Grosvenor has today claimed plans and resources are now in place for the property giant to deliver upon science-based emissions reduction targets in line with limiting global warming to 1.5C, following what it described as a “resilient” financial performance in 2023.
According to the firm’s annual financial results for 2023, Grosvenor’s UK property business, the largest within the group, has reduced its emissions by just shy of a third over the past three years as it progresses towards a verified science-based target to achieve net zero emissions by 2040.
The reductions in emissions came as the Group reached a milestone of retrofitting one million square feet of space across its London estate through property retrofits, net zero developments, and work with its supply chain. Announcing the landmark in February, Grosvenor said it now plans to upgrade a further 250,000 sq ft and refurbish 14 listed buildings over the coming year.
Grosvenor today also revealed how it is currently developing a river catchment conservation project in Scotland, is involved in flood management intervention across several river systems, and is creating biodiversity net gain through parks and rooftop gardens within its urban portfolio.
In addition, the Group confirmed a number of landmark green developments – including London’s Holbein Gardens, a 25,000 sq ft workplace built within the UK Green Building Council’s net zero carbon buildings framework – were all fully pre-let ahead of completion.
And it confirmed construction had begun on the West End’s largest mixed-use low-carbon development, South Molton, in Mayfair, as Grosvenor accelerates its decarbonisation and nature enhancement efforts in line with its climate targets.
“The global commitment we made last year to decarbonise our activities in line with the 1.5C target has acted as a catalyst for action: not only are we on a clear path to accelerate our decarbonisation activities, but climate risk and resilience are now embedded within our decision-making,” said Mark Preston, chief executive of Grosvenor.
“In turn, this is spurring us to develop a more circular business model, driven by our ability to reduce our environmental impact, including through the reduction of waste at source, and by a desire to have a net positive effect on the planet. The range of our activities and our long-term approach means we can contribute to both the climate and nature crises, affecting change in both urban and rural environments, and, through our investments, realise synergies and bring benefits to both communities”.
These updates came as the Group revealed profits of £41.5m versus £52.7m delivered in 2022, which stakeholders described as a “resilient result” relative to international real estate markets.
The firm said that continued investment and activity to scale solutions that can help curb carbon-intensive practices within its farming and food production portfolio, as well as further investment in renewable energy, are being explored.
“With a short-term lens, 2023 will go down as a challenging year of high interest rates, dampened investor confidence, and downward pressures on valuations,” Preston added. “Our financial results reflect these challenges but are a resilient expression of the continued appeal and underlying revenue strength of our properties, and also reflect reduced trading profits given we deliberately slowed our development pipeline in anticipation of worsening economic times.
“With a longer-term lens, however, I look at 2023 as a year of significant progress in the delivery of lasting benefits, in terms of sustainable growth, the wellbeing of the communities we are part of, and, in respect of our approach to environmental sustainability.”
The past year also saw Grosvenor hit a £1m funding target for its Greener Futures programme two years ahead of schedule, enabling community-led climate action across 38 projects in Westminster that is expected to benefit in the region of 35,000 people.
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