In 2022 we made good progress on our environmental, social and governance (ESG) work and on our programme to meet our net zero carbon commitment by 2030. The ongoing flight to quality we see across the London office market aligns with our long-standing commitment to sustainability and our signature brand of ‘long-life, loose-fit, low-carbon’ buildings. Our latest major schemes – Soho Place W1 and The Featherstone Building EC1, both completed during the year – were net zero carbon in construction and achieved BREEAM Outstanding ratings.
We are now developing our next phase of net zero carbon buildings, including 25 Baker Street W1 and Network Building W1, which are now on site and due for completion in 2025.
Operationally, we have reduced our energy intensity by 4% compared to 2021 and our operational carbon footprint reduced by 7%. We believe we have been taking the right energy efficiency steps across our portfolio and remain on track to meet our long-term targets.
2023 will see the next legislative change for energy performance certificates (EPCs), where the minimum rating of ‘E’ will apply to all commercial buildings. I am pleased that we have been fully compliant with this for some time. It is proposed that by 2027 all buildings will need to have a minimum rating of ‘C’, and then ‘B’ by 2030. This provides a challenge for the sector, where just 23% of London’s office accommodation currently meets the 2030 requirement. We have been planning for this for some time, having reached 65% compliance already with a costed plan to tackle the remaining balance.
Whilst the environmental aspects of the ‘E’ of ESG remain a significant focus, the ‘S’ element continues to grow in importance, and we continue to work closely with our community stakeholders and bring them along with us. A good example of this is our Fitzrovia/West End and Tech Belt Community Funds. Since their inception we have invested nearly £1m through the funds, in a wide range of grassroots projects and initiatives. Furthermore, in 2022 we increased its annual budget by 20%, from £100k to £120k (across both funds), and as a result we’ve been able to help fund even more outstanding projects and initiatives – a total of 13 during the year. As we approach the funds’ tenth anniversary later this year, we will be looking to mark the occasion in suitable style with all our community stakeholders.
The health and wellbeing of our people is of prime importance, and we have focused on mental health, diversity and inclusion and gender balance in 2022 to make Derwent London an even better place to work. Our latest employee pulse survey, which had a response rate of 94%, found that over 91% of our employees were proud to work for Derwent London, nearly 90% would recommend Derwent London as a great place to work, and over 84% said that Derwent London was an inclusive workplace. These kinds of results show that our hard work is paying off. We have also been mindful of the cost of living crisis many people are facing and so in the autumn we gave eligible staff a £1,000 lump sum cost of living payment to assist.
Linked to our work on health and wellbeing we are pleased to announce the arrival of our new Head of Health and Safety, Matt Peaty, who has over 15 years’ experience in real estate health and safety and will be helping us move our work in this important area forward.
Finally, I would like to extend my thanks to everyone across our business for all their hard work during the year, to the occupiers working with us to reduce the carbon footprint of our portfolio, the suppliers who are meeting our high ESG standards, and to all our other stakeholders who continue to support the work we do, thank you.
Operationally, we have reduced our energy intensity by 4% compared to 2021 and our operational carbon footprint reduced by 7%. We believe we have been taking the right energy efficiency steps across our portfolio and remain on track to meet our long-term targets.
2023 will see the next legislative change for energy performance certificates (EPCs), where the minimum rating of ‘E’ will apply to all commercial buildings. I am pleased that we have been fully compliant with this for some time. It is proposed that by 2027 all buildings will need to have a minimum rating of ‘C’, and then ‘B’ by 2030. This provides a challenge for the sector, where just 23% of London’s office accommodation currently meets the 2030 requirement. We have been planning for this for some time, having reached 65% compliance already with a costed plan to tackle the remaining balance.
Whilst the environmental aspects of the ‘E’ of ESG remain a significant focus, the ‘S’ element continues to grow in importance, and we continue to work closely with our community stakeholders and bring them along with us. A good example of this is our Fitzrovia/West End and Tech Belt Community Funds. Since their inception we have invested nearly £1m through the funds, in a wide range of grassroots projects and initiatives. Furthermore, in 2022 we increased its annual budget by 20%, from £100k to £120k (across both funds), and as a result we’ve been able to help fund even more outstanding projects and initiatives – a total of 13 during the year. As we approach the funds’ tenth anniversary later this year, we will be looking to mark the occasion in suitable style with all our community stakeholders.
The health and wellbeing of our people is of prime importance, and we have focused on mental health, diversity and inclusion and gender balance in 2022 to make Derwent London an even better place to work. Our latest employee pulse survey, which had a response rate of 94%, found that over 91% of our employees were proud to work for Derwent London, nearly 90% would recommend Derwent London as a great place to work, and over 84% said that Derwent London was an inclusive workplace. These kinds of results show that our hard work is paying off. We have also been mindful of the cost of living crisis many people are facing and so in the autumn we gave eligible staff a £1,000 lump sum cost of living payment to assist.
Linked to our work on health and wellbeing we are pleased to announce the arrival of our new Head of Health and Safety, Matt Peaty, who has over 15 years’ experience in real estate health and safety and will be helping us move our work in this important area forward.
Finally, I would like to extend my thanks to everyone across our business for all their hard work during the year, to the occupiers working with us to reduce the carbon footprint of our portfolio, the suppliers who are meeting our high ESG standards, and to all our other stakeholders who continue to support the work we do, thank you.
Paul Williams
Chief Executive
