Chief Executive's statement

“Our business success depends on our ability to develop and manage buildings that offer enduring appeal, at the same time as operating efficiently and effectively for the hundreds of businesses which occupy the buildings we own and manage. Treating local people properly, particularly where we are building on their doorsteps, and being fair in our dealings with our staff and suppliers, are not just box-ticking exercises, they are part of our core ethos as a company.

In recent times, we have heard about ‘sustainability’ more and more often. The problem with words like this is that they may mean different things to different people. Where possible, we prefer to be more specific — and more measurable. We aim to be energy and water efficient, to send as little waste as possible to landfill, to keep our customers happy, to build good relationships with local communities, and to attract and retain appropriately skilled and experienced staff.

Our efforts continue to be underpinned by our strong customer focus. We were pleased to be recognised as the real estate sector leader in Oekom’s Corporate Responsibility Review 2010, as well as one of Corporate Knights’ Global 100 Most Sustainable Corporations 2009. However, if we developed a green building that nobody wanted to occupy, we would not be meeting the needs of our customers — or our investors. If we turned off lights inappropriately at our retail parks, we may save energy but we could cost our retailers footfall and shopper spend. Many of the issues concerned with sustainability are complex and inter-related, so we have to take a common sense approach to fit each business circumstance.

For instance, our premium office estate, Regent’s Place, where we recently completed the latest phase of our plans for the area, adjoins one of the most deprived neighbourhoods in London. Here, community engagement and regeneration are critical to our ability to develop and manage our investment. Elsewhere, whilst these activities are still important, other aspects may rise up the agenda; for instance, managing flood risks in the River Don District or conserving water in areas prone to drought.

At our Head Office, we have worked closely with our building management team and occupiers to improve energy efficiency, supported by a new energy management system. The result was a 32% reduction in British Land controlled energy use, saving nearly 1 million kWh and £50,000 on energy bills. We are now working with occupiers and managing agents across our portfolio to implement similar schemes elsewhere. Given that we managed 128 million kWh of energy on behalf of occupiers across our multi-let portfolio this year, with an estimated energy bill of £10 million, the opportunity for savings is significant.

Corporate responsibility is, without doubt, a critical part of our approach to property development and management. This is why we are able to build developments that are 27% more energy efficient than the norm, and how we reduced energy use by 12% across our like-for-like portfolio. I’m pleased with the progress we have made this year, but I also recognise that we still have further to go to ensure that every member of our Head Office team and supply chain understands our partnership approach to corporate responsibility, and recognises that it is a central part of how we do business — the right way.”