Sustainability Risk Framework
The potential risks flowing from sustainability are high on the corporate agenda. As the effects of climate change become more obvious and legislative and regulatory responses expand we are careful to monitor the potential impacts and opportunities for our portfolio.
At a corporate level, sustainability risks are monitored on a quarterly basis as part of the business wide risk management process. The Sustainability Risk Framework is routinely reviewed by the CR Board. This allows relevant business units to be alerted to any identified risk or potential risk via the CR Working Groups and a response to be put in place.
Key material environmental risks are identified as climate change, energy security and supply and carbon emissions both in terms of their potential directo consequences on the portfolios and any resulting legislation and regulation.
But of course there are always unforeseen risks which are increased where there is political uncertainty and a lively legislative landscape. We therefore apply precautionary principles of ensuring in key areas we go beyond compliance in our reporting and in the standards set for our asset management and developments.
In 2013 this led to our being able to go beyond compliance with our Mandatory Green House Gas emissions reporting, which was externally assured. We continue to provide comprehensive reporting on GHG emissions and performance including of Scope 3 business travel, waste and water.
This approach also ensured that we have not been unduly affected by the forthcoming Minimum Energy Efficiency Standards. We have been proactive in ensure EPCs are in place across the portfolio and are on track to have elimited EPC risk as far as possible from our UK assets ahead of the compliance date. Our development schemes were not affected by the revisions to Building Regulations as our existing design standards target a greater reduction in carbon emissions than the new standard set.