Contributing towards a flourishing and sustainable local community has always been central to Cadogan’s ethos.
‘Chelsea 2030’, our commitment to improving local quality of life and creating a more sustainable city, was launched in 2021 – setting out clear targets to tackle priorities including carbon emissions, air quality, greening, waste reduction, water usage and local wellbeing. To achieve this, we are working in partnership with many local stakeholders, suppliers and partners – combining forces to maximise positive impact.
Highlights from the last year include launching a comprehensive Estate-wide decarbonisation programme (including the installation of solar panels on our head office), beginning a significant "greening" project on Sloane Street, introducing a new electric cargo bike waste scheme along with planting further "pocket forests" and creating new natural ponds to foster biodiversity.
We have also combined our wellbeing, culture and charitable targets to enable greater social impact. This has involved building on our extensive social value programme with the launch of significant skills and training opportunities for the local community, while also supporting diversity within the property industry - including a new apprenticeship bursary and entrepreneurial skills programmes for local secondary school students. Given the challenging economic climate, we have also frozen rents across our community, keyworker and social housing portfolio, which we continue to subsidise by over £1.3 million (in addition to the rent freeze) each year.
The following pages bring this work to life, reviewing our performance against these ambitious targets and the governance surrounding them.
Creating social value lies at the heart of our commitment to a sustainable future. The Chelsea 2030 strategy was developed in collaboration with our local stakeholders and community as well as via peer review and industry analysis. We engaged with a wide range of experts, local organisations and community members through a series of roundtables and a survey which gained over 2,000 responses from members of the local community.
Together with national frameworks and empirical research, this community consultation led to the creation of our three strategic priorities:
- Maximise local employment and skills development.
- Make a measurable improvement to our communities’ health and wellbeing.
- Enhance community cohesion between local stakeholders.
“In the context of the built environment, social value is created when buildings, places and infrastructure support environmental, economic, and social wellbeing and in doing so improve the quality of life of people.” – UK Green Building CouncilAbove ‘Designers at work’ sustainability workshops at Saatchi Gallery during London Fashion Week Opposite Giant feasting table at the King’s Road Platinum Jubilee Party
Kensington and Chelsea is one of the most diverse communities in the country, with the second largest wealth gap in the UK, and a quarter of working residents earning less than the London Living Wage –inequalities which were exacerbated during COVID.
An estimated 14,800 local jobs are supported by Cadogan, with the majority of direct employment being in the retail and hospitality sectors – equivalent to nearly 20% of the Borough’s workforce. Approaching 8,000 local people are currently unemployed or economically inactive in the Borough, yet wanting to work1, and we are in a position to be able to support local recruitment.
“We are very excited to be working closely with Cadogan to open up employment and skills opportunities for residents of the Borough. We hope that this joint initiative will provide much needed access to employment opportunities, while supporting employers with their talent needs and providing links with local communities.”
– Councillor Josh Rendall, RBKC Lead Member for Skills and Enterprise
Therefore, in partnership with the Royal Borough of Kensington and Chelsea, we have created the role of "Employment Opportunities Coordinator" – a position dedicated to working proactively with local businesses to support their recruitment requirements. The aim is to create opportunities for local residents – including marginalised communities, young people and the longterm unemployed – by understanding the needs of individuals and employers and finding creative ways to bring them together. This includes identifying transferable skills and opportunities to reskill and upskill potential local candidates, alongside supporting businesses to provide quality, sustainable employment opportunities.
In addition, working with the Kensington and Chelsea Foundation, Cadogan has sponsored the creation of the St Giles Trust’s Job Club. This charity 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. Since its creation in 2021, the Job Club has supported residents with CV writing and employability skills, alongside applications for Universal Credit and forms of identification. In 2022, 45 people were supported into employment or education through this service.
Cadogan is committed to paying at least the London Living Wage and supporting local upskilling in all businesses (including our leisure and hospitality operators) – we have also set this requirement for all suppliers and contractors. Our development contractors on our major sites have themselves appointed 14 apprentices and upskilled 56 people this year alone.
We support greater diversity in the property industry through participating in the Pathways to Property programme run by the Reading Real Estate Foundation, offering work experience and guidance to young people who might not otherwise have access to such opportunities. In 2022, Cadogan also created a bursary through the Worshipful Company of Chartered Surveyors, funding a student from an underprivileged background through their Real Estate degree and providing support and guidance along the way.
Together with our school engagement programme –supporting local students to develop entrepreneurial skills, facilitating workplace visits, and hosting engaging sessions to promote careers in property – we have reached over 270 individuals in targeted skills development in 2022.
To provide a long-term solution to both the hospitality industry struggling to recruit and retain staff, and local unemployment challenges, Cadogan has partnered with the Royal Borough of Kensington and Chelsea and five local hotels to bring the Saira Hospitality training programme to the Borough. Through an intensive four-week training programme, work experience and personal development, 23 local people (all of whom were previously unemployed, most for over 12 months) have gained new skills and connections in the hospitality industry, with four students securing jobs before the programme completed. We will remain in touch with all students to track the longterm impacts of the programme and will consider similar initiatives targeting luxury retail and restaurant industries.
Cadogan has employed an apprentice to work closely with our seasoned Gardens team, nurturing the next generation of urban horticulturists. We have also donated our Apprenticeship Levy to local hospitality operators – redistributing this fund which would not otherwise benefit the local economy – to smaller organisations in the Borough, enabling them to take on apprentices and upskill existing staff, supporting business growth and increasing opportunities for local people.
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With particular emphasis on the health and wellbeing issues affecting the Royal Borough of Kensington and Chelsea through Chelsea 2030, Cadogan focuses on creating healthy spaces and supporting community wellbeing.
The connection between the physical environment and health is well established. Air quality and access to green spaces is key to supporting a resilient and thriving community – both of which are addressed in our targets. Our development standards include the recommendations of Fitwel and WELL healthy building standards2, enabling us to target full certification in conjunction with occupiers.
In 2022, Cadogan created opportunities for over 2,500 people to take part in activities benefiting their health, from school and community use of the Duke of York Square running track with run clubs, yoga, and sports days, to cycle maintenance workshops and walking tours. We also expanded SMART London’s ability to provide mental health support through gardening – by using our greenhouses to grow seedlings to sell and food to use in their café, local vulnerable people have the opportunity to develop skills, build connections and enjoy light exercise in a nurturing environment.
Cadogan also supports a case worker at St Giles Trust, working on their SOS Programme targeted at reaching local young people at risk of or involved in criminal exploitation and serious youth violence. Of the 52 clients the Cadogan-sponsored case worker supported in 2022, all are at reduced risk of harm or participating in criminal behaviour, 45 people were supported into employment, training or mainstream education, and 40 people reported an improvement in their wellbeing through constructive activities. This transformational work is helping young people find positive alternatives to criminal activity and reintegrate into wider society – having a positive ripple effect on their families and communities.
Through the Cadogan Charity (a shareholder of the business and run by the Cadogan family), we support the London Playing Fields Foundation – chaired by The Hon. William Cadogan – 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.
In 2016, in response to community feedback after thorough local consultation, and despite planning policy which favoured residential accommodation, we created a "village high street" on Pavilion Road. Previously comprising service access, garages and a busy vehicle cut-through parallel to Sloane Street, the area had poor air quality and contributed little to the local community.
Following redevelopment comprising striking architecture, sensitive restoration, extensive planting, restaurants and a range of independent artisan food shops
(including a butcher, baker, cheesemonger, and fishmonger, among others) a new "village hub" was created, generating over 100 jobs. Pedestrianisation was granted by the Council in 2021 bringing much improved air quality and a social centre for the local community to congregate in –something that proved invaluable during COVID restrictions – and in 2022 attracted nearly 10 million visitors.
Maintaining a street of independent businesses that meet the community’s need creates long term social value; “[Provenance Butcher’s] Struan Robertson attributes the hight street’s success to his landlord’s careful stewardship” (Financial Times, 2 December 2022).
Cadogan transformed a disused place of worship into a world-class music venue in 2004, to safeguard a characterful building and celebrate Chelsea’s artistic and musical heritage. It is now one of London’s leading concert venues and home to the Royal Philharmonic Orchestra.
2022 marked a triumphant year for live performances as the first undisrupted operating year following the pandemic. The remarkable turnout in both box office attendance and concerts staged matched 2019 levels, presenting over 250 live performances and attracting footfall exceeding 200,000 attendees.
An array of orchestras, artists, and ensembles from all corners of the globe were welcomed to Chelsea, highlighting the venue’s commitment to providing a diverse and inclusive space for performers and patrons alike.
The Hall successfully re-established its position as a cultural hub, offering a platform for artists and audiences to reconnect and celebrate the power of live performance. It remains dedicated to delivering a rich and varied program of live events, reinforcing London’s status as a thriving global centre for arts and culture.
Below Cadogan Hall, home to the Royal Philharmonic Orchestra
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Local schoolchildren enjoy the ‘Eggs of an Era’ public art trail
“From community gardening projects to spreading happiness at Christmas, our friends and neighbours have joined hands with us to improve mental health across the Borough. There is no doubt that this community cares.” – Amelia Mustapha, Director, SMART London
Kensington and Chelsea is one of the most diverse communities in the country, which presents significant opportunities and challenges. The Borough is usually associated with affluence, yet 23% of its Council Wards are among the 20% most income-deprived in England and Wales3. Our strategy for supporting and delivering social value is framed around creating inclusive and accessible spaces and supporting Chelsea’s long pedigree as a place of creative culture, which together encourage meaningful connections with the area and each other. In 2022 our community investment totalled over £430,000 – directly supporting over 2,800 individuals across 39 organisations.
As the Principal Supporters of the Kensington and Chelsea Foundation, we support grassroots initiatives across the Borough which deliver meaningful change where it is most needed. In 2021-2022, the Foundation supported 165 local causes, reaching 28,907 residents in need – detailed in the Foundation’s 2021-2022 Impact Report
Recent initiatives delivered with the Kensington and Chelsea Foundation include the creation of a new "Improving Skills and Employment Programme", funding seven impactful projects which will reach 1,275 people over the next three years – including a programme providing work experience, training and mentoring to support women with careers in construction, and a learning and development group providing 1-1 employability skills and work experience for neurodiverse adults.
In addition to our direct financial support, we have created an Endowment Fund administered by the Foundation, to which we encourage all residential and commercial occupiers joining the Estate to donate – creating a lasting positive legacy to support our local community.
We are committed to good standards of accessibility and inclusivity. In partnership with AccessAble, one of the UK’s leading providers in accessibility information, we offer up-to-date, detailed access guides to each of our destinations, making available crucial information to visitors so they can get the most out of their visit to Chelsea.
Our programme of over 60 complimentary events for the community this year were enjoyed by many thousands of people and included: a Platinum Jubilee Street Party on the King’s Road; weekly running club; "giant egg hunt" in support of wildlife charity The Elephant Family and "Nature’s Architects" trail in collaboration with the Museum of Architecture to showcase how nature can inspire eco-friendly innovation; Chelsea’s first "Dog Day" in support of The Dog’s Trust and public sculpture series "The Chelsea Look", comprising life-size silhouettes inspired by Chelsea style icons through the years, from Vivienne Westwood to the celebrated Chelsea Pensioner. September included our first sustainability showcase as part of London Fashion Week – held at the Saatchi Gallery. "Designers at work" saw four revolutionary fashion designers run free workshops to inspire the public to embrace the circular economy, accompanied by a food market featuring 15 sustainable pioneers. The annual Chelsea Awards was created in 2019, to celebrate and reward those who contribute so greatly to Chelsea’s unique character, with hundreds gathering each year to see the award made for categories including "Community Hero" and "Cultural Champion".
Cadogan once more hosted the "Big Sleep Out" in 2022 to support local charity Glassdoor, providing targeted and long-term transitional help for the homeless. This one night in October resulted in over 130 supporters gathering and raising over £70,000 for the charity.
The Cadogan family Charity also extensively supports the historic Royal Hospital Chelsea - which today remains active in providing a home and care for 300 army veterans, amongst many other causes.
We commit over £1.3million each year to subsidise affordable, community and key worker housing.
Given the challenging economic climate, we have also frozen rents across this portfolio during 2022, ensuring that many people, including nurses, teachers and police officers, can afford to live at the heart of the community to which they make such a valuable contribution.
“Living here means that I truly feel part of the local community and I can feel its ‘energy’ – my work is a huge part of my daily life and it’s important for me to be here in the centre of things. Chelsea is beautiful, vibrant and thriving, I love the neighbourhood and all it has to offer.” – Local teacher, Holy Trinity Primary School
“It makes a huge difference to have a lovely home a short distance from the hospital when I come back exhausted between shifts. I received a very warm welcome from Cadogan and love living in Chelsea, with everything I need on the doorstep and beautiful walks along the river to clear my head! - Nurse, Chelsea and Westminster HospitalAbove Picnics at Duke of York Square
Our ambition to replicate and "twin" successful Chelsea 2030 projects elsewhere in the Borough is intended to share things we have learnt, create new community connections and maximise environmental and social benefit. In 2022, we twinned Pavilion Road’s Edible Trail of seasonal native edible plants by creating a new Edible Garden at Chelsea Academy. Focussing on fruits, vegetables and herbs tailored to the local environment, this Garden aims to provide wellbeing support to the school’s students with special educational needs through gardening, alongside growing produce to be used in the school’s culinary programme.
“Everyone should have a chance to shine. A Day in Your Life has the power to change lives and uncover the creative visionaries of the future, opening doors for young people to high quality education and paid work in the creative industries.” - Alison Jackson, BAFTA Awardwinning photographer and Founder, A Day in your LifeAbove and below The local community celebrating ‘A Day in the Life’ competition and exhibition at Saatchi Gallery Overleaf ‘Nature’s Architects’ trail across the neighbourhood, in collaboration with the Museum of Architecture
AIM TARGET 2030 DETAIL
CARBON EMISSIONS NET ZERO EMISSIONS Net zero emissions across Cadogan’s scope of influence
AIR QUALITY
SUPPLIER CONSOLIDATION
ZERO-EMISSION SUPPLIERS
ELECTRIC VEHICLE INFRASTRUCTURE
At least 40% of commercial tenants to join offsite consolidation scheme
80% of suppliers to deliver by zero-emission transport
All service bays and residential parking lots to have EV charging by 2025, and all new developments after 2021 to include EV charging
GREEN INFRASTRUCTURE
IMPROVED GREEN INFRASTRUCTURE
Improve quality and quantity of green infrastructure, including a 25% increase in the Urban Greening Factor
WASTE
WASTE REDUCTION
Send zero commercial and operational nonhazardous waste to landfill
Reuse or recycle over 90% of commercial and operational non-hazardous waste
WATER
WATER USE REDUCTION
Reduce absolute mains water consumption by 50%
We have updated our net zero pathway, taking into account the emissions reductions achieved so far, increases in actual data provision and improved estimates for the remainder, and updated Estate retrofit modelling setting out the reductions we expect to achieve in building performance across Chelsea. We now believe we can achieve 53% emissions reduction through our pathway actions of tackling embodied carbon in developments, reducing operational impacts across landlord and occupier spaces, and maximising renewables – leaving 16,646 tCO2e to offset in order to reach net zero in 2030, together with continued emissions reductions targeted beyond 2030.
Since our 2019 baseline of 35,664 tCO2e, we have achieved a carbon saving of 10%. The greatest reductions have come from energy efficiency measures across landlord and tenant spaces, low-carbon development and supplier engagement.
Whilst landlord procured energy only represents 10% of our total footprint, we have seen a 7% reduction since 2019, driven by efficient lighting and heating retrofit, improved heating controls, and greatly improved data quality leading to easier analysis and identification of opportunities for improvement. Occupier consumption comprises 62% of our impact and our operational focus on improving occupier data sharing, energy monitoring and engagement is resulting in 3% energy reductions compared to 2019 (excluding the two abnormal COVID years).
We have committed to designing and building net zero buildings. In every project we aim to reduce lifecycle emissions by prioritising retention and material reuse, adopting smart design, employing the latest methods of construction and ensuring net zero is a central target in every development from inception. With long-term stewardship in mind, we design and build for resilience and adaptability in a changing environment and society.
We are signatories to the Better Buildings Partnership Climate Change Commitment and recognise our role as one in which we can support industry-wide innovation and act as a catalyst for change.
We are signatories to the Better Buildings Partnership Climate Change Commitment and recognise our role as one in which we can support industry-wide innovation and act as a catalyst for change.
Note: Energy relating to transport (including business travel) is extremely low so excluded from the table above – but it is included in our total footprint.
Tackling the 20% of our footprint which comes from our supply chain requires a collaborative approach. 2022 saw engagement with over 100 of our closest supply partners, across a scale of size and sector (from sole traders to listed companies, from planning agencies to contractors), to enable them to measure their carbon footprints. Through a series of campaigns, workshops and meetings, we now have actual supplier emissions reporting for 26% of our supplier spend.
This improves the accuracy of our emissions reporting and ultimately helps us to better manage our joint impact. Through 2023 we will broaden and strengthen this engagement, supporting our partners in emissions reduction activities and working towards our net zero target.
TARGET
Supplier consolidation, zero-emission transport, and EV charging infrastructure by 2030
During initial public consultations, air quality was identified as the most important local environmental concern. We are addressing this through a three-pronged approach: reducing vehicle journeys, encouraging zero-emission transport, and supporting this with relevant infrastructure.
In 2022 air pollution continued to improve in Chelsea. Whilst the annual maximum level of nitrogen dioxide did not change year-on-year, it was 16% lower than 2019 levels4. In partnership with Breathe London (a network of air quality sensors across the capital, run by the Environmental Research Group at Imperial College London), we sponsor two sensors on the Estate to measure nitrogen dioxide and PM2.5. These indicate particulates on Sloane Street are half that of the UK target, but still double the goal set by the World Health Organisation. We will continue to use these sensors to monitor air quality throughout the Sloane Street public realm improvement works and beyond.
An extensive freight and logistics survey of Chelsea retailers was launched this year in collaboration with the King’s Road and Knightsbridge Partnerships. 250 commercial occupiers completed the survey, which will identify opportunities to reduce pollution and congestion over the long-term, as well as improve waste management in Chelsea. We will be sharing results and recommendations with our occupiers in 2023 and will use this to seek to create a lasting positive impact to make the neighbourhood a cleaner and less congested place to live, work and visit.
In collaboration with Cross River Partnership, we engaged five suppliers who regularly drive vehicles within the Estate. By monitoring vehicle movements for two months, we were able to identify the most suitable electric vehicle replacement, offer constructive and specific advice on payloads, charging and financial models, and the most suitable locations for charging infrastructure. This resulted in three suppliers commencing the transition of their fleets to electric vehicles sooner than originally planned, reducing airborne pollutants and emissions.
“We recognise the urgent need to decarbonise the construction industry. Measuring and reporting our carbon emissions helps us to ensure that we are utilising every opportunity to minimise our environmental impact, protects the health and wellbeing of our operatives, promotes accountability and helps us to track progress towards our net zero target.”
– PJ Harte, Restoration and Refurbishment Contractors
“Measuring our carbon footprint is allowing us to identify hotspots, which we are working in collaboration with Cadogan to reduce over time.”
– Oakwood Property Services Ltd
To reduce the number of large waste vehicles and eliminate unsightly waste left on our streets, we have introduced a waste consolidation point and e-cargo bike programme. While focusing initially on Sloane Street, this facility for waste storage and sorting enables rapid and zero-emission waste collections, improving air quality as well as reducing noise and congestion. Waste consolidation schemes like this already benefit 36% of Cadogan occupiers, reducing emissions from waste collection by 35%.
Alongside our extensive public realm improvement works, this initiative will help to ensure that Sloane Street becomes a cleaner, greener and more beautiful luxury retail and leisure destination.
The environmental and social benefits provided by nature are numerous5 – from improving air quality and stabilising air temperatures, absorbing carbon and regulating flood waters, to mental and physical health benefits.
From a baseline Urban Greening Factor6 of 0.18, we have to date achieved a 12.3% increase to 0.20, alongside the creation of an additional 540m2 of green space.
Our approach has long focused on climate resilience, acknowledging that this requires a transition to ‘nearnative’ species and a holistic, systematic approach. This does present challenges, such as how we improve bare ground cover under trees without extensive watering to help plants establish.
By partnering with academic specialists, including the Natural History Museum, Professor James Hitchmouth and Dr Mark Spencer, we have set a biodiversity baseline from which to improve across our 14 gardens. Through 2022, our biodiversity focus has included the introduction of ponds and expansion of wildflowers and pollinator-friendly planting. Whilst a small intervention, natural ponds bring a significant benefit to local wildlife – and have enabled frogs to thrive in this small corner of Chelsea.
Building on the success of the Heritage Pocket Forest on Pont Street planted in 2021, our second "rewilding" project in partnership with Louis Vuitton, Moët & Chandon and SUGi resulted in 240m2 of previously hard surfaced land planted with 780 trees and shrubs. Located at the north end of Chelsea Square between the Royal Marsden and Royal Brompton hospitals, the Serenity Pocket Forest aims to create a connection with nature and an oasis of calm for hospital workers, visitors and local residents alike –providing health and wellbeing benefits in addition to environmental gains.
“Our mission is to restore native ecosystems in cities around the world, providing an antidote to the monoculture tree planting we often see. One small ‘pocket forest’ supports a diverse ecosystem of pollinators while locking in carbon and can grow to the density of a 100-year-old forest in about 20 years.”– Elise van Middelem, Founder of SUGi5 Natural England, Ecosystem Services 6 The Urban Greening Factor is a measure of how ‘green’ a space is, scored from 0 (impermeable paving) to 1 (lush green forest). Above A map by artist Cierra Block, celebrating Chelsea’s iconic trees Opposite Local school children get involved with planting a pocket forest
A major transformation of Sloane Street has begun, with the aim to create a stunning green boulevard spanning from Knightsbridge to Sloane Square, due for completion at the end of 2024. The £46 million investment includes significant widening of the street’s pavements, along with a magnificent planting scheme, elegant street furniture and enhanced lighting while subtly "designing in" additional security measures, to create a more welcoming environment for pedestrians. Planting is being overseen by multiple Chelsea Flower Show winner,
Andy Sturgeon, who will follow a "royal" colour palette of rich maroons, reds, purples and blues for the diverse and climate-resilient mix of flowers, shrubs and over 100 new trees.
With the project’s partners committed to a more sustainable future, the whole life of the scheme is designed to be low carbon. In addition to the significant planting on the street, a newly cultivated "pocket forest" (created in a partnership between Cadogan and Louis Vuitton) extends the greening, beehives and ponds in Cadogan Place Gardens encourage biodiversity, and new waste collection bikes are taking trucks off the road and further supporting the improvement of local air quality.
At the heart of a residential square and adjoining two hospitals (the Royal Brompton and Royal Marsden) the "Serenity Pocket Forest" has resulted in 240m2 of previously hard-surfaced land planted with 780 trees and shrubs.
The pocket forest was first displayed at the entrance to Chelsea Flower Show in 2022, illustrating how minimal urban space can create maximal biodiversity, reintroduce indigenous species and reconnect people with nature in our cities.
It is the second time that SUGi, the globally renowned organisation dedicated to restoring 100% native forests in urban spaces, has joined forces with Louis Vuitton and Cadogan to increase the neighbourhood’s biodiversity and contribute towards healthier air quality (our first project saw a pocket forest planted on Pont Street in Chelsea in autumn 2021). With the intention of becoming selfsustaining withing three years, this project is a blossoming example of urban rewilding and ecological sustainability.
Innovative technology offers significant opportunities to help tackle global challenges. Through 2022 we partnered with Gentian to use satellite data to remotely assess viability for living roofs in Chelsea. This is an essential first step in greening our buildings – taking a portfoliolevel, science-based approach to deliver the greatest impact. We expect to install our first living roofs in 2023.
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Our approach focuses on resource circularity, ensuring materials are sustainably sourced and then have as many lives as possible – from designing for longevity, to connecting materials to waste streams to maximise recycling.
Waste on the Estate comes from both construction activities and the day-to-day operations of our occupiers and public spaces. Construction waste volumes vary significantly, but generally have a much higher recycling rate – our focus here is to increase the quality and quantity of data we get from our smaller contractors and reduce waste generation overall through considered focus on material retention and reuse at the beginning of projects.
Operationally, recycling rates are more challenging to influence, but we continue to work in close partnership with our occupiers to provide them with the recycling options they need, as well as focus on optimising bin positioning and signage in the public realm to encourage more effective recycling. We introduced food waste recycling at both Duke of York Square and Pavilion Road in 2022, as well as introducing coffee cup recycling, cartons and flexi-plastics. The introduction of new drinking water fountains in Duke of York Square and on Sloane Street aims to reduce single-use plastic and waste, supporting our virtually single-use plastic free Fine Food Market and programme to tackle single-use plastic across the Estate.
In 2022 there was a 53% increase in the Estate’s operational recycling rate and we maintained over 90% recycling for construction projects. We send zero waste to landfill, and waste not recycled is sent to energy recovery.
Our aim is to reduce the volume of total waste produced on the Estate, and maximise reuse and recycling, in accordance with the circular economy. This requires a holistic approach: working in partnership with retailers to understand what materials they use and dispose
of (particularly packaging), and then providing targeted waste solutions. Through 2022 this led to the introduction of new waste streams, including food and cartons, and impacted purchasing decisions of retailers, away from plastic and towards recyclable and reusable items. This not only improves recycling rates but also streamlines processes, reduces vehicle journeys, and aims to reduce costs.
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Reducing water usage remains one of the most challenging targets in our Chelsea 2030 strategy, as 94% is consumed by occupiers and is therefore outside of our direct control. However, as a resource under increasing pressure from climate change, addressing water use and conservation remains vital.
From a baseline of 490,683m3 in 2019, we have achieved a water use reduction of 10%. Despite returning to normal operations following two abnormal COVID years, we saw a 9% reduction in occupier water consumption in 2022.
Together with climate resilient planting requiring less water, weather-sensitive irrigation systems, and highly water efficient cleaning, we continue to review our processes and standards across the Estate to reduce water consumption – achieving a 54% reduction in landlord water consumption since 2019.
With 68% of our water footprint coming from commercial occupier consumption, working in partnership is essential to understanding and reducing consumption. Cadogan has commissioned a series of water audits for commercial occupiers to identify opportunities for water (and associated energy) savings.
Simple cost-effective interventions identified include equipment and control updates, leakage remediation and pipe insulation. We will be rolling out these audits to commercial occupiers throughout 2023, to reduce energy and water wastage across the Estate.
Opposite Greenhouses in Cadogan Place Gardens
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Enjoying the fountains at Duke of York Square
This GRI-compliant report follows the GHG Protocol, and UK Green Building Council and Better Buildings Partnership Climate Change Commitment frameworks for carbon reporting.
All environmental targets reflect the operational boundary of The Cadogan Estate, including all Cadogan Group Limited owned buildings and investments. In 2022, 6 new properties were acquired and added, and 54 were sold therefore removed from the reporting scope.
Scope 1 emissions are direct emissions from activities controlled by us that release emissions into the atmosphere, and scope 2 emissions are indirect emissions associated with our consumption of purchased energy. Cadogan’s scope 1 comprises emissions from natural gas, diesel, fuel oil and refrigerant gases, and scope 2 emissions are from electricity purchased for common areas and shared services. All material sources of scope 1 and 2 emissions are reported, with only 2% of electricity and 39% of gas consumption estimated. Fuel oil is reported where information is available, but the small data gaps are not material to total impact. Energy is reported in kWh and converted to tCO2e using location-based DEFRA emissions factors, with no normalisation applied. Intensity metrics refer to the floor area served by the energy measured, taking note of where electricity might only supply common parts but gas supplies whole buildings.
Scope 3 emissions are those that are a consequence of our business activities, but which occur at sources we do not own or control. The GHG Protocol identifies 15 categories of which 9 are relevant to us. The table below describes how each scope 3 category is treated in our reporting. In 2022 we made a significant effort to increase the percentage of actual data used in scope 3 reporting, meaning that 30% of scope 3 emissions in 2022 are based on actual utility data rather than estimated. This includes actual data covering 36% of occupier space and 26% of supplier spend.
Scopes 1 and 2 calculation methodologies have remained the same as previous year’s reporting, and scope 3 has been updated as follows:
- Upstream emissions now use the US EnvironmentallyExtended Input-Output (EEIO) emission factors rather than Quantis factors, in order to improve the accuracy of reporting given their improved granularity and more recent issuance. This has led to a 10-fold decrease in previous emissions estimates, and therefore we have restated relevant emissions for every year since our baseline of 2019.
- Cadogan Income Fund properties are accounted for in scope 1 and 2 (as direct managed properties) rather than scope 3 (as investments). With a carbon impact of 16 tCO2e, this has not required a restatement of previous years.
- FERA (Fuel- and Energy-Related Activities) emissions for scope 3 categories (development energy, occupier energy, business travel, commuting, and other transport) are now accounted for within those scope 3 categories, rather than in the FERA category, according to best practice.
- Water emissions from development activity, investments and occupiers are now excluded, according to best practice. Water consumption is still measured and reported as part of or water reduction target, but exclusion from the footprint led to a 1.5% decrease in occupier emissions and a restatement.
- Commuting now includes the new DEFRA factor for working from home, replacing our own estimation methodology used in previous years. With only 0.2% of emissions coming from this category, no restatement has been made.
- Occupier emissions have been restated, with an improvement in floor area data and vacancy rates resulting in better estimations. The same BEES benchmark has been used as in previous years where actual data is not available.
More detail on our scope 3 emissions calculation methodology can be found on the next page.
This category includes emissions from developments: site energy (including FERA), waste generation, and embodied carbon of materials used in construction. We work with a consultant to calculate the total embodied carbon emissions for each medium and large development, with these emissions reported in the year of project completion. Where embodied carbon data is not available, emissions are calculated by multiplying procurement spend by EEIO emission factors for each relevant economic sector of spend. Site energy and waste data are reported per project using data provided by relevant contractors. Purchased
Supplier-reported emissions (pro-rata for turnover derived from Cadogan activities) are calculated from energy reporting and DEFRA emissions factors. Where primary supplier data is not present, emissions are calculated by multiplying procurement spend by EEIO emission factors for each relevant economic sector of spend. Landlord
Emissions from landlord-purchased water, including water subsequently consumed by occupiers. This excludes water used in construction activities and water procured directly by occupiers, but includes properties managed by a third party who buy water on Cadogan’s behalf. Actual consumption in cubic meters is converted into emissions using location-based DEFRA emissions factors. Capital
This category reflects emissions from capital goods purchases made by Cadogan in 2022, including but not limited to new vertical transport, HVAC equipment and machinery. Emissions are calculated by multiplying procurement spend by relevant EEIO emission factors – noting to deduct spend from supplier emission estimates above to avoid double counting. Fuel
activities Yes
Upstream transportation & distribution Yes
Waste Yes
Transmission and distribution (T&D) and well-to-tank (WTT) losses associated with landlord-procured electricity and natural gas. This excludes FERA associated with Scope 3 energy (development energy, occupier energy, business travel, commuting, and other transport), as this is included with the respective scope 3 energy emissions figures for those categories.
This category includes emissions generated from the transport of materials delivered to, and waste removed from, our 2 major construction sites. Data is not extrapolated to medium and minor sites. The calculation multiplies primary transport data by the relevant DEFRA emissions factor, and includes FERA.
Emissions associated with waste produced by the landlord, and occupier where reported. Where we don’t have tenant reported waste data, we have not extrapolated across the portfolio. Emissions exclude development and refurbishment waste, which is included in Scope 3: Purchased Goods & Services –Developments. Emissions are calculated by multiplying weight of waste by the relevant DEFRA emission factor for different treatment methods.
Calculated by multiplying distance and type of travel by relevant DEFRA emission factor, and includes relevant FERA.
Emissions associated with the commute of Cadogan employees and homeworking, as reported with no extrapolation. Calculated by multiplying distance and type of travel, and number of homeworking days, by relevant DEFRA emission factor.
Upstream leased assets No
Downstream transportation & distribution No
Processing of sold products No
N/A: Cadogan does not lease assets, so there are no emissions to report in this category.
N/A: Cadogan does not manufacture products, so there are no emissions to report in this category.
N/A: Cadogan does not manufacture products, so there are no emissions to report in this category. Use of sold products No
End-of-life treatment of sold products No
Downstream leased assets Yes
N/A: Cadogan does not manufacture products, so there are no emissions to report in this category.
N/A: Cadogan does not manufacture products, so there are no emissions to report in this category.
Emissions associated with occupier-purchased energy (including FERA), and refrigerants where reported. Occupier water emissions are excluded, and occupier waste is included in Scope 3: Waste. Where actual energy consumption data is available, emissions are calculated by multiplying metered consumption by relevant DEFRA emission factors. Where no actual data received from occupiers, emissions are calculated by multiplying the Net Lettable Area by the most relevant Building Energy Efficiency Survey (BEES) benchmark.
Franchises No
N/A: Cadogan does not have any franchises, so there are no emissions to report in this category.
Investments Yes
Emissions from the four Cadogan owned hotels is calculated by multiplying actual metered energy consumption by relevant DEFRA emission factors, including FERA.
Our Chief Executive has ultimate responsibility for climate-related risks and opportunities. The Board has overall responsibility for oversight of risk and opportunities, undertaking an annual assessment of principal risks facing the business – which includes climate-related risks. Climate-related risks and opportunities are considered in long-term strategy setting, acquisitions and investment decisions.
The Board is updated on sustainability and climaterelated performance twice a year, which this year has focussed on decarbonisation and a detailed plan to manage risks of transitioning to a net zero estate.
Ongoing ownership and management of all sustainability and climate-related risks and opportunities is led by the Head of Sustainability, with support from all departments. Our commitment to address climate-related risk and generate value for our community is embedded across the business, with all teams owning relevant targets and key performance indicators of Chelsea 2030 reported internally on a quarterly basis
A dedicated Decarbonisation Working Group provides specific oversight and coordination to estate decarbonisation and the journey to net zero, reporting to the Board annually.
We recognise the importance of the Taskforce for ClimateRelated Financial Disclosures (TCFD), with Cadogan’s 2022 Annual Report and Accountsincluding relevant TCFD recommendations as follows:
GOVERNANCE
STRATEGY
RISK
Strategic Report: page 87
Strategic Report: pages 14 to 17, and 64 to 68
Strategic Report: pages 45 to 47
METRICS & TARGETS Strategic Report: pages 64 to 68
We have obtained external limited assurance on 2022’s scopes 1 and 2 carbon emissions (metrics identified with * in the tables above), in accordance with ISAE 3410 – please see BDO’s Assurance Statement here. In addition, we have undertaken pre-assurance/ readiness for Scope 3 this year and intend to obtain limited assurance for principal scope 3 categories next year.
