Climate change is one of the biggest challenges of our age and we are determined to play our part in tackling it.
We have set an ambitious target to be net zero aligned in our operations by 2035 and reach net zero across our value chain by 2045 – ahead of the UK’s national target. Our net zero target for 2045 has been independently validated by the Science Based Targets initiative (SBTi) confirming that it is aligned with the SBTi’s 1.5°C mitigation pathways for reaching net zero by 2050 or sooner. This is currently the most ambitious designation available through the SBTi process. Our near term carbon reduction targets have also been SBTi validated.
We published our Net Zero Transition Plan and roadmap in early 2023, setting out the steps we are taking across our business to achieve our targets.
Our approach to carbon reduction encompasses:
Our carbon footprint (scopes 1, 2 and 3) was 1.94 million tonnes CO2e in 2023 (2022: 2.54 million tonnes). Total intensity was 187.0 tonnes CO2e per 100 sqm of build (2022: 190.0 tonnes per 100 sqm).
Our operational emissions intensity (scopes 1 and 2), has decreased by 5% against our 2019 baseline, with absolute operational emissions falling by 35% over the same period.
Further emissions data is published in our Annual Report and Accounts and our Sustainability Summary.
We are tackling operational emissions by improving our processes, investing in low carbon technologies and buying REGO-backed green electricity.
We purchase 100% renewable electricity for new sites during construction, offices, show homes, sales areas and plots before sale. In 2023 this was around 79% of our total Group electricity consumption (2022: 70%). Our green electricity is REGO backed, confirming it comes from genuine renewable energy.
We have set energy reduction targets for each regional business to drive improvements. Our Sustainability Champions work with our site teams to reduce energy use on site and apply our Energy Use Dos and Don’ts guide which we updated in 2023. During the year we tested three site cabins powered by renewable solar energy and battery power, with a LPG generator avoiding 18 tonnes of CO2e over 6 months. We began developing our carbon reduction plan for our offices and testing different approaches.
Diesel usage on our sites accounts for over 40% of our operational emissions and reducing this is a priority. In 2023, we extended our trial of hybrid diesel generators to 13 sites across 10 of our regional businesses to understand the potential cost and carbon reduction benefits.
Hybrid generators combine a traditional diesel generator with a battery storage unit, similar to a hybrid car. During periods where the load is high, the diesel generator powers the site and charges the battery simultaneously. When loads are lower, the system switches and the batteries power the site.
Over the five-month trial, use of the hybrid generators avoided around 300 tonnes of CO2e while reducing costs. We will now roll out hybrid generators across new sites and use them to replace conventional generators on existing sites where possible.
Company car fleet
We operate two car benefit schemes – one for employees who are entitled to a car benefit as part of their job role and the other is available to all employees on a salary sacrifice basis. Our ‘MyDrive’ salary sacrifice scheme enables employees to have access to a new low emission car, fully maintained, and provided in a tax-efficient way. It incentivises employees to choose electric and ultra-low emission vehicles. Across both car benefit schemes, we now only offer cars with a CO2 rating of less than 110g/km (2022: 120g/km) in line with our strategy to reduce our fleet CO2 emissions.
By the end of 2023 we had reached 72% EV or hybrid cars (2022: 56%). Many of our offices now have electric vehicle charging points. We have reduced company car and grey fleet emissions by 21.1% since 2019.
Embodied carbon in the goods and services we buy accounts for around half of our carbon footprint. To meet our net zero goals, it is essential to work with suppliers and the wider industry to tackle embodied carbon.
We are focusing on five key materials - concrete, diesel, asphalt, bricks and steel – based on analysis with the Carbon Trust which found that they account for around 68% of our emissions in purchased goods and services.
We are asking suppliers to provide Environmental Product Declarations. These are based on life cycle assessments (LCA’s) and include quantification of embodied carbon which can inform our procurement decision making.
Our current work with suppliers on carbon reduction includes:
We received a score of A- from CDP Climate Change for 2023 (2022: A-) and received a Supplier Engagement score of A for our approach to engaging suppliers on climate change (2022: A). We were included on the Financial Times Europe’s Climate Leaders list 2023. Our Net Zero Transition Plan was shortlisted in the Edie Awards 2024.
We work with the Carbon Trust on many aspects of climate change. From 2017 to 2023 we held the Carbon Trust Standard for our overall approach to carbon management, including our policy, strategy and verification of our data and processes. We were the first volume homebuilder to achieve this. In early 2024, we achieved certification to the Carbon Trust’s Route to Net Zero Standard, Advancing level, the only housebuilder to hold this new standard. To achieve the standard our climate change data together with our governance, stakeholder engagement and implementation are reviewed and verified by the Carbon Trust.
Our carbon and energy use data is externally assured by Carbon Trust Assurance to a limited assurance level. This includes verification to ISO 14064 for our scope 1 and 2 footprint, and three selected scope 3 categories (Purchased Goods and Services, Fuel and Energy-related Activities and Use of Sold Products).
We publish a detailed disclosure against the recommendations of the Taskforce on Climate-related Financial Disclosures in our Annual Report and Accounts covering our climate scenario analysis and approach to climate risks and opportunities. We have published a Net Zero Transition Plan setting out how we will respond to our identified climate risks and opportunities and achieve our net zero target.
Taskforce on Climate-related Financial Disclosures
Our CDP 2023 Score Reports and Carbon Trust Assurance Statements can be found below:
Carbon Reporting Methodology (scope 1 and 2)
Carbon Reporting Methodology (scope 3)
Carbon Trust Assurance Statement 2023 (scope 1 and 2)
Carbon Trust Assurance Statement 2023 (scope 3)
Carbon Trust Methodology Report (scope 3)
CDP Climate Change Submission 2023
CDP Supplier Engagement Score Report 2023
CDP Water Security Score Report 2023
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