Sustainable Real Estate Investment - Standard Life Investments · Sustainable Real Estate Investment Sustainable Real Estate Investment . 6 Sustainable Real Estate Investment Sustainable

Sustainable Real Estate Investment 1

SustainableReal Estate Investment 2016 Annual Report

Sustainable Real Estate Investment 32 Sustainable Real Estate Investment

“It gives me great pleasure to present our annual Sustainable Real Estate Investment Report for 2016. We believe that embedding sustainability in our operations is vital to our future success and to maximising value for investors. As demonstrated throughout this report, we are making strong progress. In 2016, we performed well against our sustainability targets and further improved our performance in the GRESB Assessment, achieving 15 Green Stars – the highest number of any participant globally.

I am proud of our sustainability performance to date and our continued leadership in responsible real estate investment. I look forward to further building on this track record in the future.”

Serious about sustainability David Paine Head of Real Estate Investments

Key facts real estate funds£22.2

billion1

gross real estate assets under managementt

22

1 Gross real estate assets under management as at 31/12/16, including cash and holdings in real estate held in other asset classes2 Asset class reporting line team only, total real estate aligned resource across Standard Life Investments is 163 people

properties in15 countries

620Over direct

lease agreements

4,500Over

members of staff in six locations2

118

12% 4%15%

69%

O�ce 23%Retail 34%Industrial 17%Alternatives 18%Cash 8%

31 December 2016

By Sector

Assets Under Management By Geography

O�ce 23%Retail 34%Industrial 17%Alternatives 18%Cash 8%

31 December 2016


4 Sustainable Real Estate Investment Sustainable Real Estate Investment 5

Energy

2016 performance headlines Our global annual performance headlines show consistent improvements across all areas of sustainability.

110 UK HOMES

Greenhouse Gas Emissions

Community engagement & fundraising

OLYMPIC SWIMMING POOL620 FLIGHTS from London

to Sydney

annual emissions reduction

2,242 tonnes CO2e Equivalent to

Water

2,948 m3

Enough to fill an

Waste management

1.1%

680 DOUBLE DECKER BUSES

8,636 tonnes of materials recoveredEquivalent to weight of

Over 160 fundraising, charity and community events held at UK retail assets

£200k raised for charity at our UK retail assets

OVER 60 CHARITIES SUPPORTED

2,171 MWh4%

Equivalent to annual consumption of

Health and safety Global ‘risks controlled’ level of 97%

PRI Assessment 2016

Score of A in Direct Property Module compared with median sector score of C

GRESB 2016

15 Green Stars

3 Five Star rated funds

17 Funds ‘Leaders’ in Health & Wellbeing

annual energy saving

annual saving 99.8% diversion from

landfill10%



Graham BaxterReal EstateSustainabilityManager

2016 was another busy year for sustainable real estate investment (SREI) at Standard Life Investments. Our ongoing commitment to sustainability leadership is underlined both by the performance of our like-for-like portfolio and our results in the annual GRESB Assessment. Having updated our mission and strategic priorities for SREI this time last year, we have worked hard to identify opportunities to realise additional value for our stakeholders. In particular, this has led to an increased focus on healthy buildings and the identification of opportunities to implement circular economy principles. As our current five-year targeting cycle closes in 2017, we have the opportunity to reflect further on our performance to date and define our future direction, building on our strategic priorities. Over the coming months, we will review where we have done well and where the challenges remain to make sure our SREI strategy meets the challenges of the future. Our key priority activities for the coming year are presented on page 16.

Embedding our sustainability values

SREI policyOur SREI policy defines our high-level commitments on sustainability. Our Corporate Real Estate Sustainability Management System (CRESM) and environmental management system (EMS) procedures are the means by which we achieve continual improvement and embed sustainability throughout our activities and our supply chain. We have summarised our policy framework in the figure to the right and you can find the full documents at standardlifeinvestments.com

We became Gold Leaf Members of the UK Green Building Council in 2016

An integrated approach to responsible investment

“ Our work on SREI is an important part of Standard Life Investments’ mission to be the industry leader inresponsible investment (RI).Our dedicated SREI staff

work closely with our RI analysts – one of whom sits on the SREI Focus Group – to support our integrated approach across all asset classes. The figure to the right highlights how our Responsible Investment Mission is embedded in our policy framework for SREI.

As signatories to the United Nations-backed Principles for Responsible Investment (PRI), we submit an annualtransparency report, published online. As part of the 2016 PRI assessment, I am pleased to report that we scored an A for the property module compared with the median score of C.”

Amanda YoungHead of Responsible Investments

Resource Scarcity

Health Material efficiencyResilience to

climate impacts

Wellbeing Water efficiency Energy efficiency

Corporate Real Estate Sustainability Management System (CRESM)

Sustainable Real Estate Investment Policy

Sustainable Real Estate Investment – Strategic Priorities

Standard Life InvestmentsSustainable Real Estate Investment Mission

“We aim to be the industry leader in responsible investment, contributing to a sustainable world and a better financial future for

our customers”

Productivity Recovery of valueLow-carbon

energy generation


Environmental ManagementSystem for developments

Environmental ManagementSystem for asset

management

Occupier Performance Climate Change


Sustainable asset management

Our approachWith £22.2 billion in real estate assets under management, we have a responsibility to drive sustainability benefits for wider society. To achieve this, we have a robust set of procedures that embed continual improvement in the management of our assets. Our approach and annual performance highlights are presented here, with full key performance indicator (KPI) tables included in the Appendix.

2015/16 like-for-like performance

10% reduction in our like-for-like greenhouse gas emissions

annual reduction in energy consumption for our like-for-like portfolio

4%1 15% below 2011/12 baseline year

We are pleased to report a 4% annual reduction in energy consumption for our like-for-like portfolio. This takes us to 15% below the 2011/12 baseline year, exceeding our five-year target ahead of schedule. Our like-for-like greenhouse gas emissions reduced by 10% year-on-year (helped by a reduction in the carbon intensity of the UK electricity grid) and are now 21% below the baseline year.

Case study - shopping centre success

Shopping centres have delivered some of our most consistent improvements since 2011/12, reducing like-for-like energy consumption for landlord-managed supplies by 12% over this period. The Thistles Centre in Stirling, Scotland, is comprised of two shopping centres totalling 49,000m2, one built in the 1970s and the other in 1997. Historically, energy use had been relatively high at the centre and we identified the opportunity to design a package of measures to improve its performance. As part of the broader ‘Thistles Goes Green’ initiative, managing agent JLL and KJ Tait Engineers defined a programme of technical energy efficiency measures and awareness events to reduce energy consumption and encourage a new culture among staff and visitors to the centre. The package of measures included: ¬ installation of LED lighting in car parks, malls and back of house areas ¬ voltage optimisation ¬ a new building management system and monitoring/optimisation equipment ¬ an awareness campaign to coincide with the centre’s attainment of ISO 14001 certification. Since 2013, these measures have delivered an impressive 31% reduction in annual energy consumption. The centre was awarded a National ‘Gold’ Green Apple Award in November 2016 for this achievement. Centre Court Shopping Centre in Wimbledon also achieved a National ‘Gold’ Green Apple Award in 2016 for its package of energy efficiency measures.

Energy and climate change

TARGET Our current target is a 10% reduction in global like-for-like energy consumption over five years from a 2011/12 baseline. This represents a notional 2% annual reduction target, which is applied at the asset level.



2015/16 like-for-like performance

reduction in

like-for-like water consumption

1.1%1

reduction in

like-for-like water consumption

1.1% Improved monitoring and efficiency measures

Our water consumption has been challenging over the last few years, with an increase reported last year. We are pleased that improved monitoring and efficiency measures have helped reverse this trend in 2015/16. While our five-year target remains challenging, we achieved an annual 1.1% reduction in like-for-like water consumption, taking us back below baseline year consumption.

Water efficiency TARGET Our current target is a 5% reduction in global like-for-like water consumption over five years from a 2011/12 baseline. This represents a notional 1% annual reduction target, which is applied at the asset level.

Resource efficiency and the circular economy TARGET and 2015/16 PERFORMANCE Our primary resource efficiency objectives are to achieve 100% diversion from landfill and to maximise the recycling rate of all resource streams. We are pleased to report a diversion from landfill rate of 99.8% in 2015/16, with four out of five sectors achieving 100% diversion.

Targets 2015/16 achievements

SectorDiversion

from landfill target

Recycling targets (on or

off site)

Recovery targets (for other use)

Diversion from

landfill

Recycling rate

Industrial

100%

60% 40% 100% 51%

Unit Shops 70% 30% 100% 65%

Retail Warehouses 70% 30% 99.2% 62%

Shopping Centres 70% 30% 100% 42%

Offices 65% 35% 100% 56%

Overall 60% 40% 99.8% 49%

Case study – the world’s first Cradle to Cradle® logistics buildingIn 2016, Standard Life Investments acquired a unit at Fokker Logistics Park adjacent to Amsterdam Airport Schiphol in the Netherlands. Developed by Delta Development Group, VolkerWessels and the Reggeborgh Groep, the Fokker 7|8 Distribution Centre is the first Cradle to Cradle® inspired logistics building in the world. Alongside our ownership of the Bluewater Building at Park 20|20 nearby, this acquisition underlines our commitment to investing in buildings that demonstrate innovation in sustainability. The building responds to the principles of the circular economy. Its modular design ensures it is fully flexible for potential future uses and it is designed for disassembly so that its elements can be re-used and recycled at the end of its life. This approach recently won the sustainability category at the Dutch National Steel Awards. The building is naturally ventilated and is served by efficient lighting and heating systems. Its emissions are further reduced by the large 480kWp rooftop solar array. The building is also designed with the health and wellbeing of occupants in mind, incorporating high levels of natural lighting, extensive planting and the use of non-hazardous materials and paints.



Occupier health and wellbeing

The role of buildings in health and wellbeingThe built environment has a crucial role in determining people’s health and wellbeing; on average, we spend 90% of our time indoors, mostly at our place of work. It is therefore no surprise that there is an increasing body of evidence linking the design of the built environment not only with health and wellbeing outcomes but with workplace effectiveness and productivity. Several key building characteristics directly influence the health, wellbeing and productivity of the people in them. Poor indoor air quality can depress productivity by 8-11%3, while distracting noise can reduce performance by 66%. Similarly, feeling too hot or too cold can reduce performance by 6%. Focus at work can increase by 15% for those with window views. Additional factors such as daylight and lighting, internal planting, layout, active design and nearby amenities also have a significant influence. These principles apply not just to office buildings but also to industrial units and retail spaces where there are further implications for the customer experience. When we consider that staff generally account for 90% of business operating costs, it is clear that even a modest improvement in health and wellbeing can deliver significant benefits to businesses through improved productivity. As the body of evidence for considering health and wellbeing in design increases, there are a number of initiatives and benchmarks emerging to support building users. 3 All statistics taken from World Green Building Council, Health, Wellbeing and Productivity in Offices: http://www.worldgbc.org/activities/health-wellbeing-productivity-offices/

Health and wellbeing - what are we doing?

As one of Europe’s largest real estate investors, we are actively working with our stakeholders on health and wellbeing. Having defined health, wellbeing and productivity as one of our strategic priorities for sustainable real estate investment, we now have several workstreams underway. We are currently participating in the UK Green Building Council’s Wellbeing Lab for offices, which aims to move the industry forward on the topic. The work involves undertaking detailed acoustic and air quality monitoring of one of our buildings alongside occupier surveys using the Leesman Index – the largest global benchmark of workplace effectiveness. Findings will inform the design of an upcoming refurbishment to ensure the building positively influences health and wellbeing. Once complete, we plan to apply the learning from this project to our wider real estate investment portfolio. Many of the factors affecting the health and wellbeing of building users are determined by the occupier’s fit-out. With this in mind, we are currently refreshing our sustainable fit-out guides for retail, office and industrial sectors to reflect these topics. This will ensure that occupiers are equipped with the evidence and information necessary to incorporate health and wellbeing into their fit-out design. We also engaged with GRESB in the design of the new health and wellbeing module of the assessment. All of the 17 funds submitted to the new module in the 2016 Assessment were ranked as Leaders. As interest in this agenda continues to grow, we look forward to reporting back on our progress in the near future.



Stakeholder engagement

A collaborative approach to sustainabilityEngaging with our stakeholders is an essential part of our approach to sustainable real estate investment. Creating a dialogue with those involved in, and affected by, our real estate investment activities means we can incorporate feedback into our approach and identify opportunities for collaboration.

Clients and investors Many of our investors are keen to ensure they achieve environmental and social benefits alongside financial returns. We actively engage with our investors to provide updates on fund sustainability performance and to seek feedback on our approach.

Consultants and contractors Our supply chain – including managing agents, consultants and contractors – is essential for the delivery of our sustainability priorities at the asset level. In 2016, we ran a series of workshops for suppliers to embed our updated policies and seek their feedback and ideas.

Our staff Regular internal presentations and workshops are an important part of ensuring our procedures and where we communicate and embed any legislative updates in our activities.

Occupiers and users We provide occupiers in managed assets with a statement of the landlord’s energy consumption on a regular basis. This can be a useful tool for benchmarking and collaboration. At our UK retail assets, occupier satisfaction surveys achieved a 100% response rate in 2016, allowing many sustainability topics to be discussed – from lighting sensors to paper recycling.

Industry bodies We are active members of several industry groups including the GRESB Benchmark Committee, the Scottish Property Federation Building Standards & Sustainability Committee and the AREF Environmental & Social Governance Committee. We are also Gold Leaf members of the UK Green Building Council and participate in their Landlord-Occupier Forum.

Government and regulators Through our involvement in industry groups, we take opportunities to engage with policymakers and regulators on topics related to sustainability and real estate.

Case study – community engagement at our retail assetsOur assets and their occupiers have an important role to play in their local communities. Our retail assets in the UK play host to hundreds of community events and initiatives every year. Below is a brief summary of some of the events and initiatives that took place throughout our retail portfolio over the past year. Charities and fundraising In the past year, we have supported over 60 charities across our retail portfolio, with £200,000 raised. Over 160 individual events took place to support and raise money for local, national and international charities. For example, the Water Gardens Shopping Centre in Harlow partnered with St Clare’s Hospice to host a particularly successful midnight charity walk, which attracted 1,000 participants and raised over £60,000. Other charities supported at shopping centres across the portfolio included local food banks, Marie Curie, Macmillan and the Community Air Ambulance Trust.

Educational events and schools engagementSupporting educational opportunities for local pupils and the wider community is an important part of our shopping centres’ engagement activity and local schools are actively encouraged to make use of our UK retail assets. At the Charles Darwin, Pride Hill and Riverside Mall Shopping Centres in Shrewsbury, the centre team worked with local schools to run a business and product design event. Meanwhile, Castlepoint Shopping Park in Bournemouth played host to a ‘meet the employers’ event for local pupils. Finally, Palace Exchange Shopping Centre in Enfield worked with local geography students on a research project to understand consumer spending habits and perceptions of Enfield town centre.

Standard Life Investments Real Estate

Our staff

Government & regulators

Industry bodies

Communities & neighbours

Occupiers & users

Consultants & contractors

Clients and investors


Business support and work experienceOur centres often play an important role in promoting local businesses and contributing to economic and regeneration strategies. In 2016, several centres worked closely with partners to promote local employment and back-to-work initiatives. Many of our centres have work experience programmes in place with local schools, providing opportunities for disadvantaged young people to gain valuable experience.


Summary of key activities

Occupier satisfaction

UK-GBC Wellbeing Lab for offices: using our own head office as the case study during this lab, we hope to build on our knowledge with a view to engaging effectively with our occupiers on this topic across the investment portfolio.

Fit-out guides: we aim to finalise and roll-out sustainable fit-out guides for all sectors. These will provide occupiers with the guidance and evidence required to achieve high levels of sustainability in their fit-out and during operation.

Occupier engagement: working with our managing agents, we aim to further increase the level of occupier engagement and feedback that we receive.

Resource scarcity

Waste management: work with our waste management consultants to maintain zero waste to landfill across the portfolio and focus on maximising recovery of value.

Circular economy: identify further opportunities to implement circular economy principles throughout the portfolio on new and existing buildings (e.g. service-based contracts).

Water efficiency: continue to work with our consultants and managing agents to reduce water consumption and ensure efficiency measures are included in asset action plans.

Climate change

Energy efficiency: working with our managing agents and consultants, we will continue to drive down energy consumption across our portfolio and deliver reductions in emissions and operational cost.

Renewable energy: we will continue to assess the feasibility for renewable energy installations across our portfolio and proceed with systems where there is an attractive return.

Climate risk: continue to monitor and evaluate the risks posed by future climate change for our assets across all of our geographies.

Key activities

With our existing reduction targets coming to an end in 2017, we will consult with our stakeholders to review our strategy and objectives.

Having hosted successful supply chain sustainability workshops in 2016, we will continue to work collaboratively with our managing agents and suppliers to embed sustainability throughout our activities.

We will continue to work with industry groups and our investors to help achieve efficiency, accuracy and consistency in sustainability reporting for our industry.

of our strategy and objectives

sustainability throughout our activities

efficiency, accuracy and consistency in sustainability reporting

Supply chain

Industry

The year ahead

Our sustainability performance has consistently improved since we set our five-year targets in 2011/12. As this period ends, we are taking the opportunity to reflect on our performance to date and review the sustainability issues that will be important for us in the future. We will update our sustainability objectives following this review.

There remain many challenges to embedding sustainability in real estate investment and the built environment more generally. We are committed to continual improvement and we look forward to updating you on our progress. In the meantime, the table below sets out some of our key areas of focus for the coming year.

Strategy review best practice


18 Sustainable Real Estate Investment

Appendix

Real estate governance structure and reporting linesThe figure below shows the reporting lines through the Head of Real Estate Investments and the linkages between dedicated real estate sustainability resource and the wider real estate and responsible investment teams.

Energy Management

Waste Management

Risk Management

Adaptability& Accessability

Tenant Management

Community Engagement

Delivered by Portfolio Managers, managing agents and professional consultants

David PaineHead of Real Estate Investments

Standard Life Investments Board

Standard Life InvestmentsReal Estate Management Team

UK Group & Institutional

Funds

ContinentalEuropean

Funds

Finance &

Operations

Wholesale and Listed

Funds

International Funds

Health and Safety Management

Finance, Tax & Structuring Insurance Supplier

Management

Commercial Lending

Research & Strategy

Standard Life Investments Responsible Investment Team

Sustainability

Workforce with reporting line through Head of Real Estate Real estate workforce as at 31 March 2016*

Contract type Gender UK totalOverseas

totalGlobal total

Permanent

Full timeMale 71 11 82

Female 11 7 18

Part timeMale 0 0 0

Female 13 1 14

Temporary

Full timeMale 2 0 2

Female 1 0 1

Part timeMale 0 0 0

Female 1 0 1

Totals

Full timeMale 73 11 84

Female 12 7 19

Part timeMale 0 0 0

Female 14 1 15

All

Male 73 11 84

Female 26 8 34

All 99 19 118

*Asset class reporting line team only, total real estate aligned resource across Standard Life Investments is 163 people


Consolidated key performance indicators

Reporting periodThis is the fourth annual Standard Life Investments Sustainable Real Estate Investment Report that covers the global environmental performance of our assets. This report therefore compares with the 2011/12 baseline year as well as last year’s data. The reporting period covered in the following data is qualified as follows. ¬ UK assets UK fiscal year 1 April 2015 to 31 March 2016 ¬ Overseas assets Calendar year 2015 ¬ Baseline year 2011/12 and 2011 respectively ¬ Reporting cycle Annually We have kept the UK assets reporting year aligned with the data that we need to submit as participants in the UK CRC Energy Efficiency Scheme.

Report boundariesThe report covers all of the real estate funds under our discretionary management that operate from our worldwide real estate offices. The environmental KPIs included in this report are for assets where we manage the energy and waste services (i.e. where we are the counterparty to the supply contract). In the bulk of our estate, the tenants are generally the counterparty for those supplies consumed within their demise so are not included within the scope of this report. In those buildings where tenants are supplied via a sub-metering system, then those KPIs are included within this report in the total procured figures in the Energy Efficiency Statements. However, these are excluded from UK Energy Efficiency Statements and UK Greenhouse Gas Emissions Statements. Statements made with degree-day adjustments have been carried out at the industry standard of 15.5oC on a one-year comparison basis. Like-for-like comparisons are only made with assets that have been landlord managed for the full 12 months of each year since the baseline year of 2011/12 to account for assets either bought/sold or changed from single-let to multi-let status. In those situations where assets are held in joint venture partnerships, we have included those assets where we hold a stake of 50% or more within one or more of our funds. We use the Global Reporting Initiative (GRI) G4 Construction and Real Estate Sector Disclosures Supplement to inform the scope of our SREI reporting. The table at the end of this section details our reporting in line with GRI. For any enquiries relating to the information within this report, please contact our Sustainability Manager Graham Baxter at [email protected] or write to our real estate head office at 1 George Street, Edinburgh, EH2 2LL.


Key performance indicatorsEnergy efficiency statementsIn 2015/16, we continued to deliver reductions in energy consumption. For our global ‘like-for-like’ managed portfolio, total energy consumption reduced by 4% year-on-year and is now 15% below the baseline year of 2011/12. This portfolio includes only assets that we have held continuously since 2011/12 in order to align with our five-year targeting regime and, as such, its size decreases annually due to investment activity. Given we are now reaching the end of our current five-year targets, this portfolio will increase in size again when the baseline is reset. We are pleased that our approach to energy management has delivered significant reductions in overall energy consumption in all sectors with a ‘like-for-like’ portfolio globally.

Global Sector Energy Efficiency Statement

Sector

Energy (kWh) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011/2012 Total

Procured

2014/2015 Total

Procured

2015/2016 Total

Procured

2011/2012 ‘Like for Like’


Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)

‘Like for Like’ change compared to

last year


base year

m2 2015/2016 %

Industrial, Distribution Warehouses 21,040,142 1,354,894 1,366,574 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 8,415,771 4,388,433 5,799,224 664,940 2 680,043 2 615,257 2 -10% -7% 336,435 £401,427,500 8%

Retail, High Street 1,738,178 1,814,123 2,051,555 977,347 25 872,295 22 865,924 22 -1% -11% 39,450 £208,763,750 4%

Retail, Warehouses 4,908,488 8,562,848 9,023,826 3,807,055 12 3,482,484 11 3,438,021 11 -1% -10% 321,518 £1,275,266,439 25%

Retail, Shopping Centres 33,147,491 32,513,144 31,778,902 20,340,538 58 19,263,751 55 17,996,567 51 -7% -12% 351,401 £1,805,969,577 36%

Offices 90,637,159 82,106,964 99,345,060 36,375,174 142 30,953,630 121 30,165,660 118 -3% -17% 255,702 £1,376,123,279 27%

Leisure 0 782,791 438,536 0 0 0 0 0 0 – – 0 0 –

Totals 159,887,229 131,523,197 149,803,677 62,165,055 48 55,252,203 42 53,081,430 41 -4% -15% 1,304,507 £5,067,550,545

Global Energy by Sector Global ‘Like for Like’ Energy Global Energy Procured

0

5

10

15

20

25

30

35

40

Industrial,Business Parks

Retail,High Street

Retail,Warehouses

Retail,Shopping Centres

O�ces

GWh

0

10

20

30

40

50

60

70 GW

h

0

20

40

60

80

100

120

140

160

180

GWh

2011/2012

2014/2015

2015/20160

5

10

15

20

25

30

35

40


Retail,High Street

Retail,Warehouses


O�ces

GWh

0

10

20

30

40

50

60

70

GWh

0

20

40

60

80

100

120

140

160

180

GWh

2011/2012

2014/2015

2015/20160

5

10

15

20

25

30

35

40


Retail,High Street

Retail,Warehouses


O�ces

GWh

0

10

20

30

40

50

60

70 GW

h

0

20

40

60

80

100

120

140

160

180

GWh

2011/2012

2014/2015

2015/2016


For our ‘like-for-like’ portfolio, total energy consumption has reduced compared with last year and the baseline year, both in the UK and overseas.

UK Sector Energy Efficiency Statement

Sector


2011/2012 Total

Procured

2014/2015 Total

Procured

2015/2016 Total

Procured

2011/2012 'Like for Like'


Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)

'Like for Like' change compared to

last year

'Like for Like' change compared to

base year

m2 2015/2016 %

Industrial, Distribution Warehouses 478,570 314,520 367,117 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 4,835,780 4,037,026 3,414,064 373,408 1.2 293,548 0.9 257,561 0.8 -12% -31% 324,318 £393,315,000 8%

Retail, High Street 864,423 1,733,576 1,964,964 820,802 22.4 791,747 21.6 779,333 21.3 -2% -5% 36,630 £138,775,000 3%

Retail, Warehouses 4,375,459 3,743,527 4,577,284 3,274,026 11.8 2,815,638 10.2 2,720,571 9.8 -3% -17% 276,440 £1,225,210,000 26%

Retail, Shopping Centres 27,912,023 25,582,967 24,724,961 20,340,538 57.9 19,263,751 54.8 17,996,567 51.2 -7% -12% 351,401 £1,805,969,577 38%

Offices 55,662,196 67,208,079 76,463,784 22,635,186 149.9 18,653,253 123.5 17,867,310 118.3 -4% -21% 150,984 £1,203,549,495 25%

Leisure 0 782,791 438,536 0 0 0 0 0 0 – – 0 0 –

Total 94,128,451 103,402,486 111,950,710 47,443,960 41.6 41,817,937 36.7 39,621,343 34.8 -5% -16% 1,139,774 £4,766,819,072

Overseas Sector Energy Efficiency Statement

Sector


2011 Total Procured

2014 Total Procured

2015 Total Procured

2011 'Like for Like'

2011 ‘Like for Like’

Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)


Weather Adjusted


Intensity (kWh/m2)


last year


base year

m2 2015 %

Industrial, Distribution Warehouses 20,561,572 1,040,374 999,456 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 3,579,992 351,407 2,385,160 291,532 24.1 386,495 31.9 357,696 29.5 -7% 23% 12,117 £8,112,500 3%

Retail, High Street 873,755 80,548 86,591 156,545 55.5 80,548 28.6 86,591 30.7 8% -45% 2,820 £69,988,750 23%

Retail, Warehouses 533,029 4,819,320 4,446,543 533,029 11.8 666,846 14.8 717,450 15.9 8% 35% 45,078 £50,056,439 17%

Retail, Shopping Centres 5,235,468 6,930,177 7,053,941 0 0 0 0 0 0 – – 0 0 –

Offices 34,974,963 14,898,885 22,881,275 13,739,988 131.2 12,300,378 117.5 12,298,350 117.4 -0.02% -10% 104,718 £172,573,784 57%

Totals 65,758,779 28,120,711 37,852,967 14,721,094 89.4 13,434,267 81.6 13,460,087 81.7 0.2% -9% 164,733 £300,731,473


UK Sector Direct Consumption Summary

Sector

Gas (kWh) ‘Like for Like’ Area (NLA) ‘Like for Like’ Value (£)

2011/2012 Total

2014/2015 Total

2015/2016 Total




‘Like for Like’ change compared

to last year


to base yearm2 2015/2016 %

Industrial, Distribution Warehouses 57,620 9,304 22,018 0 0 0 – – 0 0 –

Industrial, Business Parks 2,268,956 1,316,469 1,009,278 20,944 22,995 23,551 2% 12% 176,280 £178,275,000 5%

Retail, High Street 948 635,693 636,246 0 0 0 – – 0 0 –

Retail, Warehouses 120,844 120,160 340,635 120,844 120,038 128,515 7% 6% 175,040 £873,560,000 25%

Retail, Shopping Centres 5,679,655 4,465,448 4,065,755 3,904,242 3,519,119 3,321,991 -6% -15% 294,650 £1,674,954,577 47%

Offices 16,484,978 22,026,031 26,338,517 9,264,732 7,259,157 7,319,384 1% -21% 120,036 £816,429,495 23%

Leisure 0 115,011 69,057 0 0 0 – – 0 0 –

Totals 24,613,001 28,688,115 32,481,506 13,310,762 10,921,309 10,793,441 -1% -19% 766,006 £3,543,219,072

Overseas Sector Direct Consumption Summary

Sector

Gas (kWh) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011 Total 2014 Total 2015 Total 2011‘Like for Like’


2015‘Like for Like’


to last year


to base yearm2 2015 %

Industrial, Distribution Warehouses 5,751,655 0 0 0 0 0 – – 0 – –

Industrial, Business Parks 1,904,465 103,104 353,005 277,172 335,970 352,933 5% 27% 12,117 £8,112,500 5%

Retail, High Street 373,806 0 0 0 0 0 – – 0 – -

Retail, Warehouses 0 0 14,210 0 0 0 – – 0 – –

Retail, Shopping Centres 1,085,255 2,289,747 2,559,819 0 0 0 – – 0 – –

Offices 5,443,295 3,511,396 8,810,470 4,047,403 3,106,438 3,658,082 18% -10% 97,646 £146,414,558 95%

Totals 14,558,477 5,904,247 11,737,504 4,324,575 3,442,408 4,011,015 17% -7% 109,763 £154,527,058

Despite an increase in heating degree days for 2015/16 in the UK, we delivered a reduction in ‘like -for-like’ gas consumption. The number of degree days in our overseas locations increased by over 10% last year, contributing to an increase in the two sectors for which we have ‘like-for-like’ portfolios, particularly for offices. We are working with our managing agents to bring this back down.


UK Sector Indirect Consumption Summary

Sector

Electricity (kWh) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011/2012 Total

2014/2015 Total

2015/2016 Total


2014/2015'Like for Like'



to last year


to base year m2 2015/2016 %


Industrial, Business Parks 2,550,133 2,720,557 2,404,786 352,464 270,480 234,830 -13% -33% 324,318 £393,315,000 8%

Retail, High Street 863,475 1,097,883 1,328,718 820,802 791,747 779,333 -2% -5% 36,630 £138,775,000 3%

Retail, Warehouses 4,327,261 3,623,367 4,236,649 3,153,182 2,695,221 2,596,528 -4% -18% 276,440 £1,225,210,000 26%

Retail, Shopping Centres 22,232,368 21,117,519 20,659,206 17,171,424 16,786,190 15,883,355 -5% -8% 351,401 £1,805,969,577 38%

Offices 39,177,218 45,182,047 50,125,268 24,655,748 21,497,579 20,837,998 -3% -15% 150,984 £1,203,549,495 25%

Leisure 0 667,780 369,479 0 0 0 – – 0 0 –

Totals 69,571,405 74,714,370 79,469,204 46,153,620 42,041,217 40,332,043 -4% -13% 1,139,774 £4,766,819,072

On a ‘like-for-like’ basis, electricity consumption at our UK assets is now 13% lower than in 2011/12, with reductions achieved in all sectors.

Electricity consumption at our ‘like-for-like’ overseas assets fell by 1% in 2015 and is now 8% below 2011/12. We are working with our managing agents to address increased consumption at business parks and retail warehouses.

Overseas Sector Indirect Consumption Summary

Sector

Electricity (kWh) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011 Total 2014 Total 2015 Total 2011 'Like for Like'

2014 'Like for Like'



to last year


to base year m2 2015 %

Industrial, Distribution Warehouses 14,809,916 1,040,374 999,456 0 0 0 – – 0 0 –

Industrial, Business Parks 1,675,526 15,437 2,032,155 14,360 15,437 12,593 -18% -12% 12,117 £8,112,500 3%

Retail, High Street 499,949 80,548 86,591 156,545 80,548 86,591 8% -45% 2,820 £69,988,750 23%

Retail, Warehouses 533,029 4,819,320 4,432,333 533,029 666,846 717,450 8% 35% 45,078 £50,056,439 17%

Retail, Shopping Centres 4,150,213 4,640,431 4,494,122 0 0 0 – – 0 0 –

Offices 29,531,668 11,387,489 14,070,805 9,692,586 8,927,852 8,771,186 -2% -10% 104,718 £172,573,784 57%

Totals 51,200,302 21,983,598 26,115,463 10,396,520 9,690,683 9,587,820 -1% -8% 164,733 £300,731,473


Global Sector Green House Gas Emissions Statement ‘Adjusted’

Sector

Green House Gas Emissions‘Like for Like’ Area

(NLA) ‘Like for Like’ Asset Value (£) 2011/2012 2014/2015 2015/2016

‘Like for Like’ Landlord & Degree Day

Adjusted (kWh)

GHG Emissions

(tCO2e)

'Like for Like'

Intensity (kgCO2e/

m2)

'Like for Like' Landlord & Degree Day

Adjusted (kWh)

GHG Emissions

(tCO2e)

'Like for Like'

Intensity (kgCO2e/

m2)


Adjusted (kWh)

CO2 Emissions

(tCO2e)

N2O Emissions

(tCO2e)

GHG Emissions

(tCO2e)

'Like for Like'

Intensity (kgCO2e/

m2)


last year


base yearm2 2015/16 %

Industrial, Distribution Warehouses 0 0 – 0 0 – 0 0 0 0 – – – 0 0 –

Industrial, Business Parks 664,940 262 0.8 680,043 238 0.7 615,257 186 12 198 0.6 -17% -25% 336,435 £401,427,500 8%

Retail, High Street 977,347 459 11.6 872,295 427 10.8 865,924 392 0 392 9.9 -8% -15% 39,450 £208,763,750 4%

Retail, Warehouses 3,807,055 1,826 5.7 3,503,117 1,533 4.8 3,470,720 1,385 4 1,390 4.3 -9% -24% 321,518 £1,275,266,439 25%

Retail, Shopping Centres 20,340,538 9,969 28.4 19,263,751 9,375 26.7 17,996,567 8,080 93 8,173 23.3 -13% -18% 351,401 £1,805,969,577 36%

Offices 36,375,174 13,977 54.7 30,953,630 11,592 45.3 30,165,660 10,432 338 10,770 42.1 -7% -23% 255,702 £1,376,123,279 27%

Leisure 0 0 – 0 0 – 0 0 0 0 – – – 0 0 –

Totals 62,165,055 26,492 20.3 55,272,836 23,165 17.8 53,114,129 20,475 448 20,923 16.0 -10% -21% 1,304,507 £5,067,550,545

GHG emission statementsThe carbon dioxide (CO2) conversion factors used in the following statements are taken from the CRC Energy Efficiency Scheme for UK supplies and the International Energy Agency and GHG Protocol Initiative for overseas supplies. All conversion factors are single year figures rather than five-year rolling averages in accordance with the UK GHG regulations guidelines. Nitrous Oxide (NO) has been expressed in CO2 equivalents using the GHG regulations guideline conversion factors.

The degree day ‘adjusted’ figures tie in with the energy efficiency statements given above. Figures exclude tenant supplies.

Total Global GHG Emissions Global Sector GHG Emissions

0

5,000

10,000

15,000

20,000

25,000

30,000

Global Annual GHG (tCO2e)

tCO 2

e

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Industrial, Business Parks Retail, High Street Retail, Warehouses Retail, Shopping Centres O�ces

tCO 2

e

2011/2012

2014/2015

2015/20160

5,000

10,000

15,000

20,000

25,000

30,000

Global Annual GHG (tCO2e)

tCO 2

e

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


tCO 2

e

2011/2012

2014/2015

2015/2016


UK Sector Green House Gas Emissions Statement ‘Adjusted’

Sector


(NLA) ‘Like for Like’ Asset Value (£) 2011/2012 2014/2015 2015/2016

'Like for Like' Landlord & Degree Day Base (kWh)

GHG Emissions

(tCO2e)

'Like for Like' Intensity

(kgCO2e/m2)


Adjusted (kWh)

GHG Emissions

(tCO2e)


(kgCO2e/m2)


Adjusted (kWh)

GHG Emissions

(tCO2e)


(kgCO2e/m2)


last year


base yearm2 2015/16 %

Industrial, Distribution Warehouses 0 0 – 0 0 – 0 0 – – – 0 0 –

Industrial, Business Parks 373,408 195 0.6 293,548 149 0.5 257,561 122 0.4 -19% -38% 324,318 £393,315,000 8%

Retail, High Street 820,802 444 12.1 791,747 422 11.5 779,333 387 10.6 -8% -13% 36,630 £138,775,000 3%

Retail, Warehouses 3,274,026 1,732 6.3 2,815,638 1,463 5.3 2,720,571 1,316 4.8 -10% -24% 276,440 £1,225,210,000 26%

Retail, Shopping Centres 20,340,538 9,969 28.4 19,263,751 9,375 26.7 17,996,567 8,173 23.3 -13% -18% 351,401 £1,805,969,577 38%

Offices 22,635,186 9,430 62.5 18,653,253 7,854 52.0 17,867,310 7,100 47.0 -10% -25% 150,984 £1,203,549,495 25%

Leisure 0 0 – 0 0 – 0 0 – – – 0 0 –

Totals 47,443,960 21,770 19.1 41,817,937 19,263 16.9 39,621,343 17,098 15.0 -11% -21% 1,139,774 £4,766,819,072

Overseas Sector Green House Gas Emissions Statement ‘Adjusted’

Sector


(NLA) ‘Like for Like’ Asset Value (£) 2011 2014 2015

'Like for Like' Procured

Degree Day Base (kWh)

GHG Emissions

(tCO2e)


(kgCO2e/m2)


Degree Day Adjusted

(kWh)

GHG Emissions

(tCO2e)


(kgCO2e/m2)


Degree Day Adjusted

(kWh)

GHG Emissions

(tCO2e)


(kgCO2e/m2)


last year


base yearm2 2015 %

Industrial, Distribution Warehouses 0 0 – 0 0 – 0 0 – – – 0 0 –

Industrial, Business Parks 291,532 67 5.5 386,495 89 7.3 357,696 76 6.3 -14% 14% 12,117 £8,112,500 3%

Retail, High Street 156,545 15 1.2 80,548 5 0.4 86,591 5 0.4 3% -66% 2,820 £69,988,750 23%

Retail, Warehouses 533,029 93 7.7 666,846 70 5.8 717,450 74 6.1 5% -21% 45,078 £50,056,439 17%

Retail, Shopping Centres 0 0 – 0 0 – 0 0 – – – 0 0 –

Offices 13,739,988 4,547 375.2 12,300,378 3,738 308.5 12,298,350 3,670 302.9 -2% -19% 104,718 £172,573,784 57%

Totals 14,721,094 4,722 28.7 13,434,267 3,902 23.7 13,460,087 3,825 23.2 -2% -19% 164,733 £300,731,473


Global Sector Green House Gas Emissions ‘Actual’

Sector ‘Like for Like’ CO2 (tCO2e) ‘Like for Like’ N2O (tCO2e) Total ‘Like for Like’ GHG (tCO2e) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011/2012 2014/2015 2015/2016 2011/2012 2014/2015 2015/2016 2011/2012 2014/2015 2015/2016


last year


base year

m2 2015/16 %

Industrial, Distribution Warehouses 0 0 0 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 252 218 187 10 12 12 262 230 199 -13% -24% 336,435 £401,427,500 8%

Retail, High Street 459 427 392 0 0 0 459 427 392 -8% -15% 39,450 £208,763,750 4%

Retail, Warehouses 1,821 1,529 1,386 4 4 4 1,826 1,533 1,391 -9% -24% 321,518 £1,275,266,439 25%

Retail, Shopping Centres 9,859 9,276 8,098 109 97 97 9,969 9,373 8,195 -13% -18% 351,401 £1,805,969,577 36%

Offices 13,542 11,195 10,498 435 334 350 13,977 11,529 10,849 -6% -22% 255,702 £1,376,123,279 27%

Leisure 0 0 0 0 0 0 0 0 0 – – 0 0 –

Totals 25,934 22,645 20,562 559 447 464 26,492 23,092 21,026 -9% -21% 1,304,507 £5,067,550,545

In overall ‘actual’ terms, our ‘like-for-like’ carbon footprint decreased by 9% compared with last year and is now 21% below the baseline year. The reason that GHG emissions have fallen more than energy consumption is largely due to a reduction in the emissions factor for UK electricity. Our continued reductions in GHG emissions for the ‘like-for-like’ portfolio reflects the success of the policies and procedures we have in place.

Global Annual CO2

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

0

100

200

300

400

500

600 tC

O 2e

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

e

2011/2012

2014/2015

2015/2016

Global Annual N2O

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

0

100

200

300

400

500

600 tC

O 2e

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

e

2011/2012

2014/2015

2015/2016

Global Annual GHG

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

0

100

200

300

400

500

600

tCO 2

e

0

5,000

10,000

15,000

20,000

25,000

30,000

tCO 2

e

2011/2012

2014/2015

2015/2016


UK Sector Green House Gas Emissions Statement ‘Actual’

Sector

‘Like for Like’ Electricity (tCO2e) ‘Like for Like’ Gas (tCO2e) ‘Like for Like’ N2O (tCO2e) ‘Like for Like’ Total GHG (tCO2e) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011/ 2012

2014/ 2015

2015/ 2016

2011/ 2012

2014/ 2015

2015/ 2016

2011/ 2012

2014/ 2015

2015/ 2016

2011/ 2012

2014/ 2015

2015/ 2016


last year


base year

m2 2015/2016 %

Industrial, Distribution Warehouses 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 191 144 117 4 4 4 1 1 1 195 149 122 -18% -38% 324,318 £393,315,000 8%

Retail, High Street 444 422 387 0 0 0 0 0 0 444 422 387 -8% -13% 36,630 £138,775,000 3%

Retail, Warehouses 1,706 1,437 1,289 22 22 24 4 4 4 1,732 1,463 1,317 -10% -24% 276,440 £1,225,210,000 26%

Retail, Shopping Centres 9,271 8,752 7,578 588 524 521 109 97 97 9,969 9,373 8,195 -13% -18% 351,401 £1,805,969,577 38%

Offices 7,534 6,398 5,712 1,599 1,224 1,213 297 227 225 9,430 7,849 7,150 -9% -24% 150,984 £1,203,549,495 25%

Leisure 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 0 –

Totals 19,146 17,153 15,082 2,213 1,774 1,762 411 329 327 21,770 19,256 17,170 -11% -21% 1,139,774 £4,766,819,072

Overseas Sector Green House Gas Emissions Statement ‘Actual’

Sector

‘Like for Like’ Electricity (tCO2e) ‘Like for Like’ Gas (tCO2e) ‘Like for Like’ N2O (tCO2e) ‘Like for Like’ Total GHG (tCO2e) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011 2014 2015 2011 2014 2015 2011 2014 2015 2011 2014 2015


last year


base year

m2 2015 %

Industrial, Distribution Warehouses 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 7 7 5 51 62 62 9 12 11 67 81 78 -4% 16% 12,117 £8,112,500 3%

Retail, High Street 15 5 5 0 0 0 0 0 0 15 5 5 3% -66% 2,820 £69,988,750 23%

Retail, Warehouses 93 70 74 0 0 0 0 0 0 93 70 74 5% -21% 45,078 £50,056,439 17%

Retail, Shopping Centres 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 0 –

Offices 3,666 3,000 2,900 743 573 673 138 106 125 4,547 3,680 3,699 1% -19% 104,718 £172,573,784 57%

Totals 3,781 3,083 2,984 794 635 735 147 118 137 4,722 3,836 3,855 1% -18% 164,733 £300,731,473


Global Sector Water Conservation Statement

Sector

‘Like for Like’ Water ‘Like for Like’ Areas (NLA) ‘Like for Like’ Asset Value (£)

2011/2012 (m3)

2011/2012 Intensity

(L/m2)

2014/2015 (m3)

2014/2015 Intensity

(L/m2)

2015/2016 (m3)

2015/2016 Intensity

(L/m2)


to last year


to base year(m2) 2015/2016 %

Industrial, Distribution Warehouses 0 0 0 0 0 0 – – 0 0 –

Industrial, Business Parks 608 3 1,005 6 943 5 -6% 55% 178,556 £232,387,500 6%

Retail, High Street 694 79 592 67 447 51 -24% -36% 8,766 £81,613,750 2%

Retail, Warehouses 8,396 61 8,949 65 8,573 62 -4% 2% 137,367 £511,459,770 14%

Retail, Shopping Centres 136,740 412 136,688 412 136,054 410 -0.5% -0.5% 331,704 £1,747,869,577 48%

Offices 115,837 516 117,707 524 115,974 516 -1% 0.1% 224,644 £1,077,513,671 30%

Totals 262,275 298 264,940 301 261,992 297 -1.1% -0.1% 881,038 £3,650,844,268

Water conservation statementsWater scarcity has not historically been a significant issue in most of the countries where we have assets. However, this is changing and the impact of climate change will increase the importance of water conservation in many regions. Although in most of our buildings the tenants have their own water supplies, the main drivers for the landlord to conserve water are increasing supply costs and the knock-on effect of water distribution on electricity consumption.

We are pleased to report that our ‘like-for-like’ water consumption decreased in 2015/16, reversing the trend we have seen in previous years. This can be attributed to the reduced impact of refurbishment projects across the ‘like-for-like’ portfolio and an increased roll-out of water efficiency measures. Consumption for the ‘like-for-like’ portfolio is now slightly below the baseline year. We hope to continue to reduce consumption in future years in line with or targets.

Global Water Consumption Global Sector Water Consumption

m3

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000


m3

2011/2012

2014/2015

2015/2016

Global Water (m3)260,500

261,000

261,500

262,000

262,500

263,000

263,500

264,000

264,500

265,000

265,500

m3

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000


m3

2011/2012

2014/2015

2015/2016

Global Water (m3)260,500

261,000

261,500

262,000

262,500

263,000

263,500

264,000

264,500

265,000

265,500


UK Sector Water Conservation Statement

Sector

Water (m3) ‘Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011/2012 Total 2014/2015 Total 2015/2016 Total 2011/2012 ‘Like for Like’




to last year


to base yearm2 2015/2016 %

Industrial, Distribution Warehouses 675 969 701 0 0 0 – – 0 0 –

Industrial, Business Parks 51,456 63,567 33,288 207 176 175 -0.3% -15% 166,439 £224,275,000 7%

Retail, High Street 182 4,722 3,917 182 84 57 -32% -69% 5,946 £11,625,000 0.3%

Retail, Warehouses 7,676 7,445 10,910 7,358 8,172 7,771 -5% 6% 123,070 £491,685,000 15%

Retail, Shopping Centres 203,068 164,954 166,803 136,740 136,688 136,054 -0.5% -1% 331,704 £1,747,869,577 52%

Offices 149,529 216,651 210,957 75,369 79,883 73,974 -7% -2% 121,657 £911,324,495 27%

Leisure 0 1,394 960 0 0 0 – – 0 0 –

Totals 412,586 458,308 427,538 219,857 225,003 218,032 -3% -0.8% 748,817 £3,386,779,072

Overseas Sector Water Conservation Statement

Sector

Water (m3) Like for Like’ Area (NLA) ‘Like for Like’ Asset Value (£)

2011 Total 2014 Total 2015 Total 2011 ‘Like for Like’




to last year


to base yearm2 2015 %


Industrial, Business Parks 50,189 829 2,482 400 829 768 -7% 92% 12,117 £8,112,500 3%

Retail, High Street 8,378 508 390 512 508 390 -23% -24% 2,820 £69,988,750 27%

Retail, Warehouses 2,556 4,814 14,795 1,038 777 801 3% -23% 14,297 £19,774,770 7%

Retail, Shopping Centres 13,800 14,433 15,859 0 0 0 – – 0 0 –

Offices 107,815 58,512 68,824 40,468 37,823 42,000 11% 4% 102,987 £166,189,176 63%

Totals 244,725 80,213 103,904 42,419 39,937 43,960 10% 4% 132,221 £264,065,196


Waste diversion statementsThe figures below present our waste management performance for UK assets. We have successfully achieved our zero waste to landfill target for assets in three sectors, with only 0.2% of arisings going to landfill in total across all sectors. This represents an improvement on performance in 2014/15.

UK Sector Waste

0 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500

Retail, High Street Retail, Warehouses Retail, Shopping Centres Industrial O�ces Leisure

Tonn

es

Land�ll

Recovered

Recycled

We currently manage waste arisings for one shopping centre asset in Poland. For the reporting period, waste treatment rates for this asset were 52% recycled and 48% recovered via energy from waste. This represents a significant improvement on last year when a significant proportion was sent to landfill.

UK Waste April 2015 – March 2016 Overall Waste Handled April 2015 – March 2016 (tonnes)

Sector Total Recovered(tonnes)

Total Recycled (tonnes)

Total Landfill (tonnes)

Total Waste Generation (tonnes)

Retail, High Street 113 35%

208 65%

– 0% 321

Retail, Warehouses 524 37%

882 62%

11 1% 1,417

Retail, Shopping Centres 2,872 58%

2,083 42%

– 0% 4,955

Industrial 31 49%

33 51%

– 0% 65

Offices 837 44.3%

1,050 55.6%

2 0.1% 1,889

Leisure 2 91%

0.05 3%

0.1 6% 2

Total 4,379 50.6%

4,257 49.2%

13 0.2% 8,649

50.6%4,379

49.2%4,257

0.2%13

Total Recovered Total LandfillTotal Recycled


Health and safety performance statementsStandard Life Investments is committed to providing safe and secure buildings that promote a healthy working/customer experience and support a healthy lifestyle. We manage and control health and safety risks systematically using technologically advanced systems and environmentally protective materials and equipment.

We aim to achieve the highest levels of health and safety performance, allowing us to earn the confidence and trust of tenants, customers, employees, shareholders and society at large. The chart on the left below shows the performance of the portfolios in terms of controlled risk for the point of first audit at the beginning of 2016.

The chart on the right illustrates the significant progress we have made over the period we have been tracking our performance in this area and highlights the effectiveness of our health and safety risk management process, with over 95% of all risks managed effectively over the period 2010-2016.

Geographical Comparison Year-on-year Improvement

3.4% 3.3%

96.7% 96.7% 98.3% 99.2%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Europe UK

Uncontrolled – Total % Controlled (Initial) % Controlled (Live) %

77% 83%

88% 90% 95.4% 95% 95.5% 96% 96.2% 96.7% 97% 96.7%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Global Reporting Initiative (GRI) alignment

We use GRI G4 Sustainability Reporting Guidelines and the accompanying Construction and Real Estate Sector Disclosures to inform the scope of our sustainability reporting. The following table outlines our assessment of our alignment with the GRI G4 reporting requirements for the ‘in accordance – Core’ reporting option. As previously stated, this report covers real estate funds under the discretionary management of Standard Life Investments. The scope of the report does not therefore align with the scope of a single organisational entity and, as such, not all GRI indicators are applicable.

Global Reporting Initiative – Assessment of Reporting Application Level

G4 Standard Disclosures - Construction and Real Estate Relevant 2016 Report Section and Commentary (if applicable)

General Standard Disclosures

Strategy & Analysis

G4-1 Statement from the most senior Decision Maker G4-2 Description of Key Impacts

Introduction, quote from David Paine, Head of Real EstateStatement from Real Estate Sustainability Manager with additional detail throughout the report and SREI Policy published online

Organisation Profile

G4-3 Name of Organisation

G4-4 Primary Brands/ProductsG4-5 Location of Head OfficeG4-6 Number of Countries

G4-7 Nature of Ownership

G4-8 Markets ServedG4-9 Scale of Organisation G4-10 Total WorkforceG4-11 Collective BargainingG4-12 Supply ChainG4-13 Significant Changes in YearG4-14 Precautionary ApproachG4-15 External Organisations

G4-16 External Memberships

The report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate officesAppendix - Consolidated KPIs, Report BoundariesAppendix - Consolidated KPIs, Report BoundariesIntroduction - Key Facts

The report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate officesAppendix - Consolidated KPIs, Report BoundariesIntroduction - Key FactsAppendix - Real Estate Workforce as at 31 March 201612% of Real Estate staff. This applies to staff based in France onlyAppendix - Governance Structure. Additional detail in SREI Policy published onlineIntroduction - Key FactsNot applicable at Real Estate levelAt Real Estate level: UNPRI, GRESB At Real Estate level: GRESB, INREV, BPF, SPF, AREF, UK-GBC

Identified Material Aspects and Boundaries

G4-17 Operational Structure

G4-18 Process for ContentG4-19 List of Material AspectsG4-20,21 Aspect BoundariesG4-22 Re-statementsG4-23 Significant Changes

Refer to Standard Life plc Annual Report and Accounts, published online. This report covers all of the real estate funds under the discretionary management of Standard Life Investments that operate from our worldwide real estate offices

Appendix - Consolidated KPIs, Report BoundariesAppendix - Consolidated KPIs, TablesAppendix - Consolidated KPIs, Report BoundariesAppendix - Consolidated KPIs, no relevant re-statementsAppendix - Consolidated KPIs, Report Boundaries


Stakeholder Engagement

G4-24 Stakeholder GroupsG4-25 Basis for G4-24G4-26 Approach to Stakeholder EngagementG4-27 Key Stakeholder Topics

Stakeholder Engagement section with additional detail in SREI Policy published onlineStakeholder Engagement section with additional detail in SREI Policy published onlineStakeholder Engagement section with additional detail in SREI Policy published onlineStakeholder Engagement section with additional detail in SREI Policy published online

Report Profile

G4-28 Reporting PeriodG4-29 Date of Last ReportG4-30 Reporting CycleG4-31 Contact PointG4-32 Table of Disclosures G4-33 Assurance

Appendix - Consolidated KPIs, Reporting PeriodApril 2016Appendix - Consolidated KPIs, Reporting PeriodAppendix - Consolidated KPIsAppendix - this table

KPI data is externally checked and validated by KJ Tait Engineers. It is our intention to move to assurance of our annual SREI reports in future

Governance

G4-34 Governance Structure Appendix - Governance Structure and reporting lines through Head of Real Estate

Ethics and Integrity

G4-56 Ethics and Integrity Indicator not applicable at Real Estate level

Specific Standard Disclosures

Economic

G4-EC1 Direct Economic Value Generated and Distributed G4-2 Description of Key Impacts

Refer to Standard Life plc Annual Report and Accounts, published onlineStatement from Real Estate Sustainability Manager. Additional information throughout report and in SREI Policy published online

Environmental

G4-EN3 Energy Consumption Within the OrganisationG4-EN4 Energy Consumption Outside the OrganisationG4-EN5/ CRE1 Building Energy IntensityG4-EN6 Reduction of Energy ConsumptionG4-EN7 Reductions in Energy Requirements of Products and ServicesG4-EN8 Total Water Withdrawal by SourceCRE2 Building Water IntensityG4-EN15 Total Direct Greenhouse Gas Emissions G4-EN16 Total Direct Greenhouse Gas Emissions G4-EN17 Other Relevant Indirect Greenhouse Gas EmissionsG4-EN18/ CRE3 Greenhouse Gas Emissions IntensityG4-EN19 Reduction of Greenhouse Gas EmissionsG4-EN20 Emission of Ozone Depleting SubstancesG4-EN21 NOx, SOx and Other Significant Air EmissionsG4-EN23 Total Weight of Waste by Type and Disposal MethodG4-EN29 Monetary Value of Environmental Fines

Appendix - Consolidated KPI’s, Energy Efficiency StatementsAppendix - Consolidated KPI’s, Energy Efficiency StatementsAppendix - Consolidated KPI’s, Energy Efficiency StatementsSustainable Asset Management, Appendix - Consolidated KPI’s, Energy Efficiency StatementsSustainable Asset Management, Case Studies, Appendix - Consolidated KPI’s, Energy Efficiency StatementsAppendix - Consolidated KPI’s, Water Conservation StatementsAppendix - Consolidated KPI’s, Water Conservation StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsSustainable Asset Management, Appendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, GHG Emissions StatementsAppendix - Consolidated KPI’s, Resource Efficiency StatementsNone

Product Responsibility

G4-PR1 Health and Safety Impacts of Products and Services G4-PR2 Total Number of Incidents of Non-compliance With Regulations

Appendix - Consolidated KPI’s, Health and Safety Performance StatementsAppendix - Consolidated KPI’s, Health and Safety Performance Statements


Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority.

Standard Life Investments (Hong Kong) Limited is licensed with and regulated by the Securities and Futures Commission in Hong Kong and is a wholly-owned subsidiary of Standard Life Investments Limited.

Standard Life Investments Limited (ABN 36 142 665 227) is incorporated in Scotland (No. SC123321) and is exempt from the requirement to hold an Australian financial services licence under paragraph 911A(2)(l) of the Corporations Act 2001 (Cth) (the ‘Act’) in respect of the provision of financial services as defined in Schedule A of the relief instrument no.10/0264 dated 9 April 2010 issued to Standard Life Investments Limited by the Australian Securities and Investments Commission. These financial services are provided only to wholesale clients as defined in subsection 761G(7) of the Act. Standard Life Investments Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority under the laws of the United Kingdom, which differ from Australian laws.

Standard Life Investments Limited, a company registered in Ireland (904256) 90 St Stephen’s Green Dublin 2, is authorised and regulated in the UK by the Financial Conduct Authority.

Standard Life Investments (USA) Limited is registered as an Exempt Market Dealer in Canada and as an Investment Adviser with the US Securities and Exchange Commission. Standard Life Investments (Corporate Funds) Limited is registered as an Investment Adviser with the US Securities and Exchange Commission.

Calls may be monitored and/or recorded to protect both you and us and help with our training.www.standardlifeinvestments.com © 2017 Standard Life, images reproduced under licence

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Documents

Sustainable Real Estate Investment - Standard Life Investments · Sustainable Real Estate Investment Sustainable Real Estate Investment . 6 Sustainable Real Estate Investment Sustainable