British Land : Sustainability Progress Report 2024

B R I T I S H L A N D

SUSTAINABILITY PROGRESS REPORT 2024

1 BRITISH LAND

SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

Back Contents

CONTENTS

PL ACES PEOPLE PRE FE R

Read more about our Task Force on Climate-related Financial Disclosures in our 2024 Annual Report and at britishland.com/sustainability

6

Thriving Places

Creating a long-lasting positive social impact by collaboratively addressing local priorities.

28

Greener Spaces

Taking actions to minimise our carbon emissions, as well as enhancing nature and the wider environment.

21

Responsible Choices

Making responsible choices across all areas of our business and encouraging our customers, partners and suppliers to do the same.

Overview

1. Our impact in 2024
2. Introduction
3. Our 2030 commitments
4. 20 years of progress

Greener Spaces

7 Performance overview

1. Our approach to decarbonisation

1. Embodied carbon

1. Operational carbon

1. Transition vehicle
2. Offsetting
3. Nature

Thriving Places

1. Performance overview
2. Social impact
3. Education
4. Employment
5. Affordable space
6. Social value

Responsible Choices

1. Performance overview
2. Diversity, Equality & Inclusion
3. Real Living Wage and Health and safety
4. Responsible employment
5. Responsible procurement
6. Sustainability Leadership
7. Benchmarks and external commitments

Performance Data

1. Greener spaces

1. Thriving spaces

1. Responsible choices

1. EPRA index

1. SASB index

Reporting Criteria

1. Reporting criteria

1. Assurance Reports

2 BRITISH LAND

SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

Back Contents

OUR IMPACT IN 2024

A YEAR OF GOOD PROGRESS

RESPONSIBLE CHOICES

Achieved Living Wage

Employer accreditation

Women on the Board

50%

GREENER

SPACES

Embodied carbon intensity

625kg CO₂e per sqm

across our current office developments

Reduction in operational carbon intensity

39%

intensity across our managed portfolio vs our indexed FY19 baseline¹

Improvement in energy intensity

18%

across our managed portfolio vs our indexed FY19 baseline1

THRIVING

PLACES

People benefitted from our education and employment partnerships

8,100

bringing the total to 58,000 since FY21

• ahead of the trajectory for our 2030 target of 90,000

Direct social and economic value enabled

£29.8m

making positive progress towards our new 2030 target of £200m

Employees volunteered

72%

including 10% expert volunteers

36% women in senior management²

Social Mobility Employer

Index 2023

Top 75

for the sixth year running

SUSTAINABILITY LEADERSHIP

International benchmarks include:

GRESB Real Estate

Assessment FY24:

5* rating

for Standing Investments and Development

CDP FY24

A- score

1. For more information, see page 38 and page 48
2. Senior management includes members of the Executive Committee and their direct reports (excluding administrative roles)

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

Back Contents

INTRODUCTION

WE LCOME

Welcome to our Sustainability Progress Report 2024. On the following pages, we provide full performance data to demonstrate the further good progress we have made against our ambitious 2030 targets. We also showcase a selection of case studies that bring to life the implementation and impact of our 2030 Sustainability Strategy.

Simon Carter

Chief Executive

External recognition

We have made further good progress in all areas of our strategy. I was pleased to see us achieve a 5-Star Global Real Estate Sustainability Benchmark (GRESB) rating for both the Standing Investments and Development benchmarks.

We were identified as European Sector Leader for Diversified - Office/Retail Standing Investments and Global Sector Leader for Diversified - Office/Residential Developments. This performance, along with our A- CDP rating, Top 75 Social Mobility Employer rating from the Social Mobility Employer Index, for the sixth consecutive year, and Living Wage Employer accreditation provides external recognition of our commitment and action on environmental, social and governance (ESG) issues.

In FY23, we introduced social value reporting to financially quantify the value of our social impact and to align this activity with wider business metrics. Building on this, in March

2024 we launched our first social value target. We have committed to generating £200m of direct social and economic value in the

10 years to 2030, including £100m enabled as a result of our £25m Social Impact Fund. We have also further committed to indirectly enabling £100m of social and economic value primarily linked to our developments.

Delivering on our commitments

It is well documented that the real estate sector is carbon-intensive. As a result, we have a responsibility to support the transition to a low carbon economy.

Over the past two years, we have completed environmental audits across our managed portfolio. We are now focusing on implementing the actions identified, these include the installation of heat pumps and LED lighting. Our retrofitting improvements have supported our achievement of 58% of our portfolio (by ERV) holding an A or B Energy Performance Certificate (EPC) ratings. We have also achieved a carbon intensity reduction of

39% across our whole managed portfolio compared with our FY19 indexed baseline.

We have continued our commitment to reusing existing building components and materials, focusing on design efficiency and specifying low carbon materials. These efforts have reduced our embodied carbon intensity across current office developments to 625kg CO₂e per sqm in FY24, making good progress towards our 2030 target.

This year, we became an accredited Living Wage Employer and have committed to paying everyone working on our behalf at our places the real Living Wage including at our retail assets. We have long paid Living Wages to our own employees and to people working on our behalf on our developments and at our campuses. This achievement demonstrates our commitment to paying the real cost of living and is particularly important as people continue to deal with the cost of living crisis.

Sustainability progress is overseen at Board level by our ESG Committee which meets three times per year and reports to the Board. Our Chief Financial Officer is the Board Director responsible for sustainability. Our Chief Operating Officer leads delivery of our 2030 Sustainability Strategy at Executive Committee level and chairs our Sustainability Committee.

Collaborating on sustainability

We can only achieve our sustainability targets by working with others and this year we focused more than ever on collaboration. We held our first occupier Sustainability Summit, published our Carbon Primer which shared lessons learnt in low carbon design, celebrated 20 years of our award-winning Sustainability Brief and published an updated version including more KPIs and encouraging greater collaboration than ever before. We also launched our Broadgate Connect report which celebrates the successes of our embedded employment partnership.

Simon Carter

Chief Executive

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

Back Contents

OUR 2030 COMMITMENTS

G R E E N E R

SPACES

Delivering Greener Spaces means making choices which minimise our greenhouse gas emissions and our impact on the environment wherever we can. There is a clear commercial benefit to this, as our customers increasingly demand space with excellent sustainability credentials. We know the most sustainable space will let faster, at higher rents and be worth more in the investment market. We have established a set

of clear and ambitious environmental objectives for 2030, focused on how we build and manage our buildings.

Targeting:

Embodied carbon

50%

lower embodied carbon intensity in our office developments to below 500kg CO2e per sqm from 2030

Operational carbon

75%

reduction in operational carbon intensity across our portfolio by 2030 vs 2019

See page 6 for more information

THRIVING

PLACES

We recognise that places succeed when the communities living in and around them thrive. This helps us to attract and retain customers, connect and collaborate with our local authority partners and create more opportunities for local people. Our social impact strategy focuses on the three core areas where we can make the greatest positive impact: education, employment and affordable space.

Targeting:

Social Impact Fund

£25m

including £15m of cash contributions and £10m of affordable space to be deployed by 2030

Education and Employment

90,000

beneficiaries from education and employment partnerships by 2030

Social and Economic value

£200m

of direct social and economic value generated by 2030

See page 21 for more information

RESPONSIBLE CHOICES

We are committed to making responsible choices across all areas of our business and we encourage our customers, partners and suppliers to do the same. We are a responsible employer, creating a safe and diverse working environment where people are comfortable to be themselves. This approach is embodied in our values (britishland.com/values). We incorporate the highest social, ethical and environmental standards across all our procurement decisions.

Targeting:

Minoritised ethnic representation

17.5%

across the Company by 2025

At least

40%

female representation at senior management level

Real Living Wage

100%

of people working regularly on our behalf at our places paid the real Living Wage

See page 28 for more information

Sustainability leadership

We demonstrate continued strong progress in what we are delivering, which is reflected by our track record of performance in benchmarks. Our target is to achieve a 5* GRESB rating for our Standing Investments and Developments every year.

We recognise the importance of regular materiality assessments to inform our Sustainability Strategy. For more information, see britishland.com/materiality

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

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20 YEARS OF PROGRESS

A LONG TERM RECORD OF DELIVERY

We first published our Sustainability Brief in 2004 and it has been driving environmental and social leadership at our places for the past two decades. In FY24 we updated the brief for the 7th time, increasing the breadth of KPIs and encouraging greater collaboration.

Read more at britishland.com/sustainability-brief

2004

Launched Sustainability Brief for Developments, leading the UK property sector.

2008

ISO 14001 certified Environmental Management System for all developments.

2009

Launched first whole life carbon assessments, improving industry understanding.

2014

• GRESB European sector leader for the first time.
• Expanded Sustainability Brief to increase focus on social best practice.

2015

Introduced Wellbeing Principles for all

of our places.

2021

Landmark socio-economic research to mark our

10-year Young Readers partnership with the National Literacy Trust.

2020

• Launched Transition Vehicle to fund energy effIciency improvements.
• Expanded Sustainability Brief to include standing assets.
• Real Living Wage on all our developments.

2017

Launched Bright Lights, our skills and employment programme.

2022

• GRESB Global sector leader for Developments.
• Completed environmental audits across our major managed assets.

2023

• GRESB Global sector leader for Developments and European sector leader for Standing Investments.

• 4.8 million sq ft of BREEAM Outstanding and Excellent space across our portfolio.
• Accredited Living Wage Employer.

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

Back Contents

GREENER

SPACES

7 Performance overview

1. Our approach to decarbonisation

1. Embodied carbon

1. Operational carbon

1. Transition Vehicle
2. Offsetting
3. Nature

Exchange Square

Broadgate

Regent's Place

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

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PERFORMANCE OVERVIEW (KPIS)

WORKING TO DECARBONISE

OUR PORTFOLIO

In FY24 we continued to make good progress on our 2030 targets, including further improving both embodied and operational carbon performance, piloting climate resilience studies, accelerating the circular economy, delivering biodiversity net gains, reducing water use and upgrading EPC ratings across our portfolio.

Focus area	2030 Strategy indicator		2030 target	2024	2023	2022
Science-based targets	Reduction in Scope 1 and 2 emissions vs 2020		51%	17%	11%	10%
	Reduction in Scope 3 emissions intensity vs 2020		55%	21%	14%	11%
Embodied carbon	50% reduction in embodied emissions (RICS A1-A5)	Offices:	500kg CO₂e per sqm	625	646	678
	on new construction and major renovation projects vs	Retail &	450kg CO₂e per sqm	729	707	661
	2019 industry benchmarksa
	residential:
	100% of embodied emissions from completed new
	construction and major renovation projects (RICS		100%	81%b	-c	100%
	A1-A5) offset using certified carbon credits
	50% reduction in operational and end-of-life	Offices:	275kg CO₂e per sqm
	embodied emissions (B1-B5,C1-C4) at new			To be reported in future years
	Retail &
	developments vs 2019 industry benchmarks	250kg CO₂e per sqm
	residential:
Operational carbon	75% operational carbon intensity reduction by 2030	Portfolio:d	75%	39%	36%	n/ae
	vs 2019 baseline
	25% whole building operational energy intensity	Portfolio:d	25%	18%	17%	n/ae
	improvement by 2030 vs 2019 baseline*
	Whole building operational efficiency for	Offices:	90kWhe per sqm	108
	Retail:	60kWhe per sqm	-f	nr	nr
	developments*
	Residential:	35kWhe per sqm	nrg
	Landlord procured electricity from renewable sources		100%	94%	88%	93%

1. Our embodied carbon emissions include all committed and near term schemes and exclude developments completed in the year. Data for FY22 has been updated from the 2022 Sustainability Accounts to reflect this change
2. We have now received the finalised embodied carbon values for the new construction and major renovation projects that completed in FY24 and we will offset the remaining emissions in FY25
3. No new construction or major renovation projects completed in FY23 so there were no embodied emissions to be offset
4. We obtained retail occupier-procured energy data for FY23 and FY24 which enables us to report portfolio-wide intensities including whole building retail intensities for the first time versus an indexed baseline. Additionally, we have updated conversion factors used in the energy intensity calculation in line with BBP guidelines. For more information, please see reporting criteria on pages 89-91
5. Data for retailer procured energy was not available at this time
6. No retail developments in the pipeline
7. Awaiting industry alignment on detailed modelling for energy efficiency at residential developments

• These KPIs align with SDG 12, Responsible Consumption and Production. For more information see page 35

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Greener Spaces

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PERFORMANCE OVERVIEW (KPIS) CONTINUED

Focus area	2030 Strategy indicator		2030 target	2024	2023	2022
Certification	Proportion of units with EPCs rated A or B		-h	58%	45%	36%
	(by ERV) across assets under management
Wateri	5% reduction in operational water consumption		5% by 2023	13%	11%	13%
	vs 2020*
Circular economy	Operational waste from managed assets that	Offices:	80%	74%	74%	76%
	is re-used, composted or recycled*	Retail:	70%	64%	58%	48%
	Development and operational waste diverted		100%	100%	99%	96%
	from landfill*
Nature	New construction and major renovation projects
	designed to achieve at least 15% biodiversity net		100%	On track	On track	On track
	gain or in line with local authority regulations
	Proportion of managed assets with Nature		100%	57%	41%	15%
	Action Plans (by % floor area coverage)j
Climate resilience	Proportion of managed assets and major
	developments which have undergone a flood risk		100%	100%	100%	100%
	assessment (by British Land % ownership of total

insured value)

1. We follow the proposed Minimum Energy Intensity Standard (MEES) requirements for all commercial buildings to be A or B rated. Read more on page 14
2. Last year, we successfully achieved our water consumption reduction target of 5% compared to 2020. As a result, we are now developing a new water target in line with latest external guidance.
3. Previously called biodiversity action plans

* These KPIs align with SDG 12, Responsible Consumption and Production. For more information see page 35

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SUSTAINABILITY PROGRESS REPORT 2024

Overview

Greener Spaces

Thriving Places

Responsible Choices

Performance Data

Reporting Criteria

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OUR APPROACH TO DECARBONISATION

OUR AMBITIOUS

PATHWAY TO

NET ZERO

Building on many years of work to decarbonise our portfolio, in 2020, we launched our Pathway to Net Zero, outlining our ambitious targets and actions to progress towards a net zero carbon portfolio.

Paddington Central

London

It is well documented that real estate is a carbon- intensive sector, with estimates suggesting that the built environment is responsible for at least 34% of global final energy consumption and 26% of global energy-related emissions1. Therefore, we have a responsibility to support the transition to a low carbon economy.

Since the launch of our Pathway to Net Zero (Pathway) in 2020, we have been working towards our targets. In our current office developments, we have reduced the embodied carbon intensity to 625kg CO2e per sqm. In our managed portfolio, since FY19, we have spent £18m on carbon efficient interventions and have achieved a 18% improvement in whole managed portfolio energy intensity.2

Our Pathway was created in line with the best practice guidance for net zero carbon at the time; however, we recognise that standards and guidance on net zero carbon continue to evolve with climate science. To ensure that we remain aligned with best practice guidelines, we are in the process of updating our existing Science Based Targets initiative (SBTi) targets to set longer term targets that will follow the Buildings sector guidance when it is published. Whilst we are updating our existing SBTi targets, our internal 2030 Sustainability targets remain the same and we will continue to reduce embodied and operational carbon across our portfolio.

Reduction in managed portfolio carbon intensity vs FY19 indexed baseline

39%

Investment in carbon efficient interventions since FY19

£18m

FY24 completed actions

This year, for the first time since its launch in 2020, we increased the price of our carbon levy by 50% to £90 per tonne. This new rate better incentivise the reduction of embodied carbon in our developments (read more on page 18). Another significant action we took this year was incorporating the retail occupier-procured energy data with our landlord-procured data to create portfolio-wide intensity values.

As part of the Pathway, we are analysing the property life cycle for each asset in the standing portfolio and, this year, we started reporting on our embodied carbon in-use (RICS B1-B5), reflecting emissions generated from buying equipment and maintaining a building over

its life cycle. We have widened our scope to include landlord controlled retrofitting projects, including mechanical and electrical services (M&E) replacements. By gathering this data, we have been able to analyse the operational carbon payback of the embodied carbon outlay to balance the benefits of increased embodied carbon vs operational carbon savings. We recognise that in-use embodied carbon data is challenging to secure and we will continue to engage with the industry to expand the scope of data available and improve its quality.

Climate resilience

Outside of our Pathway, we have now started to work on our climate resilience strategy. In FY24, we commissioned a pilot study at Regent's Place. This builds on our climate risk modelling and will set out a climate adaptation plan for the campus out to 2050. Combining our net zero pathways with adaptation plans is key to achieving resilient places and we plan to roll this strategy out across the portfolio. We will seek to align this with our upcoming Nature Strategy.

1. https://sciencebasedtargets.org/resources/files/SBTi_ Buildings_Guidance_Draft_for_Pilot_Testing.pdf
2. We obtained retail occupier-procured energy data for FY23 and FY24 which enables us to report portfolio-wide intensities including whole building retail intensities for the first time versus an indexed baseline