Sustainability
We aim to create positive outcomes for society while generating sustainable cash flows for our shareholders.
As a responsible, long-term investor, good environmental, social and governance (ESG) practices are central to how we manage our portfolio.
We have developed a three-pillar ESG framework, along with key metrics so we can track our progress and report openly and transparently to our stakeholders. Our ESG targets include achieving net zero by 2045.
Key statistics at 31 December 2023
Tenant regulatory ratings
(good or better)1
80.6%
2022: 78.0%
+2.6%
Carbon emissions intensity
(KgCO2 per m2)2
54kg
2022: 50kg
+8.0%
Scope 1 & 2 carbon emissions
(KgCO2)3
7,440kg
2022: 7,600kg
-2.0%
EPC B or above
(English equivalent)4
57%
2022: 53%
+4.0%
- Percentage of homes rated good or better by the Care Quality Commission or equivalent in Scotland, Wales and Northern Ireland.
- Scope 3 relates to CO2 emissions from downstream leased assets.
- Scope 1 and 2 relate to the Investment Manager’s CO2 emissions.
- Energy Performance Certificate ratings based on English and Wales equivalent.
Creating social value is intrinsic to our business. With an ageing population, care homes for the elderly are a critical part of the UK’s health infrastructure. They play an increasingly vital role in preventing hospital admissions in the first place and helping to free up hospital beds by taking patients awaiting discharge. We work in partnership with our tenants to enable high-quality care for their residents, that remains affordable for the long term.
At the same time, we engage with our tenants to identify and deliver opportunities to reduce the environmental impact of the portfolio and ensure it is resilient to climate change.
Our ESG framework
Click on a pillar to see our objectives, how we intend to reach those objectives and the metrics we’ll use to measure our progress.
Each pillar also contributes to one or more of the UN Sustainable Development Goals.
Publications
Latest sustainability report
Download our latest sustainability report and our other ESG-related reports.
Reports
Title
Document
Policies
Title
Document
Pillar 1: Strategic investment in our portfolio to improve our environmental impact
Our objectives
Ensure all assets achieve a minimum of EPC Grade C by 2026 and a minimum of B by 2030
Ensure our portfolio is net zero by 2045
Ensure our portfolio is resilient to climate change
How we do it
Investing in assets that are highly energy efficient or have the potential to be with further capex
Modelling the carbon footprint of the portfolio and implementing our net zero strategy and plan
Investing in asset management projects to improve energy efficiency
Climate change scenario planning
Metrics
Percentage of assets with EPC of C or higher
Number of assets with improved EPC
Carbon intensity of portfolio in kg CO2e/m2/year
Embodied carbon associated with developments and extensions
Percentage of assets with green leases
Absolute carbon emissions
UN SDG alignment
Aligned with the following UN Sustainable Development Goals:
Pillar 2: Having a positive impact on the people living and working in our homes
Our objectives
Support health and well-being of vulnerable people
Ensure access to quality and value for money care, for both the publicly funded and private-pay sectors
How we do it
Investing in quality buildings and actively monitoring care provider performance
Developing close partnerships with operators through formal and informal engagement
Conducting detailed due diligence on long-term need for care
Maintaining balance of private and publicly funded residents
Metrics
Tenant satisfaction survey results
Affordability of rental payments to tenants
Proportion of publicly funded and private-pay residents
Independent impact report
CQC ratings
UN SDG alignment
Aligned with the following UN Sustainable Development Goals:
Pillar 3: Robust governance and transparent reporting to all stakeholders
Our objectives
Be transparent with all stakeholders
Maintain robust corporate governance
Proactively listen and engage with stakeholders
How we do it
Providing clear disclosures on operational performance
Maintaining a supplier code of conduct and anti-money laundering and bribery policies
Managing the business in accordance with our Environmental, Social and Governance policy
Engage with tenants on good governance practices
Metrics
Investment Manager’s UN PRI submission
EPRA sustainability rating
UN SDG alignment
Aligned with the following UN Sustainable Development Goals:
