COMMENT: Here’s a truth. I often find annual results a bit boring. Pages and pages of numbers and, unless it’s Jeff Bezos or Warren Buffett, not an overly insightful address to shareholders.
And with the two big REITs – British Land and Landsec – both reporting this week we already knew what the headlines would be: Retail is dragging down values and performance, but don’t worry we’ve got these nifty flexible workplace offer now, we are fully invested in the whole space-as-a-service thing so offices look pretty good. That was it in a nutshell.
But this time there was a little more to both sets of accounts. It may be just because climate change and social impact is at the forefront of our minds, thanks to David Attenborough, Extinction Rebellion and Greta Thunberg, or it may be – and this is the cynic in me talking – that because retail is so bad and Brexit is creating something of a pause in investment terms that both REITs were looking for something that would win the hearts, minds and, increasingly, pockets of investors. Whatever the driver, both firms dedicated a sizeable amount of their results to what they were doing to help society and the planet.
And it is about time too. We have just 12 years left to stop the planet’s core temperature increasing by 3°C before we cause an irreversible environmental disaster. Twelve years. I’ve sat in this office for longer than that. This week, Landsec used its full-year results to outline its investment in social impact projects and commitment to reducing the impact of the built environment on the planet.
Chief executive Rob Noel said: “We aim to be a force for good in society because we know it makes us stronger and more sustainable as a business… This year we’ve set a stretching new target to generate £25m of social value by 2025.” The REIT has also placed strict climate change targets on itself and has this year delivered an 18.2% reduction in energy expenditure against its 2014 baseline.
Landsec says failure to properly consider and act upon the environmental and social impact of its activities could lead to an erosion of shareholder values, create a negative impact on its reputation, poor relationships with its customers and the communities in which it operates and delay its development activities.
British Land was equally passionate.
It is committed to reducing its carbon and energy intensity across it portfolio and said that this year it had achieved reductions of 64% and 44% respectively against a 2009 baseline. It is also taking its social responsibilities seriously. Through its Recruitment & Skills Centre at Fort Kinnaird, Edinburgh, it has helped some 3,585 people into work since opening five years ago.
The centre won EG’s Collaborator Award last year, but like BL and Landsec, we here at EG want to devote more space, more air time and more effort to the positive impact on society and the planet that real estate should be having.
Special Impact Award
So, today we launch the Social Impact Award. The award will be presented at the EG Awards on 22 October.
If you’ve put sustainability and social impact at the heart of your business, can demonstrate the positive impact you are having and want to tell the world about it, then this is award for you.
And with just 12 years left before we cause irreversible damage to the planet and by proxy the societies we live in, this is an award that is vital for all of us.
See www.egi.co.uk/egawards19 for details.
