ESG DATA
MARCH 2024
CONTENTS
Introduction | 3 |
Our Approach to Sustainability | 3 |
Governance | 4 |
Membership of industry-related sustainability | |
groups and initiatives | 5 |
Policies and reporting | 6 |
Communication with Employees | 6 |
Investor Disclosures and Indices | 7 |
Data | 8 |
Environmental data | 8 |
Social data | 12 |
Our business data | 15 |
Sustainability Accounting Standards Board | 16 |
INTRODUCTION
This document presents Environmental, Social and Governance (ESG) performance data and information covering the period
1 November 2022 to 31 October 2023, along with data from previous years as stipulated.
Our commitment to sustainability is evident not only in this report, but also in the dedicated sections of our corporate website and within our Annual Report.
OUR APPROACH TO
SUSTAINABILITY
At Crest Nicholson, our purpose is to build great places for our customers, communities, and the environment.
We invest in placemaking, delivering attractive homes and incorporating sustainable and energy-efficient features in our developments. We strive to make a positive difference to people's lives.
Sustainability is an integral part of our business strategy and woven into our corporate culture. We are committed to integrating responsible practices throughout all aspects of our operations. By doing so, we not only contribute positively to society but also create enduring value for our stakeholders.
3
GOVERNANCE
Our commitment to sustainability begins at the highest leadership levels.
The Board assumes oversight and takes ownership of our sustainability strategy and objectives. The evolution of our strategy and integration within the Group is guided by our Sustainability Committee. This Committee operates with delegated authority from the Board and Executive Committee. In FY23 the Sustainability Committee, chaired by our Chief Executive, met four times.
Science-based targets
We are committed to reducing GHG emissions and our science-based targets are validated by the Science Based Targets initiative (SBTi). Details of these targets are provided below. For our GHG emissions data, please see pages 8-9 of this document. Further performance details against these targets can be found on pages 21 and 22 of our Annual Report 2023.
Scope 1 and 2 GHG emissions | Scope 3 GHG emissions |
To support our strategy, we align sustainability- related targets with our remuneration packages. Information regarding this alignment can be found on pages 81-98of our Annual Report 2023.
Our governance structure is available to view on our corporate website.
Scope 1 emissions encompass direct emissions from the use of fuel in the operation of plant and equipment
at our sites, gas consumption for heating and hot water and the fuel used by our vehicle fleet. Scope 2 emissions represent indirect emissions arising from the procurement of electricity and heat.
Our targets
Reduce absolute scope 1 and 2 GHG emissions 60% by 2030 from a 2019 base year.1
Reduce absolute scope 1 and 2 GHG emissions 90% by 2045 from a 2019 base year.1
Scope 3 emissions relate to the emissions for which we are indirectly responsible throughout our value chain. These emissions are primarily associated with our supply chain (upstream) and the use of our homes (downstream).
Our targets
Reduce scope 3 GHG emissions 55% per sq. m completed floor area by 2030 from a 2019 base year.
Reduce scope 3 GHG emissions 97% per sq. m completed floor area by 2045 from a 2019 base year.
Sustainability Linked Revolving Credit Facility
In FY22 the Group completed a new £250m Sustainability Linked Revolving Credit Facility (RCF). This facility is structured to incentivise the Group towards annual performance improvements in four key areas that closely align with our sustainability priorities.
The targets include:
- Reduction in absolute scope 1 & 2 greenhouse gas (GHG) emissions in accordance with our science-based targets
- Increase in the number of suppliers engaging with the Supply Chain Sustainability School
- Reduction in GHG emissions associated with the use of our homes
- Increase in the proportion of our employees in trainee positions and on formal training programmes.
The Group achieved all four metrics in FY23, and further detail is provided in the Annual Report 2023.
Net-zero target
Reach net-zero GHG emissions across the value
chain by 2045 from a 2019 base year.
Sustainability standards and disclosures
We measure our sustainability performance against relevant standards, disclosures and the criteria most material for both our business and stakeholders. We received an A- score for our most recent CDP climate change disclosure and we are committed to supporting the UN Sustainable Development Goals (SDGs). For information on our investor disclosures and indices, please see page 7.
4
MEMBERSHIP OF INDUSTRY-RELATED SUSTAINABILITY GROUPS AND INITIATIVES
We are proud partners of the Supply Chain Sustainability School (SCSS) and active participants in the Future Homes Hub (FHH). The SCSS is an industry-wide collaboration dedicated to fostering a sustainable built environment. As a partner, we contribute both financially and through our time and knowledge to support the development of a wide array of learning materials addressing some of the most pressing sustainability challenges, from climate change to modern slavery. These resources are made freely available to our suppliers, with whom
we maintain regular communication, encouraging them to utilise the school's platform for their benefit.
The Future Homes Hub is a collaboration across the new homes sector, bringing together industry stakeholders to address environmental and social challenges while continuing the delivery of high quality homes the country needs. Guided by the sector's long-term roadmap, the Future Homes Delivery Plan, the Hub's initiatives play
a pivotal role in guiding the industry towards a sustainable future.
5
POLICIES AND REPORTING
Policies and statements:
Anti-Slavery and Human
Trafficking Statement
Anti-Bribery and Corruption Policy
Equality and Diversity Policy
Human Rights Policy
Corporate Health and Safety Policy
Sustainability Policy
Climate Change Policy
Sustainable Procurement Policy
Sustainable Timber Policy
Supply Chain Code of Conduct
Communication with employees.
Crest Nicholson's values, policies and procedures form part of its formal contract with employees, both permanent and temporary.
Policies and procedures are reviewed and approved by the Executive Committee and are communicated using appropriate media, including the Company intranet.
Speaking Up: Our Whistleblowing Policy
Recruitment Privacy Policy
Shareholder Privacy Notice
Supply Chain Privacy Notice
Privacy Policy
Reports:
Annual Report 2023
CDP Climate Change questionnaire 2023 Gender Pay Report 2022
Employee engagement is important to Crest Nicholson. Information and changes that the Company wishes to communicate (including trading updates) are disseminated via various media as appropriate to the message, such as departmental briefings, road shows and one on one meetings, alongside the Company intranet.
6
INVESTOR DISCLOSURES AND INDICES
We set ambitious sustainability performance targets and report on progress in our Annual Report and corporate website.
Our sustainability performance is assessed by a range of major sustainability indices, responsible investment analysts and other external organisations. This evaluation encompasses both direct and indirect engagement through questionnaires, investor meetings, desk research and analysis of our publicly disclosed data and sustainability information.
The ratings enable investors to evaluate and monitor our ESG performance against industry benchmarks. We leverage these insights to continually enhance our sustainability performance and reporting processes. Key highlights from our latest benchmarks and investor disclosures are outlined below:
In 2023, we received a rating of AA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment.
In 2023, we were independently assessed according to the FTSE4Good criteria, and satisfied the requirements to maintain our position as a constituent
of the FTSE4Good Index Series.
In November 2023, we received an ESG Risk Rating of 17.3 and was assessed by Sustainalytics to be at Low Risk of experiencing material financial impacts from ESG factors.
We respond annually to the CDP Climate Change questionnaire. In 2023, we received
-
score of A- for our climate change disclosure.
We received a Supplier Engagement Rating of A-.
Further information and disclaimers for the investor disclosures and indices listed above is available on our corporate website.
7
DATA
Environmental data
Greenhouse gas (GHG) emissions
Scope 1 emissions (tCO2e) | 2023 | 2022 | 2021 | 2020 | 2019 |
Total scope 1 GHG emissions | 2,848 | 3,070 | 3,638 | 4,232 | 6,721 |
Consumption of gas | 784 | 775 | 1,105 | 1,266 | 1,507 |
Consumption of site fuel | 1,520 | 1,739 | 2,003 | 2,160 | 4,042 |
(diesel, HVO and LPG) | |||||
Business travel (company-owned vehicles) | 544 | 556 | 491 | 806 | 1,102 |
Refrigerant gas loss | 0 | 0 | 39 | 0 | 71 |
Scope 2 emissions (tCO2e) | 2023 | 2022 | 2021 | 2020 | 2019 |
Total scope 2 GHG emissions | 956 | 1,379 | 1,718 | 1,772 | 1,737 |
(location-based) | |||||
Consumption of electricity | 946 | 1,378 | 1,718 | 1,772 | 1,737 |
Company owned electric vehicles | 10 | 1 | 0 | 0 | 0 |
Total scope 2 GHG emissions | 202 | 234 | 263 | 500 | 1,171 |
(market-based) | |||||
Consumption of electricity | 193 | 233 | 263 | 500 | 1,171 |
Company owned electric vehicles | 10 | 1 | 0 | 0 | 0 |
Scope 3 emissions1 (tCO e) | |||||
2 | 2023 | 2022 | 2021 | 2020 | 2019 |
Total scope 3 GHG emissions | 479,972 | 593,055 | 536,846 | No data | 678,272 |
Categories 1 and 2: Purchased goods | 170,073 | 185,898 | 163,747 | No data | 222,117 |
and services and Capital goods | |||||
Category 3: Fuel and energy | 1,114 | 1,504 | 1,809 | 1,199 | 2,193 |
related activities | |||||
Category 4: Upstream transportation | 3,737 | 6,770 | 5,960 | No data | 6,168 |
and distribution | |||||
Category 5: Waste generated | 353 | 262 | 25 | No data | 46 |
in operations2 | |||||
Category 6: Business travel | 683 | 776 | 363 | 597 | 756 |
8
Scope 3 emissions1 (tCO e) continued. | |||||
2 | 2023 | 2022 | 2021 | 2020 | 2019 |
Category 7: Employee commuting | 668 | 930 | 657 | 386 | 765 |
Category 11: Use of sold products | 300,334 | 393,328 | 361,127 | No data | 442,223 |
(regulated and unregulated energy)3 | |||||
Category 12: End of life treatment | 3,009 | 3,587 | 3,158 | No data | 4,004 |
of sold products | |||||
Outside of scopes | 1,584 | 1,513 | 822 | 406 | 638 |
- Total value chain scope 3 emissions were calculated for the first time in 2021. 2019 was calculated as our base year. We have not calculated all value chain emissions associated with 2020.
- In 2022 we updated the methodology for calculating waste emissions to improve data quality. The methodology now considers different waste streams instead of grouping all waste into construction materials. This change enhances accuracy and better reflects our operations.
- Regulated energy consumption is associated with lighting, space heating, ventilation and hot water. Unregulated energy consumption is associated with equipment and appliances such as IT equipment, cooking appliances and white goods.
Carbon footprint totals (tCO2e) | 2023 | 2022 | 2021 | 2020 | 2019 |
Total scope 1 and 2 emissions | 3,803 | 4,449 | 5,356 | 6,004 | 8,458 |
(location-based) | |||||
Total scope 1 and 2 emissions | 3,050 | 3,304 | 3,901 | 4,732 | 7,891 |
(market-based) | |||||
Total scope 1, 2 and 3 emissions | 483,775 | 597,505 | 542,202 | No data | 686,835 |
(location-based) | |||||
Carbon emissions intensity | |||||
(scopes 1, 2 & 3 location-based) | 2023 | 2022 | 2021 | 2020 | 2019 |
Scope 1 and 2 emissions per 100 sq. m | 2.09 | 1.82 | 2.52 | 3.08 | 3.20 |
homes completed (tCO2e/100sq. m) | |||||
Scope 1 and 2 emissions per £m revenue | 5.78 | 4.87 | 6.81 | 8.86 | 7.79 |
(tCO2e/£m) | |||||
Scope 3 emissions per sq. m homes | 2.64 | 2.42 | 2.52 | No data | 2.57 |
completed (tCO2e/sq. m) | |||||
Scope 3 emissions per £m revenue | 730.00 | 649.14 | 682.49 | No data | 624.33 |
(tCO2e/£m) | |||||
Verco Advisory Services Ltd has reviewed Crest Nicholson's GHG calculations using the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) GHG Protocol: A Corporate Accounting and Reporting Standard. Verco has provided limited assurance for all emission scopes (scopes 1, 2 and 3) and operational energy consumption data against ISO 14064. Based on its review of Crest Nicholson's GHG emissions inventory for 1 November 2022 to 31 October 2023, Verco has determined that there is no evidence that the GHG assertion is not materially correct. Furthermore, Verco finds no evidence that Crest Nicholson's assertion is not a fair and accurate representation of Crest Nicholson's actual emissions. Verco finds that the information submitted by Crest Nicholson is consistent with the WRI/WBCSD GHG Protocol's methodology and reporting guidance and conforms to generally accepted GHG accounting standards.
9
Energy consumption
(MWh unless stated, covers scope 1 & 2 emissions)
2023 | 2022 | 2021 | 2020 | 2019 | |
Fuel | 19,412 | 19,036 | 17,321 | 18,773 | 29,048 |
Electricity | 4,569 | 7,126 | 8,011 | 7,598 | 6,713 |
Of which renewable electricity tariffs | 4,046 | 4,996 | 4,997 | 4,284 | 2,140 |
Electric vehicles | 46 | - | - | - | - |
% electricity supplied on renewable tariffs | 89% | 70% | 62% | 56% | 32% |
Total energy | 24,027 | 26,162 | 25,332 | 26,371 | 35,761 |
Verco has verified and provided limited assurance for our operational energy consumption data.
Water consumption (m3) | 2023 | 2022 | 2021 | 2020 | 2019 |
Office water | 2,323 | 2,191 | 1,889 | 1,514 | 3,328 |
Site water | 74,415 | 112,796 | 129,085 | 81,143 | 124,026 |
Total water | 76,738 | 114,987 | 130,974 | 82,657 | 127,354 |
Waste (tonnes unless stated) | 2023 | 2022 | 2021 | 2020 | 2019 |
Office waste | 46 | 44 | 44 | 31 | 54 |
% Office waste diverted from landfill | 100% | 95% | 97% | 97% | 89% |
Construction waste | 19,975 | 21,356 | 19,647 | 15,946 | 25,444 |
Construction waste per 100 sq. m | 10.98 | 8.72 | 9.25 | 8.19 | 9.64 |
(t/100 sq. m) | |||||
Construction waste sent to landfill | 449 | 891 | 717 | 664 | 1,044 |
Construction waste diverted from landfill | 19,526 | 20,465 | 18,931 | 15,283 | 24,400 |
Construction waste - reused | 299 | 3,718 | 4,494 | 2,282 | 4,880 |
Construction waste - recycled | 16,408 | 6,139 | 8,391 | 6,710 | 10,980 |
Construction waste - composted | - | 19 | - | - | - |
Construction waste - recovered, | 2,819 | 10,589 | 6,046 | 6,290 | 8,540 |
including energy recovery | |||||
% construction waste diverted | 98% | 96% | 96% | 96% | 96% |
from landfill | |||||
Hazardous waste sent to landfill | 0% | 0% | 0% | 0% | 0% |
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Crest Nicholson Holdings plc published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 11:39:07 UTC.