Responsible Business Policy
LondonMetric is a UK REIT, investing primarily in Retail and Retail Distribution properties where the retailer is our principal customer. Our customer-focused strategy puts our occupiers at the heart of our approach to property investment, development and asset management and it is our aim to be the partner of choice across the retail and distribution sectors; to increase income and improve capital values to deliver attractive returns for shareholders.
This policy sets out our commitment and approach to Responsible Business, a term which we use to describe the management of environmental and social risks for our business. Our approach is based around our core activities of Investment, Asset Management and Development. It is supported by the foundations of good risk management and a focus on creating and maintaining excellent stakeholder relationships at all levels.
Developing and delivering responsible business practices supports our core business goals and enables us to manage risks and costs; strengthen relationships with our key stakeholders – in particular staff, investors, JV partners, occupiers, communities and local authorities; and enhances our brand value and long-term profitability.
Responsible Asset Management
Our asset management objective is to invest in a portfolio of properties with enduring occupier appeal, which provides opportunities to improve both rental values and the security and longevity of income, including limited risk short-cycle developments to improve the quality of assets. To support this objective, we engage in practical actions with our occupiers to understand and establish sustainable rental levels, grow future income streams and mitigate material risks. These actions encompass monitoring, targeting and improving energy, water and waste management, tenant engagement on a range of issues including improving accessibility, implementation of responsible property management requirements for managing agents, assessment and management of EPC risk and exploration of the feasibility of renewable energy technology, for energy security and long-term cost and carbon management purposes. Our actions are designed to promote the long-term sustainability of our assets and their value.
Creating desirable real estate is fundamental to our business model and drives our leasing, planning and development strategies. We will aim to develop flexible buildings positioned to meet changing financial, environmental and social demands. In particular, all larger new developments are designed to achieve a recognised sustainable building certification standard (such as BREEAM) and requirements are in place for contractors to guarantee the implementation of responsible property development practices.
Our customer-focused approach to real estate allows us to capitalise on our strong relationships with occupiers to invest in properties which have a long-term appeal. In keeping with our stakeholders’ growing concern about the sustainability performance of real estate, we ensure that material sustainability risks and opportunities are integrated into acquisition and disposal processes, with specific attention to issues such as energy & carbon liabilities, flood risk and sustainable transport links with good connectivity.
Within the framework of our Responsible Business strategy, we are also undertaking actions at a corporate level to support shareholder value creation through our three core areas of activities. These focus on sustainability risk management throughout our operations and effective engagement with key stakeholders, both internal and external to the business.
While our Responsible Business Strategy focuses on the sustainability risks and opportunities that are most material to our business, it also encompasses a number of additional issues that are of lower material impact (given that we operate solely in the UK and have a direct workforce of c. 30 employees) but are of interest to specific stakeholder groups. These include our approach to ongoing environmental impact reduction at our corporate head office and to management of HR issues such as staff retention, diversity and supporting the wellbeing of our employees, our commitment to society through our annual programme of sponsorships and charitable donations within the local communities in which we operate, and the expectations we have set on our suppliers in relation to social and environmental impacts (see our separate Responsible Procurement Policy for more detail).
Governance and Implementation
The governance and implementation of our Responsible Business Strategy is overseen by our Executive Committee. The Head of Responsible Business is responsible for day-to-day management and reports directly to the Executive Committee. We have established a set of Responsible Business targets, accountability for which is divided among a number of our staff who provide regular updates on progress to the Head of Responsible Business. We will report on progress against our targets on an annual basis. Our policy will be regularly reviewed to ensure our business continues to align with industry good practices.
Download Responsible Business Policy (PDF, 192KB)