Redefine Properties Ltd

Redefine has set scope 1, 2 and 3 absolute emissions reduction targets for its South African operations, using guidance from the Science Based Targets initiative (SBTi). It plans to include its Polish operations in the future. The company’s main targets include a 67.2% emissions reduction by 2035 and a 90% emissions reduction by 2050 compared to 2019, without the use of offsets. Redefine has also set intermediate targets to reduce absolute emissions by 21% by 2025 and 42% by 2030 compared to 2019, to incentivise near-term actions. The company is considering the use of offsetting for buildings that cannot be converted to net zero. However, the company should clearly define the proportion of offsets when reporting its target and this should not exceed 10% in the long term to remain in line with the SBTi.

Redefine has made a commitment that all new buildings integrated into its portfolio will be net zero from 2030 and all existing buildings will be converted to net zero by 2050. Redefine should quantify the proportion of floor area it expects to renovate at different time intervals between 2022 and 2050 to allow for a meaningful projection of its future emissions performance. The company is projected to align with its 1.5°C carbon budget if it were to convert its existing buildings to net zero at a rate of approximately 3.5% per year. Moving forward, the company should extend its net-zero building commitment to include its portfolio in Poland as well.

Redefine plans to undertake climate change scenario analysis in 2023 and incorporate the analysis into its strategy from 2024 onwards. The company should conduct a thorough analysis that assesses multiple scenarios, including one that looks at a 1.5°C outcome. Moreover, the company can better inform its transition planning by expressing the results of the scenario analysis in financial terms across short-, medium- and long-term time horizons.

The company’s supplier code of conduct considers environmental, social and governance (ESG) factors and states that suppliers may need to quantify greenhouse gas (GHG) emissions. However, there is no evidence that the company integrates emissions reductions into the supplier selection process. In 2022, Redefine piloted a supplier sustainability audit on 15 companies to understand the ESG integration across its supply chain. The initiative will continue in 2023, but details of the sustainability audit are unclear. Redefine should encourage suppliers to disclose and reduce emissions. Engagement with suppliers is needed for the company to achieve its scope 3 emissions reduction targets, particularly from embodied emissions.

Redefine has set multiple scope 1, 2 and 3 absolute emissions reduction targets for its South African operations. The company has a long-term target to reduce its GHG emissions by 90% by 2050 across the value chain. Additionally, it has set intermediate targets for 2025, 2030 and 2035. The company’s targets use 2019 as the base year.

Redefine has committed to converting all existing buildings in its portfolio to net zero by 2050. In addition, the company plans all new building developments to achieve net-zero by 2030. In the short-term, Redefine plans to install additional solar capacity across its portfolio. The company also plans to incorporate environmental considerations into its tenant engagement regarding carbon reduction and energy use.

Redefine has invested R500 million (USD 28 million) toward solar generation. In 2022, the company’s total installed solar capacity increased to 30 megawatts (MW), representing 18% of its total electricity consumption. The company expects an additional 13.3 MW from solar projects under construction. In addition, the company estimates that it will invest a further R191.5 million (USD 10.6 million) towards solar projects in 2023.

The in-use emissions intensity of Redefine’s managed buildings decreased by approximately 18% between 2017 and 2020, before a small increase between 2020 and 2022. However, due to investment in solar installations, Redefine met 9% of its total energy requirement with solar power in 2022.

Redefine’s low-carbon transition plan is consistent across its operations in South Africa. However, in 2022, the company concluded a takeover of EPP, a property management company operating in Poland. Redefine has not yet incorporated EPP into its transition planning, but it plans to consolidate EPP into its reporting in 2023.

Redefine publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Redefine was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to re- and up-skill workers and stakeholders affected by the low-carbon transition, and it discloses the actions it takes in this regard. For instance, the company supports the upliftment of people from marginalised or vulnerable groups and facilitates the empowerment of small, medium and micro enterprises (SMMEs) especially those run and owned by women and previously disadvantaged people. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. However, no relevant disclosure was found of a process for identifying skills gaps for workers and affected stakeholders in the context of the transition.

No relevant disclosure was found to show if Redefine identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Redefine commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to raise human rights concerns.

Redefine commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all its workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to promoting gender equality and women’s empowerment.

Redefine commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in its individual tax jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, the company does not have a lobbying and political engagement policy, and it does not specify that it makes no political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.