Derwent London

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.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

• · berkeley_voluntary_registry
• · RE100

Derwent London procures 100% of managed portfolio electricity on REGO-backed tariffs sourced from UK solar, wind or hydro projects, and 100% of gas on RGGO-backed tariffs. To reduce reliance on external supply, the Group constructed a c.100-acre, 18.4 MW solar park at Lochfauld, Scotland, expected to energise in H1 2026 and generate c.40% of the London managed portfolio's electricity requirements. Six portfolio buildings now have on-site PV arrays. The Group is also a founding signatory of the government-funded Advanced Market Commitment for low carbon concrete, and installs PV panels at community facilities as part of Section 106 obligations.

Derwent London has forward-purchased c.195,600 tCO2e of carbon offset credits since 2020 for a combined consideration of c.£4.9m (average c.£25/tCO2e) to offset residual embodied carbon from regeneration activity it cannot eliminate. Credits are validated under robust schemes (VCS or ACR), working with Climate Impact Partners. In 2025, 27,315 tCO2e were retired, bringing cumulative offsets to c.100,945 tCO2e. The Group also progresses tree planting on Scottish land to develop owned carbon removal capacity, reducing future reliance on voluntary carbon markets. The cost of carbon in development appraisals is currently set at £34/tonne.

• Circular economy and material reuse across development and refurbishment pipeline

  Derwent London formalised a circular economy strategy in partnership with Material Index, achieving c.500 tonnes of material donated or brokered since inception and an average 44% retention and on-site reuse rate across completed refurbishments. Network W1 was the Group's first whole-building redevelopment to use refurbished raised access flooring. At Holden House W1, 64% of temporary steel was reused and 95% of glass recovered for reprocessing. At 50 Baker Street, the Group is pioneering piece-wise reuse of existing concrete structure at the largest scale of its type in the UK.

• EPC upgrade programme ensuring portfolio compliance ahead of evolving MEES legislation

  Derwent London targets minimum EPC A for major new builds and EPC B for major refurbishments. As at year-end 2025, 72% of the portfolio (by ERV) is rated EPC A or B (up from 57% in 2023), with 23% rated A and 40% rated B. The Group has an estimated £73.7m of EPC upgrade capex remaining to bring the full commercial portfolio to EPC B standard by 2030, revised down from £97m in 2021 reflecting work completed, disposals and regulation changes. Of this, Knight Frank deducted £31m in the December 2025 valuation. Refurbishment activity explicitly includes EPC upgrade works aligned with lease expiries.

• Operational energy intensity reduction in managed portfolio

  Derwent London targets an annual reduction in energy intensity of 4% per year to achieve 123 kWh/sqm by 2030 (vs 2019 baseline of 166 kWh/sqm). In 2025, energy intensity fell 9% to 125 kWh/sqm — a 25% reduction vs 2019 baseline. Key actions included air source heat pump installations (Charlotte Building W1, 1-2 Stephen Street W1), removal of gas at 9-10 Rathbone Place W1, streamlined plant run-times, and out-of-hours usage monitoring. Gas fell from 37% of total energy in 2020 to 21% in 2025. 40% of managed portfolio buildings are now all-electric, up from 6% in 2020.

• Embodied carbon reduction in new developments with targets aligned to GLA/LETI

  Derwent London sets phased embodied carbon intensity targets: ≤600 kgCO2e/sqm for commercial office new builds completing from 2025, ≤500 kgCO2e/sqm from 2030, and ≤350 kgCO2e/sqm for major refurbishments. All projects on site in 2025 achieved sub-600 kgCO2e/sqm (25 Baker Street: 594, Network W1: c.530, Holden House: c.590). Whole life carbon assessments at each design stage, early supply chain engagement, and detailed workshops drive reductions. Derwent founded the Accelerating Concrete-Decarbonisation Group (AC-DG) in June 2024 with 30+ organisations to prototype low carbon concrete mixes with potential to reduce concrete emissions by up to 70%.

• All-electric design with air-source heat pumps

  New developments are designed all-electric with air-source heat pumps replacing gas boilers (e.g. 80 Charlotte Street — first all-electric scheme; 25 Baker Street uses ASHP central heating/cooling). The Featherstone Building uses concrete core cooling to eliminate traditional air conditioning. This decarbonises operational heating/cooling and is a key route to Scope 1 reduction.

• Operational energy intensity reduction targeting 90 kWh/sqm by 2030

  Derwent London has set energy intensity reduction targets for its managed portfolio, targeting an annual ~4% reduction from a 2019 baseline to achieve 90 kWh/sqm by 2030. Building managers have access to near-real time environmental data via an in-house database and Intelligent Buildings programme. The near-term SBTi-aligned target is a 42% reduction in absolute Scope 1 and 2 GHG emissions by 2030 (to 3,161 tCO2e) from a 2022 baseline.

• Embodied carbon reduction in development pipeline

  Derwent London has set stretching embodied carbon targets: new build commercial office schemes completing from 2025 must achieve ≤600 kgCO2e/sqm (upfront carbon, A1-A5), tightening to ≤500 kgCO2e/sqm for schemes completing from 2030. Pathway requirements are estimated to add 5-10% to development costs. Embodied carbon reduction metrics have been included in the Executive Director PSP incentive plan since 2023.

• Building electrification and gas removal programme

  As part of its Net Zero Carbon Pathway, Derwent London is removing gas from properties where appropriate, and retrofitting specialist boiler equipment where gas removal is not possible. All new properties are designed to be all-electric for heating and cooling. EPC upgrade works totalling £13m of capital expenditure have been invested since the 2021 independent assessment, targeting a minimum EPC of A for new builds and B for major refurbishments.

• Green Finance Framework linking debt to net zero ambitions

  Derwent London's Green Finance Framework directly links 'green' debt to its net zero carbon ambitions, particularly development and refurbishment activities. Two specific facilities are tied to the framework: a £300m 'green' tranche of the £450m revolving credit facility and a £350m Green Bond issued in 2021. These provide access to affordable finance while demonstrating how climate risk is being managed.

• Managed-portfolio energy intensity reduction

  Energy intensity reduced to 137 kWh/m² in 2024, 8% lower than 2023 and 17% below the 2019 baseline, on the path to a 46% reduction by 2030 (to 90 kWh/m²). Levers include shorter plant run times, relaxed temperature set-points, boiler optimisation software at six buildings, air-source heat pumps at 1&2 Stephen Street, and the new in-house environmental database enabling faster excess-consumption detection.

• Embodied carbon reduction in new developments

  Lead the Accelerating Concrete-Decarbonisation Group, the first developer-led cross-industry working group to commercialise low/zero-carbon concrete. All new build and major refurbishment projects target upfront (A1-A5) embodied carbon intensity ≤600 kgCO2e/m² (from 2025) and ≤500 kgCO2e/m² (from 2030), measured against RICS v1. Network W1 forecast to meet the 2030 target.

• Operational energy reduction and electrification of heating

  Driving down operational energy consumption through upgrades, retrofits and removing gas use where feasible. Installing sensors to reduce gas, switching off lighting and plant out of hours, adjustments to temperature set points. ESOS-identified operational and capex-led initiatives being implemented. Net Zero Carbon Action Plans maintained across managed properties. Target: 46% energy intensity reduction from 2019 baseline by 2030.

• Embodied carbon reduction in new developments

  Whole life cycle project assessments inform design decisions. Challenging contractors on lower carbon alternatives (low-carbon concrete, re-used raised access flooring). Targets aligned with GLA and LETi: ≤600 kgCO2e/m² from 2025, ≤500 kgCO2e/m² from 2030. On-site projects 25 Baker Street W1 and Network W1 align with 2025 target. EPDs instructed to verify low-carbon materials.

• Landlord energy efficiency and all-electric heating/cooling

  Transitioning to all-electric heating and cooling systems and removing gas use through retrofit. Landlord-only electricity consumption decreased in 2021 thanks to management of partly occupied buildings, chiller strategy reviews, and optimisation of plant schedules. Total landlord-controlled energy fell 5%.

• EPC B portfolio upgrade by 2030

  Commissioned comprehensive feasibility/cost report concluding c.£97m investment required to upgrade portfolio to minimum EPC B by 2030, with no building expected to be stranded. Investment focuses on LED lighting, fan coil units, and replacement of heating/cooling plant.

• All-electric new developments & retrofits (eliminate gas)

  Mandated that all new developments and major refurbishments specify all-electric heating and cooling (air source heat pumps). 80 Charlotte Street (completed 2020) is first all-electric, net zero scheme. Francis House SW1 and 90 Tottenham Court Road W1 retrofits replace gas boilers with electric heat pumps - 90 TCR saves c.14 tonnes CO2 pa.

• Embodied carbon reduction in new builds & refurbishments

  Embodied Carbon Assessment Brief since 2013 mandates measurement at RIBA stages 2-4 per BS EN 15978:2011 (A1-A5). 80 Charlotte Street achieved a 30%+ reduction vs baseline embodied carbon at practical completion (506 kg CO2e/m²). Developed early-stage embodied carbon appraisal tool to inform acquisition decisions; carbon accounting / shadow price of carbon being incorporated into scheme appraisals.

• Energy performance gap closure via NABERS UK / Design for Performance

  Mandated minimum NABERS UK 4-star rating for all new developments and major refurbishments. Pioneer organisation funding DfP initiative which became NABERS UK. Developing property-specific energy use intensity targets aligned with SBT. Achieved 14% managed-portfolio energy intensity reduction in 2020.

• Tenant energy engagement to reduce downstream leased asset (Scope 3 Cat 13) emissions

  The Group launched the 'You Hold the Power to Save' campaign in Q4 2025 targeting the top 10 energy-consuming buildings (78% of managed portfolio energy), engaging 77% of all occupiers during the year. A collaborative approach with Asset and Property Management teams supports tenants in meeting their environmental commitments. Smart Flow water/energy monitoring was rolled out across 70% of the portfolio. Tenant electricity consumption (Scope 3 Cat 13) reduced 16% to 4,482 tCO2e in 2025. The Group's waste recycling rate improved to 72% from 69%.

• Tenant (downstream leased) engagement

  Cat 13 downstream leased emissions (5,324 tCO2e in 2024) are the largest non-embodied Scope 3 category. Derwent engaged with 118 occupiers comprising 76% of ERV in 2024 through one-to-one meetings, green forums, energy/water guidance notes, B Corp and Planet Mark support, and strengthened net-zero clauses in standard leases, licences to alter and tenant fit-out guides.

• Circular economy / materials re-use

  Developed an innovative circular economy strategy facilitating re-use and redeployment of materials across the managed portfolio and regeneration pipeline. From 2025, pipeline developments will report on resource pathways split between re-use on site, re-use offsite, refurbished and recycled — directly addressing embodied carbon by displacing virgin materials.

• Tenant/occupier engagement to reduce downstream leased asset emissions

  Derwent London actively engages with occupiers to reduce energy use and carbon emissions in its buildings. The company's Responsible Development Framework and Intelligent Buildings programme deliver near-real time data to building managers, enabling lower energy consumption and delivering savings in both cost and operational carbon to occupiers. The long-term target is to reduce absolute Scope 1, 2 and 3 GHG emissions by 90% by 2040 from a 2022 baseline, encompassing tenant-related downstream leased emissions.

• Occupier (tenant) engagement to cut Scope 3 cat 13 emissions

  Downstream leased assets (tenant electricity) is the largest Scope 3 category at 5,517 tCO2e in 2023. Engagement via restarted green forums (six green forums across four buildings), one-to-one meetings, energy/waste data sharing, 34 recycling audits across eight buildings, Recycling Improvement Strategies, strengthened standard form of lease and tenant fit-out guide with net zero clauses. 104 occupiers directly engaged in 2023 (44% by ERV).

• Circular economy and material reuse in refurbishments

  Investigating building and material element retention and reuse; engaging industry on circular economy routes where on-site reuse not feasible. Reusing raised access flooring as lower-carbon alternative. 100% of timber procured from FSC/PEFC sources. Minimum 98% diversion of construction and demolition waste from landfill.

• Embodied carbon reduction in developments

  Updated Responsible Development Framework (April 2021) sets net zero minimum requirements: <600kgCO2/m2 for new builds completing from 2025, <500kgCO2/m2 from 2030. Engaging contractors on low-carbon/cement-free concrete and cross-laminated timber. Embodied carbon from capital goods was 1,036 tCO2e in 2021 (vs 19,790 in 2020).

• Tenant (downstream leased) energy engagement

  Cat 13 tenant electricity emissions (5,099 tCO2e in 2021) dominate Scope 3. Launched September 2021 net zero carbon occupier survey to understand how to support occupiers' net zero goals, with follow-up actions planned for 2022. Tenant electricity rose 8% as occupation returned.

• Tenant (downstream leased) energy engagement

  Cat 13 (downstream leased - tenant electricity) is dominant Scope 3 category at 5,555 tCO2e (72% of Scope 3). Working with occupiers via BMS to divert services to active/occupied zones, increased fresh air to 100% with no recirculation during Covid-19. Developing tenant engagement materials and sustainability newsletters; producing quarterly occupier engagement plans.

• Supply chain & embodied materials standards

  Supply Chain Sustainability Standard mandatory for suppliers with >£20K annual spend. 100% timber procurement from FSC/PEFC sources. Sustainability KPIs being developed for engineering maintenance contracts. Construction waste diversion from landfill target 95%+ (achieving 99%). London Living Wage required for operational supply chain.