The management of environmental issues is an integral part of managing the total risks faced by our business. Part of our strategy to mitigate against climate change includes:
- Measuring, reporting and improving environmental performance of our global operations; and
- Improving the indirect environmental impacts as an asset owner.
In addition to our own internal reduction targets, we also participate in the Carbon Disclosure Project. This survey captures data on a whole range of different aspects of an organisation’s impact on the global environment. Over the last three years we have been able to provide increasing levels of detail and this has improved our disclosure score from 70 per cent in 2013 to 97 per cent in 2015, and our performance rating from D to B.
We are also a member of ClimateWise, which is a voluntary leadership group driving an insurance industry response to the transition to a low-carbon, climate-resilient economy. As part of our membership we report, and are independently measured, against six core principles. During 2015 we were able to increase our score and ranked within the top 10 members. For more information read the latest ClimateWise report.
As a financial services business we recognise that one of the most significant direct impacts on the environment results from the operation of the properties we occupy and invest in.
Reducing our direct impact: occupied properties
We monitor and publish Group performance data for our CO2e emissions, water and energy use in over 400 sites across 24 countries.
We have strategies in place to reduce energy, waste generated, water consumption and paper use. In the past year, Prudential sourced 27 per cent of electricity from renewable or non-fossil fuel sources.
Reducing our impact: property investment portfolio
M&G Real Estate forms part of the M&G Group of Companies, the asset management arm of Prudential plc in the UK and Europe. Its approach to responsible property investment enables it to manage and respond to the growing range of environmental and social issues that can impact property values. It also helps M&G Real Estate to protect and enhance fund and asset performance for its clients.
Responsible Property Investment is integrated within M&G Real Estate’s day-to-day investment practices. It enables them to adapt and respond to the challenges and opportunities posed by various issues, such as rising energy and resource costs, greater legislative demands and stronger tenant and investor requirements.
M&G Real Estate’s focus on embedding responsible property investment principles into its investment activities has achieved some significant results. In the past year, M&G Real Estate has:
- Reduced global energy consumption and carbon emissions by 3 per cent at properties held consistently for two years;
- Achieved four Green Stars in the 2015 Global Real Estate Sustainability Benchmark survey in recognition of its market-leading performance; and
- Ensured that more than 640,000m2 of floor space has environmental certification, providing independent verification of its performance.
M&G Real Estate’s progress can be found in its annual responsible property investment report.