Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com

Page created by Nicholas Sanders
 
CONTINUE READING
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
Sustainability
Report 2020
OUR JOURNEY TO NET POSITIVE
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION

                                                       Contents
Hammerson

                                                       1. INTRODUCTION                                                                           P. 2
                                                       Our approach to sustainability, key ESG figures for 2020,
                                                       process for managing risk, and our response to the TCFD.

                                                       2. OUR PERFORMANCE                                                                     P.18
                                                       An overview of our journey to Net Positive, including headline
                                                       performance against targets and progress in each of our four Net
                                                       Positive areas. We also share our 2021-2022 targets, long-term targets
                                                       and highlights from our Transition Pathway to Net Positive.

                                                       2.1                         2.2                           2.3                   2.4

                                                       Carbon                     Water                         Resource              Socio-
                                                                                                                 Use                   economic
                                                                                                                                       impacts

                                                                        P.28                         P.34                       P.36                  P.38

                                                       3. OUR DATA                                                                               P. 4 6
                                                       Comprehensive disclosures of the environmental and
                                                       social impacts of our business activities, our basis of
                                                       reporting, methodology, boundaries and GRI index.

            COVER IMAGE:
            Pulse, part of the Festival of Light at
            event at Westquay, Southampton.
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                                       1.0 INTRODUCTION                       2.0 OUR PERFORMANCE                       3.0 OUR DATA

2
            Welcome from our                                                                                                                                                                                                                      3

            Chief Executive
Hammerson

            “Hammerson’s forward-thinking approach to sustainability
            has positioned the business well in responding to the
            rising ESG expectations of the investor community and
            our wider stakeholders. Our long-term vision is to ensure
            we continue to optimise our assets to thrive in a low
            carbon, city-based, 21st century economy. Our Positive
            Places sustainability strategy underpins this vision.

                                                                                                                                    Rita-Rose Gagné, CEO

                                                                                                                                                                                                                      £8m
            Hammerson’s sustainability              PERFORMANCE TO DATE                      A DIFFICULT YEAR FOR                   MAINTAINING A CLEAR                      POWERED BY RENEWABLES
            strategy has long been a key            AND THE IMPACT OF                        OUR COMMUNITIES                        FOCUS ON MATERIAL
            strength of the business. Taking        COVID-19                                                                        ISSUES                                   Our strategy recognises the critical
            over as Chief Executive, I made                                                  The strong relationships we have                                                role renewable power has to play in
            it clear that this is a position that   Unsurprisingly during 2020               with our communities has been          My immediate focus moving                the transition to a net zero carbon
                                                    we outperformed our annual               important during the pandemic.         forward remains on minimising            economy. Almost 3% of our landlord       of ESG focused investment
            will not change and that I expect
                                                    environmental targets. The trend         We were immediately conscious          our negative environmental               electricity demand was supplied by       planned 2021 - 2023
            sustainability to become even more
            central to our strategic thinking.      has been sharply downwards               of the intense pressures placed on     impacts through our ongoing              our on-site renewable assets in 2020
                                                    but the impact of closures due to        local third sector organisations       energy, water and resource use           and additional capacity is planned
                                                    COVID-19 makes 2020 a poor year          with reduced funding and increased     efficiency programmes, whilst            for 2021. 92% of our electricity

            -39%
                                                    for comparisons. The trend over          demand for services. A series          extending our positive social            demand in the UK and Ireland is
                                                    the previous four years is more          of projects was put in place to        impacts. Work to reduce key              currently sourced from REGO-
                                                    useful and has been very strong.         support local organisations help       environmental impacts through            backed clean electricity contracts.
                                                    Carbon emissions intensity of our        the most vulnerable within our         optimising asset resource                However, we plan to source at least
                                                    portfolio fell by 39% over the 4 years   communities. Our investment in         efficiency and investing in clean        50% of electricity for our UK assets
            carbon emissions intensity
                                                    to the end of 2019, and absolute         positive socio-economic projects       technology will continue over            from additional renewable power
            for managed retail portfolio
                                                    emissions by 30% even though             will obviously continue and we are     the short and medium term. We            from the end of 2021. This will bring
            over 4 years to end 2019                                                                                                                                         unsubsidised new capacity to the
                                                    our portfolio has increased in size.     particularly alert to the challenges   have almost £8m of ESG focused
                                                    Water intensity for landlord services    facing local communities in 2021.      investment included in asset             grid and set a new standard in terms
                                                    fell by 28% over this period.            We are already working with local      business plans to 2023, which we         of power purchasing for our market.
                                                                                             service providers and community        expect to deliver financial as well as   It will also support the transition of
                                                    We have yet to achieve our target of     foundations to target specific areas   environmental and social returns.        individual assets to net zero carbon
                                                    becoming Net Positive for landlord       of need, such as employment and                                                 over the coming years, helping us
                                                    carbon, water and resource use,          skills and financial exclusion.                                                 achieve our Net Positive targets for
                                                    however setting this ambitious target                                                                                    the business as a whole.
                                                    has driven the business to deliver
                                                    truly exceptional medium term
                                                    performance in these areas. Three of
                                                    our flagship assets were Net Positive
                                                    for landlord water demand in 2020.
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                                           1.0 INTRODUCTION                      2.0 OUR PERFORMANCE                         3.0 OUR DATA

                                                                                                                                                                                92%
4                                                                                                                                       The successful businesses                                                                                            5
                                                                                                                                        of the future will have
                                                                                                                                        sustainability at their
                                                                                                                                        core and be designed
Hammerson

                                                                                                                                        to thrive in a net zero                 of electricity for our UK
                                                                                                                                        carbon economy.                         and Ireland portfolio from
                                                                                                                                                                                REGO-backed contracts.

            City Quarters at Martineau Galleries, Birmingham
            < Continued from previous page

            THE POWER OF                             Sustainability and the risks of climate   carbon, climate risk, resource use,      Looking at climate risk specifically,   THE NEXT 12 MONTHS
                                                                                                                                                                                                                        We remain focused on our Net
            COLLABORATION                            change are a shared business agenda       water and our social impacts is right    our portfolios have relatively low      AND BEYOND
                                                                                                                                                                                                                        Positive targets over the next
                                                     and the power of collaboration is         for the business and supports our        exposure to physical risks. Where
            Our Net Positive targets include the                                                                                                                                One of the few certainties for the      12 months and beyond. They
                                                     already clear; it will continue to be     wider business strategy.                 these do present, our planned
            impacts from the tenanted space                                                                                                                                     next 12 months and beyond is the        represent a clear call to action
                                                     a central element of our approach.                                                 programmes of maintenance and
            within our assets. These represent                                                 As signatories to the Better Buildings                                           growing threat of climate change        for colleagues and are driving
                                                     Our customer base is set to change                                                 upgrade will build in resilience in
            over 70% of total carbon emissions                                                 Partnership Climate Commitment                                                   and the urgent need to act. Whilst      excellent outcomes. The successful
                                                     and with it, the expectations and                                                  a cost effective, well managed way.
            for the business according to our                                                  we published our Net Zero Carbon                                                 we can and will ensure our assets       businesses of the future will have
                                                     opportunities we must respond to.                                                  Transitional risks presented through
            latest data. Thanks to our extensive                                               Transition pathway in December                                                   remain resilient to direct physical     sustainability at their core and
                                                     This, along with a clearer focus on                                                increasing regulatory and legislative
            environmental foot-printing model                                                  2020. Setting out Net Positive targets                                           risks and transitional risks, we are    be designed to thrive in a net
                                                     performance-in-use, are pushing new                                                standards in the UK, Ireland and
            and data sharing agreements within                                                 5 years ago enabled us to publish a                                              indirectly exposed to the risks that    zero carbon economy. This is an
                                                     boundaries within the sector that we                                               France are well managed across the
            our leases, we are already able to                                                 detailed pathway that includes all                                               our other stakeholders, particularly    important opportunity for us as we
                                                     fully support through our own work                                                 portfolio. For example we are now
            calculate the carbon emissions from                                                our directly managed assets and                                                  our customers, face.                    reach out to communities within
                                                     and our active industry engagement.                                                planning for 2030 MEES risk. Having
            these areas (Scope 3 emissions) and                                                encompasses operational, embodied                                                                                        our cities and look to provide the
                                                                                                                                        established processes in place to       For this reason I have tasked my
            this data is set out in the report.      MANAGING THE                              and Scope 3 carbon emissions. This                                                                                       local infrastructure they need and
                                                                                                                                        ensure opportunities are taken to       senior management team with
                                                     TRANSITION TO NET ZERO                    directly aligns with and supports                                                                                        deserve and that will serve the
            Reducing these emissions is essential                                                                                       upgrade units to higher standards at    carrying out detailed climate
                                                     CARBON ECONOMY                            our wider Net Positive targets and                                                                                       business and our shareholders
            and requires positive collaboration                                                                                         the most effective opportunity within   scenario analysis this year to better
                                                                                               Positive Places strategic approach.                                                                                      in the decades to come.
            with our brands. Our work so far         The challenges and changes                                                         the leasing cycle, has enabled us to    understand these risks and the
            to encourage improved fit-out            experienced through 2020 made             This is particularly important as we     minimise exposure to 2023 MEES          potential opportunities that flow
            standards has delivered 900 tonnes       clearer than ever the value for our       look to develop our City Quarters.       risk and will ensure we are well        from them, to inform our wider
            of carbon savings within stores,         business and others like ours of          We have set the highest standards        prepared for the next phase.            business thinking and strategy.
            reducing carbon emissions and            taking a leadership approach to           for our design teams, including
            retailer operating costs over multiple   sustainability. The sharp increase        achieving net zero carbon and
            years. We are also working with          in focus on climate change                Passivhaus standards, and this strong
            stakeholders beyond our corporate        and related risks and stronger            steer is delivering exciting results.
            boundaries to support carbon, water      public expectations of corporate          The buildings that we create now
            and resource use savings elsewhere.      responsibility, place businesses that     and that will drive the performance
            We started this work for water in        are ahead of the curve in a positive      of our business for years to come
            2019 and are looking to expand it to     position. I am confident that our         have to be ready for the challenges
            carbon in 2021 and 2022.                 long-term focus on energy and             climate change and a net zero carbon
                                                                                               economy will present.
                                                                                                                                                                                                                        Rita-Rose Gagné
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                     1.0 INTRODUCTION              2.0 OUR PERFORMANCE                                  3.0 OUR DATA

6
            2020 in Figures                                                                                                                                                                   7

            Headline performance and portfolio figures from 2020.
Hammerson

                                          Net Positive
                                          portfolio CO2
                                                                EPRA LfL CO2      EPRA LfL CO2
                                                                                  intensity
                                                                                                                EPRA LfL TOTAL
                                                                                                                ENERGY DEMAND
                                                                                                                                                                               3
                                                                                                                                                                               flagship

                                          -55%                  -29%              -29%                          -18%                                                           assets
                                                                                                                                                                       NET POSITIVE
                                          v 2015                Year-on-year      Year-on-year                  Year-on-year                                           FOR LANDLORD
                                                                                                                                                                       WATER DEMAND

                                                                                                           57,258                                                  £180K
                                                          2,214                                            LOCAL PEOPLE                                            COVID SUPPORT

                    £2m                                   MWh
                                                                                                           engaged in our socio-                                   FUNDING for
                                                                                                           economic projects                                       local organisations
                    INVESTMENT                            RENEWABLE ELECTRICITY
                    in environmental                      produced on-site
                    initiatives
                                                                                  BENCHMARK SCORES                   PORTFOLIO VALUES                                        DAYS OF
                                                                                                                                                                             OPERATION

                                                                                                                                                                             253
                                                                                          Rating

                    92%
                                                                                          AA
                                                                                                                                                                             Reduced due to
                                                                                                                                                                             COVID closures
                    REGO-BACKED                                                           ESG Risk

                                                                                                                     £6,338m
                                                                                          assessment:                                                                        (avg.)

                    electricity for UK                                                    LOW RISK

                    and Ireland assets
                                                                                                                     Flagships UK               £1,511m      24%

                                                          £2.2m
                                                                                                                     Flagships France           £1,147m      18%
                                                                                                                     Flagships Ireland            £757m      12%
                                                                                                                     UK retail parks              £384m      6%
                                                                                          Score:
                                                                                                                     Developments & UK Other      £615m      10%
                                                                                          4 STAR/78                  Premium outlets: Value Retail £1,924m   30%

                                                          ENERGY SAVINGS
                                                                                          Sustainability
                                                                                          score:

                                                                                          72
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                            1.0 INTRODUCTION                                                            2.0 OUR PERFORMANCE                                        3.0 OUR DATA

8
            What Sustainability                                                                                                                                                                                                                                                                                    9

            Means to Us
Hammerson

                                                                                                                                                                                                                                                                            FOR MORE
                                                                                                                                                                                                                                                                    Our approach
                                                                                                                                                                                                                                                                    to Net Positive is
                                                                                                                                                                                                                                                                    explained overleaf
             FOCUSING ON MATERIAL ISSUES                                                                                  CREATING POSITIVE PLACES

                       The materiality review conducted in               These material issues drive our
                       2018 identified a clear list of areas we          sustainability strategy. Each of these is
                       need to focus on to achieve the most              addressed directly in a variety of ways
                       sustainable outcomes for our business.            through our Positive Places strategy
                       Our top six material issues are:                  and Net Positive targets as set out in
                                                                                                                                                                                                                                                                          20
                                                                                                                                                                                                                                                           RE
                                                                         the graphic opposite. Our Materiality                                                      R
                                                                                                                                                           FO                                                                                                                  30
                1      Governance and reporting
                                                                                                                                                                                                                                                                      SO
                                                                         review is completed every four years,                                        E                                                                                                                             :
                                                                                                                                                 V                                                                                                                                      N
                                                                         and will be reviewed in 2022.                                        TI                                                                                                                                            ET
                2      Energy security and pricing                                                                                    S
                                                                                                                                          I
                                                                                                                                                             N                                                                                                                     U             P
                                                                                                                                  O
                                                                                                                                                  O
                       Climate change                                                                                                         B

                                                                                                                                                                                                                                                                                                 O
                                                                                                                              P
                3

                                                                                                                                                                                                                                                                                                     S
                                                                                                                           ET

                                                                                                                                                                                                                                                                                        R
                                                                                                                                                                                                                                                                                                     IT
                                                                                 FOR MORE

                                                                                                                          N

                                                                                                                              R
                       Community engagement

                                                                                                                                                                                                                                                                                                      IV
                                                                                                                                                                                                                                                                                            C
                4

                                                                                                                                                                                                                  n

                                                                                                                                                                                                                                             Re
                                                                                                                                                                                                              tio

                                                                                                                                                                                                                                                                                                         E
                                                                                                                      :

                                                                                                                           A
                                                                            See the Sustainability pages of

                                                                                                                                                                                                                                                u

                                                                                                                                                                                                                                                                                                 E
                                                                                                                     30

                                                                                                                                                                                                           uc

                                                                                                                                                                                                                                                 se

                                                                                                                                                                                                                                                                                                             FO
                       Waste / Resource use

                                                                                                                                                                                                     ns tr
                                                                            our website for more details of

                                                                                                                          C

                                                                                                                                                                                                                                                     th
                                                                                                                                                                                                                                Su
                5

                                                                                                                     20

                                                                                                                                                                                                  io ons

                                                                                                                                                                                                                                                       en

                                                                                                                                                                                                                                                                                                     U
                                                                                                                                                                                                                                     sta

                                                                                                                                                                                                                                                                                                              R
                                                                                                                                                                                                       ns
                                                                                                                                                                                           er n, c
                                                                            our Materiality Review 2018

                                                                                                                                                                                                                                                N

                                                                                                                                                                                                                                                          re
                                                                                                                                                                                                                                       in
                                                                                                                                                                                                   tio
                       Sustainable product

                                                                                                                                                                                                                                                  o
                                                                                                                                                                                                 ity

                                                                                                                                                                                                                                                             c
                                                                                                                                                                                                                                         ab

                                                                                                                                                                                                                                                                                                      SE
                6

                                                                                                                                                                                       op sig

                                                                                                                                                                                               ra

                                                                                                                                                                                                                                                              yc
                                                                                                                                                                                                                                                    w
                                                                                                                                                                                              at

                                                                                                                                                                                              rs

                                                                                                                                                                                                                                            le

                                                                                                                                                                                                                                                     as
                                                                                                                                                                                             e

                                                                                                                                                                                                                                                                 l
                                                                                                                                                                                  nd de

                                                                                                                                                                                           ve

                                                                                                                                                                                                                                                                 in
                                                                                                                                                                                         op

                                                                                                                                                                                                                                               pr

                                                                                                                                                                                                                                                         te

                                                                                                                                                                                                                                                                   g
                                                                                                                                                                                        di
                                                                                                                                                                                      on

                                                                                                                                                                                                                                                 oc

                                                                                                                                                                                                                                                                      of
                                                                                                                                                                                      nt

                                                                                                                                                                                                                                                            to
                                                                                                                                                                                     io
                                                                                                                                                                                  rb

                                                                                                                                                                                    e

                                                                                                                                                                                                                                                    ur
                                                                                                                                                                                lb

                                                                                                                                                                                                                                                                          m
                                                                                                                                                                                                                                                               la
                                                                                                                                                                                 ci
                                                                                                                                                      ca

                                                                                                                                                                               a

                                                                                                                                                                                                                                                      em

                                                                                                                                                                                                                                                                           at
                                                                                                                                                                              fi

                                                                                                                                                                                                                                                                 nd
                                                                                                                                                                            ca
                                                                                                                                                                           ef

                                                                                                                                                                                                                                                                               er
                                                                                                                                                w

                                                                                                                                                                                                                                                          en
                                                                                                                                                                         lo

                                                                                                                                                                                                                                                                    fil
                                                                                                                                                                       gy

                                                                                                                                                                                                                                                                                ia
                                                                                                                                              Lo

                                                                                                                                                                                                                                                                      l
                                                                                                                                                                                                                                                            to
                                                                                                                                                                       g

                                                                                                                                                                                                                                                                                    ls
                                                                                                                                                                    er

                                                                                                                                                                   tin

                                                                                                                                                                                                                                                                fm
                                                                                                                                                              En

                                                                                                                                                                or
             CONTRIBUTING TO THE GLOBAL SUSTAINABILITY GOALS

                                                                                                                                                                                                                                                                   at
                                                                                                                                                             pp

                                                                                                                                                                                                                                                                     er
                                                                                                                                                          Su

                                                                                                                                                                                                                                                                          ia
                                                                                                                                                                                                                 Proactive

                                                                                                                                                                                                                                                                          ls
               Our business activities support the following 10 UN Sustainable Development Goals:
                                                                                                                                                                                                                management
                                                                                                                                                                                                                 of climate

                                                                                                                                                                                                                                                                                                         t
                                                                                                                                                                                                                                                                                                      en
                                                                                                                                                                                                                    risks

                                                                                                                                                                                                                                                                                                    m
                                                                                                                                                                W

                                                                                                                                                                                                                                                                                            ris loy
                                                                                                                                                                 at

                                                                                                                                                                                                                                                                                                  p
                                                                                                                                                                     er

                                                                                                                                                                                                                                                                                               em

                                                                                                                                                                                                                                                                                     pe e
                                                                                                                                                                                                                                                                                              le
                                                                                                                                                                         ef

                                                                                                                                                                                                                                                                                              g
                                                                                                                                                                                                                                                                                          op

                                                                                                                                                                                                                                                                     se on ein
                                                                                                                                                                                                                                                                                           d
                                                                                                                                                                           fic

                                                                                                                                                                                                                                                                                                                  CT
               Our socio-economic work focuses on Health                 We invest in renewable energy, work with

                                                                                                                                                                                                                                                                                         rp
                                                                                                                                                                                                                                                                                        an

                                                                                                                                                                                                                                                                                         e
                                                                                                                                                                    W

                                                                                                                                                                                ie

                                                                                                                                                                                                                                                                               c to
                                                                                                                                                                                                                                                                                        b
                                                                                                                                                                                                                                                                                       e

                                                                                                                                                                                                                                                                                     id
                                                                                                                                                                                                                                                                                      l
                                                                                                                                                                                  nt

                                                                                                                                                                                                                                                                                   nt
                                                                                                                                                                     at

                                                                                                                                                                                                                                                                                     s
               and Wellbeing, Skills and Employment,                     partners to reduce resource consumption,

                                                                                                                                                                                                                                                                                  el

                                                                                                                                                                                                                                                                          ci d
                                                                                                                                                          Su

                                                                                                                                                                                                                                                                                 pr
                                                                                                                                                                                                                                                                                 ill

                                                                                                                                                                                                                                                                                ng
                                                                                                                                                                                                                                                                                 e
                                                                                                                                                                        er

                                                                                                                                                                                                                                                                                w
                                                                                                                                                                                     d

                                                                                                                                                                                                                                  sk
                                                                                                                                                             pp

                                                                                                                                                                                        es

                                                                                                                                                                                                                                                                             g
                                                                                                                                                                                                                                                                            ou

                                                                                                                                                                                                                                                       d tha nd
               Young People, and Enterprise. We work with                and encourage innovation in design and

                                                                                                                                                                                                                                                                ea sp

                                                                                                                                                                                                                                                                            vi
                                                                                                                                                                            ef

                                                                                                                                                                                                                                                                                                             PA
                                                                                                                                                                                                                                                               or lin
                                                                                                                                                                                                                                g
                                                                                                                                                                                           ig
                                                                                                                                                                 or

                                                                                                                                                                                                                                                                          y
                                                                                                                                                                                                                                in
                                                                                                                                                                              fic

                                                                                                                                                                                                                                                              cr t re
                                                                                                                                                                                                                                                                         a
                                                                                                                                                                                                                                     ab
                                                                                                                                                                                             n
                                                                                                                                                                     tin

                                                                                                                                                                                                                                                                        g
                                                                                                                                                                                                                             er
               local organisations to deliver locally relevant           procurement to reduce carbon emissions.

                                                                                                                                                                                   ie

                                                                                                                                                                                                                                                   ge lac lth
                                                                                                                                                                                                an

                                                                                                                                                                                                                                                                      n
                                                                                                                                                                                                                                 En
                                                                                                                                                                                                                           iv
                                                                                                                                                                        g

                                                                                                                                                                                     nt

                                                                                                                                                                                                                                                                  t i
                                                                                                                                                                                                                                                                ea
                                                                                                                                                                                                    d

                                                                                                                                                                                                                           el
                                                                                                                                                                           lo
               projects to support our communities.

                                                                                                                                                                                        o

                                                                                                                                                                                                                           D

                                                                                                                                                                                                                                                              h

                                                                                                                                                                                                                                                     an es
                                                                                                                                                                                                       co

                                                                                                                                                                                                                                     pp
                                                                                                                                                                              ca

                                                                                                                                                                                           pe

                                                                                                                                                                                                                                                           in

                                                                                                                                                                                                                                                                                                          IM
                                                                                                                                                                                                                                                          ng
                                                                                                                                                                                                           ns

                                                                                                                                                                                                                                  Su
                                                                                                                                                                                 lb

                                                                                                                                                                                               ra
                                                                                                                           20

                                                                                                                                                                                                                                                      R
                                                                                                                                                                                                                                                        i
                                                                                                                                                                                                              tr

                                                                                                                                                                                                                                                     nc

                                                                                                                                                                                                                                                ita p
                                                                                                                                                                                                  t
                                                                                                                                                                                     io

                                                                                                                                                                                                   io

                                                                                                                                                                                                                uc

                                                                                                                                                                                                                                                   FO
                                                                                                                                                                                                                                              er ing
                                                                                                                                                                                                                                      ha
                                                                                                                                                                                        di

                                                                                                                                                                                                      ns
                                                                                                                            30

                                                                                                                                                                                                                   t  io
                                                                                                                                                                                           ve

                                                                                                                                                                                                                                  En

                                                                                                                                                                                                                                            lh t  a
                                                                                                                                                                                                                      n
                                                                                                                                                                                              r

                                                                                                                                                                                                                                         ca Cre
                                                                                                                                                                                                sit
                                                                                                                              :

                                                                                                                                                                                                                                               E
                                                                                                                                                                                                                                                                                                     IC
                                                                                                                                                                                                   y

                                                                                                                                                                                                                                            IV
                                                                                                                                N
                                                                                                                                  ET

                                                                                                                                                                                                                                         IT
                                                                                                                          W

                                                                                                                                                                                                                                       lo
                                                                                                                                              O

                                                                                                                                                                                                                                                                                                 M
                                                                                                                                                                                                                                       S
                                                                                                                                 T    P

                                                                                                                                                                                                                                     O
                                                                                                                                                  S                                                                                                                                     P
                                                                                                                            A
                                                                                                                                                      IT
               Our City Quarters strategy extends our Positive           Our cross industry collaborations
                                                                                                                                      E                                                                                                                                            ET

                                                                                                                                                                                                                                                                                        O
                                                                                                                                                           IV
               Places sustainability strategy to the city level,         with business partners and                                           R                 E
                                                                                                                                                                     FO
                                                                                                                                                                                                                                                                     30
                                                                                                                                                                                                                                                                        :
                                                                                                                                                                                                                                                                               N
                                                                                                                                                                                                                                                                                            N
               to support investment in infrastructure and               industry organisations promote the                                                                 R                                                                                  20
                                                                                                                                                                                                                                                                            C O
               the transition to sustainable communities.                achievement of the UN SDGs.
                                                                                                                                                                                                                                                                      -   E
                                                                                                                                                                                                                                                        O
                                                                                                                                                                                                                                        SO           CI
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                         1.0 INTRODUCTION                     2.0 OUR PERFORMANCE                         3.0 OUR DATA

10
            Explaining the Net                                                                                                                                                                                                    11
                                                                                                                     Becoming Net Positive for our
                                                                                                                                                               Becoming Net Positive means:
                                                                                                                     environmental impacts is the most                                                         FOR MORE
                                                                                                                                                               – Measuring and publishing
                                                                                                                     significant contribution we can make
                                                                                                                                                                 our environmental and                     Our footprints are

            Positive Approach
                                                                                                                     as a business to the battle against
                                                                                                                                                                 socio-economic footprints                 available online
                                                                                                                     climate change. Launched in 2016 as
                                                                                                                                                               – Setting ambitious targets including       - True Value of
Hammerson

                                                                                                                     a 15 year commitment, it is extremely
                                                                                                                                                                 all emissions sources and our             Retail: our socio-
                                                                                                                     ambitious but inspirational for
                                                                                                                                                                 Scope 3 upstream emissions                economic footprint
                                                                                                                     colleagues. The earlier reductions
                                                                                                                                                               – Focusing on minimising our own            - Our Environmental
                                                                                                                     in environmental impacts are made
                                                                                                                                                                                                           Footprint
            Becoming Net Positive by the end of 2030 means reducing                                                  and the deeper they are, the better,        impacts ahead of the use of offsets

                                                                                                                                                                                                                                  Net Positive
                                                                                                                     particularly for carbon emissions.        – Reviewing and updating business
            our carbon emissions, water demand and resource use to less

                                                                                                                                                                                                                                  for CO2
                                                                                                                     Our Net Positive programme is               processes to ensure decision-

            than zero, and delivering Net Positive socio-economic impacts.                                           designed to encourage us to move
                                                                                                                     quicker and think bigger.
                                                                                                                                                                 making is aligned with our strategy
                                                                                                                                                               – Measuring and reporting
                                                                                                                                                                 annually on our progress

             Key Features of

                                                                                                                                                                                                                                  Net Positive
                                                            2016 - 2020                                        2021 - 2025                                                    2026 - 2030

                                                                                                                                                                                                                                  for Water
             our Net Positive

                                                            Phase One                                          Phase Two                                                      Phase Three
             commitment:

                      Transparent
             We published material on

                                                                                                                                                                                                                                  Net Positive for
             our approach, definitions and

                                                                                                                                                                                                                                  Resource Use
                                                            We have completed the first 5 years of             We aim to be operating with negative Scope 1                   Phase Three includes Scope 3
             environmental footprint at the                 our 15 year Net Positive targets. This             and 2 absolute carbon emissions, water demand                  emissions. We aim to be operating
             launch of the targets. Progress has            report sets out what we have achieved.             and resource use across our operational and                    on a Net Positive basis including
             been published each year since                                                                    development activities from 1 January 2026.                    these emissions from 1 January 2031.
             launch, in our sustainability report.

                            +

                                                                                                                                                                                                                                  Socio-economic impact
                        Ambitious

                                                                                                                                                                                                                                  Net Positive for
             Our targets include Scope 1,2 and
             3 so include the environmental
             impacts of the tenanted areas of
             our assets and include embodied
                                                            By the end                     95,000 tonnes       350,000 cubic                          131,000 tonnes                          Net Positive
                                                     WHAT

             carbon. They go well beyond what
                                                                                           of embodied and     metres of water                        of resources                            for our
             would be required to align with the
             Paris Accord, and exceed Net Zero.
                                                            of Phase Two:                  operational CO2     to be reduced                          to be reduced                           socio-economic

                            +
                  Reduction focused
                                                                                           to be reduced
                                                                                           and offset
                                                                                                               and offset                             and offset                              impacts

             We prioritise reduction activities,
             only exploring offsets for those               We plan to                     A constant
                                                                                           focus on good
                                                                                                           +   Investment
                                                                                                               in efficiency
                                                                                                                                 +       Working with
                                                                                                                                         local community
                                                                                                                                                                  +         Working with our
                                                                                                                                                                            stakeholders to
                                                                                                                                                                                                       +    Offsetting
                                                                                                                                                                                                            any remaining
             emissions we cannot remove. Where
                                                            achieve this
                                                                                                                                                                                                                                 Full data
                                                     HOW

             we do use offsets we will endeavour                                           management          initiatives and           organisations to                   reduce impacts                  emissions to          tables
                                                                                                               technologies              address specific                   outside our direct              bring us to less
             to deliver these through localised
             projects, an area which we hope
                                                            through:                                                                     areas of local need                control but within our          than zero by
             to build and share learning on.                                                                                                                                value chain - insetting         the end of 2030
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                                   1.0 INTRODUCTION                  2.0 OUR PERFORMANCE                          3.0 OUR DATA

12
            Strong Governance                                                                                                                                                                                                                      13
                                                                                                                                                                                                                                     CHART 1.1:
                                                                                                                                                                                                                                    Risk Matrix

            and Proactive Risk
Hammerson

                                                                                                                        HIGH
                                                                                                                                        8 8                    3 3                                           1                 1 1 7

            Management
            We have always adopted the principle of a precautionary                                                                       8                    3 8                                                                 6
            approach to climate and other sustainability related risks,
            and continue to do so. We have a four-step process for
            managing sustainability risk.

                                                                                                                        MEDIUM
                                                                                                               IMPACT
                                                                                                                                                              4 5 5             4 4 5                                        6 7 7 7
            1: Identify
            Key sustainability risks are monitored by the
            Sustainability Team, reviewed by the PP Corporate
            Working Group and reported to the Corporate
            Risk Group and the Group Executive Committee
            which has oversight of the Sustainability Risk
            framework (see pages 100–101). Risks are                                                                                                          3 4 5             2 2 2                        2                 1 6 6
            assessed over 1, 1–5 and 5–10 year periods.

            The chart opposite shows the probability and
            potential impact of key current sustainability
            risks, reflecting management and mitigation         “Using the CRREM tool, we
            measures. It also shows our assessment of
            how we expect these key risks to change
                                                                have developed pathways
                                                                for each of our assets and,

                                                                                                                        LOW
            over the 1–5 and 5–10 years time frames.

                                                                using asset specific carbon
                                                                reduction targets, are
                                                                exploring how to minimise                                                LOW                                     MEDIUM                                           HIGH

                                                                their transition risk”                                                                                          PROBABILITY

                                                                Louise Ellison, Group Head of Sustainability

                                                                                                                                 2021-2022                      2 - 5 years                       5 - 10 years                     >10 years

                                                                                                                                                                                                  Non-compliance with good
                                                                                                                            1     Transitional climate risk                                   5   governance standards within the
                                                                                                                                                                                                  business and within the supply chain

                                                                                                                            2     Physical climate risk                                       6   Rising regulatory/fiscal charges for utilities

                                                                                                                                  Failure to address sustainability
                                                                                                                            3     within our development programme                            7   Rising commodity charges for utilities
                                                                                                                                  and achieve corporate standards

                                                                                                                            4
                                                                                                                                  Non-compliance with UK, Irish, French and                   8
                                                                                                                                                                                                  Lack of engagement of stakeholder
                                                                                                                                  EU Environmental regulation and legislation                     on sustainability matters
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                                     1.0 INTRODUCTION                          2.0 OUR PERFORMANCE                            3.0 OUR DATA

14 2: Respond                                                                                                                                                                                                                                                         15
                                                                                                                                                                                                                                                    CHART 1.2:
                                                                                                                                  SUSTAINABILITY GOVERNANCE STRUCTURE
                                                                                                                                                                                                                                                  Sustainability
            Responses to key sustainability risks are developed                                                                                                                                                                                     Governance
            by the Sustainability team working with the relevant                                                                                                                                                                                   Organogram
            business and asset teams. Responses focus on either
Hammerson

            mitigation of the risk, for example through reducing
                                                                                                                                                                                      Reports to PLC Board
            exposure to energy pricing, or managing the risk, for
            example through upgrading physical resilience of
            an asset to climate change. Projects are agreed at an
            asset level through the business planning process.
                                                                                                                                                                                                                                     The GEC reviews and sets
                                                                                                                                  Chief Executive                          GROUP EXECUTIVE COMMITTEE (GEC)                           strategic priorities and
                                                                                                                                  has board level
                                                                                                                                                                                                                                     targets, as well as overseeing
                                                                                                                                  responsibility for
                                                                                                                                                                                                                                     how risks are being managed.

                                                                    3: Manage
                                                                                                                                  sustainability, including                 Each business stream and jurisdiction
                                                                                                                                  the response to risks,
                                                                                                                                                                                    is represented on the GEC                        Sustainability
                                                                                                                                  and chairs the GEC.
                                                                    Our Sustainability Governance structure (shown                                                                                                                   represented on GEC with
                                                                    to the right) facilitates consistent monitoring of                                                                                                               dedicated time quarterly
                                                                                                                                                                               CHAIRED BY CHIEF EXECUTIVE                            focused on sustainability.
                                                                    delivery against our sustainability strategy and
                                                                    targets, and allows us to identify and manage
                                                                    sustainability risks to the business and impacts of
                                                                    the business. As internal subject matter experts,
                                                                    our Corporate Sustainability Team drives strategy
                                                                    across the Group, supporting the Asset Management,                   HAMMERSON FRANCE CR BOARD                                                  UK & IRELAND MANAGEMENT BOARD
                                                                    Operational and Development Teams in delivering
                                                                    against specific objectives. Environment and Community
                                                                                                                                                                                                                     Overseeing delivery of PP strategy
                                                                    Coordinators within the UK and Ireland flagship                 Overseeing delivery of PP strategy in France
                                                                                                                                                                                                                        in UK & Ireland operations
                                                                    assets, manage the EEMS and support the delivery of
                                                                    projects and data collection at a local and regional level.
                                                                    Members of the Corporate Sustainability Team attend               CHAIRED BY MD HAMMERSON FRANCE                                               CHAIRED BY MD HAMMERSON UK AND I
                                                                    each working group identified on the organogram.

                                                                                                                                   POSITIVE PLACES DEVELOPMENT                POSITIVE PLACES OPERATIONAL                   POSITIVE PLACES CORPORATE
                                                                                                                                            WORKING GROUP                              WORKING GROUP                              WORKING GROUP

                                                                                                                                                                                                                            Manage and report corporate
                                                                                                                                         Manage and report on                        Manage and report on
            4: Communicate                                                                                                            sustainability in development                 sustainability in operations
                                                                                                                                                                                                                                sustainability including
                                                                                                                                                                                                                               identification of key risks
            Our exposure to and management of
            climate-related risks are communicated to the                                                                            CHAIRED BY GROUP HEAD OF
                                                                                                                                                                                       CHAIRED BY GHOS                            CHAIRED BY GHOS
            Group Executive Committee and Plc Board through                                                                             SUSTAINABILITY (GHOS)
            regular updates by the Group Head of Sustainability.

            Our Sustainability Risk Management Framework
            (page 100-101) is monitored by the Positive Places
            Corporate Working Group and shared annually in
            our Sustainability Report.

                                                                                                                                                                                       UK, Ireland, France
Sustainability Report 2020 - OUR JOURNEY TO NET POSITIVE - ResponsibilityReports.com
SUSTAINABILITY REPORT 2020: INTRODUCTION                                                                    1.0 INTRODUCTION                      2.0 OUR PERFORMANCE                          3.0 OUR DATA

16
            Responding to the TCFD                                                                               Managing Minimum                                                                                                        17

                                                                                                                 Energy Efficiency
Hammerson

            In 2017 the Task Force for Climate-related Financial

                                                                                                                 Standards Risk
            Disclosures (TCFD) published a set of reporting
            recommendations designed to support businesses
            in reporting climate-related risks.
                                                                                                                 The current minimum standard of an E rated energy
            We expect these recommendations       This latest TCFD response, providing
                                                                                         “As we transition
            to become a regulatory requirement    references to further detail within
                                                                                         to a net zero           performance certificate for new lettings will apply to
            in 2022. We included our initial      our 2020 Sustainability Report and
            response to the recommendations       Annual Report and Accounts, can
                                                                                         carbon economy          existing leases from 1 April 2023.
            in our 2018 Sustainability Report,    be found at Hammerson.com. This
            extending this in 2019 and 2020. In   covers our Governance approach,        it is essential that
                                                                                                                 We have worked with our retailers through lease events    a B as the minimum for EPC ratings from 2030. We
            2020 we published our response to     strategy and objectives, approach to   we understand the       and the retail delivery process to manage F and G rated   will continue to implement our existing strategy of
            the TCFD as a standalone document,    risk management and the metrics
            and have updated it to reflect        and targets used to assess climate     implications this has   energy performance certificates out of the UK retail      identifying opportunities to improve units to achieve
                                                                                                                 portfolio. Less than 7% of units are now F or G rated     these standards through the asset management process.
            progress over the last 12 months.     related risks and opportunities.       for our business and    and there is a management plan in place to improve        This will enable us to manage this work effectively as part
                                                                                         stakeholders. The       these. We are now planning for the next iteration of      of our maintenance and upgrade works. Our MEES risk is

                                                                                         Hammerson Board         MEES where we anticipate an increase from an E to         currently very limited as can be seen in the chart below.

                                      GOVERNANCE                                         takes responsibility
                                                                                         for overseeing our
                                                                                         response to the risks   FIGURE 1.1:                                           G: 5%         A: 1%
                                         STRATEGY                                                                EPC ratings UK
                                                                                         and opportunities       portfolio 2020
                                                                                         presented by climate
                                        RISK                                             change and our                                       F: 1%
                                     MANAGEMENT                                          Senior Management
                                                                                                                                     E: 8%
                                                                                         Team are committed                                                                                                                B: 18%
                                                                                         to ensuring our
                                                                                         business thrives
                                        METRICS &                                        in this changing
                                         TARGETS                                         environment.”                                                                      EPC Rating

                                                                                         Alice Darwell
                                                                                         General Council,
                                                                                         Hammerson

                                                                                                                                                                                                                           C: 39%

                   FOR MORE
             Our response to the
             TCFD can be found at                                                                                                     D/D+: 27%
             Hammerson.com
1.0 INTRODUCTION   2.0 OUR PERFORMANCE            3.0 OUR DATA

 2
                                                                                  19

                                         2.0
                                         THE JOURNEY                   P. 2 0

                                                                                  Net Positive
                                         TO NET POSITIVE

                                                                                  About
                                         PERFORMANCE
                                         AGAINST ANNUAL                P. 2 2
                                         TARGETS

                                         FINANCIAL

OUR
                                         BENEFITS OF                   P. 2 4
                                         SUSTAINABILIT Y

                                         OUR KEY
                                         ESG TARGETS                   P. 2 6

PERFORMANCE
                                         2 0 21 - 2 0 2 2

                                                                       P. 2 8

                                                                                  Net Positive
                                         2 .1

                                                                                  for CO2
                                         CARBON

                                                                       P. 3 4

                                                                                  Net Positive
                                         2.2

                                                                                  for Water
                                         WATER

                                                                       P. 3 6

                                                                                 for Resource
                                                                                 Net Positive
                                         2.3
                                         RESOURCE USE

                                                                                 Use
                                         2.4                           P. 3 8

                                                                                Net Positive
                                                                                for Socio-
                                                                                economic
                                         SOCIO-ECONOMIC

                                                                                impact
                                         IMPACT

                                         2.5
                                         STAKEHOLDER                   P. 4 2
                                         ENGAGEMENT

                                         2.6
                                         OUR LONG TERM                 P. 4 4

                                                                                    Other
                                         TARGETS
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                    1.0 INTRODUCTION                        2.0 OUR PERFORMANCE                 3.0 OUR DATA
                                                                                                                       0                                                                               6
                                                                                                                   202                                                                             202
20
            2.0 The Journey                                                                                                                                                                        Phase Three Net
                                                                                                                                                                                                   Positive targets to
                                                                                                                                                                                                                                 21

            to Net Positive                                                                                                                                                                        launch bringing
Hammerson

                                                                                                                                                                                                   tenant water and
                                                                                                                   Five years on from setting
                                                                                                                                                                                                   energy use into
                                                                                                                   Net Positive targets we have:
                                                                                                                                                                                                   scope
            Hammerson’s sustainability journey started back in 2006 when                                           Reduced absolute
            we set our first sustainability targets. Our work since has gone                                       carbon emissions by
                                                                                                                                                                                                                        RE
                                                                                                                                                                                                                             E
                                                                                                                   66% v 2015 baseline                                                                             TH
            from strength to strength and that early foresight has reaped                                                                                                                              PH
                                                                                                                                                                                                            A   SE

            benefits for all of our stakeholders. This section of our report                                       Reduced landlord
                                                                                                                   water demand by
            shares the latest on our performance, and our next steps.                                              77% v 2015 baseline

                  6                                                    8                                           Three assets achieved
               201                                                 2 01                                            Net Positive for water
                                                                                                                                                               O
                                                                                                                                                                            Phase Two
                                                                                                                                                                           Net Positive
                                                                                                                                                          TW
                                                                                                                                                   A   SE                 targets bring
               Paris Climate Accord signed                                                                                                    PH                          development
               by 197 countries
                                                                                                                                                                           impacts into
                                                                    Minimum Energy
               Phase 1 of Hammerson’s                                                                                                                                            scope
                                                                    Efficiency standards
               Net Positive commitment                              come into force
                                                                                                                                                                                   We plan to:
               begins and includes:
                                                                                                                                                                            continue working
                                                                    Hammerson
                                                                                                                                                                        with tenants to reduce
                                                                    commissions
                                                                                                                   Published Net Zero                                     embodied carbon in
                   CARBON                                           portfolio-wide
                                                                    climate risk study
                                                                                                                   Carbon transition pathway                                      retail fit out
                                                                                                                   in accordance with the
                   RESOURCE                                                                                                                                               work with design and
                                                                                                                   BBP Climate Commitment
                   USE                                                                                                                                                 construction partners to
                                                                                                                                                                         minimise resource use
                                                                                                                   Generated 2,214mWH
                   WATER                                                                                                                                              on major refurbishments
                                                                           E                                       renewable energy from                              target net zero carbon or
                                                                      ON                                           onsite PV arrays, 3% of
                                                               A   SE                                                                                                       new developments
                   SOCIO-ECONOMIC                         PH                                                       our electricity demand
                   IMPACT
                                                                                                                   for landlord services                              collaborate with industry
                                                                                    Reshaping Retail Report with                                                         partners to establish a
                                                                                          Bioregional published.   Invested £180k in local                                route map to certified
                                                                                                                   community organisations                                  Net Zero embodied

                                  Elliott’s Field Rugby
                                                                                                                   through Giving Back                                       carbon emissions.
                                                                                                                                                                                                       Hammerson
                                                                        Hammerson signs BBP Climate                project to provide support
                                                                                                                                                                                          2    5         Target to
                                                                                                                                                                                       20
                                 Phase Two opens as                                                                during COVID19 pandemic
                                                                          Commitment along with 22
                            the world’s first BREEAM
                            Outstanding retail park,
                                                                           other major prop cos and                                                                                                       become
                                                                                   asset managers.                 Work with our design
                 carbon neutral for regulated energy
                                                                                           UK Government sets      teams at Dublin Central is                                                          Net Positive
                          Hammerson purchases three                              Net Zero Carbon target by 2050.   establishing how our City

                                                                                                                                                                                                              0
                            new assets in Ireland and                          1.94MW PV installed across          Quarters developments
                                                                                                                   will achieve Net Positive.
                                                                                                                                                                                                             3
                                                                                                                                                                                                           20
                               opens office in Dublin                                    Hammerson assets

                                                   7                                                       9
                                                201                                                     201
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                        1.0 INTRODUCTION                     2.0 OUR PERFORMANCE                           3.0 OUR DATA

22
            Performance Against                                                                                             TARGET                        RESULT                        TARGET                     RESULT
                                                                                                                                                                                                                                                23

            Annual Targets
Hammerson

                                                                                                                            70%                           57%
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                        1.0 INTRODUCTION   2.0 OUR PERFORMANCE                         3.0 OUR DATA

24
            Financial Benefits                                                                                                                                                                         25

            of Sustainability
Hammerson

            Our Positive Places strategy delivers good financial outcomes
            for the business and our partners. Our focus on efficiency
            and investment in renewables continued to provide positive
            financial returns, driving down operational costs in 2020.

                         Cost of energy                        Energy efficiency investment            Energy savings              Energy Efficiency
                                                                                                                                   Our focus on energy efficiency has driven year-on-year cost
                         2020                                  2020                                                 £2.2M
                                                                                                                                   reductions to both service charge and the business. Energy costs
             ENERGY

                         £8.9m                                 £1.5m                                   £0.9M
                                                                                                                                   were significantly reduced in 2020 during periods of closure.
                                                                                                                                   Our metering systems enabled us to monitor residual loads on a
                         2019                                  2019                                                                daily basis to identify and eliminate unnecessary consumption.
                         £11.4m                                £2.3m                                                               Our flexible energy procurement plans also enabled is to
                                                                                                        2019          2020         reduce demand and therefore cost, at short notice.

                         Renewable capacity (MWp)              Renewable energy generated (MWh)        Income from renewables      Renewables
                         (Mega watt peak)                      (Mega watt hours)
             RESOURCES

                                                                                                                     £98K          Our investment in solar PV delivers consistent income to
                         2020                                  2020
                                                                                                       £78K                        the business. We now have 11 arrays across 6 assets
                         2.9                                   2214                                                                and produced 2,214MWh of power in 2020. This
                                                                                                                                   represents over 3% of electricity for landlord services in
                         2019                                  2019                2018
                                                                                                                                   2020. We expect this to increase in 2021 and beyond
                         1.94                                  1149                470                                             as we look to expand our onsite renewable capacity.
                                                                                                        2019          2020

                         Cost of water for landlord services   Investment in water management          Water savings               Water
                         2020                                  2020                                                 £642K          Water audits were completed at 3 assets in February

                         £1.6m                                 £20k
             WATER

                                                                                                                                   2020. Over 120 leaks were identified and fixed in tenant
                                                                                                                                   units, saving almost 45,000M3 of water from being
                                                                                                                                   needlessly wasted – enough to fill 18 Olympic swimming
                         2019                                  2019
                                                                                                       £50K                        pools. These savings have made these 3 centres Net
                         £2.2m                                 £191k                                                               Positive for water for landlord services in 2020.
                                                                                                        2019          2020

                         Income from sale of waste             Waste savings from landfill avoidance   Cost of waste management    Waste Management
                         2020                                  2020                                                                Total waste declined in 2020 due to centre closures, particularly
                                                                                                       £4M
                                                                                                                                   of dry, mixed recyclable waste. Organic waste increased as a
                         £73k                                  £1.4m
             WASTE

                                                                                                                    £2.7M          proportion due to F&B continuing to offer a take-away service
                                                                                                                                   through lock-down periods. Our long-term focus on managing
                         2019                                  2019                                                                organic waste and investment in the Bio-Whale anaerobic
                         £166k                                 £2.7m                                                               digestion facilities on site has supported us in managing the
                                                                                                        2019          2020         associated environmental and financial costs.
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                     1.0 INTRODUCTION                      2.0 OUR PERFORMANCE                       3.0 OUR DATA

26
            Our Key ESG Targets                                                                                           EPRA LfL portfolio                                               Net Positive portfolio
                                                                                                                                                                                                                                 27

            2021 - 2022                                                                                                   Recycling rate for the                                           Recycling rate for the
Hammerson

                                                                                                                          managed retail assets                                            managed retail assets

            Each year we set 12 and 24 month targets for                                                                  2021                        2022                                 2021                     2022

            the business. 2019 is our baseline for 2021                                                                   -75%                        -75%                                 -75%                     -75%
            targets due to 2020 being an extraordinary year.

                  EPRA LfL portfolio                                                      Net Positive portfolio          To deliver a given number of projects
                                                                                                                          locally that tackle our four key areas
                  Year on year reduction                                                  Year on year reduction
                  in absolute Scope 1                                                     in absolute Scope 1
                                                                                                                          Health and wellbeing                                             Employment and skills
                  and 2 CO2e emissions                                                    and 2 CO2e emissions
                                                                                                                          2021                        2022                                 2021                     2022
                  2021                     2022                                           2021                2022
                                                                                                                          15                          15                                   16                       16
                  -17%                     -11%                                           -17%                -11%

                  Year on year reduction                                                  Year on year reduction          Young People                                                     Enterprise
                  in carbon intensity for                                                 in absolute operational         2021                        2022                                 2021                     2022
                  landlord services                                                       landlord energy
                                                                                                                          22                          22                                   12                       12
                  2021                     2022                                           2021                2022

                  -15%                     -11%                                           -8%                 -5%

                                                                                                                     Both quantitative and qualitative       (LfL) and Net Positive portfolios
                  EPRA LfL portfolio                                                      Net Positive portfolio     targets are set reflecting our focus    differ as they reflect plans for a            FOR MORE
                                                                                                                     on continually improving how we         different group of assets. The like-for-
                                                                                                                     operate as well as what we achieve.     like targets enable our stakeholders          Our 2021 Transition
                  Year on year reduction in                                               Year on year reduction                                             to see year on year performance               Pathway targets
                  landlord water intensity                                                in absolute landlord       Our short-term targets are designed     for the same group of assets.                 are shown on page
                                                                                                                     to support our Net Positive                                                           33. Our Long-term
                                                                                          water demand               targets. Targets reflect anticipated    Due to closures in 2020                       Targets are shared
                                                                                                                     energy efficiency investments and       our short term targets are                    on pages 44–45.
                  2021                     2022                                           2021                2022   management savings from metering        based on 2019 figures.
                                                                                                                     The targets set for our like-for-like
                  -5%                      -7%                                            -7%                 -7%

            1: EPRA LFL Portfolio - Operational control basis 100% share
            2: Net Positive Portfolio - Directly asset managed portfolio on a proportionate ownership basis
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                                                     1.0 INTRODUCTION                      2.0 OUR PERFORMANCE                         3.0 OUR DATA

28
            2.1 Net Positive for Carbon                                                                                                                 22,000                                      -29%                             -60%
                                                                                                                                                                                                                                                                        29

                PROGRESS                                                                                                                                TONNES CARBON                               YEAR ON YEAR                     REDUCTION
Hammerson

                                                                                                                                                        EMISSIONS avoided                           REDUCTION                        IN CARBON
            We have achieved significant reductions in carbon emissions                                                                                 in 2020 v. 2015                             IN CARBON                        INTENSITY

            over the last 5 years, driven by ambitious targets and clear                                                                                                                            EMISSIONS

            expectations for colleagues across the business.

                                                                                                                                                                                                                                                                         Net Positive
                                                                                                                                                                                                                                                                         for CO2
            From 2021 carbon emissions from our development activites are including in our
            Net Positive targets. Our forecast for these is shown in chart 2.1.1.                                                                    Onsite renewable                         Investment in                         Partnership with
                                                                                                                                                     capacity increased                       smart metering                        Thassalia to deliver
                        Carbon Emissions                                                                                               CHART 2.1.1   to 2.9MWp                                                                      estimated 44%
                                                                                                                                                                                              This investment proved invaluable
                                                                                                                                                     Our renewable facilities generated       during 2020 as we are able to         reduction in CO2
                Net Positive for
                                         35,000
                                                                                                                                                     over 2000 MWH of clean electricity       monitor utility demand remotely
                                                                                                                                                                                                                                    Terrasses du Port will be
                Carbon means             30,000                                                                                                      in 2020, over 3% of total landlord       on a daily basis during lock-downs

                                                                                                                                                                                                                                                                         Net Positive
                                                                                                                                                                                                                                    connected to Marseille’s

                                                                                                                                    72%

                                                                                                                                                                                                                                                                         for Water
                emissions avoided                                                                                                                    demand and enough to power more          identifying and then addressing
                                         25,000                                                                                                                                                                                     Thassalia marine heating and
                exceed emissions                                                                                                                     than 500 homes. We completed             excess demand. At Union Square,
                                         20,000                                                                                                                                                                                     cooling system in Marseille
                                                                                                                                                     2 additional arrays in 2020.             our Smart metering system
                                                           30,559

                generated.                                                                                                          REDUCTION                                                                                       in Q1 2021, reducing landlord
                                                                             27,543
                                                                    25,404

                                         15,000
                                                                                                                                                                                              identified two boilers running
                                                                                                                                    in carbon                                                                                       carbon emissions by over 40%.

                                                                                                                       5,819
                                                                                          17,873

                                         10,000                                                                                                                                               constantly overnight despite
                                                                                                                                    emissions
                                                                                                    11,677

                                                                                                                                                                                              building management systems
                                                                                                              8,539
                                             5,000
                                                                                                                                    v. 2015
                                                                                                                                    baseline.                                                 being programmed. Correction          Exploring local
                                                                                                                                                                                              of the boilers saw an immediate
                                                                                                                                                                                                                                    offset projects

                                                                                                                                                                                                                                                                         Net Positive for
                                             mtonnes

                                                                                                                                                                                                                                                                         Resource Use
                                                        2015        2016     2017         2018      2019      2020     2021
                                              CO2e
                                                                                                                                                                                              drop in gas consumption of 15%,
                                                                                                                                                                                              we expect an 8% reduction in gas      We have established a partnership
            Over the last 5 years we have:                                            These, along with vigilant management and
                                                                                      many other smaller projects have:                                                                       used annually. An air handling unit   with a Housing Association to
            –    Invested £9m in energy efficiency and renewables
                                                                                      –      Made our assets more efficient
                                                                                                                                                                                              (AHU) was found to be 41% up          support investment in insulation
            –    Relamped with 15,000 LED lights
                                                                                                                                                                                              on previous years consumption.        and upgrades to improve the
            –    Implemented smart meters across 11 assets                            –      Reduced our negative environmental impacts
                                                                                                                                                                                              After inspection, a problem           energy performance of hard-
                                                                                      –      Reduced costs for our retailers

                                                                                                                                                                                                                                                                         Socio-economic impact
            –    Improved energy efficiency standards                                                                                                                                         was corrected, and savings are        to-treat homes in Croydon. If
                 of fit outs for 100s of retail units                                 –      Delivered savings and revenue to our
                                                                                                                                                                                              approximately 700 kWh per month.      successful we will scale up this
            –    Replaced 2500 tonnes of cement with                                         business and our partners

                                                                                                                                                                                                                                                                         Net Positive for
                                                                                                                                                                                                                                    proof-of-concept project.
                 recycled, low carbon content
            –    Installed 50+ electric vehicle charging
                                                                                      We elected not to purchase offsets for our
                 stations across our assets                                           remaining carbon emissions but to invest
                                                                                      in developing local offset projects.
                LOOKING AHEAD

                                                                                                                                                     KEY AREAS FOR PHASE 2
                  We will continue our reduction and offset work over the next decade as
                  we look to transition our assets to net zero carbon. Our plans include:
                                                                                                                                                     Embodied Carbon and our City Quarters strategy
                  – Investing a further £8m in energy efficiency                          – Working with tenants to drive further operational        Phase 2 of Net Positive extends the targets           We have used the London Energy
                    and renewable energy over the next 3 years                              savings in the retail units                              to development impacts including embodied             Transition Initiative (LETI) research
                  – Procuring clean electricity directly from                             – Ensuring new buildings are designed to achieve           carbon and resource use, bringing our City            to set emissions targets for our
                    a renewable facility bringing additional                                net zero carbon standards for both embodied and          Quarters developments into scope. Our ambition        developments. The project team on Dublin                     Full data
                    renewable power onto the grid                                           operational carbon                                       is therefore to create Net Zero Carbon, climate       have developed early baseline estimates                       tables
                                                                                                                                                     resilient, biodiverse, inclusive Positive Places.     of embodied carbon for each plot and
                  – Continuing to upgrade and improve                                     – Working with stakeholders both within and
                                                                                                                                                     We have already set best practice operational and     appraised the impacts of alternative
                    equipment across our assets through planned                             beyond our value chain to deliver further,
                                                                                                                                                     embodied carbon and resource use targets for          materials and solutions, making
                    maintenance and replacement programmes                                  additional carbon emissions reductions.
                                                                                                                                                     the design teams working on our Dublin scheme,        impressive progress towards these targets.
                                                                                                                                                     including working towards Passivhaus standards.
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                                                     1.0 INTRODUCTION                     2.0 OUR PERFORMANCE                            3.0 OUR DATA

30
            Industry Response to                                                                                                                    Real Estate Environmental Benchmark -
                                                                                                                                                    Monitoring Operational Performance in use
                                                                                                                                                                                                                                                                       31

            Climate Risk and the
Hammerson

                                                                                                                                                    The BBP’s Real Estate Environmental Benchmark (REEB) is the only comprehensive energy-in-use benchmark
                                                                                                                                                    currently available for commercial property assets in the UK. Accurate benchmarking of in-use performance is

            Carbon Challenge                                                                                                                        critical to driving real cross-sector reductions in carbon emissions but as yet is not commonly available.

                                                                                                                                                    REEB is an important initiative and is informing Government thinking on energy policy. It contains data from

                                                                                                                                                                                                                                                                       Net Positive
                                                                                                                                                    almost 1000 assets including over 500 office buildings and 290 shopping centres and retail parks across the UK.

                                                                                                                                                                                                                                                                       for CO2
                                                                                                                                                    This is used to provide sector specific Typical and Good Practice benchmarks of energy and carbon performance.

            As real assets investors become increasingly concerned                                                                                  Monitoring asset by asset carbon intensity performance against this comprehensive benchmark enables us to

            to understand and reduce exposure to physical and                                                                                       assess relative performance and focus attention on key areas for improvement.

            transitional climate risk across portfolios, the sector is                                                                              Overall our assets’ performance continued to improve against the REEB benchmark in the year to 31 March
                                                                                                                                                    2020. Highcross in Leicester and Oracle in Reading continue to perform exceptionally well within the
            responding with a range of benchmarks and monitoring                                                                                    benchmark group. Bullring has also shown significant improvement over the last 2 years as a result of continued

                                                                                                                                                                                                                                                                       Net Positive
                                                                                                                                                    investment in energy efficiency initiatives.
            systems. We collaborate closely with industry peers on

                                                                                                                                                                                                                                                                       for Water
                                                                                                                                                    Assets that perform less well are those subject to extensive renovation plans or those with complex operations
            these initiatives and set out here our response to some of                                                                              such as Grand Central and Union Square which accommodate railway stations.

            those we consider most useful for our business.                                                                                         The benchmarks are available on the BBP website. We would encourage commercial property owners who do
                                                                                                                                                    not participate in REEB to consider doing so and to contact the BBP for more information.

            Carbon Risk Real Estate Monitor (CRREM)

                                                                                                                                                                                                                                                                       Net Positive for
                                                                                                                                                                                                                                                                       Resource Use
            Successfully minimising global warming to within 2°C requires a rapid transition to a Net Zero carbon global                            BBP Real Estate Environmental Benchmakmark                                                     CHART 2.1.2
            economy by 2050. The policies and actions required to achieve this present significant transition risks for real
            assets and systems are emerging to enable owners to better understand and manage these risks. Using the
                                                                                                                                                      120
            CRREM tool, we have developed pathways for each of our assets and, using asset specific carbon reduction
            targets are exploring how to minimise their transition risks and move them to a Net Zero position. As our
            scope 3 emissions are part of these pathways, we use our existing data from the tenanted areas of our assets to                           100

                                                                                                                                                                                                                                                                       Socio-economic impact
            model this, and we will be extending our existing programme of work with our tenants to achieve this.

                                                                                                                                                                                                                                                                       Net Positive for
                                                                                                                                                       80
            Scope 3 Carbon Emissions

                                                                                                                                      Tonnes CO2e
                                                                                                                                                       60
            Our Net Positive carbon footprint includes the Scope 3 emissions of our assets. We update this annually using data
            collected from tenants across our sites. As a result of long-term tenant engagement we currently have energy data
            from 83 tenants covering 24% of our portfolio.                                                                                             40

            We use this data to set regionally specific benchmarks for a set of retail uses across the portfolio. These benchmarks
            are then applied to the portfolio to provide an estimate of our Scope 3 emissions on a regional, portfolio and asset by                    20

            asset basis. Using this model our Scope 3 carbon emissions have been calculated and are set out in Chart 2.1.2 below.
                                                                                                                                                        0

                                                                                                                                                            G hop

                                                                                                                                                            Ce op

                                                                                                                                                            Bu nt
                                                                                                                                                            Br op

                                                                                                                                                            Ca hop

                                                                                                                                                            U op s tre

                                                                                                                                                            Si hop art

                                                                                                                                                            O ent

                                                                                                                                                            H op
                                                                                                                                                            W

                                                                                                                                                            W

                                                                                                                                                            Vi

                                                                                                                                                            Vi

                                                                                                                                                              ig p pin
                                                                                                                                                              ni p

                                                                                                                                                              lv p
                                                                                                                                                              ra p

                                                                                                                                                               ra re
                                                                                                                                                               en p
            Scope 3 Carbon Emissions for 2020

                                                                                                                                                                ct

                                                                                                                                                                ct
                                                                                                                                                                S

                                                                                                                                                                Sh

                                                                                                                                                                Ce
                                                                                                                                                                Sh

                                                                                                                                                                S

                                                                                                                                                                Sh rcu en

                                                                                                                                                                S

                                                                                                                                                                C

                                                                                                                                                                Sh hop
                                                                                                                                                                llr re

                                                                                                                                                                es
                                                                                                                                                                hi
                                                                                                                                                                nt pi

                                                                                                                                                                 bo pi
                                                                                    TABLE 2.1.1

                                                                                                                                                                  on in

                                                                                                                                                                  er in

                                                                                                                                                                  hc in
                                                                                                                                                                  nd in

                                                                                                                                                                   cl
                                                                                                                                                                   or

                                                                                                                                                                   or
                                                                                                                                                                   in
                                                                                                                                                                   tg
                                                                                                                                                                   t C ing
                                                                                                                                                                   ra ng

                                                                                                                                                                    tQ

                                                                                                                                                                     bu g
                                                                                                                                                                     t C ng

                                                                                                                                                                      e

                                                                                                                                                                      ro g
                                                                                                                                                                       g

                                                                                                                                                                       ia

                                                                                                                                                                       ia
                                                                                                                                                                       ift

                                                                                                                                                                        Sq g C
                                                                                                                                                                        le C
                                                                                                                                                                         Ce g C

                                                                                                                                                                         ua
                                                                                                                                                                         ro C

                                                                                                                                                                         S

                                                                                                                                                                          ss Ce
                                                                                                                                                                          r n Ce
                                                                                                                                                                          Sh

                                                                                                                                                                           i C

                                                                                                                                                                            G

                                                                                                                                                                            Q
                                                                                                                                                                            ua en
                                                                                                                                                                            ss en

                                                                                                                                                                             y
                                                                                                                                                                             nt en

                                                                                                                                                                              op

                                                                                                                                                                              at

                                                                                                                                                                              u
                                                                           35,277

                                                                                                                                                                               ra tre

                                                                                                                                                                               re tre
            UK Shopping Centres

                                                                                                                                                                                 e
                                                                                                                                                                                  pi
                                                                                                                                                                                   l

                                                                                                                                                                                    en

                                                                                                                                                                                     er
                                                                                                                                                                                     ng

                                                                                                                                                                                     nt

                                                                                                                                                                                     nt
                                                                                                                                                                                      g
                                                                                                                                                                                       tre

                                                                                                                                                                                       tre

                                                                                                                                                                                        re

                                                                                                                                                                                        re
            UK Retail Parks                                                23,549
                                                                                                                                                                                                                                                                      Full data
            Ireland Shopping Centres                                       21,094                                                                               2018-2019 CO2e/m2 CPA                             2019-2020 CO2e/m2 CPA                                tables

            France Shopping Centres                                        7,909                                                                                REEB Benchmark Typical practice                   REEB Benchmark Good practice

            *The latest scope 3 footprint has been updated with data from 2019 as 2020 data is not comparable.
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                                                                                     1.0 INTRODUCTION                           2.0 OUR PERFORMANCE                                 3.0 OUR DATA

32                                                                                                                                                                                                                                                                                                                  33

              Our Net Zero Carbon Transition Pathway
Hammerson

              As signatories to the Better Buildings Partnership Climate Commitment, we published our Net Zero Carbon
                                                                                                                                                                                       Progress against Transition Pathway 2020 targets                                                               TABLE 2.1.2

              Transition Pathway in 2020 and are reporting here on our progress against first year targets. Our transition                                                            2020 TARGET                                       2020 RESULT
              pathway includes operational, embodied and Scope 3 tenant emissions for assets in which we have a direct or

                                                                                                                                                                                                                                                                                                                     Net Positive
              indirect equity holding. Full details of the pathway and targets are available on Hammerson.com. This a very                                                            14% year on year reduction
                                                                                                                                                                                                                                        -36%
              ambitious target but will allow us to focus attention on specific challenges faced within the ecosystem of an                                                           in carbon emissions

                                                                                                                                                                                                                                                                                                                     for CO2
              individual asset. We will be inviting our tenants, particularly those using gas, to work with us to achieve this.
                                                                                                                                                                                      4% reduction in energy demand                     -18%

                                                                                                                                                                                      Installation of 1 additional PV array             2 PV arrays installed: Cabot Circus and Terrasses du Port

              Our Transition Pathway                                                                                                                               CHART 2.1.3        Achieve 3MWp installed renewable
                                                                                                                                                                                                                                        2.9MWp capacity installed across the portfolio
                                                                                                                                                                                      energy capacity across the portfolio

                                                                                                                                                                                                                                                                                                                     Net Positive
                          90,000                                                                                                                                                      Incorporate best in class industry                Design Teams working to LETI and Passivhaus

                                                                                                                                                                                                                                                                                                                     for Water
                                                                                                                                                                                      benchmarks within design briefs                   standards for new schemes in Ireland

                          80,000
                                                                                                                                                                                                                                        Materials standards included within standard tenant fit out
                                                                                                                                                                                      Set materials standards through fit out process
                                                                                                                                                                                                                                        guides and monitored through retail delivery process
                          70,000
                                                                                                                                                                                      Continue to monitor contractor
                                                                                                                                                                                                                                        Contractor performance reported at least monthly on active sites
                                                                                                                                                                                      performance on materials and waste
                          60,000

                                                                                                                                                                                                                                                                                                                     Net Positive for
                                                                                                                                                                                                                                                                                                                     Resource Use
            Tonnes CO2e

                          50,000

                          40,000
                                                                                                                                                                                      Transition Pathway targets for 2021
                          30,000

                                                                                                                                                                                                                                                                                                                     Socio-economic impact
                                                                                                                                                                                      —   26% reduction in absolute                                   —    Agree PPA to deliver additional
                                                                                                                                                                                          carbon emissions v 2019                                          renewable energy for up to 50% of UK

                                                                                                                                                                                                                                                                                                                     Net Positive for
                          20,000
                                                                                                                                                                                      —   Recycle or reuse 75% of operational                              Shopping Centre portfolio demand
                                                                                                                                                                                          waste across managed assets                                 —    Review oppotunities for further on-site
                          10,000                                                                                                                                                                                                                           renewables across flagship assets
                                                                                                                                                                                      —   Continue to purchase remaining electricity
                                                                                                                                                                                          throgh REGO-backed electricity contracts                    —    Continue working within tenants to reduce
                              0                                                                                                                                                                                                                            embodied carbon and resource use in fit out
                                                                                                                                                                                      —   Establish route map to tranistion
                                                                                                                                                                               2040
                                                               2024

                                                                                                                                     2034
                                   2020

                                                 2022

                                                        2023

                                                                      2025

                                                                             2026

                                                                                           2028
                                                                                    2027

                                                                                                  2029

                                                                                                         2030

                                                                                                                       2032

                                                                                                                              2033

                                                                                                                                            2035

                                                                                                                                                   2036

                                                                                                                                                                 2038

                                                                                                                                                                        2039
                                                                                                                                                          2037
                                          2021

                                                                                                                2031

                                                                                                                                                                                          new developments to certified Net
                                                                                                                                                                                          Zero embodied carbon status

                                          Scope 1 + 2 Emissions                                            Embodied Carbon

                                                                                                           Hammerson CO2e Emissions
                                          Scope 3 Emissions
                                                                                                           (Proportionate Ownership Basis)
                                                                                                                                                                                                                                                                                             FOR MORE
                                                                                                                                                                                                                                                                                      Our full 2021/2022
                                                                                                                                                                                                                                                                                                                    Full data
                                                                                                                                                                                                                                                                                      targets can be found           tables
              Support for the BBP Climate Commitment is indicative of the heightened expectations of businesses across the industry                                                                                                                                                   on pages 26–27.
              today. Whilst at different stages of their net zero carbon journey, 20 BBP members had published their pathways                                                                                                                                                         Our long term targets
              by the end of 2020 and have committed to publishing performance against those pathways on an annual basis.                                                                                                                                                              can be found on
                                                                                                                                                                                                                                                                                      pages 44–45.
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                                                          1.0 INTRODUCTION                      2.0 OUR PERFORMANCE                             3.0 OUR DATA

34
            2.2 Net Positive for Water                                                                                                                      WATER DEMAND FOR
                                                                                                                                                            LANDLORD SERVICES
                                                                                                                                                                                                    LANDLORD
                                                                                                                                                                                                    WATER INTENSITY
                                                                                                                                                                                                                                           3 FLAGSHIP ASSETS
                                                                                                                                                                                                                                                                            35
                                                                                                                                                                                                                                           NET
                PROGRESS
                                                                                                                                                            -68%                                     -11%                                  POSITIVE
Hammerson

            Setting ambitious targets keeps our focus on driving down                                                                                       Net Positive portfolio                  Net Positive portfolio                 for Landlord water
            water use. Overall we have reduced absolute water demand                                                                                                                                                                       demand in 2020

            by 260,000M3 over the five years to the end of 2020.

                                                                                                                                                                                                                                                                             Net Positive
                                                                                                                                                                                                                                                                             for CO2
                                                                                                                                                         Partnership with                           Innovative water                        3 assets Net
                        Water Demand                                                                                                       CHART 2.2.1   Thames Water                               saving mobile bin                       Positive for
                                                                                                                                                         In 2019 we established a partnership       cleaning plans                          water in 2020
                Net Positive for
                                          350,000                                                                                                        with Thames Water to provide water         at The Oracle                           As a result of our work
                Water means water         300,000                                                                                         52,333M3       audits, water saving technologies                                                  with Thames Water and
                                                                                                                                          WATER          and leak correction to our tenants at      The Oracle has over 200 bins, which
                replenished by            250,000                                                                                                                                                                                           engagement with retailers
                                                                                                                                          SAVED          The Oracle. The partnership proved         all require cleaning to maintain

                                                                                                                                                                                                                                                                             Net Positive
                external projects                                                                                                                                                                                                           to fix leaks, the three

                                                                                                                                                                                                                                                                             for Water
                                          200,000
                                                                                                                                          THROUGH        successful, with 98% of tenants signing    H&S standards. Investment in a
                exceeds water                                                                                                                                                                                                               participating assets were

                                                                                                                 75,679
                                          150,000                                                                                         LEAK           up. 69% of them had leak fixes and         mobile bin washer which can re-
                                                                                                                                                                                                                                            Net Positive for water
                                                         335,593

                                                                   314,576

                                                                             281,695

                                                                                           259,797

                                                                                                      236,000
                consumed from                                                                                                                                                                       use water thanks to inbuilt water
                                          100,000                                                                                         FIXING FOR     installation of devices such as urinal                                             demand for landlord

                                                                                                                          123,000
                mains supply.                                                                                                             TENANTS                                                   cleaning technology, and the setting
                                           50,000                                                                                                        controls, we estimated savings of                                                  services in 2020. Water
                                                                                                                                          SINCE          108M3/day - that’s 108,000 litres.         out of new housekeeping practices
                                                                                                                                                                                                                                            demand was low in 2020 but
                                                                                                                                          2018.                                                     is expected to deliver good water
                                                                                                                                                         In 2020 we extended the partnership                                                two of the three assets would
                                            M3          2015       2016      2017          2018       2019      2020      2021
                                                                                                                                                                                                    savings. The pay back period is
                                                                                                                                                         work to Centrale and Brent Cross                                                   have achieved Net Positive
                                                                                                                                                                                                    expected to be less than one year.

                                                                                                                                                                                                                                                                             Net Positive for
                                                                                                                                                                                                                                            against 2019 water demand.

                                                                                                                                                                                                                                                                             Resource Use
            To achieve this we have:                                                                                                                     where 81 tenants were audited and
            –    Invested £500k in water efficient equipment                           –       Partnered with Thames Water to audit
                                                                                                                                                         we estimate a further 261M3/Day of
                                                                                               over 170 tenants across three assets                      savings. A further saving of c. 19M3/day
            –    Installed smart meters and submeters
                 for water across 9 assets                                             –       Fixed 124 water leaks saving an estimated                 was made in landlord managed areas.
            –    Carried out water audits on landlord managed water use                        306M3 of water/day for tenants
                                                                                                                                                         Plans for businesses local to our
                 across three assets, finding and fixing leaks of c. 90M3/day          –       Fixed leaks in a local school, saving an
                                                                                                                                                         assets to participate were curtailed by

                                                                                                                                                                                                                                                                             Socio-economic impact
            –    Created action plans for those assets to reduce                               estimated 1000M3 of water
                                                                                                                                                         the pandemic, but we will continue
                 consumption i.e. new cleaning schedules
                                                                                                                                                         with these initiatives in 2021.

                                                                                                                                                                                                                                                                             Net Positive for
                LOOKING AHEAD

                                                                                                                                                         KEY AREAS FOR PHASE 2
                  Over the coming years we will continue to focus on reducing demand for water for landlord services and
                  identifying projects beyond our corporate boundaries to achieve additional water savings. However as we move
                  to Phase 2 of Net Positive water demand from our developmetn activities comes into scope. Our current forecast
                                                                                                                                                         Water Efficient Development and Reducing Tenant Water Use
                  for 2021 is set out in chart 2.2.1 above. To work towards our Net Positive water targets our plans include:
                                                                                                                                                         As the focus of our Net Positive targets moves     We also aim to make a long term positive
                                                                                                                                                         to our development activities we are looking       impact on site flood risk including an allowance
                  – Working with cleaning services to identify                         – Working with regional water companies                           at how to reduce water demand within the           for 2080 climate change through the use of
                    opportunities to reduce water demand                                   to support water reduction projects                           construction process and ensuring the buildings    Sustainable Urban Drainage techniques such as
                                                                                           beyond our corporate boundaries                               we design now are able to minimise water           landscaping and green and blue roofs. Achieving
                  – Increasing rainwater harvesting facilities
                                                                                       – Including grey water and rainwater                              demand in the future. For the in-use phases        our 2030 Net Positive targets requires water
                  – Continuing the installation of water efficient
                                                                                           harvesting systems in our developments                        of our City Quarters developments, we are          demand to be minimised within the tenanted                      Full data
                    equipment and waterless urinals both in landlord                                                                                                                                                                                                         tables
                                                                                                                                                         identifying opportunities for grey-water and       space at our assets as well as those areas we
                    areas, and in tenant fit out via our water saving                  – Working with contractors to minimise the
                                                                                                                                                         rainwater harvesting. We have set ambitious        control. We are already working on this through
                    partnerships and fit-out guide                                         use of potable water in construction
                                                                                                                                                         targets for our designers to meet including        our submetering programme in the UK, which
                  – Supporting tenants to reduce water demand                          – Continuing to engage employees in                               a 65% reduction in water consumption over          will be extended to Ireland in 2021. We will also
                    within retail units through behaviour change/                          water saving behaviours at home                               ‘typical’ levels in similar developments.          look to expand the partnership model created
                    engagement activities                                                                                                                                                                   with Thames Water, to other water regions.
SUSTAINABILITY REPORT 2020: OUR PERFORMANCE                                                                                                           1.0 INTRODUCTION                     2.0 OUR PERFORMANCE                            3.0 OUR DATA

36
            2.3 Net Positive                                                                                                                                 2559                                                         99.9%
                                                                                                                                                                                                                                                                            37

            for Resource Use
Hammerson

                                                                                                                                                             TONNES OF                                                    WASTE DIVERTED
                                                                                                                                                             RECYCLED MATERIALS                                           FROM LANDFILL
                                                                                                                                                             specified in construction since 2018                         across the group in 2020
                PROGRESS
                                                                                                                                                          Our waste management processes                                                   Cabot Circus

                                                                                                                                                                                                                                                                            Net Positive
            We have a clear responsibility to ensure waste                       on our behalf drives demand for recycled content,                        drive good practice and relatively        Supporting Reuse

                                                                                                                                                                                                                                                                            for CO2
            streams from our assets are minimised and diverted                   reusable products and the highest standards in                           high quantities of reuse and recycling.   of Materials                           produce enough
            into the highest value waste stream possible, i.e                    responsible sourcing. We have reduced our Net Positive                   Our average recycling rate was                                                   green gas through
                                                                                                                                                                                                    In spite of lockdown, during 2020,
            reuse, and that any construction procurement done                    resource user footprint by 2,100 tonnes in 2020.                         74% over the 4 years to 2019, and
                                                                                                                                                                                                    the Highcross team managed
                                                                                                                                                                                                                                           anaerobic
                                                                                                                                                          57% in 2020. During lockdown
                                                                                                                                                          food and beverage outlets were the        to prevent nearly 3 tonnes of          digestion to
                        Resource Target                                                                                                CHART 2.3.1        main activity within the centres.         resources from vacated units and       run centre 2.5
                                                                                                                                                                                                    lost property from being wasted.
                                                                                                                                                          This generated an unusually high                                                 times over
                                                                                                                                                                                                    The team recovered and logged as

                                                                                                                                                                                                                                                                            Net Positive
                                                                                                                                                          proportion of organic waste leading to

                                                                                                                                                                                                                                                                            for Water
                                         20,000
                                                                                                                                                                                                    many items as possible and offered     Thanks to our partnership
                Net Positive for                                                                                                                          high rates of contamination of other
                                                                                                                                                                                                    them to local partners such as         with Organic Waste Logistics
                Resource Use             10,000
                                                                                                                                                          waste streams and lower recycling
                                                                                                                                                                                                    charities, food banks and artists,     (OWL) we have anaerobic
                means waste                                                                                                                               and reuse rates. Food disposal
                                                                                                                                   2,744
                                          8,000
                                                                                                                                                                                                    who would be able to re-use the        digestion systems in place
                avoided, recycled                                                                                                                         increased 30% year on year in 2020,
                                                                                                                                                                                                    items therefore extending their        at 2 assets reducing the
                or re-used exceeds        6,000
                                                                                                                                                          whilst total waste fell by 50%.
                                                                                                        3,415                      TONNES                                                           end of life and simultaneously         emissions from transportation
                                                         8,539

                materials used
                                                                                7,776
                                                                        7,764

                                          4,000
                                                                                                                                   of organic                                                       helping us achieve our Net Positive    of food waste, producing

                                                                                                                  1,265
                                                                                               4,734

                that are neither
                                                                                                                                   waste to AD             2559 tonnes of                                                                  much needed green gas for

                                                                                                                                                                                                                                                                            Net Positive for
                recycled, renewable       2,000                                                                                                                                                     targets of reducing waste too.

                                                                                                                                                                                                                                                                            Resource Use
                or sent to landfill.                                                                                                                       recycled content                         Our partnership with Globechain        the grid. At cabot Circus in
                                                                                                                                                                                                                                           2020 our Biowhale processed
                                          Tonnes                 2015   2016    2017           2018     2019      2020                                     specified for                            aims to increase these outcomes
                                                                                                                                                                                                    in 2021. We will be working with       287 tonnes of food waste
                                                                                                                                                           concrete and steel                       them in three UK cities to help        which generated 700kWh of
            To achieve these things we have:
                                                                                                                                                           in construction                          divert items from becoming waste.      gas - 2.5 times Cabot Circus
                                                                                                                                                                                                                                           gas demand in 2020.
            –    Worked consistently with retailers to                           –          Developed relationships with re-use organisations to divert

                                                                                                                                                                                                                                                                            Socio-economic impact
                                                                                                                                                           Construction work at our French
                 improve separation of waste at source                                      un-wanted food and hard-wear from the waste stream
                                                                                                                                                           assets was limited in 2020 due
            –    Implemented on site sorting tables to                           –          Updated our internal processes to ensure opportunities
                                                                                                                                                           to lockdown. However, we have

                                                                                                                                                                                                                                                                            Net Positive for
                 improve separation of waste streams                                        to re-use fit out are captured during leasing
                                                                                                                                                           maintained our expectations
            –    Installed two Bio-whales to increase the quantity               –          Set clear standards within our fit out guides to
                                                                                                                                                           regarding recycled content within
                 of organic waste going to anaerobic digestion                              encourage the use of materials with recycled content
                                                                                            and divert waste from landfill and waste to energy             concrete and steel being used
                                                                                                                                                           on site. This has driven demand
                                                                                                                                                           for 2559 tonnes of recycled
                                                                                                                                                           content, significantly reducing
                                                                                                                                                           demand for natural resources.
                LOOKING AHEAD

                  As we move into phase 2 of our Net Positive targets, resource use from                                                                  KEY AREAS FOR PHASE 2
                  our development activities is brought into scope.
                                                                                                                                                          Resource use in our developments
                  To address this, over the coming years we will continue to focus on maximising the reuse and                                            As our development programme progresses we           too. Specifying recycled materials and materials
                  recycling of operational waste and ensuring we drive uptake of sustainably sourced materials                                            will have the opportunity to work with our design    with recycled content will be supported by
                  through our procurement process and through encouraging innovation. Our plans include:                                                  teams to bring principals of circular economy        considerations of re-usability of key materials             Full data
                                                                                                                                                                                                                                                                            tables
                  –   Continuing to specify low impact and recycled                     –     Extending our relationships with specialist                 into our developments. This presents significant     when the building is at end of life, including
                      materials within our developments                                       re-use platforms to maximise re-use of resources            challenges in the quantity of materials required     considerations of the practicality of dismantling.
                                                                                                                                                          for our development work, but opportunities
                  –   Working with our on-site teams and                                –     Working with our operations and
                      waste contractors to improve waste                                      development partners to bring circular
                      separation and optimise recycling                                       economy thinking into our asset management
                                                                                              and development work streams.
You can also read