Highlights and Lessons Learnt

HIGHLIGHTS

• The Scottish and Southern Green electricity contract (Climate Change Levy exempt) negotiated by Buying Force became a reality – 22,226 tonnes of CO₂ were averted in 2006 alone, representing 26% of total portfolio’s CO₂ emissions for the year.
• We worked with peers and the British Property Federation/Carbon Trust to develop a scheme by which the operational energy performance of properties could be assessed, benchmarked and improved - culminating in the Landlord's Energy Statement (LES) which will be trialled extensively by the UK property sector during 2007/08 as part of the LES-TER project (Landlord's Energy Statement - Tenant's Energy Review).
• Three managed properties were certified to the ISO 14001 standard, as part of our ongoing commitment to environmental management.
• Buying Force continued an active programme of monitoring and engagement with our suppliers on matters of sustainability.
• A Joint Venture with the Berkeley Group was launched. St Edward Homes is set to become a major player in mixed use residential regeneration.
• Agreement was secured to launch the PRUPIM ‘Improver Portfolio’ – a fund of 25 properties (valued in excess of £500 million) with the aim of improving sustainability performance and enhancing value.
• There was a growing understanding amongst our staff about sustainability and its benefits, as demonstrated by improvements in sustainability-related PRUVIEW survey scores.
• We achieved an 18% volunteering rate at our Head Office. 
• Shopping Centre RIDDOR incidents fell by 16%.
We worked with peers and the British Property Federation/Carbon Trust to develop a scheme by which the operational energy performance of properties could be assessed, benchmarked and improved - culminating in the Landlord's Energy Statement (LES) which will be trialled extensively by the UK property sector during 2007/08 as part of the LES-TER project (Landlord's Energy Statement - Tenant's Energy Review).

LESSONS LEARNT

• Accountability is critical for ensuring sustainability target delivery. Only 54% of our 2006 targets were achieved at or above 75%. We know we need to work harder to ensure that ownership for the targets is embedded across the business, rather than viewed as being the responsibility of the PRUPIM sustainability team.
• The accurate measurement of environmental performance for a portfolio the size of ours represents an ongoing and significant challenge. We continue to seek new and improved ways of working with property managers and consultants to improve this important area of sustainability management.
• Whilst our focus remains firmly on the managed portfolio, given that this is where the most significant impacts occur, our own office impacts are also important. During 2006, our own office water use increased significantly, as did our air miles. Growing our business and reducing our footprint simultaneously continues to represent a key challenge – to us as to any other organisation.
• Our international operations represent a key challenge for PRUPIM. So far, we have focused our efforts on the measurement, targeting and reporting of our UK operations only. However, going forward it will be necessary to increase the scope of our accountability and reporting to encompass our growing overseas portfolio.