Protecting the environment

Climate change presents challenging risks and uncertainties for business and society, but also provides opportunities to be innovative in both mitigating our emissions and adapting to its impact.

Our Climate Change Policy commits us to minimising our impact on the climate, future proofing our homes and developments to future changes in climate and helping our customers to reduce their carbon footprint.

In 2022 we developed new science-based that have been approved by the Science Based Targets initiative (SBTi). The SBTi validation confirms that our targets are based on the latest climate science, supporting the ambition to limit global temperature rise to 1.5C in line with the Paris Agreement. Our long-term ambition to reach net-zero GHG emissions across our value chain by 2045 is supported by a series of commitments across scope 1, 2 and 3 emissions.

Net-zero target

• Reach net-zero GHG emissions across the value chain by 2045 from a 2019 base year.

Near term targets

• Reduce absolute scope 1 and 2 GHG emissions 60% by 2030 from a 2019 base year*
• Reduce scope 3 GHG emissions 55% per square meter completed floor area by 2030 from a 2019 base year.

Long term targets

• Reduce absolute scope 1 and 2 GHG emissions 90% by 2045 from a 2019 base year*
• Reduce scope 3 GHG emissions 97% per square meter completed floor area by 2045 from a 2019 base year.

To reduce energy and GHG emissions, we continue to:

• Increase our procurement of renewable electricity. All our homes are on a renewable electricity tariff
• Increase collaboration with our supply chain to research alternative technologies and fuels to reduce GHG emissions. Hydrotreated vegetable oil (HVO), a lower-emission replacement for white diesel, accounted for 49% of our site diesel in FY22, an increase from 17% in FY21
• Engage with our supply to identify opportunities to reduce the embodied carbon associated with the materials used in our homes and developments
• Research solutions to achieve the Future Homes Standard (FHS), which will significantly reduce GHG emissions associated with the ‘in-use’ phase of the home
• Use reporting tools to identify energy and fuel reduction opportunities and monitor progress against our targets.

We also committed to procuring 100% renewable electricity by 2025. For further detail on our performance against targets and other key metrics, please see our Annual Integrated Report and our Environmental, Social and Governance (ESG) data handbook.

We support the recommendations of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFD). Our disclosure against the recommendations is provided in our Annual Integrated Report CDP response and Annual Integrated Report.

We are committed to reducing natural resource consumption, waste and the risk of pollution incidents across our business operations. This is a key area of our sustainability strategy and central to our operational efficiency strategic priority. Reducing and recycling waste

We are taking active steps to reduce waste and have the following targets:

• Reduce waste intensity by 15% by 2025.
• Divert at least 95% of construction waste from landfill.

Further data on waste, including how we are performing against our targets, is provided in our Annual Integrated Report and ESG data handbook.

To reduce waste, we continue to:

• Monitor waste produced from sites and report back on potential improvement opportunities
• Increase use of our supplier’ return schemes and identify new opportunities to reduce packaging waste
• Research alternative construction methods and their impact on waste and embodied carbon For more information on how we create accessible green space and protect and enhance biodiversity, please see our Customers and Communities and Community Engagement pages.

Our homes are designed to use a maximum of 105 litres per person per day (lpppd), which is 16% lower than Building Regulations require. To reduce water consumption and improve resilience to water scarcity, we install aerated taps and showers, dual flush toilet cisterns and water-efficient appliances.

Biodiversity, which describes the variety of living species on our planet, is declining at an unprecedented rate. We are committed to achieving a biodiversity net gain of at least 10% on developments submitted for planning from November 2023. We engage with ecologists across all developments at an early stage to consider effective protection and enhancement measures. By considering at the outset how or developments can enhance biodiversity, the need to provide new homes and improve social infrastructure can be balanced with environmental concerns, ensuring both people and nature can thrive.