Landsec

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
• · gold_standard
• · car
• · RE100

Landsec is installing solar PV (550kWp new installation at Gunwharf Quays) and heat pump retrofits (first ASHP at Dashwood House) as part of its Net Zero Transition Investment Plan. The office portfolio is tracking towards 100% EPC B or above by 2030 through this plan and new developments. 56% of the total portfolio is already rated EPC B or higher as at FY25.

Landsec currently purchases and cancels voluntary carbon credits for beyond-value-chain mitigation, primarily to offset residual upfront embodied carbon from completed developments at practical completion. In 2023/24, 20,855 tCO2e of credits were retired across four VCS projects (Guanaré Forest afforestation and Inner Mongolia improved forest management). The firm applies a minimum internal carbon price of £30/tonne aligned to market prices for high-quality credits. In line with the Oxford Principles and SBTi guidance, Landsec's long-term strategy is to transition from nature-based emissions reduction projects towards permanent carbon removal with low reversal risk by 2040. The residual 10% of emissions that cannot be reduced by the 2040 net-zero target will be neutralised through permanent carbon removals.

• Energy efficiency — 23% improvement in energy intensity vs 2019/20 baseline

  Landsec has achieved a 23% reduction in energy intensity (kWh/m2) compared with the 2019/20 baseline. Investments include building retrofits, ASHP installations, and technology upgrades across the portfolio. The MEES compliance programme ensures all assets meet EPC E or above with a roadmap to EPC B by 2030.

• Absolute carbon reduction — 33% achieved vs 2019/20 baseline en route to 47% by 2030

  Landsec targets a 47% reduction in absolute scope 1, 2 and 3 emissions by 2030 and 90% by 2040 from a 2019/20 baseline, with net zero by 2040. As at FY25 a 33% reduction in absolute carbon (tCO2e) and 23% reduction in energy intensity (kWh/m2) have been achieved. Progress is driven by the Net Zero Transition Investment Plan covering both operational and embodied carbon.

• Energy intensity reduction across operational portfolio

  Landsec has achieved an 18% reduction in energy intensity (kWh/m2) compared with the 2019/20 baseline in 2023/24. The portfolio is 49% rated EPC B or above and is 100% compliant with 2023 MEES regulations. Ongoing EPC upgrade activity is expected to grow the proportion of EPC B and above assets towards the 2030 target.

• Building electrification: replacing gas boilers with air-source heat pumps across London office portfolio

  As the most effective way to decarbonise a building, Landsec is replacing over 50 gas-fired boilers with highly efficient air-source heat pumps across its London workplace locations as part of the £135m NZTIP. Works commenced at 16 Palace Street and Dashwood House in 2023/24, with three further buildings planned for the coming year. The heat pump programme is expected to deliver a 40% CO2 reduction and 30% energy reduction per building. Projects follow a phased 5-stage process (feasibility through construction) while buildings remain occupied.

• Air source heat pump installation under Net Zero Transition Investment Plan

  Landsec is progressing its Net Zero Transition Investment Plan with the installation of air source heat pumps at its first two office sites. This programme aims to bring 50% of the office portfolio to EPC B by 2025, reducing operational energy demand and Scope 1/2 emissions. The plan targets a 47% reduction in absolute Scope 1, 2 and 3 emissions by 2030 versus the 2019/20 baseline.

• BMS optimisation and AI-based HVAC control to reduce operational energy intensity

  Landsec has completed BMS reviews and optimisations at 11 operational London assets, achieving expected energy savings of 5–15% per building. A 12-month AI trial with Brainbox AI at 80–100 Victoria Street demonstrated an additional 5% energy saving by controlling heating and cooling via deep learning. This initiative contributes to Landsec's target of a 52% reduction in energy intensity (kWh/m²) by 2030, with 18% reduction already achieved vs 2019/20 baseline. The £135m NZTIP funds these efficiency measures, which also support compliance with proposed MEES EPC B regulations by 2030.

• Operational tenant energy (Cat 13) reduction through customer energy audit programme

  Approximately 40% of all energy consumed in Landsec's buildings comes from occupiers. Since 2021/22, Landsec has completed 38 energy audits for the highest energy-consuming office occupiers, representing 56% of total tenant consumption across the office portfolio. Identified savings of 10–40% per customer; the first 18 participating occupiers achieved a 20% electricity reduction vs 2019/20. The programme is ongoing and is directly reducing Cat 13 (downstream leased assets) emissions, which at 88,415 tCO2e represent the single largest Scope 3 category.

• Net zero carbon buildings in construction: low upfront embodied carbon through structural retention, lean design and low-carbon materials

  All new Landsec developments are designed and built as net zero carbon in accordance with the UKGBC framework, targeting upfront embodied carbon reductions of 50% vs a typical building by 2030 (target: ≤500 kgCO2e/m² offices, ≤400 kgCO2e/m² residential). Achieved 40% average reduction across the development pipeline in 2023/24. Key levers include: structural retention (The Forge 36% embodied carbon saving; Hill House retaining 58% of existing structure), design-out of material (e.g. removing raised-access floors, natural ventilation), use of reused/recycled materials (115t reused steel at Timber Square), and low-carbon specifications (GGBS cement replacement, cross-laminated timber). Residual upfront embodied carbon is offset at practical completion via Gold Standard/VCS credits.

• Embodied carbon reduction in new developments

  Capital goods (incl. embodied carbon from development) is one of Landsec's two largest Scope 3 categories. Lifecycle assessments (RICS 1st Ed, BS EN 15978) on all developments; 40% average reduction in upfront embodied carbon achieved against 50% target by 2030. Levers include asset retention (80% structure retained at Timber Square), structural grid reduction (~10% concrete saving at Republic Manchester), low-carbon materials (115 tonnes of reused steel at Timber Square, hybrid steel-CLT structures).

• EPC upgrades to meet MEES 2030

  As part of NZTIP, expects half of office portfolio at EPC B by 2025 and full portfolio meeting proposed MEES by 2030. 53% of portfolio EPC A-B in 2023/24 (up from 35% in 2022/23) driven by new developments and ~450 new EPC assessments.

• Operational energy intensity reduction (NZTIP, BMS optimisation)

  Energy intensity reduced 18% vs 2019/20 baseline against 52% by 2030 target. Reductions delivered by active energy management, optimisation of building controls, lighting upgrades and the Net Zero Transition Investment Plan (NZTIP). BMS reviews completed at 11 operational London assets with 5-15% expected savings; 12-month BrainBox AI trial at 80-100 Victoria Street targeting an additional 5% savings.

• EPC B by 2030 portfolio upgrade

  Investing £135m across existing portfolio to ensure carbon emissions reduce in line with science-based target and portfolio achieves minimum EPC B by 2030. Currently 36% of total portfolio ERV is already EPC B or above, aligned with UK MEES 2030 requirements.

• Operational energy efficiency in landlord-controlled spaces

  Reduce energy intensity by 45% by 2030 vs 2013/14 baseline. Implemented lighting upgrades and software modifications to BMS to optimise central plant. Committed to energy efficiency projects across portfolio expected to deliver over 8,600 MWh of savings per annum. Energy intensity reduced 34% since 2013/14.

• All-electric heating transition and BMS optimisation

  Transitioning towards all-electric solutions, scaling back fossil fuel-dependent boilers in favour of electric heating and cooling across operations. Use smart technology to gather data from building management systems in offices to control energy-intensive service equipment in line with occupancy. Improved efficiency and lifecycle of cooling systems through more optimal response to external temperatures.

• Internal shadow carbon price of £80/tCO2e

  Adopted internal shadow carbon price at £80/tCO2e, anticipating potential future carbon price to inform decision-making process. Consistent with UN Global Compact guidance on carbon pricing and BEIS's forecast of carbon prices through to 2030.

• Energy efficiency programme across operational portfolio

  Investing in comprehensive energy and carbon reduction programme across portfolio, including customer engagement on energy efficiency, BMS optimisation and low carbon heating feasibility studies (e.g. Air source heat pump). Identified and committed to implement energy efficiency projects that will lead to over 6,600 MWh of savings per annum. Energy intensity reduced 43% vs 2013/14 baseline.

• Embodied carbon reduction in development pipeline (Scope 3 cat 2)

  Capital goods 41% of Scope 3 emissions (84,261 tCO2e in 2020/21). Set embodied carbon intensity and reduction targets for each development at design stage (RIBA stage 3), measured under RICS Whole Life Carbon Assessment methodology. Targeting overall 15.6% reduction across pipeline, avoiding over 38,000 tCO2e across four developments. All live developments target 100% of core construction materials manufactured within UK and Europe.

• Energy efficiency in landlord-controlled common areas

  Bespoke Energy Reduction Plans (ERPs) for every asset drive efficiency in landlord shared services. In 2019/20 committed to projects delivering over 5,500 MWh/year savings. At Hatfield Galleria Outlet Centre, corridor temperature sensors achieved 75.5% reduction in gas use and 13% overall energy reduction. Energy intensity reduced 22% vs 2013/14 baseline, on track for 40% by 2030.

• All-electric building services, phasing out fossil-fuel boilers

  Transitioning towards all-electric solutions, scaling back fossil fuel-dependent boilers in favour of electric heating and cooling across operations. Drives down direct scope 1 emissions and aligns with grid decarbonisation. Design for Performance approach sets energy intensity targets for base building performance in commercial developments.

• Internal shadow carbon price for capital allocation

  Implementing an internal shadow carbon price to drive investment toward cleaner projects, anticipating a potential future carbon price. Used to inform decision-making across investment, development, refurbishment and divestment decisions reviewed by Investment Committee and Property Committee.

• Embodied carbon reduction — tracking 41% reduction in upfront embodied carbon across development pipeline

  Landsec is targeting a 50% reduction in average embodied carbon compared with a typical building by 2030 (benchmarked against GLA Whole Life Carbon Guidance). Across the development pipeline, an average 41% reduction in upfront embodied carbon is currently being tracked. Timber Square (Southbank) is highlighted as a highly sustainable scheme.

• Supply chain sustainability — 800+ suppliers committed to sustainability standards

  Over 800 suppliers have signed up to Landsec's Supply Chain Commitment, including 93% of strategic suppliers, committing to work with Landsec and address key sustainability issues. This lever targets emissions embedded in purchased goods and construction supply chain.

• Nature strategy — nature action plans developed for all sites

  In line with Landsec's nature strategy, nature action plans have been developed for all sites. Zero waste is sent to landfill with 65% of operational waste recycled. This supports Landsec's broader ESG framework focused on enhancing nature and green spaces and using resources efficiently.

• Supply chain sustainability via 300+ suppliers signed to Supply Chain Commitment

  Over 300 suppliers have signed up to Landsec's Supply Chain Commitment, committing to address key sustainability issues. Landsec is building strategic supplier relationships to enhance sustainable practices throughout the supply chain, supporting reduction of Scope 3 emissions associated with construction and operations.

• Supply chain decarbonisation: Supply Chain Commitment requiring SBTi targets, ConcreteZero and SteelZero membership

  With ~50% of Landsec's total emissions arising from its supply chain (purchased goods & capital goods), Landsec requires all suppliers to sign its Supply Chain Commitment, which mandates setting science-based carbon reduction targets, procuring renewable energy, and reporting emissions. Over 300 suppliers have signed as of 2023/24, including ~80% of strategic suppliers. Landsec is a founding signatory of SteelZero (committing to 50% low-emission steel by 2030, 100% by 2050) and ConcreteZero (30% low-emission concrete by 2025, 50% by 2030). Facilities management re-tender required all service partners to commit to SBTi-validated targets. Suppliers are supported through the Supply Chain Sustainability School platform.

• Net zero office cluster development — 1.4m sq ft Southbank

  Landsec is creating a 1.4m sq ft net zero office cluster across six sites in the Southbank area of London, including Red Lion Court, Liberty of Southwark, Timber Square Phase 1 & 2, Southwark Bridge Road and The Forge. New developments are explicitly described as net zero, targeting prime office rental growth of 4.7% p.a. for 2023-28 while meeting net zero carbon standards.

• Embodied carbon reduction in development pipeline (50% vs typical building by 2030)

  Landsec targets an average 50% reduction in upfront embodied carbon compared with a typical building (referenced against GLA Whole Life Carbon Guidance: 1,000 kgCO2e/m2 GIA for offices) by 2030. As of 2023/24, they are tracking an average 40% reduction in upfront embodied carbon across the development pipeline, which includes committed office schemes Thirty High (SW1) and Timber Square (SE1).

• Supply chain decarbonisation via Supply Chain Commitment

  Over 300 suppliers (~80% of strategic suppliers) signed up to Supply Chain Commitment since 2022. Mandatory climate change training launched via Supply Chain Sustainability School in September 2023, completed by 60% of Landsec colleagues. D&I criteria embedded in procurement process.

• Downstream leased assets — tenant energy engagement

  Downstream leased assets (tenant energy use) is the largest single Scope 3 category at 88,415 tCO2e in 2023/24. Landsec engages FRI tenants and retail brand partners, achieving 69% primary tenant energy data coverage. 38 energy audits completed since 2021/22 covering 56% of total office tenant consumption; identified annual savings of 10-40% for most customers; first 18 occupiers in engagement programme achieved 20% electricity reduction vs 2019/20.

• Tenant energy reduction in downstream leased assets

  Downstream leased assets (Cat 13) represent 40.4% of total value chain emissions - the largest scope 3 category. Engaged over 80 office customers on sustainability plans and conducted 'energy deep dives' with 15 occupiers to identify energy reduction opportunities. Increased primary tenant energy data from 44% to 57%.

• Responsible sourcing of construction materials

  100% of core construction materials sourced with responsible sourcing certification. Construction waste recycling rate 99.46% across six development sites, with 99.95% diversion from landfill.

• Embodied carbon reduction in new developments (capital goods)

  Capital goods are 39% of total scope 3. Lifecycle assessments on all development projects following RICS Whole Life Carbon Assessment and BS EN 15978. Targeting overall reduction of 22.1% in embodied carbon across five developments, avoiding over 50,000 tCO2e. New target: reduce average embodied carbon by 50% by 2030 via asset retention, smart design and sustainable materials.

• Tenant/downstream leased asset energy reduction (Scope 3 cat 13)

  Downstream leased assets emissions of 81,433 tCO2e in 2020/21 (35.2% of total value chain) - energy consumed by customers within Landsec assets. Engage tenants through metered energy data sharing, energy data insights and helping customers carry out energy efficiency projects. Tenant data either Landsec-procured (rechargeable) or tenant-procured (collected directly from FRIs/large occupiers).

• Supply chain engagement on primary data and ESG

  Launched supply chain sustainability questionnaire in 2020, now part of onboarding for all suppliers. Over 900 suppliers responded, representing over half of spend in 2020-21. Integrated primary supplier data into Scope 3 inventory to improve robustness of supply chain carbon data. Published Materials Brief to guide supply partners; 100% of key construction materials responsibly sourced.

• Tenant energy engagement (downstream leased assets)

  Downstream leased assets (cat 13) account for 40.4% of total value chain emissions and 46% of scope 3 — the firm's largest single category. Landsec works with customers to reduce these emissions via data insights, energy efficiency projects and supplying renewable electricity through corporate contracts. Cat 13 emissions reduced from 151,596 tCO2e (2017/18) to 108,995 tCO2e (2019/20).

• Embodied carbon reduction in developments (capital goods)

  Capital goods (cat 2) account for ~26% of total value chain emissions. Landsec sets project-by-project embodied carbon intensity and reduction targets measured against RIBA stage 3 design baseline. Across 21 Moorfields, Lucent, Nova East and Sumner Street, targeting overall 16% embodied carbon reduction (~30,000 tCO2e avoided). Lifecycle assessments per RICS Whole Life Carbon Assessment and BS EN 15978.