In line with our commitment to achieving a net zero carbon portfolio by 2030 we currently offset any residual embodied carbon in our developments. This is the estimated embodied carbon that remains once we have done everything that we practically can to reduce embodied carbon through material re-use, design efficiency or materials selection and specification.
Our Developments Embodied Carbon Offset Policy sets out the core criteria required for carbon credits and our additional principles and priorities when selecting projects.
We prioritise purchasing carbon credits from high quality nature-based projects as these often provide additional environmental benefits and co-benefits to the local communities. In addition, we partner with carbon market specialists and conduct a thorough due diligence process on the projects prior to selection.
We recognise that the voluntary carbon market is fast-evolving and so this strategy is subject to regular review as guidelines and our preferences evolve. We are also exploring local opportunities for carbon offsetting to complement our strategy.
Having done all we can to minimise embodied carbon, we pre-purchase carbon credits equivalent to the residual embodied carbon in our committed developments. Pre-purchasing carbon credits helps ensure that we can select our preferred projects and provides greater certainty over the costs. This is in line with the rising price of carbon credits being identified as a long term risk.
Once a development has reached RIBA Stage 5 (Manufacturing and Construction), we retire approximately 50% of the pre-purchased carbon credits with the remainder being retired at practical completion.
1 Triton Square offsetting projects
Teak afforestation, Mexico: Located across the states of Chiapas, Nayarit and Tabasco, the project covers 4,270 hectares and will expand by an additional 1,200 hectares each year. The project delivers c. 390,000 tonnes of emissions reductions each year and aligns with the following SDGs:
Community reforestation, Ghana: Restoring degraded forest reserves in Ghana with teak, indigenous trees and natural forest in riparian buffer zones. Project works closely with local farmers, some of whom are employed on the project and others are able to grow crops. Aim is to expand by 1,000 hectares each year. Aligns with the following SDGs:
UK forest creation: Supporting the planting of 23,000 trees through the Woodland Carbon Code. This was an additional commitment and not part of our formal offset at 1 Triton Square. Aligns with the following SDGs:
100 Liverpool Street offsetting projects
Rainforest in the Tibetan plateau: Project restoring over 30,000 hectares of degraded land and planting native trees in an area hailed as the ‘water tower of Asia’. Along with carbon sequestration, this will protect local communities from encroaching deforestation and support thousands of jobs to plant and maintain the forests.
Teak forest in Mexico: Project expanding a 4,270 hectare teak plantation by 1,200 hectares annually. This will grow high value, sustainable timber and sequester around 390,000 tonnes of carbon each year. All water will be obtained through rainfall, so no irrigation will be required. It will promote tree plantation and afforestation in local communities.
UK woodland creation: Supporting the planting of 150,000 trees in Cumbria and Scotland, prioritising biodiversity. Other benefits include flood alleviation and job creation. This project was an additional commitment and not part of our formal offset at 100 Liverpool Street. It is aligned to the Woodland Carbon Code and with the following SDGs: