Carbon Reduction
Carbon reduction metrics and targets
If we think something is important, we establish a metric, a baseline, and a target to drive progress.
| 20233 | 2024 | ||
| Corporate and customer carbon intensity (SBTi target) | W e will reduce the carbon intensity of our portfolio by 81 per cent by 2034 against a 2023 baseline, and then to net-zero by 2050. This includes Scope 1, 2 and Scope 3 Downstream Leased Assets. | 36.1 kgCO2e/sq m | 36.4 kgCO2e/sq m |
| Embodied carbon intensity (SBTi target)y | We will reduce the embodied carbon intensity of new developments by 58 per cent by 2034, against a 2023 baseline, and then to net-zero by 2050. All employees’ variable annual remuneration is partly linked to this metric. | 331 kgCO2e per sq m | 318 kgCO2e per sq m |
| Group floorspace rated EPC B equivalent or better | We are conscious of demands by our customers and by governments to provide energy-efficient buildings to reduce both carbon emissions and operating costs. We monitor this by use of Energy Performance Certificates (EPC). We are aiming for every building to have an EPC rating of B equivalent or better. | 65% | 76% |
| Visibility of energy data by floor area | In most cases, our customers procure their own energy. Nonetheless, the emissions from this energy consumption are part of SEGRO’s corporate and customer carbon reduction targets, so we need accurate data. We are rolling out automatic metering, but in the meantime, we are dependent on our customers providing their data. To show progress here, we track what proportion of our floor area we have actual data for. All employees’ variable annual remuneration is partly linked to this metric. | 81% | 87% |
| On-site renewable energy capacity and generation | With significant roof space, our portfolio is capable of supporting on-site renewable energy capacity through the use of photovoltaic (solar) panels. We intend to increase this by installing solar panels on our new developments and on appropriate existing assets. |
Capacity: 59 MW |
Capacity: 123 MW |
| Off-site renewable electricity procurement as a proportion of total electricity procurement | Where on-site renewable energy is either unavailable or insufficient, we are working towards ensuring that all off-site electricity supplies are sourced from 100 per cent certified renewables. | 65% | 71% |
SEGRO's Pathway to Net-Zero
The SBTi launched a new ‘Buildings’ framework in 2024; SEGRO’s pathway to net-zero as our existing targets were due for renewal, we have used this framework to update our net-zero targets. Our targets have a baseline of 2023, a near-term target of 2034 and a net-zero target year of 2050. The target trajectories are steeper to 2034, then shallower out to 2050.
The near-term 2034 targets are an 81 per cent reduction in corporate and customer emissions intensity and a 58 per cent reduction in the embodied emissions intensity of our developments. Once our 2050 target year is reached, the SBTi target methodology allows for offsetting residual emissions with best practice carbon removals, accounting for a maximum of 10 per cent of target emissions.
Creating a new baseline has provided us with the opportunity to bring emission calculation methodologies in line with the latest best practice. This means that the 2023 figures herein are a restatement of our previously reported figures.
We are committed to making a commensurate and ambitious contribution to limiting global warming. However, not all of the actions needed to meet our targets are within our control, and carbon accounting methodologies are still evolving. Setting and publicising carbon reduction targets are crucial elements of carbon governance, and we are committed to being transparent about our journey.
Key elements of our carbon reduction strategy are presented below.
Corporate and customer emissions:
- Purchase certified renewable electricity for SEGRO’s own use and for those customers for whom we procure energy on their behalf.
- Where customers do procure their own energy (the majority of cases), encourage them to procure certified renewable electricity and track uptake – using our ‘green lease’ clauses.
- Replace fossil fuel heating systems with efficient electrical heating.
- Install solar panels to generate energy for our customers, optimise this usage with batteries and microgrid technology, and, where grid connectivity allows, feed into the local electricity network.
- Improve the energy efficiency of our units through construction and refurbishment by targeting an Energy Performance Certificate of B-grade or better.
Embodied carbon emissions: - Work with our partners to procure and utilise low-carbon materials such as timber and electric arc furnace or recycled steel.
- Support the development of low-carbon concrete products and utilise them widely as soon as their suitability is proven.
- Design embodied carbon out of our buildings, changing layouts and using more pre-cast concrete elements.