Chelsea 2030 2021 Update
Contents
Chelsea 2030 Update
2
Carbon Emissions
4
Air Quality
8
Green Infrastructure
10
Waste 12 Water 14 Wellbeing and Culture
16
Charity 22 Methodology and Governance
24
GRI Standard Disclosure References
26
Chelsea 2030 Update
Cadogan | Chelsea 2030
2
Our commitment to a sustainable future Contributing towards a flourishing and sustainable local community is central to our approach and consistent with our values as a very long-term family business – stewardship has always been at the heart of the business. We launched “Chelsea 2030” in summer 2021, following extensive local consultation. It is our commitment to further reduce Cadogan’s impact on the environment, while also protecting Chelsea’s unique heritage and supporting its community. Our ambitious targets (see next page) will be reached through a multitude of initiatives to tackle priorities including carbon emissions, air quality, greening, waste and water usage.
To achieve this, we are working in partnership with many local stakeholders, key suppliers and partners, combining forces to achieve significant change by 2030. Chelsea 2030 is our commitment to a more sustainable future – helping to improve local quality of life and provide a foundation for change over the next decade.
We intend to report our progress annually. The following pages contain an update on our performance since our baseline year of 2019.
Our Targets AIM
TA RG E T
2 0 3 0 D E TA I L
CARBON EMISSIONS
1. NET ZERO EMISSIONS
Net zero emissions across Cadogan’s scope of influence
A I R Q UA L I T Y
2 . S U P P L I E R C O N S O L I D AT I O N
At least 40% of commercial tenants join off-site consolidation scheme
3. ZERO-EMISSION SUPPLIERS
80% of suppliers to deliver by zero-emission transport
4. ELECTRIC VEHICLE INFR A STRUCTURE
All service bays and residential parking lots to have EV charging by 2025, and all new developments after 2021 to include EV charging
GREEN INFR A STRUCTURE
5. I M P R O V E D G R E E N INFR A STRUCTURE
Improve quality and quantity of green infrastructure, including 25% increase in Urban Greening Factor
WA S T E
6 . WA S T E R E D U C T I O N
Send zero commercial operational and nonhazardous construction waste to landfill Reuse or recycle over 90% of commercial operational and construction waste
WAT E R
7. WAT E R U S E R E D U C T I O N
Reduce absolute mains water consumption by 50%
WELLBEING AND C U LT U R E
8 . E M P LOY M E N T A N D S K I L L S
Increase local employment and skills development
9. H E A LT H A N D W E L L B E I N G
Make a measurable improvement to our communities’ health and wellbeing
CHARITY
10. COMMUNIT Y COHESION
Enhance community cohesion between local stakeholders
1 1 . T W I N N I N G P R OJ E C T
Deliver one twinning project a year
12. GIVING PRO GR AMME
Facilitate increase in charitable giving
3
Cadogan | Chelsea 2030
Carbon Emissions
Minimising carbon emissions is critical to mitigating climate change, and our commitment to achieving a net zero Estate by 2030 lies at the heart of the Chelsea 2030 strategy.
4
Target 1 Net Zero Emissions by 2030
O
ur detailed Net Zero Pathway sets out our delivery plan, taking into consideration Chelsea’s historic nature, conservation area requirements and development pipeline. The greatest focus is on the areas with maximum impact potential: our supply chain, embodied carbon in developments and occupier operations. Cadogan’s greatest reduction in emissions will come from efficient and low-carbon retrofit and refurbishment, retaining materials where possible, and preserving heritage whilst also enabling and promoting efficient operations.
TOTA L E M I S S I O N S PE R £ M O PE R ATI N G PRO FIT B E FO R E C A PITA L ITE M S 897
895
844
We have signed the Better Building Partnership Climate Change Commitment and recognise our role as one in which we can bring people together, support innovation and act as a catalyst for change. In the wider context of the changing high street, evolving consumer demands and increasing regulation, we are building on the strength of our longterm view to use our asset management and facilities management strategies to address the impacts of climate change. The past year has seen progress on all elements of the Net Zero strategy, creating a strong foundation of effective and streamlined processes across the business which will enable us to scale up swift and impactful delivery over the coming years. From a baseline of 94,998 tCO2e in 2019, we have achieved a 10% saving on our journey towards net zero. Whilst only 4% of our total footprint, we have seen total landlord energy consumption increase by 5% since our baseline, driven by increasing gas demand. In future, a focus on efficiency management, electrification of heating and onsite renewable installation should deliver reductions. 2021 saw continued COVID-19 disruption to occupier operations, which together with the 60% reduction in the carbon factor of water, led to a 10% reduction in total emissions compared with 2019. Throughout 2021 we introduced new fitout standards, and a new data platform to facilitate more targeted engagement with occupiers across Chelsea, using data to incentivise improved performance.
2019
2020
2021
Development emissions comprised 62% of our total footprint in 2021, decreasing in line with a reduction in development spend.
Together the pathway is intended to deliver a 2030 footprint reduction of more than 40% compared to The pathway is intended to deliver an emissions As we look to 2022, actual embodied Over 20% of emissions come from our reduction of more than It is expected that this pathway will evolve over the to parameters set out in Pathway Action 4.
carbon measurement will replace cost suppliers. 2021 saw the introduction of coming decade, as the industry better understands estimates, which together with our a supplier engagement programme, the intricacies of net zero accounting, technology Sustainable Design Standards will continue which we will continue and ramp up during develops, and processes adapt to a low-carbon to inform low carbon design. In addition, 2022 – supporting our significant network economy. our de-carbonisation strategy to quantify of small and medium sized businesses and programme widespread estate retrofit in measuring their footprint and taking (including electrification and increased control of emissions. efficiency), with the continual ratcheting up of Design Standards, will deliver FIGURE carbon 3. REDUCTION PATHWAY Embodied carbon: developments significant reductions.
40%
Embodied carbon: supply chain
R E D U C TI O N PATH WAY
Landlord carbon Occupier operations E M B O D I E D C A R B O N: D E V E LO P M E N T S
ACTION 1
Remainder
EMBODIED CARBON
E M B O D I E D C A R B O N: S U P P LY C H A I N
ACTION 2 REDUCING O P E R AT I O N A L I M PA C T S
L A N D LO R D C A R B O N O C C U P I E R O P E R AT I O N S
ACTION 3 MAXIMISING R E N E WA B L E S
REMAINDER
ACTION 4 OFFSETTING
2019
2030
S TR E A M LI N E D E N E RGY A N D C A R B O N R E P O RTI N G (S ECR) 2019
2020
2021
CHANGE 2020–2021
CHANGE VS BASELINE
Landlord procured electricity (kWh)
9, 9 1 2 , 96 2
7, 9 5 9, 8 07
8 , 3 9 2 ,4 7 7
5%
-15%
Of which is renewable (%)
91%
85%
82%
-4%
-10%
Onsite renewable generation (kWh)
1 8 ,1 4 4
1 8 ,1 8 2
16,540
-9%
-9%
Landlord procured gas (kWh)
7, 2 7 2 , 3 4 3
8,542,926
9, 7 1 7, 5 0 1
14%
34%
Total landlord energy (kWh)
1 7, 2 2 4 , 6 5 2
1 6 , 5 24 ,4 2 8
1 8 ,1 3 3, 0 61
10%
5%
Building energy intensity (kWh/m²)
198
181
172
-5%
-13%
Building carbon intensity (tCO2e/ m²)
0.046
0.038
0.034
-11%
-26%
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Cadogan | Chelsea 2030
TOTA L C A R B O N FO OTPR I NT 2019 ( R E S TAT E D ) 1
2020 ( R E S TAT E D ) 1
2021
YOY CHANGE
EMISSIONS ( t C O 2E )
EMISSIONS ( t C O 2E )
EMISSIONS ( t C O 2E )
BASELINE CHANGE
SCOPE 1 Landlord gas†
1, 347
1,571
1 , 78 0
13%
32%
Landlord refrigerant gas†
79
148
61
- 59 %
-23%
Landlord diesel†
0
5
5
0%
-
1 , 4 26
1, 724
1.846
7%
29%
Landlord electricity†
2,534
1,856
1 , 782
-4%
-30%
Total (Scope 2)†
2,534
1,856
1 , 782
-4%
-30%
Total (Scopes 1 and 2)†
3 , 96 0
3,580
3 , 62 8
1%
-8%
Developments
64,888
62,573
53, 256
-15%
-18%
Water (landlord)
72
83
27
- 67 %
-63%
Other purchased goods and services
11,484
11, 219
1 8 , 376
64%
60%
Capital goods
934
19
132
59 5 %
-86%
Fuel and energy related activity
47 7
406
476
17%
0%
Waste
62
145
61
-58%
-2%
Business travel
1
0
0
-
-83%
Employee commuting
55
50
46
-8%
-16%
Tenant operations
11, 737
7, 9 59
8 , 26 6
4%
-30%
Investments
1 , 32 8
808
93 8
16%
-29%
Upstream transport and distribution
0
0
36
-
-
Tenant refrigerant gas
0
0
0
-
-
Total (Scope 3)
9 1 , 03 8
8 3 , 2 62
81 , 61 4
-2%
-10%
TOTA L E M I SS I O N S
94,998
86,842
85,242
-2%
-10%
Total
(Scope 1)†
SCOPE 2
SCOPE 3
Ernst & Young LLP has provided limited independent assurance over the 2021 metrics marked with ‘†’. Please see page 24 for a link to their Assurance Statement. 1
See ‘Methodology and Governance’ on page 24 for an explanation of the restated 2019 and 2020 comparatives.
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C A S E S TU DY D EC A R B O N I S I N G A H ER ITAG E E S TATE One of the biggest barriers facing Cadogan and our peers is how to decarbonise historic buildings in conservation areas. Alongside planning challenges, heritage buildings are diverse, making consistent approaches to decarbonisation complicated. We are tackling this through a buildingspecific approach, such as our retrofit of a nineteenth century mews house to Passivhaus standards.
Recognising the enormous variation in building construction methods, materials and performance, we are reviewing opportunities for decarbonisation block by block, working in partnership with asset strategy and long-term planning to ensure sustainable decarbonisation that meets our targets. Together with portfoliowide renewable energy initiatives and immediate focus on net zero development, this approach will enable us to maximise the benefits of broad programmes in the short term whilst planning and delivering targeted reductions in the longer term.
Below The Passivhaus project on Pavilion Road
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Cadogan | Chelsea 2030
During initial public consultations, air quality was clearly identified as the most important environmental concern for our community. We are tackling it through a threepronged approach: reducing vehicle journeys, encouraging vehicle owners to switch to zero-emission, and supporting this with relevant infrastructure.
Targets 2-4 Supplier consolidation, zero-emission transport and EV charging infrastructure by 2030
I
Air Quality
n 2021 we saw air pollution continue to improve in Chelsea. Whilst the annual maximum level of nitrogen dioxide fell by 18% year on year, there was a small increase in maximum daily mean back towards 2019 levels2.
8
In order to reduce traffic in Chelsea and improve air quality, we have been particularly focussed on commercial vehicles. Through exploring and supporting supplier consolidation for Duke of York Square office occupiers, hotels and waste carriers, we are tackling different elements of commercial vehicle use, to ultimately reduce journeys. To support our suppliers’ transition to zero-emission vehicles, we have been exploring the feasibility of electric vans through a data-informed approach to vehicle selection and charger location. In addition, we continued our trials of e-cargo bike deliveries with a free ‘shop & drop’ service at the King’s Road Christmas Lights Switch-On event. We will continue to review and trial cargo bike delivery services for local deliveries across the Estate.
2
C A S E S TU DY H E A LTH Y S TR EE T S E V ERY DAY: KI N G’S ROA D PED E S TR I A N I S ATI O N For the first time, we pedestrianised part of the King’s Road for an event – the annual Christmas Lights Switch-On in November 2021. This was possible as part of Cross River Partnership’s Healthy Streets Everyday programme, in partnership with RBKC. As a direct result, we saw a 9% decrease in nitrogen oxides compared to the previous week.
Air Quality England Air Pollution Reports 2019-2021 for Chelsea, RBKC
C A S E S TU DY B R E ATH E LO N D O N In order to improve air quality monitoring and contribute to London’s greater understanding of air quality patterns, causes and improvements, we sponsored
a Breathe London sensor, which was installed on north Sloane Street. Together with additional sensors we intend to introduce across the Estate, this network will provide a great understanding of the impact of our air quality improvement initiatives.
Opposite Chelsea Christmas lights switch-on Below Chelsea in Bloom installation on Pavilion Road
9
Green Infrastructure
Cadogan | Chelsea 2030
10
Improving the quality and quantity of greening across Chelsea is a core target of Chelsea 2030, due to the range of environmental and social benefits provided by access to nature – including improved air quality, carbon absorption, flood regulation, pollination support as well as significant mental health benefits3.
Target 5 25% increase in Estate Urban Greening Factor by 2030
F
rom a baseline of an estate-wide Urban Greening Factor4 of 0.18, in 2021 we saw a 12% increase to 0.2 and an additional 300m2 of green space. This was achieved through a combination of groundcover planting in Gardens, biodiverse tree-pit replanting in Duke of York Square and Pavilion Road, and Pont Street’s ‘pocket forest’. Our garden management is inherently biodiversity-friendly; from the absence of chemicals to the focus on native
species, wildflowers and fruit and nut trees, bird boxes and bug hotels. To find out more about the biodiversity of our grass lawns and soils, we are proud to be taking part in a project led by the Natural History Museum, using the innovative approach of eDNA testing5 to build greater understanding of the biodiversity value of urban lawns. Future projects will include retrofitting green roofs to our Estate, increasing biodiverse planting and integrating greening into our developments: from 1,600m2 green roof in the new development at 196-222 King’s Road, to planting over 90 trees on Sloane Street as part of the public realm improvement works.
3
Natural England’s Green Infrastructure Framework.
4
Urban Greening Factor: a measure of how ‘green’ a space is, scored from 0 (impermeable paving) to 1 (lush green forest).
5
Environmental DNA – organic matter left by an organism which can be DNA tested to confirm the organism’s identity, without ever having seen or made contact with the organism.
Opposite Duke of York Square in Autumn
C A S E S TU DY CH EL S E A’S H ER ITAG E FO R E S T A recent rewilding project in collaboration with Louis Vuitton and SUGi created 240m2 of biodiverse shrubs and trees on Pont Street, Chelsea. The project aims to restore biodiversity, reintroduce native species, reconnect people with nature and demonstrate an innovative way for businesses and landowners to
work together and make an impact with environmentally responsible planting in small urban spaces. The “pocket forest” has over 630 native trees and 77 species planted in total, and is intended to become self-sustaining within three years, alleviating the need for irrigation, pesticides and artificial plant foods. This example of urban rewilding and ecological sustainability is providing inspiration for further similar projects.
Below ‘Heritage Forest’ on Pont Street
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Cadogan | Chelsea 2030
Our overarching approach to waste is one of resource circularity; from tackling waste at the end of tenancies through reuse platforms and challenging standard industry dilapidation practices, to ensuring our food market at Duke of York Square is single-use plastic free.
Target 6 Zero non-hazardous waste to landfill and 90% recycling by 2030
W
aste management is split between development activities and estate operations. Volumes of waste vary much more in construction, with a very high recycling rate easily achievable. Here, we are focusing on increased data quality reporting from smaller contractors and development sites and reducing waste generation overall through investment in reuse.
O PE R ATI O N A L WA S TE VO LU M E S OV E R TI M E BY D E S TI N ATI O N (TO N N E S)
Recycling rates in operations are much harder to improve, with the waste coming from our occupiers and public realm. Here, we are focusing on education and engagement, and provision of the most suitable waste streams to each location – especially targeting food waste as a major source of emissions. In 2021 we saw a 7% increase in the Estate’s operational recycling rate to 45% and maintained a 98% recycling rate for construction waste. We expect to see significant improvements in our recycling rate in 2022 with an overhaul of our waste management strategy, introduction of new waste streams and increase in retailer and restaurant engagement.
CO N S TRU C TI O N WA S TE VO LU M E S OV E R TI M E BY D E S TI N ATI O N (TO N N E S) 61,624
Waste
1,867
12
1,883 1,429
55%
98% 4 09
63% 63%
14,866 37%
45% 37%
98%
4,173 7 7%
2019
REUSED
2020
R EC YC L E D
2021
2019
E N E R GY F R O M WA S T E
2020
L ANDFILL
2021
C A S E S TU DY D U KE O F YO R K S Q UA R E S I N G LEUS E PL A S TI C FR EE M A R KE T Working in partnership with our local retailers and market traders, Duke of York Square Fine Food Market has reduced the use of single-use plastic to become virtually single-use plastic free. In conjunction with providing suitable waste disposal facilities and guidance on what materials to use, we are taking learnings from this project into supporting our occupiers on Pavilion Road move towards a single-use plastic free environment.
Right Duke of York Square Fine Food Market Below Dr Bike at Duke of York Square
C A S E S TU DY E X PLO R I N G R EUS E To improve resource circularity and minimise material loss from retailer fitouts and redevelopment works, we trialled a community reuse platform to donate items of furniture for local reuse. In 2021 we disposed of over a tonne of waste through this route: 41 items which supported over 80 people, predominantly in education and training sectors. Challenges included public access to a live construction site, lack of interest in items beyond furniture, and time intensive management, which made this a very useful learning experience. As a result, we have engaged with a panel of reuse facilitators to suit different situations, and tackled waste arising from leases by adjusting dilapidation processes and proactively addressing potential waste through tenant engagement and our green leases. We look forward to continuing to innovate with partners across our value chain to improve circularity.
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Cadogan | Chelsea 2030
Reducing water is one of the most challenging targets in our Chelsea 2030 strategy, as 70% is consumed by occupier operations and outside our control. However, as a precious resource under threat from climate change, addressing water use and conservation is becoming increasingly urgent.
Target 7 50% reduction in mains water consumption by 2030
F
rom a baseline of 408,594m3 in 2019, we have already achieved a saving of 47% – largely due to the impact of COVID restricting occupier operations and impacting data quality. We will continue assessing performance for another year, and improving data quality, before deciding if we should adjust our 2030 target.
Water
Reductions in landlord water consumption have been driven by efficiency measures and leak detection – which will be further supported through 2022 with waterefficient design and the installation of smart meters to accurately measure water consumption. We are also reviewing the possibility of greater provision of water for irrigation and non-potable uses from rainwater and greywater harvesting – something that is challenging on an historic estate.
14
Occupier engagement is key to realising water savings – with the vast majority of data estimated, better data quality is essential to informing opportunities to improve.
Above Right Cadogan Gardens Opposite Sloane Square fountain
WATE R CO N S U M P TI O N (1,0 0 0 M 3) 4 09
215
216
63%
70%
16%
36%
30%
2019
2020
2021
83%
C A D O G A N O P E R AT I O N S C O N S T R U C T I O N A N D F I T- O U T T E N A N T O P E R AT I O N S
15
Cadogan | Chelsea 2030
Wellbeing and Culture
Employment and skills
16
Target 8 Maximise local employment and skills development
I
n 2019, unemployment in RBKC was 5.7%. Despite the economic disruption of Brexit and COVID since then, unemployment is decreasing – to 5.1% in 20216 (albeit disproportionately across different groups – unemployment was still 8% for minority ethnic communities). This is contributing to a widely reported challenge in recruitment, particularly in retail and hospitality sectors. We have identified three potential causes: lack of awareness of the roles available, lack of interest in retail and hospitality sectors and lack of skills to meet the job requirements. With such a concentration of retail and hospitality jobs in Chelsea, we are in an excellent position to support recruitment. Working in partnership with RBKC, we have together recruited an Employment Opportunities Coordinator. The aim is to proactively create employment opportunities for local residents – including marginalised communities, young people and the long-term unemployed – by understanding the needs of individuals, communities and employers and finding creative ways to bring them together. This includes identifying transferable skills and opportunities to reskill and upskill, helping to achieve potential and identifying good quality, sustainable opportunities.
6
By building extensive networks and facilitating connections between local businesses and potential candidates, this role can support local quality recruitment in a targeted way. Following this appointment, the final quarter of 2021 saw 14 employers across hospitality and retail engaged, 29 local opportunities shared and approximately 40 candidates submitted for these roles. In addition, we encourage more diversity in the property industry through participating in the Pathways to Property initiative by the Reading Real Estate Foundation, providing work experience and guidance to young people who might otherwise not have access to such opportunities. Together with our school engagement, 75 individuals were engaged in targeted skills development and access to work in 2021. We will continue to focus on tackling the challenges identified above, scaling up pre-employment skills training to build customer service, confidence and employability skills to meet the needs of local businesses
Employment data for the year to June 2021, ONS Annual Population Survey
C A S E S TU DY S T G I LE S TRUS T J O B CLU B St Giles Trust is a charity that uses expertise and real-life past experiences to empower and engage people held back by poverty, exploited, abused, dealing with addiction or mental health problems, or caught up in crime. Through Cadogan and the Kensington + Chelsea Foundation’s
sponsorship, St Giles Trust created a new Job Club in RBKC in 2021, supporting clients to get into work placements and education, as well as applications for Universal Credit and identification (such as passports or driving licenses). These workshops have seen incredibly high levels of interest, with young people very eager to engage. In 2021, 28 people were supported into employment through this service.
Below Employment opportunities in the hospitality industry
17
Cadogan | Chelsea 2030
Health and wellbeing
Target 9 Make a measurable improvement to our communities’ health and wellbeing
W
ith particular focus on the health and wellbeing issues affecting RBKC, Chelsea 2030 focuses on creating healthy spaces and supporting community wellbeing. Our baseline was created using publicly available datasets which do not change regularly: AHAH7, Local Authority Health Profile, and Index of Multiple Deprivation.
These provide great insight into community needs and opportunities for Cadogan to positively impact RBKC’s health and wellbeing, with 2,600 people positively impacted by health interventions in 2021. Over 2,500 individuals used the Duke of York Square running track in 2021, for everything from yoga to running, to children’s playtime and youth club sports. Together with our extended and improved cycling infrastructure, including parking and free cycle servicing through Dr Bikes, we will continue to promote active travel and diversified access to physical activity. We also hosted the borough’s Vaccine Bus in 2021, bringing unbiased facts and information about COVID to the community and administering over 100 vaccinations. Our collective awareness of the impact our surroundings have on our physical and mental health has never been more acute. To this end, we are integrating the recommendations of FitWel and WELL healthy building standards into our developments, targeting full certification in conjunction with occupiers. We manage our public realm, gardens and open spaces to improve local air quality and enable community connection with urban nature (see ‘Green Infrastructure on page 10).
7
18
Access to Healthy Assets and Hazards: a multi-dimensional index developed by the Consumer Data Research Centre measuring how ‘healthy’ neighbourhoods are
C A S E S TU DY N U RT U R I N G M ENTA L H E A LTH In late 2021, we engaged with SMART (St Mary Abbots Rehabilitation and Training) to provide mental health support through
gardening. By using our greenhouse to grow seedlings to sell and food to use in SMART’s café, local vulnerable people have the opportunity to develop skills, build connections and enjoy light exercise in a nurturing environment.
Opposite Duke of York Square’s weekly run club Below Local school children help with planting
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Cadogan | Chelsea 2030
Community Cohesion
Target 10 Enhance community cohesion between local stakeholders
R
BKC is one of the most diverse communities in the country8, with incredible opportunities and significant challenges. The borough is usually associated with affluence, yet a quarter of RBKC’s working residents earn less than the London Living Wage. Our strategy for supporting and delivering social value in Chelsea is framed around creating inclusive and accessible spaces and supporting Chelsea’s creative culture – which together encourage meaningful connections with Chelsea and each other. In 2021 we began a review of the Estate, creating publicly available accessibility information and identifying opportunities to work with RBKC and other partners to
improve the accessibility of the physical Estate. We actively seek ways to contribute to thriving local communities and work closely with local groups, charities, educational and religious bodies as well as supporting cultural attractions. Aside from supporting local cultural icons such as the Saatchi Gallery and Royal Court Theatre, Cadogan owns and operates the 900 seat Cadogan Hall, which in addition to being home of the Royal Philharmonic Orchestra, hosts a diverse programme of music, debate and performance each year. This is a philanthropic enterprise aimed at contributing to the broad and varied cultural offer of Chelsea. Our programme of over 60 complimentary events for the community this year included a trail of 50 life-size elephant sculptures to raise awareness and funds for wildlife charity CoExistence, and a Chelsea Christmas Lights Switch-on in support of the Kensington & Chelsea Christmas Collective (a group of frontline charities who reach residents in financial hardship or facing a lonely and isolated Christmas). As Principal Supporters of K&C Art Week and Summer Festival, we funded and curated a public art trail from experimental artist Lauren Baker entitled “Light Messages for Your Soul” with a series of neon installations inspired by iconic locals such as Vivienne Westwood, Oscar Wilde and The Beatles. Weekends throughout summer saw pop-up performance hubs at Duke of York Square, King’s Road and Pavilion Road welcome live performances – from musicians, poets, singers and recordbreaking Bubbleologists – to cheer local residents and visitors alike. 8
20
Kensington + Chelsea Foundation Impact Report 2020-21
C A S E S TU DY S T G I LE S TRUS T S O S PRO G R A M M E Since 2020 we have funded a case worker at St Giles Trust, focused on reaching young people who are at risk or involved in Child Criminal Exploitation and serious youth violence. Through intensive mentoring and dedicated support in moving away from criminal activity, St Giles Trust help young people find positive alternatives and reintegrate into mainstream education. Of the 41 clients the Cadogan-sponsored
case worker supported in 2021, 36 clients were supported into employment, training or mainstream education, 7 clients safely exited gangs and 20 reported improved wellbeing. In addition, a summer programme organised and run by the case worker offered direct and targeted support to young people at risk of mental health struggles and negative lifestyle choices – resulting in a reduction in local youth violence and crime rates, and 9 clients supported into education, apprenticeships or employment.
Opposite ‘Strawberries and Screen’, part of the community events programme Below Duke of York Square
21
Cadogan | Chelsea 2030
Delivering social value has been Cadogan’s central stewardship ethos for over 300 years.
Targets 11-12 Facilitate increase in charitable giving and deliver twinning programme
I
n recent years, community impact is measured through the B4SI Framework. In 2021, Cadogan’s total direct and indirect social contribution was £291,500 benefitting over 3,600 people – a 200% increase on 2019.
Charity
This was delivered through community investment initiatives benefitting local schools, youth clubs and religious institutions, and supporting charity fundraising events from Glassdoor’s annual sleep out in Duke of York Square to emergency clothes collections for refugees arriving in Kensington & Chelsea. In addition, Cadogan colleagues have spent their time supporting local charity events, mentoring local people, and volunteering with the NHS.
22
Over £1.1 million is also committed each year as rental subsidies for affordable, community and key worker housing. This allows many people who support our local community to live here, including NHS staff, police, transport workers, firefighters and teachers.
The Cadogan Charity The Cadogan Charity is managed by the Cadogan family separately from business operations and has continued to grant donations to both local and national charities – over £12m over the last five years to causes including London’s Air Ambulance service, The Children’s Trust, Wellbeing of Women, Glassdoor, Prince’s Trust and Alzheimer’s UK, in addition to national cultural icons such as the Natural History Museum and Royal Hospital. In addition, the family also supports and chairs the London Playing Fields Foundation which transforms lives through sport and physical activity by protecting and promoting London’s playing fields; running social inclusion projects and directly managing several grounds across the capital.
C A S E S TU DY R E ACH I N G TH O S E W H O N EED IT M O S T, KEN S I N GTO N + CH EL S E A FO U N DATI O N With our principal sponsorship of the K+C Foundation in its third year, we are able to support grassroots initiatives across the borough and deliver meaningful change. Recent projects delivered with the K+C Foundation include: •
Tackling the digital divide through provision of laptops to local youth organisations, offering young people additional educational support after school and during school holidays. Whilst young people are in school, the laptops are used to build digital skills and confidence in marginalised communities.
•
Bringing joy to isolated and disadvantaged local residents through the Christmas Collective. Christmas hampers reached over 10,800 people, including giving a gift to over 3,000 children.
In 2021, the K+C Foundation published research on the borough’s often stark inequalities; despite Kensington and Chelsea featuring in the top 10% of UK local economies, 1 in 5 neighbourhoods are amongst the 20% most income deprived and 24% of children live in poverty. The research findings have shaped the K+C Foundation’s priorities: improving mental health, addressing educational inequalities, and increasing skills and meaningful employment. These align perfectly with our Chelsea 2030 goals and we are looking forward to continue working in partnership with K+C Foundation to deliver lasting change.
Opposite Kensington + Chelsea Foundation. Credited to P3 Play Services Top Chelsea Christmas Lights switchon in support of the Christmas Collective Right Greening project volunteers
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Cadogan | Chelsea 2030
Methodology and Governance This GRI-compliant report, for the 2021 reporting period, follows UK Green Building Council and Better Buildings Partnership Climate Change Commitment frameworks for carbon reporting, specifically Scope 3. Calculation methodologies have remained the same as the baseline, with three exceptions. Firstly, we have used actual embodied carbon data in place of estimates based on cost, where this information is available. Secondly, we have included diesel (stationary fuels) in landlord energy and calculated this through an estimation of equipment run time. Thirdly, we have recalculated tenant emissions based on more robust Building Energy Efficiency Survey (BEES) benchmarks and included all commercial and assured shorthold tenancies. This has led to the restatement of 2019 and 2020 emissions data. The GRI Standard Disclosure References can be found on page 26. DEFRA 2021 emissions factors have been used. All environmental targets reflect the boundary of The Cadogan Estate, including all Estate-owned buildings and investments. Where Cadogan has operational control or purchases fuels, these emissions are reported as landlord, in Scopes 1 and 2. Tenant purchased utilities are reported in Scope 3. In 2021, two new properties were added and none were removed from the reporting scope. Energy consumption is reported as kWh and no normalisation technique is applied. Carbon emissions are reported as tonnes of carbon dioxide equivalent (tCO2e), and electricity emissions are reported on a location-based basis. For the first time we have obtained external limited assurance for our Scopes 1 and 2 carbon emissions – please see more details below. We also intend to obtain limited assurance for principal Scope 3 categories next year. Since the Board’s approval of our ten-year sustainability vision, “Chelsea 2030”, there has been increasing focus on the costs associated with not only meeting a tightening legislative landscape, but decarbonising to meet our net zero ambition, and responding to the physical impacts of climate change. Our Chief Executive has overall responsibility for climaterelated risks and opportunities. The Board is updated on our sustainability and climate-related performance at least once a year and has overall responsibility for oversight of risk, undertaking an annual assessment of the principal risks, which include climate-related risks. Key performance indicators of Chelsea 2030 are reported internally on a quarterly basis, updating the full Board every six months on progress. Ongoing oversight of climate-related issues is led by our Head of Sustainability with support from all departments. Our commitment to address climate change risks is embedded across the business with all teams owning climate-related targets.
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The Board recognises the regulatory drive towards Taskforce for Climate-Related Financial Disclosure (“TCFD”), and this report documents how Cadogan has incorporated TCFD recommendations where possible and continues to develop its reporting. TCFD P I L L A R
R E L E VA N T I N FO R M AT I O N ( I N A N N UA L R E P O RT)
G OV E R N A N CE
Our Community, page 60
ST R AT EGY
Property Portfolio, pages 14 to 15 Strategic Report, pages 38 and 60
RISK
Approach to Risk Management, pages 30 to 35
M E T R I C S & TA RGE T S
Our Community, pages 39 to 42
Over the past year, a climate risk study has been carried out, assessing Cadogan’s resilience in different climate scenarios. More information on the results from this assessment can be seen on pages 33 to 35 of the Annual Report.
Independent Assurance Statement to the Directors of Cadogan Group Limited Ernst & Young LLP have provided limited independent assurance over the published metrics, identified by †, in accordance with the International Standard on Assurance Engagements (ISAE3000). Ernst & Young’s full unqualified assurance statement can be found at EY Independent Assurance Statement.
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Cadogan | Chelsea 2030
Global Reporting Initiative Standard Disclosure References GRI
Metric
Reference (in Annual Report)
Organisational Profile 102-1
Name of Organisation
Title page
102-2
Activities, brands, products & services
Page 70
102-3
Location of headquarters
Page 68
102-4
Location of operations
102-5
Ownership & legal form
102-6
Markets served
102-7
Scale of the organisation
Page 70
102-10
Significant changes to organisation & supply chain
Page 10
Statement from senior decision-maker
Page 10
Page 2 Page 104 Page 2
Strategy 102-114
Ethics & Integrity 102-16
Values, principles, standards and behaviour norms
Page 2
Governance 102-22
Composition of highest governance body (Board)
Page 68
Stakeholder Engagement 102-40
List of stakeholder groups
Pages 62 to 63
102-43
Approach to stakeholder engagement
Pages 62 to 63
102-44
Key topics & concerns raised
Pages 62 to 63
Reporting Practice 102-45
Entities included in the consolidated financial statements
Page 95
102-46
Defining report content and topic boundaries
102-47
List of material topics
Page 39
102-50
Reporting period
Page 60
102-52
Reporting cycle
Page 38
102-53
Contact point for questions regarding the report
102-54
Claims of reporting in accordance with GRI
102-55
GRI content index
Pages 38 and 60
info@cadogan.co.uk Page 60 Pages 106 to 107
Material Aspect: Energy (GRI 203:2016) 103-1
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Explanation of the material topic & boundary
Pages 40 to 42
103-2
Management approach and its components
Pages 40 to 42
103-3
Evaluation of the management approach
Pages 40 to 42
302-1
Energy consumption within organisation
302-3
Energy intensity
Page 41
302-4
Reduction of energy consumption
Page 41
Pages 41
Material Aspect: Water (GRI 303:2018) 103-1
Explanation of the material topic & boundary
Page 50
103-2
Management approach and its components
Page 50
103-3
Evaluation of the management approach
Page 50
304-2
Significant impacts of activities, products or services on biodiversity
Page 50
Material Aspect: Emissions (GRI 305:2016) 103-1
Explanation of the material topic & boundary
Pages 40 to 42
103-2
Management approach and its components
Pages 40 to 42
103-3
Evaluation of the management approach
Pages 40 to 42
305-1
Scope 1 emissions
Page 42
305-2
Scope 2 emissions
Page 42
305-3
Scope 3 emissions
Page 42
305-4
GHG emissions intensity
Page 42
305-5
Reduction of GHG emissions
305-6
Emissions of ozone-depleting substances
Pages 40 to 42 Page 42
Material Aspect: Waste (GRI 306:2020) 103-1
Explanation of the material topic & boundary
Pages 48 to 49
103-2
Management approach and its components
Pages 48 to 49
103-3
Evaluation of the management approach
Pages 48 to 49
306-1
Waste generation and significant waste-related impacts
Pages 48 to 49
306-2
Management of significant waste-related impacts
Pages 48 to 49
306-3
Waste generated (total weight of waste by disposal route)
Page 48
306-4
Waste diverted from disposal
Page 48
306-5
Waste diverted to disposal
Page 48
Material Aspect: Local Communities (GRI 413:2016) 103-1
Explanation of the material topic & boundary
Pages 52 to 59
103-2
Management approach and its components
Pages 52 to 59
103-3
Evaluation of the management approach
Pages 52 to 59
413-1
Operations with local community engagement, impact assessments and development programs
Pages 52 to 59
413-2
Operations with significant actual and potential impacts on local communities
Pages 52 to 59
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10 Duke of York Square London SW3 4LY T. 020 7730 4567 cadogan.co.uk
