BBP Climate Commitment
- 37 SIGNATORIES
- +£400BN AUM
- +11,000 PROPERTIES
The BBP Climate Commitment acknowledges the transformation that is required across the real estate sector to deliver net zero buildings by 2050. The aim of the Commitment is to:
- leverage collaborative and tangible, strategic action on climate change;
- increase transparency and accountability enabling the market to operate and compete effectively; and
- provide clear ‘client’ demand for net zero assets, driving the industry to respond.
The Commitment requires signatories to publish net zero carbon pathways and delivery plans, disclose the energy performance of their assets and develop comprehensive climate resilience strategies. It has an overreaching objective of delivering net zero buildings by 2050 incorporating both direct and indirect investments, operational and embodied carbon and Scope 1, 2 and 3 emissions. The scope of the commitment makes it one of the most ambitious commitments that property owners can adopt.
To support signatories, in 2020 the BBP published a Net Zero Carbon Pathway Framework, to effectively support our signatories and encourage greater transparency concerning the scope of property owners’ net zero carbon pathways. The Framework sets out the information that should be included within Net Zero Carbon Pathways, including the investment boundaries, carbon scope and delivery strategies. The BBP also has an ongoing programme of work to support its members on issues including energy use intensity, embodied carbon, renewables and offsetting. The BBP member signatories are leading the industry, sharing knowledge and taking collective action to drive change across the industry.
In 2022, the BBP further published the Climate Resilience Guide. This document is designed to provide BBP Climate Commitment signatories with guidance concerning what is required to demonstrate that they have fulfilled the requirement to ‘develop comprehensive climate resilience strategies'. The guide provides BBP members and other real estate companies with a working definition for climate resilience which can be used consistently across the industry, highlights useful industry guidance for building climate resilience strategies as well as best practice in how BBP members are disclosing climate information through TCFD-aligned reporting.
The BBP Climate Commitment provides an important catalyst for change within the sector – any property owner can sign and we actively encourage them to join their peers to amplify the impact of this Commitment.
The latest report from the Intergovernmental Panel on Climate Change (IPCC) highlighted that we are facing a global climate crisis and must limit global warming to 1.5 degrees to reduce the risks associated with long lasting or irreversible changes to the earths’ atmosphere and ecosystems. To achieve this, global net human caused emissions of carbon dioxide would need to reach net zero before 2050.
It is therefore clear that buildings will have to be net zero carbon by 2050 and to achieve this, buildings will need to contribute to the 45% global reduction in CO2 required by 2030.
The property industry needs to demonstrate that it is on a pathway to achieve this critical target and we must take urgent action to ensure our portfolios are resilient and deliver long-term value for our investors.
This is why we have come together to make a collective commitment and send a clear message to all of our stakeholders - we recognise that our leadership can provide an important catalyst for change within the sector.
We, the undersigned, make the following commitments:
- We will each publish our own net zero carbon pathway on signing the Commitment. This will set out how we will quantify and track our emissions over time and outline our trajectory towards net zero carbon new and existing buildings including any interim targets we will use. In doing so we will follow the BBP’s Net Zero Carbon Pathway Framework and address:
- Operational carbon, critically covering whole building performance including our tenant’s activities.
- Embodied carbon of development, refurbishment and fit-out works.
- In developing our net zero carbon pathways we will follow the principles of the energy hierarchy to ensure effort is focused first on reducing energy demand and improving energy efficiency. To this end, we will support the development of property specific Energy Use Intensity (EUI) targets.
- We will each annually disclose our progress towards our net zero carbon pathway and in doing so, explain the scope and implementation of this commitment as it relates to our individual business.
- We will publicly disclose the energy performance of our portfolios, where we have permission to do so, as a minimum at a portfolio level by geography, and ideally at a property level, and support efforts to develop consistent industry performance disclosure and benchmarks.
- By 2022, we will develop comprehensive climate change resilience strategies for our portfolios and work together to develop consistent industry disclosure on climate change risks in line with industry standards, including the Task Force on Climate Related Financial Disclosure.
To support the implementation of this commitment, we will work with the BBP to:
- Develop guidance on net zero carbon pathways for property owners to encourage greater consistency in definitions and boundaries.
- Develop clear guidance for the industry on the procurement of renewable energy for real estate assets to ensure that any purchasing in the UK creates additional capacity.
- Convene an ‘owner & occupier’ forum inviting our tenants to challenge property owners and engage with us to improve the performance of the space they occupy in line with our net zero carbon pathways.
Members of the BBP have diverse portfolios with different ownership and leasing structures, management arrangements and occupiers - how we implement these commitments within our businesses will differ. However, it is important to emphasise that we will adopt a ‘comply or explain’ approach to this commitment, with the intention that it will cover as many buildings as possible within our portfolios - the scale of the challenge ahead makes this absolutely imperative.
We see the real estate market’s transition to a low carbon economy as an opportunity to drive innovation, respond to future demands and expectations of our occupiers and investors, and open up new markets for investment in real estate.
To meet these commitments will require unprecedented collaboration across the industry. We therefore also call upon:
- All our stakeholders (e.g. investors, occupiers, architects, engineers, contractors, managing agents, facilities managers) to disclose their own pathways to net zero carbon buildings and actively engage with us to help us deliver on these commitments.
- Professional bodies and built environment institutions to develop industry standards and support these with education and training to upskill the industry to deliver net zero carbon buildings.
- Government to deliver a supportive legislative agenda with a clear long-term trajectory to achieve net zero carbon buildings.
- All property owners to adopt the same commitments.
We will work with the BBP to monitor and report on our progress and to spearhead collaborative, collective action that delivers better buildings and creates long-term value for all of our stakeholders, including future generations.
Select the logos below to view the associated Net Zero Carbon Pathway.
*Grosvenor Great Britain & Ireland and Grosvenor Europe are listed seperately.
*Following the merger between Capital & Counties PLC ("Capco") and Shaftesbury PLC ("Shaftesbury") to form Shaftesbury Capital PLC ("Shaftesbury Capital") on 6th March 2023, the Shaftesbury Capital BBP Climate Commitment currently relates to the former Shaftesbury assets.
Annual pathway updates
A requirement under the Climate Commitment is to annually disclose progress towards net zero carbon pathways. The following organisations have produced an update to their original pathway. Select the logos below to view the associated Net Zero Carbon Pathway annual update.
Climate Resilience plans
One of the requirements for organisations signed up to the Climate Commitment is to develop climate resilience strategies for their portfolios. Guidance on how to meet this requirement can be found in the BBP's Guide to Climate Resilience Strategies for Commercial Real Estate. The following organisations have produced a climate resilience strategy. Select the logos below to view the associated strategy.