on all new leases require customers to share energy data and procure certified renewable electricity. Corporate and customer emissions fell 19% vs 2020 baseline to 254,168 tCO2e. All employee variable pay is partly linked to this metric.

sustainability_report p.10

All SEGRO-controlled electricity for own operations and for markets where SEGRO procures on behalf of customers has been on zero-carbon renewable tariffs since 2021. During 2023 SEGRO added 15 MW of solar capacity (total 59 MW, generating 35,567 MWh), its biggest single-year increase. The Mandatory Sustainability Policy requires maximising PV coverage on all buildings subject to planning/power/customer demand. Green lease clauses introduced in 2022 require customers to procure certified renewable electricity where feasible and share energy data. Off-site renewable electricity represented 51% of visible procurement in 2023 (2022: 49%).

sustainability_report p.14

SEGRO continuously migrates its own electricity supply contracts to zero-carbon tariffs across all geographies. In 2023, approximately 50% of the 785 tCO2e reduction in Scope 1&2 was attributed to this lever. Retail green electricity backed by Guarantees of Origin is procured country-by-country (UK, France, Germany, Poland, Czech, Italy, Netherlands, Spain). Market-based Scope 2 emissions fell from 2,088 tCO2e (2020 base) to 1,707 tCO2e (2023).

sustainability_report p.111

SEGRO's largest source of emissions is Scope 3 Cat 13 (downstream leased assets – tenant energy use), representing 251,058 tCO2e in 2023 vs 308,626 tCO2e in 2020. SEGRO addresses this through green lease clauses requiring customers to share energy data and commit to zero-carbon electricity tariffs. At end-2023, energy data visibility reached 81% of floorspace (vs a 73% target). 10% of floorspace was subject to the green lease clause. SEGRO also facilitates access to competitive renewable energy group procurement contracts in each region, enabling tenant switching.

sustainability_report p.64

In 2022 SEGRO undertook materiality assessment informed by GRI and SASB guidance, identifying 18 material issues refined to 8 priority material issues across four lenses.

sustainability_report p.4

SEGRO aims for entire portfolio to be EPC rated 'B' or equivalent. At end-2022, 58% of portfolio had EPC B or better (2021: 55%, 2020: 49%), including 52% of UK portfolio (2021: 46%). UK MEES legislation requires minimum B rating by 2030. Estimated upgrade cost ~£82m by 2030, mostly absorbed within normal refurbishment capex. Refurbishments include LED lighting, solar panels, air source heat pumps and automatic metering.

sustainability_report p.8

Mandatory Sustainability Policy requires installation of EV charging at minimum 20% of parking locations on new developments and refurbishments. Urban portfolio located on edges of major European cities enables electric vehicle delivery. Inner-city assets facilitate cargo bicycle delivery. Two UK Midlands big box parks have strategic rail freight interchange terminals enabling rail vs HGV transport.

sustainability_report p.7

As of 2022, SEGRO has decided to include upstream leased assets (office space where landlord pays energy) in its Scopes 1 and 2 emissions, as this better reflects approach to Corporate and Customer carbon.

sustainability_report p.11

In April 2022, SEGRO introduced standardised green lease clauses requiring customers to share energy data and procure renewable electricity tariffs where feasible.

sustainability_report p.12

SEGRO reviews more strategic use of estate landscaping to plant additional trees and shrubs to act as long-term carbon capture while improving the local environment. The firm acknowledges that 'offsetting is currently not part of the permitted net zero pathway as set out by the SBTi. We are committed to finding solutions and use the term as a placeholder for residual emissions.' No durable removal credits (DAC, BECCS, biochar) currently used.

sustainability_report p.13

The increase in the Fuel and energy-related activities category in 2022 (from 38,915 to 70,670 tCO2e) is due to the inclusion of well-to-tank emissions for the first time.

sustainability_report p.11

New policy applicable to developments and refurbishments approved from April 2022 mandating BREEAM 'Excellent' or better, EPC B or better, LCAs on projects >5,000 sq m, max PV coverage, 20% EV charging.

sustainability_report p.48

SEGRO aligned Responsible SEGRO framework with six UN SDGs: SDG 7, 13 (Champion low-carbon growth), SDG 10, 11 (Local communities), SDG 3, 8 (Nurturing talent).

sustainability_report p.4

Embodied carbon represents 41% of total emissions (273,402 tCO2e in 2022). SEGRO targets 20% reduction in embodied carbon intensity by 2030 vs 400 kgCO2e/sq m 2020 baseline; achieved 353 kgCO2e/sq m in 2022 (12% reduction). Mandates Building Information Modelling and Life Cycle Assessments on all projects >5,000 sq m. Uses low-carbon concrete, timber, recycled steel beams. Considers alternative layouts that are less carbon and material-intensive.

sustainability_report p.10

100% of 2022 development completions accredited BREEAM 'Very Good' (or local equivalent) or better, with 67% rated BREEAM 'Excellent' or above. New Mandatory Sustainability Policy requires BREEAM 'Excellent' or equivalent for all new developments over 5,000 sq m.

sustainability_report p.13

Transitioning away from heating spaces with fossil fuels to efficient low-carbon electrical heat sources such as heat pumps will be a key part of strategy going forwards. Poland's relatively high dependence on natural gas for customer use is a challenge. Mandatory Sustainability Policy aims to electrify portfolio or utilise low carbon alternatives like heat pumps to reduce natural gas use.

sustainability_report p.8

All SEGRO-controlled electricity (own operations and where SEGRO procures on behalf of customers) is zero carbon (certified renewable) since 2021. On-site solar PV capacity reached 44 MW in 2022 (2021: 35 MW), generating 30,131 MWh. Added almost 6 MW at a single Netherlands site. Maximising PV coverage on all buildings is a Mandatory Sustainability Policy commitment, and SEGRO retrofits solar onto leased assets where feasible. Standardised green lease clauses introduced in 2022 mandate customers to procure renewable electricity tariffs where feasible.

sustainability_report p.8

Customer emissions from downstream leased assets account for ~40% of SEGRO's total Scope 1-3 footprint (268,227 tCO2e in 2022). SEGRO standardised green lease clauses in April 2022 requiring customers to share energy data and procure zero-carbon electricity tariffs. Over 200 customer meters were upgraded to automatic meters in 2022. Energy data visibility increased from 54% to 68% of floor area. Customer emissions are explicitly included in SEGRO's SBTi-aligned 42% reduction target.

sustainability_report p.8

SEGRO issued €1.15bn and SELP issued €750m of Green Bonds in 2022 under the Green Finance Framework. Green Finance Instruments rose to 24% of Green Portfolio (2021: 8%).

sustainability_report p.58

SEGRO launched its first ten Community Investment Plans across UK and Continental Europe, part of commitment to create CIPs in all key markets by 2025. Funded by £10m Centenary Fund.

sustainability_report p.14

Energy data coverage improved from 54% (2021) to 68% (2022) of total floor area. Total energy consumption rose 108% absolute and total GHG emissions rose 70% (market-based) due to improved visibility rather than actual increase.

sustainability_report p.26

SEGRO Board provisionally set 2030 as the target year for net-zero carbon, exceeding the ambition of the current SBTi calculated pathway. Acknowledged offsetting is not currently part of permitted net-zero pathway.

sustainability_report p.13

SEGRO introduced its Mandatory Sustainability Policy in 2022, covering all developments, refurbishments, disposals, acquisitions, and lettings. The policy mandates BREEAM Excellent or better for new developments, life cycle assessments for embodied carbon, EPC B minimum for acquisitions, and renewable energy provisions. This policy significantly expanded the scope of sustainability-driven activities.

sustainability_report p.29

At the beginning of 2021, SEGRO set science-based targets aligned to the SBTi framework, committing to reduce absolute Corporate and Customer carbon emissions by 42% by 2030 vs 2020 baseline of 312,115 tCO2e, including Scope 1, 2 and Scope 3 downstream leased assets.

sustainability_report p.12

Science-based target to reduce embodied carbon intensity of development programme by 20% by 2030 vs 2020 baseline of 400 kgCO2e per sq m. Linked to all employees' variable remuneration.

sustainability_report p.10

SEGRO set an absolute emissions reduction target covering Scope 1, Scope 2 (market-based) and Scope 3 Category 13 (downstream leased assets). Target aims for 42% reduction from 2020 baseline of 312,115 tCO2e, reaching 181,027 tCO2e by end 2030. Considered aligned with 1.5°C. 44.2% achieved as of reporting year 2023.

sustainability_report p.148