Responsible Business Targets

RESPONSIBLE BUSINESS TARGETS

Every two years, the Company sets itself new targets. Summerised below are the full set of targets for the next two years. Please see Page 16 of our Responsible Business Reports for 2016 to see how we performed historically against our 2014/16 targets

Focus area 2016/18 targets
Reputation Publish a community engagement policy.
Governance best practice Review attendees of the Responsible Business Working Group and agree formal terms of reference.
Employee skills enhancement Offer 1.5 hours of sustainability specific training per year to all members of staff.

The Responsible Business Working Group members are to complete 10 hours of sustainability specific training per year.
Employee skills enhancement Development team to participate in a relevant initiative or working group covering sustainability issues material to the development process.
Reputation protection Ensure Savills conducts full sustainability survey when tendering and ensure they audit 10% of suppliers annually against the suppliers’ responses to the survey.
Reputation protection; compliance Monitor development contractors’ compliance with LondonMetric’s Responsible Procurement policy and Responsible Development Requirements checklist.
Reputation; access to capital Maintain or enhance GRESB performance.

Improve FTSE4Good score and obtain a score of more than 2 points for all ESG themes.
Stakeholder engagement: Investors Develop and implement a bi-annual investor sustainability engagement survey.

RESPONSIBLE INVESTMENT TARGETS

Focus area 2016/18 targets
Protect and enhance portfolio value Continue assessing the sustainability risks /features of potential new assets by ensuring the IAS checklist and acquisition process is suitable to ensure all new investments are future proofed and potential environmental risks are mitigated.
Stakeholder engagement: the market Include relevant information on the asset’s environmental, socio-economic, and health & wellbeing performances into marketing materials for sale purposes.

RESPONSIBLE ASSET MANAGEMENT TARGETS

Focus area 2016/18 targets
Cost saving/regulatory Maintain 100% of operational waste diverted from landfill for landlord managed portfolio by 2020 against a 2015/2016 baseline.

Achieve a recycling rate of 25% by 2020 against a 2015/2016 baseline.
Reputation For landlord procured energy, investigate the cost of switching 100% to a low carbon energy tariff.
Regulation & Reputation On a like-for-like basis against a 2015/16 baseline:

Reduce investment portfolio energy consumption and GHG emissions by 4% by 31st March 2017.*

Reduce office portfolio energy consumption and GHG emissions by 4% by 31st March 2017.*

Reduce retail warehouse portfolio energy consumption and GHG emissions by 5% by 31st March 2017.*

Reduce investment portfolio water consumption by 4% by 31st March 2017.*

Reduce investment portfolio energy intensity and GHG emissions by 20% over 6 years, against a 2015/16 baseline, by 31st March 2022.

Reduce investment portfolio water intensity by 20% over 6 years, against a 2015/16 baseline, by 31st March 2022.
Regulatory Where necessary, ensure all applicable assets have a minimum E EPC rating by 2017, aiming for a higher rating where feasible.
Stakeholder engagement: tenants Conduct a bi-annual tenant satisfaction survey with a third party, incorporating questions regarding sustainability issues, and score responses in order to create a baseline for future years.

Based on the results of the tenant satisfaction survey, follow up with most relevant tenants (poor scores or interest in joint activities) to develop specific action plans.

Investigate implementation of a tenant fit-out guide. Include green lease clause into all new leases regarding data sharing into all new leases.

Discuss total energy consumption with tenants and support them to install renewable energy technology in developing initiatives to reduce energy consumption, and/or increase energy efficiency.

Include relevant information on the asset’s environmental, socio-economic, running costs, and health & wellbeing performances into marketing materials for leasing purposes.

Where there is landlord access to energy and water data (either through smart meters or tenant willingness to share data), monitor the environmental performance of new developments and major refurbishments once in operation.

RESPONSIBLE DEVELOPMENT TARGETS

Focus area 2016/18 targets
Stakeholder engagement: planning departments Pilot the development of a socio-economic assessment to evaluate the impact of LondonMetric’s asset on the community in which it operates.
Portfolio value protection Large new direct developments, expansions and major refurbishments to achieve BREEAM Very Good.
Obsolescence risk mitigation Continue to discuss with contractors the opportunities to incorporate best practice sustainability features within the building’s design brief (e.g. on the robustness of the roof structure to hold future PV panels, etc).
Cost reduction Collect and monitor environmental data for construction sites.

* Targets will be reviewed and reset for 2018.

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