PictonProperty Income Limited Sustainability Report 2021
08
Introduction
Approach
Environmental Focus
Sustainable Buildings
Our Employees
Stakeholder Engagement
Appendix
Introduction The challenges impacting business continued
Climate change – the path to net zero carbon
Environmental impact and solutions
-78% Sixth Carbon Budget recommendation of reduction in UK net emissions from 1990 to 2035
In line with the Paris Agreement, in 2020 the UK became the first major economy to pass a net zero law, upholding its commitment to end contribution to global warming by 2050. This year, the UK will host COP26, the United Nations Climate Summit, bringing world leaders together to decide on the next actions to tackle climate change and deliver net zero carbon. greenhouse gases from 1990 to 2035. Real estate accounts for a significant proportion of total global energy use, therefore the industry has a key role to play in limiting emissions and the fight against climate change. Tackling this issue has been placed at the forefront of real estate company agendas. With the help of frameworks and guidance The Climate Change Committee recently produced the sixth Carbon Budget, which recommends a -78% reduction in UK net emissions of provided by the Task Force on Climate Related Financial Disclosures (TCFD), there is a renewed focus on improving and increasing the reporting of climate related financial information. With the ability to measure comes the ability to manage and mitigate climate related risks, using science based targets and reporting frameworks.
Increasing biodiversity, creating habitats and rewilding are areas where many property owners are able to make a contribution. It does not have to involve vast swathes of land. Small changes, including rooftop beehives and bug hotels, grass verges that remain un- mowed and planted with wildflowers all help to make a positive impact. Rural land management and natural capital services involve regenerative agriculture, sustainable farming, agroforestry, rewilding, and habitat creation on a much broader scale. Ultimately, the efforts made to address issues within both our urban and rural environments are critical and essential.
Real estate industry stakeholders are now expected to have better awareness of the impact their activities have on the natural environment, communities, and climate. The threats to our environment are vast, from plastic pollution, intensive farming, deforestation, soil erosion and global warming. The market for natural capital services which protect and enhance the environment is growing. Some are Government sponsored initiatives, for example, the Woodland Carbon Code (WCC), a scheme whereby the amount of carbon sequestered through new woodland is calculated and can be traded at auction as units of carbon. This allows owners of woodland to gain an additional income stream and purchasers of units to offset their carbon emissions.
Some real estate companies have already published their net zero carbon commitments and pathways. Momentum is clearly building within the industry towards more climate action. The benefits are not only to the environment; reducing emissions creates employment opportunities, reduces fuel and energy bills and has a positive impact on public health. We are moving towards a property investment market that attaches a premium price to energy efficient buildings and leaves inefficient assets with high capital expenditure requirements to comply, stranded.
Read more on our environmental focus on pages 19–24
Read more on our response to climate change on pages 19–21
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