What we are doing.


Governance

Our Sustainable Property Investment Committee meets at least four times a year and oversees our Sustainable Property Investment Policy (PDF) 200 KB

The committee sets direction for public targets. In 2011 we met all four public targets agreed with Legal & General Group. See our targets

Public reporting

In early 2011 we published our first Sustainable Performance Report (PDF) 3 MB

We had a number of other achievements too.

CLIMATE CHANGE RISK MANAGEMENT

We use a rigorous process relating to environmental, social and economic sustainability of assets when we consider buying new investment properties. Over the next couple of years this analysis is being extended to all existing property assets.

ENERGY EFFICIENCY

We carefully monitor consumption in buildings where we’re responsible for procuring energy. We’ve identified our top 20 properties, which account for around 80% of our energy spend, and have put reduction targets in place. These are delivered through managing agents with the help of energy advisors where necessary.

We’ve also published sustainable property guides for different types of occupiers.

Office-based businesses (PDF) 2.4 MB

Retail and leisure occupiers (PDF) 2.2 MB

It’s not just about making new build properties more sustainable. It’s even more challenging to work with existing occupiers of our commercial property portfolio to refurbish existing properties. Our case studies can encourage other property occupiers to work with us. See what we did at our property in Covent Garden

RESOURCE USE AND ENVIRONMENT

Multi-let properties all have Environmental Management Systems in place and are accredited to the demanding standards of ISO 14001. New acquisitions are targeted for accreditation in the year after they are purchased.

Although waste management is a relatively small part of the service we are responsible for, we know it has appreciable impacts and is important to tenants. That’s why we’re seeking to eliminate waste sent direct to landfill.

We’re continuing to develop procurement controls to make sure materials and resources are sourced responsibly, and that contractors and suppliers have appropriate policies for environmental sustainability.

INDUSTRY LEADERSHIP

As part of a business that wants to lead the field, all our asset managers have to pass the Sustainability for Real Estate Investment course we’ve set up with The College of Estate Management. This helps put sustainability at the heart of everything we do, rather than making it a bolt-on for specific projects or focused on a ‘green’ subset of our portfolio.

In 2011, LGP’s Managing Director, Bill Hughes, accepted the Chairmanship of the Green Property Alliance – an organisation that provides a voice for leading property organisations collaborating towards a more sustainable built environment.

Through this organisation, LGP has:

  • provided guidance for landlords and tenants on their responsibilities under the Carbon Reduction Commitment Energy Efficiency Scheme
  • sought to establish consensus on common metrics to measure the sustainability performance of rented buildings
  • influenced the evolution of regulation and legislation

We’re also a member of the Better Buildings Partnership, and we contribute to the development of best practice. Bill also plays a role in ECOPAS, and recently joined the Green Construction Board, an industry advisory group, and is Sponsor of the Valuation and Demand working group.

INTEGRATION INTO FUND PERFORMANCE

We’re one of the first property investment manager to incorporate reporting on the Sustainability Performance of a pension fund’s property portfolio alongside quarterly Investment Performance.

GREEN LEASE CLAUSES

We worked with the Better Building Partnership in 2008 to define industry standards for bringing in Green leases (PDF) 1.3 MB

In 2011, we amended our standard lease format to include ‘green’ clauses. Notifying our full panel of lawyers, we issued a memorandum of green lease principles that must be considered when drafting of all standard leases in future, including clauses relating to the use of environmental contractors and upholding Energy Performance Certificates (EPCs).

See our Green Lease Principles (PDF) 370 KB

SUSTAINABLE COMMUNITIES

We believe that the social impact of major property development should not be underestimated. Our continuing work with the community around the Central Saint Giles Development, including St Joseph's Primary School, as well as at Agar Street, highlights the commitment we’re continuing to make to the local community.

Our partnership with The Homes and Communities Agency and MUSE on the English Cities Fund (ECF) is another example of our work to strengthen existing communities through the investments we make. ECF seeks to increase private investment in regeneration projects, which are both viable and worthwhile for our underlying investors, but which also bring community and environmental benefits.

2011 saw regeneration efforts in Liverpool, Plymouth, Salford, Wakefield and Canning Town.

Find out more about ECF

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