Environmental Performance
Intro

Through our activities we look to minimise the environmental impact of our business, maximise building efficiency opportunities whilst improving business and asset resilience to climate change and the impact of transitioning to a low carbon economy.

 

We understand the importance of addressing climate change and the significant impact that reducing emissions from real estate can have on the UK's 2050 Net Zero Carbon target. LondonMetric recognises that it can have a material impact by reducing its emissions as well as supporting its occupiers in reducing theirs. Over the next year, we will formalise our Net Zero Carbon Framework.

Our Net Zero Carbon Framework

Our Net Zero Carbon Framework

Operations (Scope 1 & 2)

Our energy consumption and greenhouse gas emissions have fallen significantly over recent years. This reduction has, in part, been due to the Company's strategic shift away from offices and operational retail parks into distribution warehousing and long income assets that are typically single tenanted. Consequently, together with our portfolio actions, the operational intensity of our portfolio and our carbon footprint where there is landlord supply has fallen significantly.

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Like for like energy reduction

Since 2015, our absolute energy consumption has fallen by 88% from 9,056 MWh. Over the year to 31 December 2023, consumption fell by 2% to 509 MWh on a like for like basis, achieved through energy efficiency improvements. The high level of green tariff supplies now in place, covering 97% of our landlord supplies, have seen our GHG emissions intensity (market based) reduce further to 0.20 CO2e per £million of net income.

Our Net Zero Carbon Framework

Our Net Zero Carbon Framework

Our buildings (Scope 3)

As part of our drive to upgrade the quality of our assets, we are progressing energy reduction and clean energy initiatives across our portfolio to enhance our properties, extend their economic life, increase occupier contentment and ultimately enable our occupiers to become NZC in operation. These include solar PV, LED lighting, building improvements, removal of gas, and installation of EV charging points, primarily implemented as part of new lettings and regears and help.

We continue to increase the proportion of our occupiers' energy data (Scope 3) collected across our portfolio, collecting 72% of data in 2024 compared to 43% in 2021. This data allows us to better understand the carbon emissions across our portfolio and which assets need prioritising for energy improvement plans.

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Improving the Portfolio's Environmental Qualities

Improving the Portfolio's Environmental Qualities

We are conscious of the regulatory changes to EPCs and are actively targeting a minimum 'C' rating on all assets before 2027. The merger with LXi has impacted our rating, and 85% of our assets now have an EPC rating of 'A' - 'C', which is down from 90% last year but materially up from 59% in 2015 and 74% in 2021. Excluding LXi assets, the LondonMetric like for like portfolio 'A' - 'C' rating was 91%.

We recognise that better EPC ratings are the first step towards achieving NZC and so we are also undertaking NZC assessments on certain assets, particularly ahead of refurbishment works.

EPC Rating of Portfolio (2024)