M&G Real Estate sets out net-zero commitment
M&G Real Estate has unveiled new carbon reduction targets, committing to reaching net-zero emissions across its operations by 2030 and its real estate portfolio by 2050, in line with the Government's net-zero target.
The real estate investment firm employs around 6,000 people and currently has around £33.5bn of properties under its management. M&G Real Estate is yet to outline a roadmap to its net-zero target, but will develop net-zero funding strategies that will form the basis of all acquisitions moving forward.
“Despite the impact caused by the ongoing Covid-19 pandemic, the need to reduce carbon emissions remains a crucial priority for us. We are already embracing the need to reposition our business across M&G, with a commitment to achieving net-zero across our assets under management by 2050 and cutting our own corporate emissions to zero by 2030," Tony Brown, head of M&G Real Estate said.
“By proactively integrating net-zero thinking into our investment processes, we can smooth the transition to low carbon investing and optimise value for investors. Each of our funds has a targeted programme of works and metrics to deliver positive outcomes, and we remain dedicated to generating and managing social value opportunities across our portfolio. This report will help us to make strides towards our vision for a better, more sustainable world."
The net-zero target builds on a 26% reduction in carbon emissions and a 23% reduction in energy intensity recorded by M&G Real Estate since 2012.
The company will also continue using certification to highlight the green credentials of its real estate assets. As of the start of the year, 31% of M&G Real Estate’s buildings have been issued with green building certificates.
M&G Real Estate joins real estate advisor Avison Young and housebuilder St. Modwen in the built environment sector to pledge to achieve net-zero carbon emissions recently.
Avison Young joins businesses like JLL and numerous cities and states in signing up to the World Green Building Council’s Net Zero Carbon Buildings Commitment.
The commitment reflects the organisation’s three key 2030 climate goals: alignment with the Paris Agreement’s 1.5C trajectory; ensuring all buildings are net-zero emissions in line with the Intergovernmental Panel on Climate Change’s (IPCC) research and reducing the construction sector’s greenhouse gas (GHG) emissions, which is accountable for around 40% of global emissions.
A coalition of eight European cities, including Dublin and Leeds, has pledged to completely decarbonise their existing building stocks by 2050. On a national level, the UK Government last year vowed to halve the energy use from new buildings by 2030 and to halve the energy costs from the existing building stock - both domestically and commercially. The Government also published its £420m construction sector deal, outlining a course for halving building energy use and emissions by 2030.
Outside of the built environment sector, a survey of 502 UK businesses found that almost half are aiming to be carbon-neutral by 2030, with 8% claiming they had already reached this milestone.