Strategic Report TCFD Statement
TCFDDisclosure
This year we have completed the review of our sustainability priorities andmaterial issues. A key recommendation regarding one of thosematerial issues, Climate Change Adaptation andMitigation, was to start the journey towards net zero carbon and assess its feasibility. A related issue is to develop our reporting under the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
This is our first year in making disclosures in line with the TCFD recommendations. We expect these disclosures to evolve as we start to define our pathway to net zero carbon and further assess the risks relating to climate change.
Governance Recommendation
Commentary The Board has overall responsibility for risk management, including the consideration of climate-related risks, and for setting the Group’s risk appetite. The Audit and Risk Committee is responsible for overseeing the development, implementation and maintenance of the Group’s Risk Management Policy and its risk appetite. The Responsibility Committee meets regularly to consider all aspects of sustainability including risks and opportunities. Updates are provided to the Executive Committee which is responsible for implementing strategy within the agreed Risk Management Policy. Commentary An initial assessment of the climate-related risks over the short, medium and long-term has been set out below. Further identification of risks and opportunities will take place over the coming year. Short-term (0-5 years): Stricter legislation including the implementation of new Minimum Energy Efficiency Standards for commercial property and tightening of regulations which will increase property costs. Medium-term (5-10 years): Occupier demand for buildings with higher levels of efficiency, climate resilience and lower carbon footprints will increase. Long-term (15+ years): Climate change in the UK will bring more extreme weather conditions which may impact the portfolio.
The Board’s oversight of climate- related risks and opportunities
Management’s role in assessing and managing climate-related risks and opportunities Read more on pages 76-78
Strategy Recommendation Climate-related risks and
opportunities identified over the short, mediumand long-term
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