Real estate roadmap to net zero

The climate catastrophe is not a foregone conclusion. We’ve seen dramatic changes that we may not be able to undo, but what we can do is control how we better protect the planet for generations to come. That’s why Legal & General Investment Management (LGIM) Real Assets has set out a strategy to achieve net zero carbon emissions across its UK real estate portfolio by 2050.

With the built environment contributing around 40% of global greenhouse gas emissions, at LGIM Real Assets we have published our Net zero carbon roadmap, which sets out our commitments and delivery plans to decarbonise our 76 million sq ft real estate portfolio. Decarbonising our entire portfolio means eliminating carbon emissions in every stage, from construction through to operation and even decommission.

“Collaboration across our organisation and with external partners will be the key to decarbonising and future proofing these assets. We will be working closely with all our stakeholders; from our colleagues, designers and developers, to building occupiers, managing agents and facilities managers. These partnerships will be vital in our race to net zero,” says Bill Hughes, Head of Real Assets at LGIM. 

Our position as investors also means we have a financial responsibility to protect our clients’ capital through integrating ESG considerations into the investment process. “By future proofing our assets, we can ensure they are resilient and able to adapt to both climate-related transition and physical risks,” explains Shuen Chan, Head of ESG at LGIM Real Assets.

Building on progress

We have already reduced our landlord operational carbon emissions by 20% in the last 10 years, yet this strategy has been established because we know more can – and needs to – be done.

“Achieving our net zero goals will not be easy,” says Chan, “but I believe that our industry can decarbonise and move to being part of the climate change solution rather than the problem.”

The roadmap is the latest in our response to climate change, which so far has included: our Climate Impact Pledge, which promises to hold more companies to account in an effort to improve sustainable practices; the commitment to reduce the operational carbon and energy intensity of landlord-controlled areas by 60% by 2030; ensuring all houses built by Legal & General’s housing business will be capable of operating at net zero carbon emissions by 2030; and our role as one of 30 founding signatory global investors of the Net Zero Asset Managers Initiative, committing to decarbonising investment portfolios, accelerating their contribution to achieving net zero and encouraging other asset managers to join for a more sustainable future.  

Each and every business has a role to play in building a more sustainable future, but there must also be a collective effort by governments, policymakers, companies, investors and society. Only then will we see tangible results towards a brighter future for everyone.

Download Real estate: Net zero carbon roadmap here.