LGIM Real Assets commits to deliver net-zero across its real estate portfolio by 2050

Jonathan Stapleton
clock • 2 min read
LGIM Real Assets commits to deliver net-zero across its real estate portfolio by 2050

LGIM Real Assets has committed to deliver net-zero carbon across its 76 million sq. ft. UK real estate portfolio by 2050.

The asset manager's pathway to net-zero carbon sets out its commitments and delivery strategy for decarbonising the lifecycle of buildings from construction through to operation and eventual decommissioning.

It said that, with the built environment contributing around 40% of global greenhouse gas emissions, the real estate sector has a pivotal role to play in global efforts to achieve net-zero carbon.

LGIM Real Assets said it had already taken substantial action to address the challenge of reducing carbon emissions - reducing landlord operational carbon emissions by 20% in the last ten years.

But it pledged to go further, delivering net-zero across its real estate portfolio by 2050 and committing to two interim targets by 2030.

Going forward, the asset manager committed to reduce the operational carbon and energy intensity of landlord-controlled areas by 60% by 2030.

It added that, by 2030, all homes built by Legal & General's housing businesses will be capable of operating at net-zero carbon emissions.

LGIM head of real assets Bill Hughes said: "We have committed to deliver a portfolio of assets where every building we construct, own and manage achieves net-zero carbon by 2050.

"In the shorter term, we will reduce the operational carbon and energy intensity of our landlord-controlled areas by 60% over the next ten years.

"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."

LGIM Real Assets - which holds £21.3bn of UK real estate across more than 700 properties - said that by future proofing our assets it can ensure they are resilient and able to adapt to both climate related transition and physical risks.

Head of ESG Shuen Chan explained: "Through the integration of sustainable practices into everything we do, we believe we can deliver enhanced returns for our investors in the form of higher occupancy rates and the ability to generate better rental income.

"Climate change is a global challenge that requires a collective global effort by governments, policymakers, companies, investors and society. Achieving our net-zero goals will not be easy, but I believe that our industry can decarbonise and move to being part of the climate change solution rather than part of the problem."

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