Listed London developer GPE caught up with CoStar News to provide a progress report on its demanding targets on diversity, the environment and social impact, as it launched its updated statement of intent, three years on from the first.
Speaking to CoStar News, GPE's chief financial officer Nick Sanderson and sustainability and social impact director Janine Cole described a number of areas where it is upping the ante for sustainability, social impact and diversity and inclusion in ways that are often market-leading for real estate.
On diversity and inclusion GPE says it wants to replicate the make-up of London's population where just over 40% of people describe themselves as "non-white". GPE has set a five- to six-year goal to have more than 40% of its people being non-white.
It has also set a target to have 20% of the management team non-white by 2025 and it aims to improve gender targets, from today’s 29% female representation to 40%.
Janine Cole, sustainability and social impact director, added that GPE is "integrating climate resilience across all aspects of the business, embedding nature throughout the four pillars of our approach, implementing circular thinking within all our projects and embracing innovation within the design, construction, fit-out and operation of our spaces".
Cole is overseeing the next prototype development at 2 Aldermanbury Square. She describes the strides the project is taking in circular development: "We are desconstructing the building and taking the steel beams which we can use in another development in the West End at French Railways House."
Cole says opportunities have been identified to reduce the project’s embodied carbon by 36% from the initial design. These include: reusing steel from the existing building for roof plant areas and trimmer steels; sourcing steel from electric arc furnaces powered by renewable energy; optimising the thickness of steelwork in the structural columns with high-strength steel; using recycled raised access flooring; increasing the use of cement alternatives in concrete; and powering all construction works with alternative fossil-free fuels and renewable electricity.
All 321,100 square feet has been preleased to international law firm Clifford Chance. Construction is expected to complete in December 2025.
GPE has two strategies: the Roadmap to Net Zero from 2020, where it aims to become carbon net-zero by 2030, and a social impact strategy published just over a year ago, which aims to deliver at least £10 million of social value throughout its estate by 2030.
The twin strategies have four pillars : enabling healthy and inclusive communities; championing diverse skills and employment opportunities; supporting the growth of local businesses; and connecting people with urban nature.
A clear success has been the recent sale of its first net zero carbon development at 50 Finsbury Square for £190 million and a 3.85% yield to Germany's Wirtgen Invest Holding. Sanderson said it was the first deal completed in London there would have been a penalty paid to the investor if a net zero scheme had not been delivered. "We had to go through a very significant certification process and I think this really is a first," he said.
Sanderson says to secure major prelets with leading occupiers companies must now hit high watermarks for sustainability. He says the company is now focused on working more closely with its supply chain and ensuring it understands targets around social impact as clearly as it can articulate net zero goals.
On social impact, so far GPE has partnered with local enterprises including SEND Coffee, which provides employment opportunities for people with special educational needs and disabilities, expanding the concept across its sites and using it at its events. It has also worked with Pretty Little Cupcakes and Made in Marylebone.
"We’ve created more communal spaces within our assets, including The Hickman, as an exemplar hosting parents’ groups in its Makers’ Café."
GPE's updated Sustainability Statement of Intent was published on Monday alongside a new Brief for Creating Sustainable Spaces. Since the launch of the statement of intent in 2020, GPE says it has:
- Achieved reduction in energy intensity of 32.2% when compared with its 2016 baseline;
- Achieved reduction in carbon intensity of 66% against its 2016 baseline;
- 43% of its portfolio is now rated as EPC B or above;
- The allocation of £768,000 to its decarbonisation fund since its creation in 2021, through its internal carbon price of £95 per tonne;
- Delivery of its first net zero carbon building at 50 Finsbury Square,;
- A 62% increase in biodiversity net gain across its portfolio due to the development of Hanover Square, W1 and subsequently another 8.6% uplift against its re-baselined target; and
- The creation of £2.4 million of social value.
The Brief for Creating Sustainable Spaces replaces its Sustainable Development Brief, first launched in 2018. The brief now applies to all spaces whether and sets out performance requirements for its supply chain.
Toby Courtauld, chief executive, GPE, said in a statement that the launch of the new briefs underpins a commitment to evolving its approach to sustainability to deliver the "innovative, climate resilient spaces our customers demand – as well as meeting our own targets for the future".