Environment
Building for tomorrow
Progressing towards net zero carbon emissions
Reducing carbon emissions to help limit global warming is a key business priority. We have developed a decarbonisation pathway to deliver carbon reductions over the near and long term, aligned to ensure that global warming remains below 1.5°C.
Our carbon reduction targets:
Near-term targets (2030); approved by the SBTi
- To reduce carbon emissions from our operations by 46.2% by 2030 (2019 baseline).
- To reduce carbon emissions from our indirect operations (i.e. those from our homes in use and our supply chain, known as Scope 3) by at least 22% per m2 completed floor area by 2030 (2019 baseline).
Long-term targets (2045); awaiting approval by the SBTi
- We have developed long-term net zero carbon reduction targets in accordance with the Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard and are in the process of having them approved.
- We have set an end date of 2045 to achieve net zero carbon across our value chain, achieving a reduction of circa 90%, with the remaining 10% being offset or neutralised through a suitable mechanism.
These are challenging targets requiring product innovation, supply chain engagement and changes to current operational processes.
Our decarbonisation pathway
We have developed our decarbonisation pathway with the support of the Carbon Trust to help us achieve net zero carbon across our value chain by 2045.
We have identified key decarbonisation levers which provide the most material reductions with current known technologies and that are in line with other key sector decarbonisation pathways.
The main areas of reduction opportunity are:
- Reducing our Scope 1 and 2 emissions – These account for a small percentage of our total emissions, but they are under our direct control, so this is a key area of focus.
- Reducing in-use emissions from completed homes – We are committed to producing zero carbon-ready homes by 2030. The decarbonisation of the grid by 2035 is a key enabler to reducing carbon emissions.
- Reducing the embodied carbon of materials – this is a complex area across multiple supply chains, and we are engaging with our suppliers to reduce the carbon emissions of the materials and services we procure. Our vertical integration strategy with the use of our timber frames, concrete bricks and tiles is a key contributor to reducing our carbon emissions.
Full details can be found in the sustainability section of our Annual Report 2024.
Developing zero carbon ready homes
With customer experience as a key consideration, we have been carefully implementing our low-carbon design and heating solutions to improve energy efficiency and reduce the emissions of our homes.
This year, we have fully implemented the step change to delivering Part L 2021 following our approved transitional arrangements. We have taken a ‘fabric first’ design route to make a 31% reduction in carbon emissions. Solutions used to achieve this include increased insulation, smart heating technology, waste water heat recovery and solar PV. As a result, our homes now use less energy compared to traditional older properties.
In preparation for the forthcoming Future Homes Standard (‘FHS’) and as part of our implementation of the New Build Heat Standard in Scotland, we have developed energy transition plans for all our developments. This ensures that we phase out the installation of gas boilers while considering the appropriate timescales and commercial needs. Ahead of the regulatory requirements, we have already started installing low-carbon design and heating solutions, such as air source heat pumps.
Innovative products and new solutions are emerging onto the market, and our technical teams are constantly analysing options and creating optimised solutions.
We have a significant advantage through our Space4 timber frame products to provide an effective ‘fabric first’ approach and deliver increased insulation and thermal efficiency which will be a key contributor to achieving the energy efficiency requirements.
Optimising energy performance in the home and customer experience is a key enabler to reducing carbon emissions and energy bills. We are evaluating the opportunities for smart technology solutions in our homes and currently have trials underway.
Creating a responsible supply chain
Our business operations critically rely on our supply chain to deliver quality homes for our customers. Our suppliers and contractors are appointed through a combination of Group framework agreements and local operating company relationships. Mandating ethical procurement practices, our suppliers have to comply with our Supplier Principles and Group policies.
When developing framework agreements and making significant sourcing decisions, all requests for information (‘RFIs’) and quotations (‘RFQs’) include environmental and sustainability criteria with appropriate weightings. Our Group Procurement team discusses sustainability requirements quarterly in supplier reviews with key suppliers.
We are partners with the Supply Chain Sustainability School to assist in the delivery of a consistent approach to sustainability and responsible sourcing. The School provides a learning and engagement platform to upskill people working within the built environment sector. Our partnership support enables free online learning materials, seminars, workshops and other services for our supply chain to help it improve environmental, social and economic sustainability awareness on issues including carbon reduction, waste reduction, resource use and human rights.
Full details regarding our building for tomorrow sustainability pillar, including our greenhouse gas emissions, decarbonisation pathway, responsible sourcing of timber, and waste reduction, can be found in the sustainability section of our Annual Report 2024.
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