British Land : Earnings Document

Places

People

Prefer

Proud supporters of the New Diorama Theatre

Sustainability Accounts 2022

Overviewiew

Performance overview (KPIs)

Net Zero Carbon

Place Based approach

Responsible business

Performance data 2022

Reporting criteria

Contents

Introduction

Overview

At a glance introduction

1. 2022 Highlights
2. Our ESG journey
3. Our 2030 commitments
4. Performance overview (KPIs)

9 Net Zero carbon

17 Place based approach

24 Responsible business

27 Performance data 2022

1. EPRA index

1. SASB index

66 Reporting criteria

85 Assurance Reports

Read more about our TCFD disclosures in our 2022 Annual Report

This year we celebrate 20 years of sustainability reporting, and never has our environmental and social focus been more integral to the way we do business.

The climate emergency is high on everyone's agenda; we face a cost of living crisis and the impact of Covid 19 continues to reverberate throughout our communities. This means progressing our pathway to net zero and making a positive impact at our places is more important than ever. We have continued to deliver strong progress this year.

At 1 Triton Square, we completed our second net zero carbon development and we are now on site at Canada Water, where we are piloting some of the most innovative building materials and technologies to deliver market leading, highly sustainable buildings. Our approach is not only right in terms of the environment, but it also reflects what our customers increasingly expect. The strong business case for sustainable buildings was underlined this year by our leasing success at 1 Broadgate, which will be one of the most sustainable buildings in London and is fully let (or under option) four years ahead of completion.

On the standing portfolio, we completed our net zero audits and are working with our customers to invest into the energy efficient interventions that programme has identified. One outcome will be to raise EPC ratings across our portfolio to A or B by 2030 in line with expected MEES legislation.

We were delighted that our efforts have again been recognised by GRESB, the Global Real Estate Sustainability Benchmark where we achieved a 5* rating for both developments and standing investments.

On the social side, our Place Based approach and our strong local relationships allow us to adapt to emerging needs and opportunities at each place to make the biggest impact. This year our community activities benefitted nearly 24,000 people. Our lasting collaboration with Capital City Partnership at Fort Kinnaird, where together we help people who face barriers move into employment, is a powerful example of that (see p23). This year marked ten years of our partnership with the National Literacy Trust. To celebrate, we commissioned research that quantified - for the first time - the economic benefits of reading for pleasure, estimated at £4.6bn pa within a generation (see p2). We are also successfully ramping up how we use our space to grow social value and differentiate our places, providing £2.9m in affordable space to community organisations such as the New Diorama Theatre at Broadgate, supporting the arts and encouraging people back to the capital post pandemic.

Against a challenging backdrop, our teams have done a fantastic job, working with our customers and partners to support local communities. I would like to thank them for all their hard work and for their huge contribution to making our places vibrant and successful. As we go into a new year, with new uncertainties, their dedication will be more vital than ever.

Simon Carter

Chief Executive

"Against a challenging backdrop, our teams have done a fantastic job this year, working with our customers and partners to support local communities.

As we go into a new year, with new uncertainties on the horizon, their dedication will be more vital than ever."

Overviewiew

Performance overview (KPIs)

Net Zero Carbon

Place Based approach

Responsible business

Performance data 2022

Reporting criteria

Places People Prefer

Our purpose is to create and manage outstanding places which deliver positive outcomes for all our stakeholders on a long term, sustainable basis.

We do this by understanding the evolving needs of the people and the organisations who use our places and the communities who live around them.

The deep connections we have created between our customers, communities, partners and people have never been more important as we emerge from the pandemic.

Visit www.britishland.com for more information

Broadgate

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Overviewiew

Performance overview (KPIs)

Net Zero Carbon

Place Based approach

Responsible business

Performance data 2022

Reporting criteria

2022 Highlights

Average embodied carbon in developments1

632kg CO2e per sqm

Reduction in energy intensity2,3

28%

GRESB Rating

5*

Beneficiaries from our community programmes

23,949

Gender pay gap

19.2%

Ethnicity pay gap

19.2%

Science Based Targets3

Reduction in Scope 1 and 2 emissions vs 2020

12%

Reduction in Scope 3 emissions intensity vs 2020

15%

Second net zero carbon development completed

Embodied carbon at 1 Triton Square was below our 2030 target at 436 kg CO2e per sqm and was offset through certified schemes including a teak afforestation project in Mexico and a community reforestation project in Ghana.

Launched landmark report with National Literacy Trust

The report, which marks our 10-year partnership with the NLT found that reading for pleasure could support 1.1m children to get better GCSEs, boosting life time earnings to grow GDP by up to £4.6bn pa within a generation.

Net zero asset audits completed

Working with third party experts, we completed 29 audits across the portfolio identifying opportunities to improve the energy efficiency of our standing portfolio.

Launched NDT Broadgate

Together with New Diorama Theatre we launched NDT Broadgate to support the recovery of the arts post-pandemic. One of London's biggest rehearsal and artist development complexes.

Awarded two BRE4 innovation credits

For a heat exchange system, recycling waste heat from offices to residential at Canada Water and for introducing a Materials Passport, facilitating materials re-use at 1 Broadgate.

Exchange Square open at Broadgate

New 1.5 acre park promoting wellbeing for workers and visitors to the campus and encouraging biodiversity.

1. Offices development pipeline, including completed developments
2. Whole building operational energy intensity improvement vs 2019 baseline for offices
3. Impacted by Covid-19 restrictions requiring assets to close or operate at lower capacity
4. Building Research Establishment, parent organisation of BREEAM certification framework

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OverviewiewPerformance overview (KPIs) Net Zero CarbonPlace Based approach Responsible business Performance data 2022 Reporting criteria

Our ESG journey

This year we celebrate 20 years

of sustainability reporting and our

environmental and social focus has

never been more integral to our business.

2002

2004

2007

2008

2009

2011

2014

Published our first

Launched Sustainability

Founding member

-

Launched Community

-

Signatory to the

-

Launched Community

-

GRESB European

Environment and

Brief for Developments.

of the UK Green

Investment Fund.

UN Global Compact.

Charter, laying the

sector leader for

Social Report.

Building Council.

-

Delivered first

-

Introduced smart

foundation for today's

the first time

BREEAM Excellent

energy management

Local Charter.

-

Launched the first

projects.

system.

-

Started Young

Supply Chain Charter.

-

Completed first

Readers Programme

whole life carbon

partnership.

assessments.

Our Sustainability	The UKGBC works	Supported
Brief established	56,000 children to
the social and	to promote	read since our
environmental	sustainability	partnership with the
requirements for	within the built	National Literacy
our developments.	environment.	Trust began.

2015			2016	2017	2020	2021	2022	2030

Introduced wellbeing	-	Queen's Award for	Launched Bright Lights,	-	Launched 2030
principles for all		lasting economic,	our skills and		sustainability strategy
our places.		social and	employment programme.		- commitment to be
		environmental			net zero by 2030.*
		achievements		-	Introduced internal
	-	Launched Regent's			carbon levy of £60 per
		Place Customer			tonne on embodied
		Community Fund			carbon in
		- an industry first.			developments.
				-	Launched Transition
					Vehicle to fund
					energy efficient
					improvements.

Worked with Happy	Our Bright Lights
City to establish seven
core principles which	skills and
guide our placemaking	employment
activities.	programme

• Science Based Targets initiative validated our carbon reduction targets.
• Delivered first net zero carbon development at 100 Liverpool Street
• Launched net zero carbon audits on our standing portfolio
• 2,100+ people supported into employment through Bright Lights since it began
• Disclosed ethnicity pay gap for first time

• Completed second net zero carbon development at 1 Triton Square
• Completed net zero carbon audits on our standing portfolio
• Ten years working with the National Literacy Trust
• £2.9m of affordable space contributed to local communities

Net zero carbon portfolio by 2030.

Our Net Zero Pathway* sets out the ways in which we will reduce our carbon emissions. We already offset embodied carbon in developments and from 2030 will offset operational carbon.

* see p10 for our Pathway to Net Zero

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