Greenhouse gas emissions

Prudential plc - Greenhouse Gas Emissions Statement

We have compiled our greenhouse gas emissions data in accordance with the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013.

We have included full reporting for all Scope 1 (direct emissions such as combustion of gas for heating, fugitive emissions and emissions from owned vehicles) and 2 (indirect emissions for consumption of electricity, heat or steam) emissions where operational control of the emissions of the sources concerned was demonstrated. We have also reported on a number of Scope 3 emissions as a matter of best practice. These are emissions arising as a consequence of the activities of the company, but occur from sources not owned or controlled by the company.

For the purpose of the 2015 report these Scope 3 emissions include: water, waste generated in operations in the UK and US, and business travel booked from the UK. We are continuously working with our business units to review the extent of our Scope 3 reporting and increase where practicable.

Assessment parameters

Baseline year: 01 October 2014 - 30 September 2015

Assurance: Deloitte LLP has provided limited assurance over selected environmental metrics in accordance with the International Auditing and Assurance Standards Board's (ISAE3000 (Revised)) international standard. Please refer to the 2015 Prudential corporate responsibility report for further detail.

Consolidation approach Operational control.
Boundary summary All entities and all facilities under operational control (including those owned) were included.
Consistency with the financial statements This period does not correspond with the Directors’ Report period (January 2015 to December 2015). The reporting period was brought forward by three months to improve the availability of invoice data (which often lags by one month or more after the usage period) and reduce the reliance on estimated data. Prudential owns assets which are held on its balance sheet in the financial statements, over which it does not have operational control. These are excluded from the data below. Assets not included on the balance sheet but held under an operating lease and where we have operational control are included.
Emission factor data source DEFRA 2015 - obtained from
Assessment methodology The Greenhouse Gas Protocol Revised ‘A Corporate Accounting and Reporting Standard (Revised Edition)’ 2004.
Materiality threshold Five per cent
Intensity ratio Tonnes of Carbon Dioxide Equivalent per meter squared (Net Lettable Area)

Greenhouse gas emissions source

Emissions source 2015 2014 2013
Scope 1 Combustion of fuel and operation of facilities
(Tonnes CO2-e)
Occupied Estate 8,409 8,486 6,019
Investments 8,845 10,044 13,062
Scope 2 Electricity, heat, steam and cooling purchased for
own use (Tonnes CO2-e)
Occupied Estate 62,695 61,550 65,730
Investments 28,691 39,573 42,079
Scope 1 and Scope 2 Emissions (Tonnes CO2-e) Occupied Estate 71,104 70,036 71,749
Investments 37,536 49,617 55,141
Total Scope 1 and 2 (Tonnes CO2 -e) 108,640 119,653 126,890
Normalised emissions Normalised Scope 1 and 2 (kg CO2-e/m2) Occupied Estate 132 135 139
Investments 10 13 15
Total Scope 1 and 2 (kg CO2-e/m2) 25 28 31
Scope 3 Waste generated (UK and US) (Tonnes CO2-e) Occupied Estate 77 201 166
Investments 244 387 840
Water consumption (Tonnes CO2-e) Occupied Estate 80 - -
Investments 174 - -
Air travel (Booked from UK only) (Tonnes CO2-e) Occupied Estate 13,451 9,818 9,398
Investments - - -
Other business travel (rail and vehicle) (Tonnes CO2-e) Occupied Estate 56 50 19
Investments - - -
Total Scope 3 Emissions (Tonnes CO 2-e) Occupied Estate 13,644 10,069 9,583
Investments 418 387 840
Total Scope 3 (Tonnes CO2-e) 14,082 10,456 10,423
Scope 1,2 and 3 Total Scope 1, 2 and 3 Emissions (Tonnes CO2-e) Occupied Estate 84,768 80,105 81,332
Investments 37,954 50,004 55,981
Total Scope 1, 2 and 3 (Tonnes CO2-e) 122,722 130,109 137,313
Normalised emissions Normalised Scope 1, 2 and 3 (kg CO2-e/m2) Occupied Estate 157 154 157
Investments 10 13 16
Total Scope 1, 2 and 3 (kg CO2-e/m2) 28 30 33

Following a detailed review of the Group's approach to reporting emissions from investments, all investment data has been adjusted. Due to the changing size and nature of the investment portfolio, absolute and normalised comparisons between years are not comparative. Net lettable area is reported for all properties held within the reporting period. In line with best practice environmental data is collected for properties at acquisition and at date of divestment therefore comparisons for absolute change and normalised change are not directly comparative. For more information on sustainability progress, please refer to the annual M&G Real Estate Responsible Property Investment report for further details, including like-for-like comparisons.

Overall Prudential reported mandatory emissions have reduced by 9.2 per cent from 2014 levels.

Within our operational estate, 2015 Scope 1 and 2 emissions have increased by 1.52 per cent from 2014 levels. This increase represents the following regional variances.