The Board has identified that climate-related risks could impact on the Company by reducing: ӱ the desirability of its assets to occupiers where buildings are considered to be unsuitable for their purpose; ӱ the ability to sell assets as a result of a greater focus on climate-related risks; and ӱ its access to capital and impact on reputation due to concerns over how well the portfolio is adapted for climate change. We are improving and adapting our assets through maintenance and energy efficiency upgrades. We will consider the climate-related risks and energy efficiency of potential acquisitions as part of due diligence. The Board has recognised that climate change will have an impact on the business, and we have started to develop our plan to become a net zero carbon business and at the same time develop our identification and disclosure of climate-related risks. As part of this we will consider the impact of physical and transitional risks under different scenarios, including a scenario limiting global warming to 2°C or lower.
Impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning
Resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario Read more on pages 48–51 RiskManagement Recommendation Howprocesses for identifying, assessing, andmanaging climate- related risks are integrated into the organisation’s overall risk management Read more on pages 48–51 Metrics and Targets Recommendation Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and riskmanagement process Disclosure of Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks Targets used by the organisation to manage climate-related risks and opportunities and performance against targets Read more on pages 54–57
Commentary The Board, Audit and Risk Committee and Executive Committee formally review the Group’s principal risks. This includes climate-related risks, including their likelihood, impact and mitigating controls. The Board recognises that climate change is an increasingly important priority. Our risk matrix is regularly reviewed and updated to keep track of the changing nature of these risks.
Commentary We report in line with EPRA Sustainability Best Practices Recommendations for sustainability reporting and include EPRA tables within our Sustainability Report. We disclose Scope 1, 2 and 3 greenhouse gas (GHG) emissions in our Annual Report and Sustainability Report. As we continue our assessment of climate-related risks and opportunities over the coming year we will develop appropriate metrics and targets against which to measure our performance.
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