CORPORATE RESPONSIBILITY

Transcription

1 full data report CORPORATE RESPONSIBILITY 2010

2 Full data report All figures in this Report cover the period from 1 April 2009 to 31 March 2010 and our managed property portfolio, unless otherwise stated. The data and performance targets have been independently assured by Bureau Veritas, so you can be confident that we are reporting accurately and on those issues most material to our business and our stakeholders. Our like-for-like portfolio comprises those properties that were in our portfolio for the whole of this year and either last year (annual like-for-like) or 2004/05 (long-term like-for-like). The Global Reporting Initiative (GRI) Indicator reference number is provided next to relevant figures. NA indicates where data is not applicable. NR indicates where data has not been reported.

3 contents targets Medium-term targets Progress against annual targets Targets for next year Long-term targets 1 Energy Fig. 1.1 Total energy use and costs Fig. 1.2 Total British Land controlled energy use Fig. 1.3 Energy intensity Fig. 1.4 Energy intensity in British Land controlled areas Fig. 1.5 Annual like-for-like energy use and savings Fig. 1.6 Annual like-for-like energy use Fig. 1.7 Long-term like-for-like energy use Fig. 1.8 Long-term like-for-like energy use Fig. 1.9 Long-term energy use trends Fig Long-term total energy use trends across British Land controlled common parts Fig Total energy use and costs across our office portfolio Fig Who controls energy use across our office portfolio Fig Office energy intensity Fig Energy intensity across our office portfolio Fig Developments energy efficiency Fig Energy Performance Certificate ratings Fig Energy Performance Certificate ratings existing buildings Fig Energy Performance Certificate ratings new buildings 2 Water Fig. 2.1 Fig. 2.2 Fig. 2.3 Fig. 2.4 Fig. 2.5 Fig. 2.6 Fig. 2.7 Fig. 2.8 Fig. 2.9 Fig Waste Fig. 3.1 Fig. 3.2 Fig. 3.3 Fig. 3.4 Fig. 3.5 Total water use Total water use and costs Water intensity Water intensity Annual like-for-like water use and savings Annual like-for-like water use Long-term like-for-like water use Long-term like-for-like water use Long-term water use trends Long-term total water use trends Total waste management, disposal and costs Waste management at our properties Waste management on our developments Head Office waste intensity Recycled materials in developments 4 Carbon Fig. 4.1 CRC Energy Efficiency Scheme Fig. 4.2 Greenhouse gas emissions Fig. 4.3 Summary of reported greenhouse gas emissions Fig. 4.4 Scope 1 and 2 greenhouse gas emissions intensity Fig. 4.5 Greenhouse gas emissions by scope Fig. 4.6 Greenhouse gas emissions by source Fig. 4.7 Greenhouse gas emissions offset (restatement of 2008/9 offset) Fig. 4.8 Greenhouse gas emissions offset by scope Fig. 4.9 Carbon offset costs by source Fig Carbon offset costs by scope 5 Other environmental measures Fig. 5.1 Environmental expenditure Fig. 5.2 Environmental compliance Fig. 5.3 Biodiversity on our developments Fig. 5.4 Biodiversity at our properties 6 Customers Fig. 6.1 Customer satisfaction Fig. 6.2 Customers rating us as excellent or good Fig. 6.3 Customers rating our agents as excellent or good Fig. 6.4 Customer willingness to recommend Fig. 6.5 Understanding customers needs Fig. 6.6 Service charge management Fig. 6.7 Occupier retention Fig. 6.8 RealService Best Practice Index Fig. 6.9 Occupational costs Fig Average service charge costs Fig Service charge performance reduction 2009/10 Fig Lease management Fig Service charge audits 7 Communities Fig. 7.1 Community investment Fig. 7.2 Community investment Fig. 7.3 London Benchmarking Group data Fig. 7.4 London Benchmarking Group summary data Fig. 7.5 Staff volunteering Fig. 7.6 Community contributions through planning Fig. 7.7 Community contributions through planning 8 Staff Fig. 8.1 Staff employment Fig. 8.2 Staff diversity Fig. 8.3 Staff turnover Fig. 8.4 Lost working days Fig. 8.5 Staff health and safety Fig. 8.6 Staff training Fig. 8.7 Discrimination 9 Suppliers Managing Agents Fig. 9.1 Health and safety at our properties Fig. 9.2 Managing licences for alteration Development project teams Fig. 9.3 Construction spend Fig. 9.4 Health and safety on our developments Fig. 9.5 Developments employment and training Fig. 9.6 Considerate Constructors Scheme Scope of resource use data

4 Medium-term Targets targets 01 THIS YEAR, We have added even more challenging targets for the next few years to drive performance further. All facts and figures in this Report cover the period from 1 April 2009 until 31 March The data and performance targets have been independently assured by Bureau Veritas, so you can be confident that we are reporting accurately and on those issues most material to our business and our stakeholders. For our full Corporate Responsibility Report: britishland.com/crreport2010 Natural Resources To reduce managed energy use BY 20% per m² FOR EACH PROPERTY TYPE by 2012, compared to 2009 Energy intensity per m² (kwh) target Offices Shopping centres Retail parks (17% reduction) (12% reduction) Continental Europe (12% increase) (15% reduction) British Land controlled energy use across our entire managed portfolio, comprising small power and lighting, as well as heating and cooling from the central plant. To send zero managed waste to landfill from all our properties and developments by 2012 Waste diverted from landfill (%) At our properties On our developments 86% 83% 93% 86% We more than doubled the number of properties managing and reporting waste, as well as increasing the proportion of waste recycled. The reduction in waste diverted from landfill was largely due to lower incineration rates, particularly at new properties. We did not undertake any demolition projects; this affected the proportion of development waste diverted from landfill as the demolition phase typically offers the biggest opportunities for re-use. We will continue working with our development and management teams to divert waste from landfill figures for properties and developments were restated to reflect improvements in data accuracy. To reduce managed water use BY 20% per m² FOR EACH PROPERTY TYPE by 2015, compared to 2009 Water use per m² (cubic metres) target Offices Shopping centres (80% increase) Retail parks Continental Europe (38% reduction) (no change) (19% reduction) Water use across British Land s office portfolio and the common parts of British Land s retail portfolio. Water intensity increased at our shopping centres due to the inclusion of new properties that do not benefit from the rainwater harvesting and borehole water systems present at some of our existing properties. We will focus on reducing water use at these new properties. Highlights 12% less energy use across our like-for-like managed portfolio, saving 11.1 million kwh and 700,000 for us and our occupiers. BREEAM Excellent ratings for all of our new office developments. 11,000 tonnes of waste recycled or re-used at our properties and developments, equivalent to 445,000 in landfill taxes. 13% less water use across our like-for-like managed portfolio, saving 54.7 million litres of water and 70,000 for us and our occupiers. 23% RECYCLED CONTENT across our new developments by value. to ACHIEVE PLANNING CONSENT FOR a zero carbon commercial building by 2015 More carbon efficient design than current standards (%) Across our developments on average 25% 27% Current standards are Building Regulations Part L2A 2006.

5 Medium-term Targets targets 02 Customers To achieve 80% customer satisfaction with us and our managing agents by 2013 UK customers rating as good or excellent (%) British Land Our managing agents 40% 43% 73% 82% Based on independent surveys carried out with 50 occupiers in 2009 and 54 occupiers in Highlights Landlord of the Year 2009 and Best Service Charge Provider, as voted by UK retailers. Top quartile for customer service in the RealService Best Practice Index m savings for occupiers on service charges, with average savings of 7% per m². Resource reduction partnerships with 30% of occupiers across our multi-let managed offices. communities TO SET A 2015 TARGET FOR LOCAL SATISFACTION WITH BRITISH LAND AS A DEVELOPER. Next year, we will establish a methodology to measure local satisfaction with British Land as a developer. Highlights 717,000 COMMUNITY INVESTMENT across our portfolio through cash contributions, in-kind donations and time spent supporting community projects. 490,000 FUNDRAISING thanks to the efforts and generosity of our staff, suppliers, occupiers and shoppers. 70,000 young people participated in projects we supported, including a cricket league, chess tournaments and creative projects. Lord Mayor s DRAGON AWARDS 2009 for British Land and Broadgate Estates. Staff and Suppliers TO SET A 2015 TARGET FOR STAFF SATISFACTION WITH BRITISH LAND AS AN EMPLOYER. Next year, we will carry out a survey to measure staff satisfaction. Highlights 360º 2,944 feedback process established for all our Head Office staff. training hours for Broadgate Estates staff, equivalent to 18 hours per person. Prompt payment we signed up to the Government s new Prompt Payment Code. All Gold Awards or better for service charge management at our properties audited by the Property Managers Association. For our progress against the long-term targets we set in 2007, visit Targets page 08

6 progress against annual targets Progress statements were provided by external consultants Arup and all 32 performance-based targets were independently reviewed by Bureau Veritas. targets 03 Energy use Target Identify initiatives in building-specific environmental plans and reduce energy use by 5% on an annual likefor-like basis across our managed portfolio. 30% of all occupiers in multi-let office buildings to sign up to Carbon Reduction Memorandum of Understanding or equivalent document. Review longer-term targets to verify whether these remain achievable. Set out actions required to achieve the revised longer-term targets. Raise awareness of energy initiatives with retailers and identify target retailers to increase engagement. Offset carbon emissions within the British Land direct carbon footprint using appropriately certified scheme. Progress statement We reduced like-for-like energy use by 12% across our managed portfolio. 30% of occupiers in our multi-let office buildings signed up to carbon reduction agreements. We reviewed our longer-term targets and set eight new medium-term targets to drive performance. We held a sustainability workshop with retailers through the Property Managers Association. Next year, our property management teams will work with individual retailers across our portfolio. We offset 20,769 tonnes of carbon emissions through the First Climate project, verified under the Voluntary Carbon Standard. Progress 50% Waste management Target Recycle 50% of managed retail waste across our retail portfolio. Dispose of no more than 20% of managed retail waste to landfill across our retail portfolio. Recycle 60% of waste across our managed office portfolio. Dispose zero waste to landfill across our managed office portfolio. Recycle 90% of fit-out waste for common parts fitout projects (covered by Construction, Design and Management Regulations) across our entire portfolio. 50% of office fit-out projects (covered by Construction, Design and Management Regulations) undertaken by occupiers to adopt the British Land Fit-out Waste Guidelines. All developments to divert a minimum of 95% of demolition and strip-out material waste from landfill, and a minimum of 85% of construction waste. Work with our construction supply chain to achieve zero demolition waste to landfill by Develop absolute waste reduction targets for future development projects. Work with our construction supply chain to reduce overall waste generated on development sites. Progress statement We recycled 39% of managed retail waste. We diverted 74% of managed retail waste from landfill. We recycled 50% of managed office waste. We diverted 99.5% of managed office waste from landfill. We recycled 97% of fit-out waste for major fit-out projects in common parts. All five major office fit-out projects undertaken by occupiers adopted our Fit-out Waste Guidelines. We diverted 86% of construction waste from landfill. There were no demolition projects. We worked with our development supply chain to review ways to achieve zero demolition waste to landfill and to reduce overall waste. There is more work to be done to establish robust waste reduction targets. 79% 77% 84% 99.5% 67%

7 progress against annual targets targets 04 Water use, biodiversity and travel Target Identify initiatives in building-specific environmental plans and reduce total water consumption by 2% on an annual like-for-like basis within our managed portfolio. Measure the proportion of water consumed from non-mains sources and set a target for the future. 15% of managed assets in the portfolio to have Biodiversity Action Plans. 25% of managed assets in the portfolio to have Green Travel Plans. All developments with a construction cost of over 5 million to result in a net improvement in site biodiversity. Establish intensity targets for water use to benchmark performance by sector against industry standards. Progress statement We reduced like-for-like water use by 13% across our managed portfolio. We identified that 12% of our properties sourced non-mains water, primarily from rainwater harvesting or a borehole. We are installing meters so that we can achieve our aim of monitoring usage and setting targets for the proportion of water from non-mains sources. 31% of our managed assets were covered by Biodiversity Action Plans. 19% of our managed assets were covered by Green Travel Plans. Two of our completed major developments achieved an improvement in site biodiversity, with the remaining four all designed to do so. We are reviewing CIRIA guidance to set intensity targets for water use by property type. Progress 10% 76% 30% Sustainable development Target All new office developments to achieve a BREEAM Excellent rating. All office refurbishments with a construction cost over 3 million to achieve a minimum BREEAM Very Good Rating. New retail construction with a construction cost over 3 million to support the use of BREEAM Retail in areas we can control. All new residential developments gaining planning permission after 2009 to achieve a minimum Code for Sustainable Homes Level Four. All new office developments to be constructed to a standard at least 10% better than the relevant Part L2A Building Regulations. All office refurbishments to achieve an Energy Performance Certificate (EPC) rating of no more than 60. At least 25% of total material by value in new buildings to contain re-used and recycled content. All London office developments to score an average of 36 under the Considerate Constructors Scheme (CCS). Measure the carbon footprint of our on-site development activity and report on our findings. Report on partnering with our contractors to address the management of environmental impacts arising from the supply chain for our developments. Progress statement All of our new office developments achieved BREEAM Excellent ratings, or are designed to do so. Our two planned major office refurbishments are targeting Excellent ratings. Our one new major retail development is also targeting BREEAM Excellent. Our target to achieve Code for Sustainable Homes Level Four was not applicable as no new residential developments commenced design this year or gained planning consent after Our developments are designed to be 27% more energy efficient on average than current regulations, with our new office developments 30% more energy efficient. Two of our three refurbishments are designed to achieve Energy Performance Certificate ratings better than % of materials in our new developments by value comprised recycled content. None of our London office developments undertook CCS audits and so our target CCS score was not applicable. We measured the carbon footprint of our on-site development activity at Ropemaker Place. We partnered with Bovis Lend Lease to review the environmental impacts arising from our development supply chain. N/A 84% 92% N/A

8 progress against annual targets targets 05 Customers Target Achieve 80% average occupier satisfaction on post occupancy surveys. Achieve 85% recommendation rating from occupiers on post occupancy surveys. Exceed satisfaction ratings for lease flexibility and lease assignments in the 2009 Occupier Satisfaction Index (OSI). Achieve 55% occupier retention across our entire portfolio where the occupier had an unfettered option to renew. Progress statement 91% average occupier satisfaction on post occupancy surveys at 201 Bishopsgate and The Broadgate Tower. recommendation rating from occupiers on post occupancy surveys at 201 Bishopsgate and The Broadgate Tower. 75% occupier satisfaction ratings for lease flexibility and 57% for lease assignments, significantly exceeding industry averages of 38% and 25% respectively. We maintained our high occupancy rates, with 43% retention of occupiers reaching break clauses. Progress 77% Community Target Assets with a staff presence (at least 30% full-time equivalent) to implement an employment and training initiative for the local community. Head Office to donate more than 350,000 to support good community causes. All assets with a staff presence (at least 30% full-time equivalent) to engage in local fundraising initiatives raising more than 10,000. Undertake pre-application stakeholder consultation on all new developments. Establish more systematic recording and reporting for new developments on who has been engaged with, how, and the outcomes of that engagement. Progress statement 71% of major staffed assets implemented an employment and training initiative for the local community. Head Office made cash contributions of 506,000 to support good community causes. 57% of major staffed assets engaged in local fundraising initiatives raising more than 10,000. Pre-application stakeholder consultation undertaken on all four new developments. Sustainability Brief template updated to include more systematic recording and reporting on stakeholder engagement. Progress 71% 57%

9 progress against annual targets targets 06 Suppliers Target Reduce 2009/10 service charge costs by 5% per m² across the entire portfolio, compared to 2008/09. Achieve 95% compliance of the Service Charge Code. Compliance defined by the RealService industry benchmark. All Property Managers Association (PMA) service charge audits to achieve Gold. Achieve 90% green status on health and safety for the managed portfolio. Reportable accident frequency rate not to exceed 0.25 and lost-day accident frequency rate not to exceed All managing agents to comply with the British Land Service Charge Procurement Policy. Progress statement Service charge costs reduced by 7% per m² on average across our entire portfolio. 98% compliance with the Service Charge Code, as defined by the RealService industry benchmark. All seven Property Managers Association service charge audits achieved Gold or better, with Broughton Shopping Park achieving the UK s first Platinum Award. 98% of properties achieved our health and safety management standards. Reportable accident frequency rate of 0.26 per 100,000 hours worked on our development sites, better than 0.30 last year but not meeting our 0.25 target. Lost-day accident frequency rate of We believe that our agents complied with our Service Charge Procurement Policy but did not formally measure this. We will address this going forward. Progress 48% 0% staff Target 25% of all Head Office staff to participate in community volunteering. Reduce annual electricity consumption at Head Office per full-time equivalent by 5%, compared to 2008/09. Reduce waste generated at Head Office per full-time equivalent by 5%, compared to 2008/09. Recycle 65% of managed waste at our Head Office and send zero waste to landfill. Reduce annual staff London taxi travel by 5%, measured as a proportion of total London travel compared to 2008/09. Implement staff Corporate Responsibility Engagement and Communication Plan. Progress statement 27% of all Head Office staff participated in community volunteering. 11% reduction in Head Office electricity use per person. No reduction in Head Office waste per person. We will increase our focus on waste reduction. 75% of Head Office waste recycled. 98% diverted from landfill. Staff London taxi travel increased to 16% of all business trips from 15%. We will look at further ways to address this. Established Staff Environmental Working Group and quarterly corporate responsibility updates. Progress 0% 99% 0%

10 Targets for next year targets 07 Energy use reduce British Land controlled energy intensity per m² by 5% for each property type. reduce total building energy intensity per m² by 3% across our office portfolio. pilot a system to collect energy data from occupiers where we do not provide the supply. provide occupiers with detailed energy statements for their buildings, where data is available. Waste management Recycle 55% of managed waste. Divert 90% of managed waste from landfill. Divert 97% of demolition and strip-out waste from landfill. Divert 90% of construction and fit-out waste from landfill. ask all occupiers to apply our guidelines to their fit-out projects, targeting 50% acceptance. 25% of materials by value in new buildings to comprise recycled content. Water Reduce total mains water use by 2% per m². Sustainable development All major office developments and refurbishments to achieve BREEAM Excellent ratings. All major retail developments to support BREEAM Very Good ratings in areas we control. All residential developments to achieve Code for Sustainable Homes Level Four or Ecohomes Excellent ratings. Apply our Sustainability Brief, or an equivalent, to developments conducted through joint ventures or partnerships, and all developments with a construction cost over 500,000. Update the Sustainability Brief for Developments. Biodiversity Invest 30,000 in initiatives to improve biodiversity. all major developments to result in a net improvement in site biodiversity. Travel provide guidance to staff and suppliers on appropriate modes of business travel. Customers 90% of UK customers to rate us as an owner as good or excellent. 60% of UK customers to rate our managing agents as good or excellent. 70% of all customers surveyed to rate our understanding of their needs as good or excellent. Communities Make cash contributions of 650,000 to support good community causes. All office estates and retail properties with on-site management to engage in at least two community initiatives. All properties to support local fundraising, with each shopping centre raising more than 50,000 and all office estates and shopping parks with on-site management raising over 20,000 each. Evaluate stakeholder and community satisfaction with at least 50% of our significant development activity. Staff Undertake an independent staff survey and publish the results. 25% of all Head Office staff to participate in community volunteering. Reduce Head Office electricity use by 5% per person (full-time equivalent). Reduce Head Office managed waste by 5% per person (full-time equivalent). Recycle 75% of Head Office managed waste. Suppliers Achieve compliance on the Service Charge Code, as defined by the RealService benchmark. All Property Managers Association retail service charge audits to achieve Gold or better, with each managing agent achieving at least one Platinum. Participate in the Corporate Health and Safety Performance Index. reportable accident rate on our development sites not to exceed 0.25 per 100,000 hours worked, and lost-day accident rate not to exceed 0.20.

11 long-term targets targets 08 In 2007, we set a series of long-term targets on a number of key issues. These have been superseded by the challenging medium-term targets we set this year to drive performance further. However, in the interests of transparency we continue to report against these original targets. Energy use Reduce energy use at our like-for-like properties by 20% by 2012, compared to 2004/05. We reduced like-for-like energy use by 17% across our managed portfolio, compared to 2004/05. This comprised 46% of total British Land controlled energy use. Water use Reduce water use at our like-for-like portfolio by 20% by 2015, compared to 2004/05. We reduced like-for-like water use by 14% across our managed portfolio, compared to 2004/05. This comprised 35% of our total water use this year. Biodiversity Implement biodiversity action plans, where possible, for all current properties by % of our managed assets were covered by Biodiversity Action Plans this year. carbon Become carbon neutral across landlord controlled areas of our portfolio from 2008/09. For the second year, our carbon neutral commitment covered energy use across the common parts of our entire multi-let managed portfolio.

12 1 Energy Energy 01 Fig. 1.1 Total energy use and costs GRI: EN3, EN4, EN6 Energy use (kwh) Estimated energy costs ( ) 2009/ / / /09 Electricity Gas Other Total Electricity Gas Other Total energy energy British Land controlled energy use across our multi-let managed portfolio Offices 68,775,483 20,895,317 NA 89,670,800 53,961,132 22,038,146 NA 75,999,278 6,491,216 5,876,529 Shopping centres 15,149,077 2,086,957 NA 17,236,034 16,517,558 2,910,178 NA 19,427,736 1,378,618 1,687,959 Retail parks 5,406,872 26,656 NA 5,433,528 8,976, ,534 NA 9,128, , ,008 Continental Europe 15,033, ,112 15,348,245 5,675,301 1,295, ,348 7,310,202 1,592, ,646 Sub-total 104,364,558 23,008, , ,688,607 85,130,604 26,395, , ,865,363 9,940,040 9,273,142 Additional energy use Occupied controlled energy use in our offices 97,853,970 NA NA 97,853,970 76,327,311 NA NA 76,327,311 8,630,720 7,411,382 Energy use in areas occupied by Broadgate Estates in buildings not owned by British Land 50,400 4,000 NA 54,400 NR NR NR nr 4,527 NR Fuel use in British Land owned vehicles na na 407, ,914 na na na nr nr nr Energy use on British Land development sites 801,553 NA 175, ,200 nr nr nr nr 70,697 NR Sub-total 98,705,923 4, ,561 99,293,484 76,327,311 na na 76,327,311 8,705,944 7,411,382 Total energy use TOTAL 203,070,481 23,012, , ,982, ,457,915 26,395, , ,192,674 18,645,984 16,684,524 Our portfolio changes significantly over time, with properties bought and sold relatively frequently. Our total energy use is affected by these changes, as well as by our energy efficiency initiatives. We also continue to improve the accuracy and comprehensiveness of data gathering, which means that we are often capturing more data. Electricity, gas and other energy use across our multi-let managed portfolio and developments. British Land controlled energy use comprises small power and lighting in common parts across our entire portfolio. In our offices, it also comprises central heating and cooling plant (HVAC) and small power and lighting in areas occupied by British Land or our wholly-owned subsidiary, Broadgate Estates. Energy use for 2008/09 was restated, following a thorough review of data for accuracy, as well as the addition of previously unreported historic energy use for British Land controlled central plant, and occupier controlled energy use in our offices. Fuel use for vehicles was converted from litres to kwh using Carbon Trust recommended factors of for diesel, 6.98 for LPG and 9.61 for petrol. Other energy use for British Land Development sites consists of oil and diesel fuel use in generators. Fuel use for generators on development sites was converted to kwh using the Carbon Trust recommended factor of ( Occupier controlled energy use is only provided across our offices as we do not currently gather this data across our retail portfolio, although we hope to work with targeted retailers to start recording this going forward. This year 105 properties with a common parts floor area of 1,935,789m 2 were in the managed portfolio: 22 offices, 63 retail parks, 8 shopping centres and 12 Continental European properties. Each property used different energy sources, with 96 properties reporting electricity data, 29 reporting gas data and 2 reporting other energy use data (geothermal and oil). 91 properties reported energy data in 2008/9 (with a common parts floor area of 2,011,999m 2 ): 21 offices, 56 retail parks, 4 shopping centres and 10 Continental European properties. Each property reported different energy sources, with 91 properties reporting electricity data, 28 properties reporting gas data and 2 reporting other energy use (geothermal and oil). Collection of development sites energy data requires improvement, although we increased the number of projects reporting data. Five development projects reported data in 2009/10 compared to one in 2008/09. One significant project did not report in 2009/10. Due to the overall weakness of the data and variation in energy use among different types of construction sites, no calculation of pro-rata has been undertaken to account for this unreported project. Energy costs calculated using DECC and National Stats Publication: Quarterly Energy Prices March Electricity: 2009: /kWh, 2008: /kWh. Gas: 2009: / kwh, 2008: /kWh. For Continental Europe cost information provided by assets. Where no cost information provided, a /kwh was used based on information provided in the EU Europe s Energy Portal prices were applied to both years. Electricity price applied to Continental Europe geothermal energy use as no data available. Exchange rate of 0.89 : applied (average rate for 2009).

13 1 Energy Energy 02 Fig. 1.2 Total British Land Controlled Energy Use kwh 140,000,00 120,000,00 100,000,00 80,000,00 60,000,00 40,000,00 20,000, / /10 Continental Retail Shopping Office Fig. 1.3 Energy intensity GRI: EN26 British Land controlled areas Energy intensity per m² (kwh) 2009/ /09 % change Offices % reduction Shopping centres % reduction Retail parks % reduction Continental Europe % increase We focus on energy intensity because this removes the impact of changes in our portfolio, as we buy and sell properties, and the effect of increases in the number of properties reporting data, as we improve data collection across our portfolio. Properties that were sold or purchased during the year were excluded from the intensity calculations for that year. 83 properties with a combined floor area of 2,029,530m² reported energy use per m² in 2009/10, out of a total of 105 properties with a combined floor area of 2,192,499m². These comprised 19 offices, 48 retail parks, 4 shopping centres and 12 Continental European properties. 75 properties reported energy use per m² in 2008/09 out of 91 properties. These comprised 14 offices, 48 retail parks, 3 shopping centres and 10 Continental European properties. Floor areas were only included for properties that provided energy use data. Floor areas for shopping centres and retail parks were calculated based on the number of car park spaces (this is based on an assumption of an average car park size of 4.60m x 2.45m = 11.27m 2 ) and the addition of 20% to that floor area to account for other areas such as management offices and covered walk way areas, to reflect the amount of common space that British Land manages, for example lighting car parks. Floor areas for office properties were restated to improve their accuracy based on a review of floor plans, with net lettable areas subtracted from gross internal areas to calculate common parts floor areas. British Land controlled energy use comprises small power and lighting in common parts across our entire portfolio. In our offices, it also comprises controlled energy use for total building central heating and cooling plant (HVAC). Offices energy intensity per m² was calculated using offices gross internal areas. Common parts energy intensity per m² for the other portfolio types was calculated using the common parts floor area for that portfolio type. Fig. 1.4 Energy intensity in British Land controlled areas GRI: EN26 kwh per m / /10 0 Offices Shopping centres Retail Continental Europe British Land controlled energy intensity per m² comprises common parts across all property types, as well as central heating and cooling in offices.

14 1 Energy Energy 03 Fig. 1.5 Annual like-for-like energy use and savings GRI: EN26 Energy use (kwh) Estimated energy savings ( ) 2009/ / /10 British Land controlled Electricity Gas Other Total % change Electriciy Gas Other Total energy energy between energy energy 2008/09 to 2009/10 Offices 41,963,123 17,302,251 NA 59,265,374 10% reduction 45,456,339 20,055,102 NA 65,511, ,122 Common parts 14,961,429 NA NA 14,961,429 3% reduction 15,454,993 NA NA 15,454,993 43,532 Central heating and cooling 25,637,312 17,302,251 NA 42,939,563 11% reduction 28,366,680 20,055,102 NA 48,421, ,751 Areas occupied by British Land/ Broadgate 1,364,382 NA NA 1,364,382 17% reduction 1,634,666 NA NA 1,634,666 23,839 Estates Shopping centres 13,011,859 1,885,357 NA 14,897,216 22% reduction 16,110,226 2,906,604 NA 19,016, ,058 Retail parks 4,562,037 26,656 NA 4,588,693 13% reduction 5,238,763 35,986 NA 5,274,749 59,877 Continental Europe 5,164,231 NR 315,112 5,479,343 2% reduction 5,229,303 NR 338,158 5,567,461 na Total 64,701,250 19,214, ,112 84,230,626 12% reduction 72,034,631 22,997, ,158 95,370, ,057 Our annual like-for-like portfolio comprises those properties that were in our portfolio for the whole of last year and this year. 70 like-for-like properties reported energy use data in 2009/10, from 105 total properties: 16 offices, 44 retail parks, 3 shopping centres and 7 Continental European properties. These comprised 66% of total British Land controlled energy use this year. Gas data for Continental Europe was excluded due to concerns over the accuracy of the data. Energy cost savings were estimated based on the financial savings of any decrease in kwh between reporting years, using prices stated in Quarterly Energy Prices March 2010 by the Department of Energy and Climate Change (March 2010). In the UK, these were based on per kwh for electricity and per kwh for gas. In Continental Europe, these were based on cost information provided by assets where available and otherwise on prices stated in Europe s Energy Portal Continental Europe data was not reported in 2008/9 and therefore an energy saving comparison has not been calculated. Electricity rates per kwh were applied to geothermal energy (used at one property in Continental Europe) as cost data was not available. An exchange rate of 0.89 : was applied, based on the average 2009 rate published by Fig. 1.6 Annual like-for-like energy use GRI: EN26 kwh 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, / /10 Continental Retail Shopping Office

15 1 Energy Energy 04 Fig. 1.7 Long-term like-for-like energy use GRI: EN5, EN7, EN26 British Land controlled common parts Energy use (kwh) 2009/ /05 Electricity gas Total % change Electricity gas Total Offices 11,911,932 1,401,965 13,313,897 11% reduction 13,480,171 1,498,281 14,978,452 Shopping centres 12,840,731 1,779,828 14,620,559 24% reduction 16,707,572 2,622,638 19,330,210 Retail parks 1,264,444 1,320 1,265,764 29% increase 976,355 4, ,612 Total 26,017,107 3,183,113 29,200,220 17% reduction 31,164,098 4,125,176 35,289,274 Our long-term like-for-like portfolio comprises those properties that were in our portfolio for the whole of 2004/05 and 2009/ like-for-like properties reported energy use data in 2009/10, from 105 total properties: 7 offices, 13 retail parks, 2 shopping centres, and 0 Continental European properties. This comprised 46% of total British Land controlled energy use. The only energy types that were reported by like-for-like properties in 2004/05 and 2008/09 were electricity and gas. Common parts gas data was derived as 10% of total building gas for consistency with methodology used in previous years Fig. 1.8 Long-term like-for-like energy use GRI: EN5, EN7, EN26 kwh 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, / /10 Retail Shopping Office Fig. 1.9 Long-term energy use trends GRI: EN5, EN7 Total energy use (kwh) British Land controlled common parts 2009/ / / / / /05 Offices 28,505,327 21,813,317 15,630,266 16,918,926 18,353,065 22,098,460 Shopping centres 17,236,034 19,427,736 17,504,817 24,472,760 25,943,503 23,492,979 Retail parks 5,433,528 9,128,148 8,303,531 3,207,721 2,562,858 1,496,083 Continental Europe 15,348,245 7,310,202 nr nr nr nr Residential NA NA NA NA 123, ,326 Total 66,523,134 57,679,403 41,438,615 44,599,407 46,982,942 47,314,848 Our portfolio changes significantly over time, with properties bought and sold relatively frequently. Our total energy use is affected by these changes, as well as by our energy efficiency initiatives. We are also capturing more data as we continue to improve the accuracy and comprehensiveness of data gathering. 96 properties reported energy use in 2009/10: 22 offices, 56 retails parks, 6 shopping centres and 12 Continental European properties. 91 properties reported energy use in 2008/09; 57 properties reported in 2007/08; 55 properties in 2006/07, 82 properties in 2005/06 and 85 in 2004/05 Offices common parts gas data was derived as 10% of total building gas (where common parts gas is appropriate) for consistency with methodology used in previous years, affecting the figures above compared to our total annual performance.

16 1 Energy Energy 05 Fig Long-term total energy use trends across British Land controlled common parts kwh 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, /05 05/06 06/07 07/08 08/09 09/10 Residential Continental Retail Shopping Office Fig Total energy use and costs across our office portfolio Energy use (kwh) Estimated energy savings ( ) 2009/ / / /09 Electricity gas Total Electricity gas Total British Land controlled 26,451,898 NA 26,451,898 19,570,974 NA 19,570,974 2,333,057 1,900,342 Common parts British Land controlled 40,959,203 20,895,317 61,854,520 32,755,492 22,038,146 54,793,638 4,037,821 3,817,461 Central heating and cooling British Land controlled 1,364,382 NA 1,364,382 1,634,666 NA 1,634, , ,726 Areas occupied by British Land/ Broadgate Estates Occupier controlled 97,853,970 NA 97,853,970 76,327,311 NA 76,327,311 8,630,720 7,411,382 Occupied demises Total 166,629,453 20,895, ,524, ,288,443 22,038, ,326,589 15,121,936 13,287, offices reported energy use data in 2009/ offices reported electricity data in 2009/ offices reported gas data in 2009/10. In the UK, energy costs were calculated based on energy use using prices stated in Quarterly Energy Prices March 2010 by the Department of Energy and Climate Change (March 2010). 2009/10 energy costs were based on per kwh for electricity and per kwh for gas. 2008/09 energy costs were based on per kwh for electricity and per kwh for gas. Energy use for 2008/09 was restated, following a thorough review of data for accuracy, as well as the addition of historic energy use for British Land controlled central heating and cooling, and for occupier controlled demises.

17 1 Energy Energy 06 Fig Who controls energy use across our office portfolio 2009/10 14% 33% 1% 52% 2008/09 13% 36% 1% 50% Million kwhs British Land: lighting and small power in common parts British Land: central plant heating, ventilation and air-conditioning (electricity and gas) British Land: lighting and small power in areas occupied by British Land or Broadgate Estates Occupiers: lighting and small power in occupied areas Fig Office energy intensity GRI: EN26 Energy intensity per m² (kwh) Energy intensity per full-time equivalent (kwh) 2009/ /09 % change 2009/ /09 % change British Land controlled: Common parts % increase na na na British Land controlled: Central heating and cooling % reduction na na na British Land controlled: Areas occupied by British Land % reduction 4,233 4,765 11% reduction Occupier controlled: Occupied demises % reduction nr nr nr Total building intensity % reduction 12,752 nr n/a We focus on energy intensity because this neutralises the impact of changes in our portfolio, as we buy and sell properties, and the effect of increases in the number of properties reporting data, as we improve data comprehensiveness across our portfolio. It also allows us to establish energy benchmarks for offices so that we can compare the performance of individual properties to the relevant benchmarks, identifying opportunities for improvement and learning from examples of good practice. This energy use data comprises electricity, gas, oil and any other energy use across our multi-let managed asset office portfolio. The floor area data comprises floor areas of properties reporting energy use in our multi-let managed asset office portfolio. Where a property has not reported a resource use type, the corresponding floor area was removed from the floor area total used to calculate energy intensity per m² for that property type. Properties that were sold or purchased within each reporting year were excluded from the intensity calculations for that year. 19 offices reported m 2 energy use in 2009/10. kwh/m 2 figures for British Land controlled: areas occupied by British Land covers electricity use for small power and lighting and a proportion of central heating and cooling. Floor areas for offices were reviewed this year, with gross internal areas and net lettable areas derived from building surveys; floor areas for common parts were then calculated by subtracting net lettable areas from gross internal areas. Offices central heating and cooling energy intensity per m² was calculated using offices gross internal areas Common parts energy intensity per m² for was calculated using the common parts floor area Offices occupied areas energy intensity per m² was calculated using net lettable areas. Total office energy intensity per m² was calculated using total building energy use and gross internal areas. Full time equivalents for British Land controlled: areas occupied by British Land are staff and contractors employed at Head Office at year end (184). Total building intensity is based on the number of occupier full time equivalents at year end.

18 1 Energy Energy 07 Fig Energy intensity across our office portfolio kwh/m /10 0 British Land controlled: common parts British Land controlled: central heating and cooling British Land controlled: areas occupied by British Land Occupier controlled: occupied demises Total building intensity 2008/09 Fig Developments energy efficiency Percent better than Part L 2006 Building Regulations 2009/ / Bishopsgate na Broadgate Refurbishment na 6 Broadgate Refurbishment na The Broadgate Tower na Triton Street, Regent s Place Triton Street, s Place North East Quadrant, Regent s Place Main North East Quadrant, Regent s Place Henry Street North East Quadrant, Regent s Place Residential One Osnaburgh Street, Regent s Place Residential Colmore Row na nr Whitely Village Redevelopment, Fareham nr na St James Street Residential na The Leadenhall Building na Ropemaker Place Kingston Centre, Milton Keynes Four units na Lower Don Valley nr nr Average UK office and retail development projects active this year which require a Part L asessment; 2008/09 includes projects inactive during 2009/10. Ratings may change as projects progress and more accurate assessments of energy efficiency are made.

19 1 Energy Energy 08 Fig Energy Performance Certificate ratings Energy Performance Certificates (rating) A B c d e f G Offices England existing buildings England new buildings Scotland existing buildings Scotland new buildings Total (12%) (28%) (36%) (20%) (4%) Retail England existing buildings England new buildings Scotland existing buildings Scotland new buildings Total (17%) (38%) (19%) (13%) (7%) (7%) All properties owned or sold within the year holding Energy Performance Certificate ratings. Existing buildings are those in British Land s portfolio (including buildings not managed by British Land). New buildings are buildings completed within the financial year 2008/09 or 2009/10. Retail properties comprise both shopping centres and retail parks. Scotland and England are listed separately as each country calculates ratings differently. No certificates held for Continental Europe properties during the reporting period. Fig Energy Performance Certificate ratings existing buildings Number of certificates A B C D E F G England Scotland

20 1 Energy Energy 09 Fig Energy Performance Certificate ratings new buildings Number of certificates A B C D E F G England

21 2 Water water 01 Fig. 2.1 Total water use and costs GRI: EN8 Water use (cubic metres) Estimated water costs ( ) 2009/ / / /09 Offices British Land and occupier controlled total building 404, , , ,779 Shopping centres British Land controlled common parts 63,151 43,635 80,391 55,548 Retail parks British Land controlled common parts 57,670 72,256 73,414 91,982 Continental Europe British Land controlled common parts 207,659 79, , ,218 Total 733, , , ,526 Water use data comprises mains water used within our multi-let managed asset portfolio. Accurate data for non-mains water was not available and so was not reported, although we are working to gather this data for next year. We have been working hard to report and reduce water use across the common parts of our portfolio. In some instances common parts water use is not separately metered, in these circumstances managing agents estimate common parts usage by calculating tenant use and removing this from total usage. During the course of next year, we will continue to review the accuracy and metering of our common parts water use. Our portfolio changes significantly over time, with properties bought and sold relatively frequently. Our total water use is affected by these changes, as well as by our water efficiency initiatives. We also continue to improve the accuracy and comprehensiveness of data gathering, which means that we are often capturing more data. 47 properties reported water use data in 2009/10, out of a total of 105 properties: 22 offices, 12 retail parks, 5 shopping centres and 8 Continental European properties. 41 properties reported water use data in 2008/09: 20 offices, 8 retail parks, 3 shopping centres and 10 Continental European properties. Fig. 2.2 Total water use GRI: EN8 Cubic metres 800, , , , , , , , / /10 Continental Europe - common parts Retail parks - common parts Shopping centres - common parts Offices - total building

22 2 Water water 02 Fig. 2.3 Water intensity Water intensity per m² (cubic metres) Water intensity per full-time equivalent (cubic metres) 2009/ /09 % change 2009/ /09 Offices no change nr British Land and occupier controlled total building Shopping centres % increase na na British Land controlled common parts Retail parks % reduction na na British Land controlled common parts Continental Europe % reduction na na British Land controlled common parts Water use data comprises mains water used within our multi-let managed asset portfolio. Accurate data for non-mains water was not available and so was not reported, although we are working to gather this data for next year. We focus on water intensity because this neutralises the impact of changes in our portfolio, as we buy and sell properties, and the effect of increases in the number of properties reporting data, as we improve data comprehensiveness across our portfolio. Properties that were sold or purchased during the year were excluded from the intensity calculations for that year. 37 properties with a combined floor area of 1,635,980m² reported water intensity in 2009/10 out of a total of 105 properties with a combined floor area of 2,192,499m². These comprised 17 offices, 10 retail parks, 4 shopping centres and 6 Continental European properties. 28 properties reported water intensity in 2008/09: 14 offices, 8 retail parks, 2 shopping centres and 4 Continental European properties. Floor areas were only included for properties that provided water use data. Floor areas for shopping centres and retail parks were based on the number of car park spaces, to reflect the common parts that British Land manages, for instance watering landscaping. Floor areas for office properties were restated, with net lettable areas subtracted from gross internal areas to calculate common parts floor areas. Water intensity per m² for offices was calculated using total building water use and gross internal areas. Common parts water intensity per m² for each portfolio type was calculated using the common parts floor area for that portfolio type. Total water intensity per m² was calculated using total building water use for offices and common parts water use for shopping centres, retail parks and Continental European properties, divided by gross internal floor areas for offices and common parts floor areas for shopping centres, retail parks and Continental European properties. Water intensity per full-time equivalent is only applicable to offices, as occupier data is available as well as common parts data, and also because water use in our offices is directly affected by the number of full-time equivalents, whereas it is not in our retail portfolio. Fig. 2.4 Water intensity Cubic metres per m / /10 0 Offices Shopping centres Retail parks Continental Europe Average across the portfolio