18 May 2021
McKay Securities Plc ("McKay") expands ESG commitment with launch of Net Zero Carbon Pathway
McKay Securities Plc ("McKay" or "the Company"), the only UK REIT specialising entirely in the South East and London office, industrial and logistics markets, announces an expansion of its ESG efforts through the launch of its 2021 Net Zero Carbon Pathway, which provides details of its ambitions to deliver operationally carbon neutral developments by 2030, and a fully net zero carbon business well in advance of the UK Government's target of 2050.
To achieve these goals, McKay will look to minimise embodied carbon on future construction projects, aligning itself with the RIBA Climate Challenge benchmark, and all new developments will be designed to achieve the most appropriate carbon benchmark or ESG certification at that time. With regards to its existing portfolio, McKay continues to upgrade the EPC ratings of assets over time in line with planned refurbishment works, in addition to continuing to work with occupiers to implement zero-carbon energy technology to eliminate all Scope 1 carbon emissions(1) across the portfolio by no later than 2040.
These ESG ambitions build on the Company's established track record, stemming from its initial sustainability strategy adopted in 2013, which was comprehensively updated in 2019. This current strategy identifies the Company's three long term priorities relating to environment, social and governance, and the material issues and objectives for each priority. Annual targets aimed at achieving these objectives are set and measured independently by JLL(1). The Company met 93% of these targets for the year ending 31 March 2021 and has also been awarded a Green Star from GRESB for the fifth year running.
McKay's most recent and high-profile development, 135 Theale Logistics Park, which was fully-let to Amazon within six months of completion, achieved a BREEAM Excellent rating, and utilises renewable energy generated by PV solar panels in the roof.
Tom Elliott, Property Director and Head of Sustainability at McKay, commented: "Sustainability considerations have guided our investment decisions for a number of years, and with the topic now firmly at the top of our occupiers' and investors' agendas, we believe that now is the right time to formalise our approach to carbon reduction across the business through the launch of our net zero carbon ambitions. We have already made substantial progress in tackling our carbon footprint, which we've reduced by 84%(2) over the past five years, and we will continue to build on this track record as we look to develop operationally net zero carbon buildings by 2030, and to upgrade existing assets to a net zero operation by 2040."
Progress on McKay's pathway to net zero will be reviewed and reported on at the end of each financial year. For this year end, TCFD requirements are not mandatory. However the Company has reported on TCFD in the 2021 Report & Financial Statements and will continue to do so on an annual basis.
McKay's full Net Zero Carbon Pathway report can be found in the latest Property News and the ESG sections of the Company's website https://mckaysecurities.plc.uk/esg/our-approach/
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1. Jones Lang LaSalle: Corporate ESG advisor
2. Like for like. Scope 1 emissions defined as direct emissions from company-owned and controlled resources (GHG Protocol). Scope 2 emissions
defined as indirect emissions from the generation of purchased energy, from a utility provider (GHG Protocol).
For further information, please contact:
McKay Securities Plc FTI Consulting
Tom Elliott, Property Director & Head of Sustainability Dido Laurimore, Talia Jessener
Simon Perkins, CEO 0203 727 1000
Giles Salmon, CFO mckay@fticonsulting.com
0118 950 2333
About McKay Securities
McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange. It specialises in the development and refurbishment of office, industrial and logistics buildings within proven markets of South East England and London. The portfolio at 31 March 2021 comprised 33 properties, valued at £437.90 million, located in established areas, predominantly along the M4 corridor, where McKay has deep expertise, with a focus on growing satellite towns benefitting from strong connectivity to London and robust demand amongst leading occupiers.
www.mckaysecurities.plc.uk
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